I believe in Google’s past, present and future. They have shown a great ability to ignore the short term focus that dominates (and kills success) of so many companies today. I am happy to invest in Google for the long term.
This current reaction to the economic crisis, is one of many times Google can be seen to be making significant changes to adapt based on market conditions and the results of their experiments and experiences. Google’s management in general and the 3 leaders continue to practice a management style based on an engineering perspective while so many others practice the style Scott Adams has pilloried in the pointy haired boss.
The thought and execution of Page, Brin and Schmidt (and others: Marissa Mayer) is at a different level than that of most other executives. Skepticism is wise. But I believe Google continues to have exceptional execution and focus on long term innovation.
The biggest risk I see, for them, is they become too focused on the short term and lose their ability to take advantage of the great opportunities available by focusing on long term success. Google is in a position where they are not forced to abandon long term plans due to cash flow problems. The only decision for Google should be whether something makes long term sense or not. If they are recalibrating and deciding they were being too lax in certain areas (without long term justification) then I am fine with changes. If though they are reacting to short term market conditions that is a big mistake.
Bad idea, short term thinking. Don’t drive business practices based on short term earning releases. If the idea is not worth 20 people long term fine, don’t do it. If it is, do it. The lack of cash that would force many companies to abandon promising efforts is not an issue for Google. They have plenty of cash and are generating much more every day.
Bad idea; quotas are a sign of management abdicating responsibility. Quotas are destructive to success. Pay for performance focuses employees on meeting targets instead of the best interests of the company. Quotas are destructive to constancy of purpose.