Google co founder Larry Page has returned as CEO of the company. He has been making a lot of decisions, such as promoting seven new executives to run the most important divisions, reporting directly to him in an effort to cut down on the time it takes to make important decisions.
One of the problems of any large business is the amount of red tape it takes to make daily decisions relating to the business. Larry Page has acted quickly, just a few days after returning into his role as Google CEO. His reorganisation is set to speed up various processes inside the upper echelons. He is trying to regain the drive and innovation that Google had when they started.
BGC partners analyst Colin Gillis said “Larry’s coming out of the gate blazing.” The 38 year old co founder promoted seven executives to run Google’s most important divisions and they are reporting directly to him, cutting out much bureaucracy which Page feels is slowing down development.
Page has changed the management team at the same time that Jonathan Rosenberg, a senior vice president who oversaw four of the executives, said he would leave Google.
Page feels that Google needs reinvigorating, especially with stiff competition now emerging, challenging various areas of the business. He also has a plan to tie 25% of the employee annual bonuses to the success of Google’s social networking initiatives.
Page was Google’s first chief executive before he handed the control to Schmidt in 2001 when the company was a barely profitable start up with only 200 employees. The pair, along with Sergey Brin, ran the company with Page calling the shots on many of Google’s most important product initiatives.
Google now generate $30 billion in annual revenue and have more than 24,000 employees across the globe.
John Lutz, senior research analyst at Frost Investment Advisors, said Larry’s decisions will be under the microscope over the next year or two, but it will be a while before we can really judge him on his ability to run the company.”
KitGuru says: The next year or two will be very important for Google