Alphabetic Order: the benefits of Google's corporate restructuring [Part 2]
Earlier this week we posted Part One of this story, featuring the reasons for Google's Alphabet launch and some of its benefits. Today we're concluding with a look at further benefits and investor analysis.
Who’s afraid of the big bad data collector?
The new separation could also reduce some of the suspicions people have about what Alphabet plans to do with all the data it collects and stores from its various services.
Look at how Nest, most known for its smart thermostat, has expanded into other gadgets. Although the company insists it doesn’t share information with Alphabet, people still worry about it. After the change, there's a much clearer divide between those two companies, and it gives Alphabet a little more cover from some of the criticism.
Putting stock in it
Investors are hopeful this move will mark a new era of transparency at Alphabet, which has kept a tight lid on the financials of YouTube, Android, and other properties. Calico, Alphabet’s research company dedicated toward increasing lifespan, has quickly acknowledged new collaborations with scientists and institutions; however, it has disclosed almost nothing in the way of financial details. In fact, much of Calico's operation is being kept under wraps.
Analysts at Macquarie Securities said this new structure will give investors a better understanding of key metrics driving core Alphabet, but how much of a better understanding is still unknown.
Alphabet continues to trade below its all-time high, even after the restructuring announcement. A new set of divisions, broken out more visibly, will not mitigate the slowing growth of its main business. As Wall Street picks apart the new Alphabet figures, it still will look primarily at the search division. Aside from decelerating revenue growth, the issue of rapid employee additions will be part of the calculation. Investors have been wary of Google’s habit of adding thousands of employees a year without saying what these people will do.
Alphabet shares had lagged behind other technology companies for most of the year, until the company reported better-than-expected second-quarter results and signaled plans to rein in spending on ancillary projects.
The decision may not be enough to move the stock much higher. That will depend on the company’s slowing revenue, and whether Alphabet can milk that revenue for more profits. On average Alphabet is trading on average moderately below its all-time high, at $634 against its top of $678.
Road mapping the future
Restructuring and renaming the company so far have not produced a tangible, compelling strategy for the overall enterprise. On the other hand, if this move helps inspire corporate flexibility, the reasons for owning the stock would dramatically improve and increase.
For years analysts and investors have scratched their heads at the company’s collection of businesses and ventures because they couldn’t see how these reflected or comprised a coherent strategy.
Perhaps now the master plan is beginning to unfold.
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.