CEO as management
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Larry Page Replaces Eric Schmidt in Google
In 2011, Google underwent an organizational change, its first change in ten years. For ten years, Eric Schmidt was the CEO. He then declared that he was releasing the role of CEO, and moving to Chairman of the Board, and giving the chief position to co-founder Larry Page. Speculation was that this change was in recognition that Google had lost its edge with innovation and needed to get back to its roots, which Larry Page could inspire. There were challenges with this reorganization, but with the high techs priority on innovating and being the leader in the market, it was hoped that this new structure could help with the speed of decision making.
Discussion Questions:
Do your research on this change and answer the following questions:
– Many believe that Schmidt decided to release his role as CEO to Larry Page, the co-founder, to capitalize on what was previously a core competency innovation. How would the change of CEO impact Google and inspire innovation?
– Speed and decisiveness are some of the reasons Schmidt thought that becoming Chairman of the Board and releasing the CEO role was the best decision. What other changes could also be recommended for Google if speed and decisiveness were issues?
– How do you see the impact of this change now, after a decade? Was it a good organizational change? Explain.
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