It was not long ago that many market leaders were described as superior in competition and immortal in various management books. Yet, many of these same companies have disappeared now. Why? Well, all living things eventually die. It’s like the human body; it renews itself by regenerating its DNA. It is this process that enables us to stay alive. But as we get older the renewing process in our body slows down, thus making the human body grow older. Aging leads to limited abilities in the human body; it’s the same for companies when their corporate DNA is not renewed. Without change and innovation, a company will not regenerate its corporate DNA and, as a result, it starts to slow down.
Google regenerated itself by allowing employees to use 20% of their working time (one day per week) to work on new projects and ideas. That 20% also motivates Google’s employees to work more effectively during the rest of the week. They call it “new projects”, but I would argue that moving is not an option for market leaders which want to stay alive. By working on its process of renewal, Google will grow its strength and defence capability.
Google maybe highly ranked by today’s business media, but as an organization it is constantly dying 24/7. Why? Its top management and talent will not be around in 5–50 years’ time depending on the circumstances and events Google finds itself in. If Google does not continue to attract new talent, its speed of development will slow down and eventually it will stop renewing itself. For predators it will be feeding time when Google’s evolutionary speed begins to slow down.
In evolution it is never a question of if they will slow down but it is always a question of when they will slow down.
Above from the defence part in the www.Sharkonomics.com book.
This is an awesome excerpt, and so true—this is why I have always said neither Google nor Facebook can be arrogant. Look at AltaVista, once the biggest website in the world.
Thanks Jack.
Happy you did like it. Winners that are arrogant, always end losing their momentum. Some of the biggest brands today are enormous arrogant.
But you Jack are truly humble (and still superb).
Stefan
Jack: I told Stefan on the phone about my reflection on using AltaVista back in the day. The same could happen with Google, with new search alternatives, e.g. Twitter, DuckDuckGo, WolframAlpha, Bing, etc.
I was learning from Google participation at the “Media Days” fair in Gothenburg, that Google+ is the v.2.0 of their business. I will send the link to your post to the management in Sweden! 😉
Good point Martin. Even if Facebook is bigg they do some mighty mistakes that are making them self the biggest treath. Most of today social media plattforms are not near good (they are created on fun but bad plattforms).
Stefan: I have seen a new kid on the block that is built from the ground up. You will hear about it in the near future… 😉
Talking about platforms, have your read Phil Simon’s book, The Age of the Platform: How Amazon, Apple, Facebook, and Google Have Redefined Business?
Martin: Thanks for input. Have not read that book but will check it out – sounds like a good read.