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Strategy: Google - Strategy Map - Balance Scorecard
Transcript of Strategy: Google - Strategy Map - Balance Scorecard
The first diagrams of this type appeared in the early 1990s
The idea of using this type of diagram to help document Balanced Scorecard was discussed in a paper by Kaplan & Norton in 1996 Norton They bridge the Media and Technology Industries We make our own rules... We use unconventional management practices What's Google..... It`s not your regular company that depends only in production and selling Moved from just a search enginge to a highly dependence on new technologies "Google is not a conventional company and we don't intend to become one" as Page wrote during IPO Kaplan Engineers where encouraged to spend 20% of their time working on projects of their own choosing And it paid... Google News and Orkut Google engineers typically worked in teams of three to five people.. We try to keep it small... You just don`t get productivity out of large groups... We try to have as little middle management as possible. Flexible Organization with small teams pursuing hundreds of projects, an approach that "let a thousand flowers bloom" With so many projects underway, setting priorities was a challenge..
Page wrote in the "Owner's Manual":
We will not shy away from high-risk, high-reward projects because of short-term earnings pressure...
... We would fund projects that have a 10% chance of earning a billion dollars over the long term. Extract of GooglesCorporate Values How do Google works..... 70% 20% 10% Spent on core business ...
web search and paid listings... Spent on projects that extended the core business...
Projects such as Gmail... Spent on fundamentally new business.
... ... ... Team G Strategy Maps and Balanced Scorecard Google Case Thank you...... Q&A