Are SVPs the new CEOs?

As organisations get bigger, they get smaller. In a shift towards making organisations more leaner and agile, many companies are spinning off individual units into smaller autonomous units. These come with different, independent leaderships at the helm who can operate without being inter-dependent on their sister companies.

Alphabet, the holding company of Google, Nest, YouTube, etc is one of the forerunner of this style of autonomous organisations.

Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well.

~ abc.xyz

I think it’s a great thing. It mean less dependency on any particular unit and very little impact on others should one fail. Best things is, it means the ability to innovate quicker and faster to market demands without relying on the other units to pull it’s weight.

What are your thoughts?

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