. At first glance, it seemed like the duo just wanted to play a more hands off role at the company., While Sundar handled all of the day to day nuances of running, Google, Larry and Sergey could focus on the long term future of the company.. But just 4 years later in December, of 2019, Larry and Sergey would make Sundar the CEO of Alphabet itself and they would more or less fall of the grid completely.. They rarely make any public appearances and theyre notorious for skipping meetings.. This is quite out of the blue, given that most founders tend to play a significant role in their companies until the day they die., I mean just look at Warren Buffett or Churlie. Munger. Larry and Sergey, however, have truly left the company and the spotlight, despite still having 51 control of the company.. This is a pretty bold move, given that their entire fortunes depend on the performance of Google.. If you ask them directly, theyll tell you that it was time to assume the role of proud parents offering advice and love, but not daily nagging.. But if you take a closer look, youll see that theres more to this than they let on. Its. Not that Larry and Sergey dont have visions for Google or that they dont want to lead. The company. Rather theyve found that everytime they try to take the reigns of the company shareholders arent, particularly happy., And this wasnt a one or two time event.
It was a consistent theme throughout their entire time at Google.. It seems that eventually they came to accept that the goals of Google and their own goals simply did not align. And instead of trying to resist, they did the classy thing and truly retired. So heres. The truth behind why Googles founders really ditched Google and never looked back. FIRST TRY AS CEO, While Larry and Sergey didnt leave till recent years. Their unorthodox leadership style was evident from day one. Likely. One of the best examples of this was Larrys workplace rulebook, which consisted of five rules. Rule 1 was Dont delegate. Do everything you can yourself to make things go faster.. This is quite ironic, given that you could argue that Larry himself is breaking this rule today.. Putting that aside, though, effective delegation within any business is extremely important, but Larry was actively encouraging employees to specifically avoid delegation. Moving onto rule 2. We have dont get in the way if youre, not adding value., Let the people actually doing the work talk to each other. While you go, do something else. Rule 2 was Dont, be a bureaucrat. Rule. 4 was Ideas are more important than age., Just because someone is junior, doesnt mean they. Dont deserve respect and cooperation., And finally Rule 5 was The worst thing you can do is stop someone from doing something by saying No. Period.? If you say no, you have to help them find a better way to get it done.
. While many of these rules do make sense, Larrys motivation for these rules werent exactly pure.. You see Larry wasnt, trying to create a harmony between managers and engineers.. Rather, he was trying to completely eliminate managers altogether because he didnt like the idea of non engineers supervising engineers.. He felt that this supervision was not only unnecessary but also an impediment. Larry was extremely confident in the quality of his engineering hires, and he felt that there was no reason for them to be babysit. Hence the rule. Book. Larry was hoping that the rule book would keep managers out of the hairs of engineers., But with time he came to realize that this wasnt the case and he became more and more irritated.. One of the factors that pushed him over the edge was the fact that he wasnt seeing any progress on his book. Searching idea. Larry wanted Google to be able to scan all the books in the world and then make them searchable online. Youre, probably familiar with this feature today., But this wasnt going well and I dont think youd be surprised that he blamed the project managers.. Instead of holding a meeting with the managers like a reasonable CEO, though, he would hold a townhall style meeting with all the managers and engineers in July of 2001.. He would go on to insult all of the managers in front of everyone before firing them all.. To Larrys. Surprise though, this didnt get anyone fired, except himself.
, As you guess, the project managers were not happy with the choice for obvious reasons., But it wasnt just the project managers that were unhappy either. Many engineers, werent convinced by this move, either. One engineer even yelled at Larry, Declaring that what he was doing was completely ridiculous and totally unprofessional. Googles, human resources, boss, Stacy Sullivan, would escalate this issue to the chairman of Google, Eric Schmidt, who had been placed there by Googles, investors. Eric would of course, side with the managers, and this resulted in Most of the managers being reinstated and Larry being demoted from being CEO. Eric would take on this role so that he could supervise Larry and Sergey. Lets just say: Larry was very unhappy. BABYSITTING, Fortunately, for Eric, he didnt have to do too much babysitting over the next. Several years, because Larry and Sergey didnt poke around too much when it came to the operations of Google.. Instead, they focused acquisitions, which they knocked out of the park.. First, they had the Android acquisition in 2005, which cost Google 50 million. Larry actually completed. This acquisition, without even telling Eric, but he didnt, mind. From Erics perspective, Google was already a 100 billion company and if a mere 50 million could keep Larry occupied and prevent him from making any more rash decisions at Google, that was a major win and thats exactly What happened., Over the next few years, Larry and Sergey, would be enthralled with making a bunch acquisitions.
And, to their credit, many of their acquisitions proved to be extremely successful. Like YouTube. Aside from acquisitions, these two were also super busy with what they like to call the moonshot factory. Likely. The two most famous inventions out of this factory are, of course, the Google self driving car and Google Glass. Pretty soon Eric began to feel that he could trust these two once again.. Not only were they making phenomenal acquisitions and ground breaking innovations, but they werent doing anything that was too questionable either. They werent insulting employees infront of each other, nor were they firing every manager in the company.. It seemed like the duo had matured as business leaders and shareholders very much agreed., So in 2011, when Eric stepped down as CEO, he would pass on the title to Larry., But it didnt take long for everyone to realize that nothing had changed for Larry or Sergey.. They had simply found an outlook for their unorthodox ideas with acquisitions and the moonshot factory., But now that Larry was back to running Google proper many of the same issues started to resurface once again.. Second, TRY AS CEO A common theme for Larry seems to be that he simply doesnt like oversight in general.. Originally he didnt like managers overseeing engineers, but that was before Google went public.. Now that Google was public, one of his largest concerns was investor oversight of Google, but he wasnt gon na immediately try to tackle that issue.
. The reason that he got screwed a decade ago was because the employees werent on his side.. So this time he was going to make sure that investors were on his side before he tried anything too radical. And this started with giving investors what they wanted. Most sustainable growth. Larry started off by slashing Googles products, features and services.. Apparently he reduced these by 70. Within just 2 years of taking over., He also placed an emphasis on design and simplicity trying to emulate some of Apples. Success within that realm. And finally, Larry also implemented a new constraint for acquisitions called the toothbrush test.. Instead of looking at the profitability or financials of a given company, Google evaluated these companies based on their usefulness alone.. If a company offers something that people will use once or twice per day, and it makes their life better, the company is a winner.. If it doesnt do that, however, Larry wouldnt buy the company, even if they have tremendous financials.. While this was defintely on the side of unorthodox, it worked. Googles, revenue was growing, their profits were growing and, most importantly, their stock price was growing.. Investors were starting to trust Larry, but it didnt take very long for him to take things too far. Once again, with Google Island., If you havent heard about Google Island, it was essentially Larrys idea to take Google off the grid, not necessarily physically but metaphorically.. He wanted Google to have freedom from not only investors but also government regulation.
. One of his proposed ideas was that laws older than 50 years wouldnt apply to tech. Companies. TechCrunch put it as Larry wanting the Earth to have a mad scientist island that was run by Google., While this may sound cool in theory. It was also super unrealistic.. Google Island would not only free Google from some of the barriers of innovation, but it would also free them from accountability altogether.. If neither the government nor investors could keep Google accountable. Who would Obviously Larry believed that he could keep Google accountable, but this was more of a pipe dream than anything.. After pitching this idea, dozens of publications would ruthlessly bag on Larry, claiming that he was completely out of touch from reality. And almost all of them posed. The same question is this: the type of guy you wanted to be in charge of Google, A REALIZATION. No one. Would fire Larry from his position the second time around, but Larry himself had come to a realization. Google would never be what he wanted it to be.. This isnt to say that Google wouldnt be successful or that it wouldnt make a boatload of money because its done both of those.. But what this did mean, though, is that Google would never become a groundbreaking research institution, which is what Larry and Sergey wanted from day. 1., Larry and Sergey were never your traditional tech founders.. They werent your classic college dropouts who wanted to change the world and became megarich.
. They were actually PhD students who founded Google as a research project., And while they were all for the financial side of Google, they didnt want for Google to lose its identity as a research institution either.. But with time, it was clear that investors didnt really care about this unless it could directly be linked to profits.. At the same time, both Larry and Sergey were both facing significant personal challenges, as well. Larry had been struggling with vocal chord paralysis for much of his adult life, and things were only getting worse in the early 2010s.. This made it especially difficult for Larry to engage in interviews, earnings, calls and other PR events which are extremely important for any public company CEO.. This would make Larry infamous for being MIA.. Meanwhile, Sergey had gotten caught up in an affair which not only ruined his public reputation but also his relationship with Larry, who has refused to speak to him since., Given that Larry and Sergey have 51 voting power at Google, they could technically take Google in whatever direction They want., But given that they only own about 14 of the company together, I think it was pretty clear to them that abusing their voting power would be a pretty douchy thing to do to the other 86 of shareholders., So they would decide to do the classy Thing and give shareholders what they wanted.. They gave the shareholders a CEO that could grow Google into a trillion dollar company Sundar Pichai.
In the meantime, Larry and Sergey have ventured off into what theyve always wanted to do. Research, exciting ideas like flying cars and anti aging, and hopefully bring them to fruition. And Thats, why Googles founders really left Google.? Do you think Google would be better under Larry and Sergeys leadership Comment that down below. Also drop a like? If you hope that Google doesnt forget their slogan, Dont be Evil.