Google: Streamlining communications

December 17, 2008

Google, in its comparatively short history, has managed to rewrite several chapters of the corporate rulebook. Their Brand Power rank, a CoreBrand tracking statistic, has been rising steadily ever since we started tracking them. The biggest challenge facing Google today, is ironically, themselves. Their R&D practices, which have made them so successful, are now one of the main reasons the company is facing troubles in the economic downturn.

Their primary source of revenue is advertising sales, which have been chipped away at as several industries have been damaged from the current economy. Real estate and financing industries are spending less on advertising as budgets are slashed across the board. Without those ad sales to fund their own projects, Google is now being pushed into a corner. As their revenue growth shows signs of slowing down to a steady jog, from their record-setting sprint, Google is going to have to rewrite the rules once again.

Google has to find a balance of maintaining the energy of innovation and environment of open thinking it is known for, against the realities of the current market place. Management has to shelve smaller projects, or shift them to the back burner as larger, more profitable products are brought to the forefront. This streamlining, although effective, is not what Google is generally known for.

This forced focus on specific projects, if managed properly, could yield several longed-for effects. Products like GMail and Google Docs, are still classified as being in beta testing. If Google’s new restructuring brings products like these out of beta testing, it would be a significant move forward for Google. A move that is now within their grasp, as employees are shifted to such projects.

The key to Google’s successful implementation of these changes is communication. Company-wide communication from top management, down to every programmer and intern is necessary. Ensuring clear lines of communication will ensure that Google clearly defines its goals and the methods involved for achieving them.

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