With the anxieties about the economic conditions and predictions of a long recession, Google continues to chug along. Their financial results are better than expected, resulting in an increase in share value. Eric Schmidt, Google CEO, who attributes the results to strong advertising revenue growth, particularly overseas, optimistic.
Most investors were expecting a significant slowdown. There was a slight decrease in growth from the previous quarter, which is a troubling sign. And the US growth rate is of some concern. Google relies on short and sweet ads that appear on its search engine site and other related sites. Overall net income grew 30% in the first quarter. Closer analysis showed that paid clicks versus total clicks was down. Recent changes in quality control and operations in the area of ad relevancy was a possible factor in the slowdown of revenue. Also, the acquisition of DoubleClick in March was not felt to have had much negative impact on the bottom line revenue.
Complacency is human nature, so Google had better keep its eye on the ball if it is to continue to grow and prosper in these troubling economic times. Root cause analysis and forward thinking which have been Google's strength in the past must not give way to complacency, particular regarding its US operations. Time will tell.
To combat complacency, I suggest 9 steps that Google and all organizations should practice:
1. Continue to raise the bar, the same bar (don't try to change your metrics too drastically) in small, but significant ways, and satisfying, meaningful ways.
2. Reward and reinforce creativity and innovation in the ways in which things are done to continue achieve great results.
3. Ensure that standard operational procedures can be replicated too maintain discipline in operations.
4. Keep communication open. Reinforce questioning of assumptions. Avoid the tendency to develop what I call "sacred cows of success."
5. Work hard to keep moving the culture of the organization forward in the spirit of excellence, belongingness, and mission. Make sure that the people in your organization feel that they are making a difference in their lives and the lives of others, together.
6. Make sure that you have designated people in your organization who are responsible for "connecting the dots" and anticipating both problems and opportunities in the future.
7. Make sure that decision-making is done with due diligence and thoroughness.
8. Use a systems approach to communication and information sharing. Make sure that information runs both up and down the organization as well as accross the organization amongst departments.
9. View the "game films." Make sure that you have a process from learning from mistakes and failures as well as successes.
Most investors were expecting a significant slowdown. There was a slight decrease in growth from the previous quarter, which is a troubling sign. And the US growth rate is of some concern. Google relies on short and sweet ads that appear on its search engine site and other related sites. Overall net income grew 30% in the first quarter. Closer analysis showed that paid clicks versus total clicks was down. Recent changes in quality control and operations in the area of ad relevancy was a possible factor in the slowdown of revenue. Also, the acquisition of DoubleClick in March was not felt to have had much negative impact on the bottom line revenue.
Complacency is human nature, so Google had better keep its eye on the ball if it is to continue to grow and prosper in these troubling economic times. Root cause analysis and forward thinking which have been Google's strength in the past must not give way to complacency, particular regarding its US operations. Time will tell.
To combat complacency, I suggest 9 steps that Google and all organizations should practice:
1. Continue to raise the bar, the same bar (don't try to change your metrics too drastically) in small, but significant ways, and satisfying, meaningful ways.
2. Reward and reinforce creativity and innovation in the ways in which things are done to continue achieve great results.
3. Ensure that standard operational procedures can be replicated too maintain discipline in operations.
4. Keep communication open. Reinforce questioning of assumptions. Avoid the tendency to develop what I call "sacred cows of success."
5. Work hard to keep moving the culture of the organization forward in the spirit of excellence, belongingness, and mission. Make sure that the people in your organization feel that they are making a difference in their lives and the lives of others, together.
6. Make sure that you have designated people in your organization who are responsible for "connecting the dots" and anticipating both problems and opportunities in the future.
7. Make sure that decision-making is done with due diligence and thoroughness.
8. Use a systems approach to communication and information sharing. Make sure that information runs both up and down the organization as well as accross the organization amongst departments.
9. View the "game films." Make sure that you have a process from learning from mistakes and failures as well as successes.
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