As Sergey and I wrote in the original founders letter 11 years ago, “Google is not a conventional company. We do not intend to become one.” […]
We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant. […]
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences [and] Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. […]
Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.
If anything communicates Larry Page’s and Sergey Brin’s desire to move beyond search, this action does. Role clarity and organizational clarity both help in the pursuit of new opportunities. They’re not sufficient, obviously, but they’re useful. And clarity often leads to better focus or speed.
Expect other changes to happen at the business unit level and below, as leaders at different levels imprint more of their vision and goals on their organizations. Should apply to both mature and exploration-focused business units.
Update (August 11): Initially, I listed only 3 business units under Alphabet: Google, Ventures, and Capital. I corrected this error.