Tackling Google's mounting public perception challenges should sit high on the "to do" list as co-founder Larry Page steps into the CEO role on Monday, observers say.
A series of antitrust probes, privacy blunders and regulatory slaps have scuffed its shiny brand and could undermine its ability to compete over time. Some wonder, however, whether the task of reversing that suits the Mountain View wizard's talents or temperament.
As the big brain behind the key innovations of the world's most successful search engine, no one doubts his bona fides as a technology engineer and visionary. Many say Page, 38, has also matured into an efficient behind-the-scenes manager in the 13 years since co-founding the company.
But it's no secret that Page has a deep aversion to dealing with the news media and lacks the grace and polish that tend to come standard in Fortune 500 CEOs. By various accounts, Page can be awkward, aloof and dismissive of those who don't see the world in the unique way that he does.
Investigations' harm
Therein lies the challenge for Google at this critical moment in the company's history. Increasingly, regulators, rivals, judges and consumer advocates are showing they don't view the world through Google-tinted goggles.
"Their image is on a downward slide," said Rob Frankel, author of "The Revenge of Brand X." "When you couple that slide with a guy like Larry Page, who may not be the most skilled or motivated person to deal with it, there could be trouble."
As it is, the European Commission and the Texas attorney general's office have begun antitrust probes. Senators are calling for public hearings on Google's competitive practices. Agencies around the globe have investigated the company over the so-called Wi-Spy incident, in which Google collected unauthorized user data over Wi-Fi networks.
Late last month, a federal judge rejected a legal settlement that would have allowed the company to forge ahead with the world's biggest digital library, citing antitrust and other concerns. Last week, Google agreed to settle Federal Trade Commission charges that its Buzz product employed deceptive tactics and violated its own privacy promises.
These are no small challenges for a major consumer brand. Each new investigation threatens to further undercut Google's image as a company primarily intent on bringing the benefits of technology to the world, a critical asset for a business that depends on customer trust.
Any ultimate concession, law or especially an antitrust decree would restrict the company's ability to maneuver in an incredibly dynamic industry, like buckling leg weights on a ballerina.
'Horrible public image'
These are tests that require a full-throated defense from a company's most high-profile figure, some analysts say. They demand not just someone who can eloquently articulate Google's position, but someone who cares to. Since his ascension was announced in late January, Page's quotes have been more elusive than apps for Android tablets.
"A CEO has to be the public face of the company, and he doesn't seem to want that," said Rob Enderle, principal analyst with the Enderle Group, whose recent clients have included Google competitor Microsoft.
"But he has to do that job," he added. "Right now, Google has a horrible public image, and he's got to fix that."
Google maintains that its product choices are driven by what's in the best interests of consumers, but these days it chiefly delivers this message through the e-mailed prepared remarks of public relations staffers. A spokesman declined to comment for this column.
But it's not merely about how Google articulates its motives or responds (or doesn't) to criticism. A holistic approach to public relations starts with the product, not the press release.
It would take a prolonged investigation and trial to determine whether Google has actually abused market dominance under antitrust laws. But the conclusions of the FTC and the judge in the Google Books case suggest the company is at least testing the boundaries of privacy and copyright rules. In other words, there's a perception problem, because there's a reality problem.
Trying to rewrite law
Google Books was reportedly Page's brainchild. It's the perfect example of everything that people find both wonderful and worrisome about Google. Few can dispute the immense social good promised by such an ambitious project: essentially making the corpus of world knowledge instantly searchable by anyone.
But Google was tripped up chiefly through its execution, by storming ahead and copying the professional labors of others, without their permission. Its proposed legal settlement was even more audacious: seeking to essentially rewrite how copyright law works through an agreement between private parties, while granting itself a "de facto monopoly" over digitized works for which an author can't be located, Judge Denny Chin wrote in his opinion.
The settlement "would give Google a significant advantage over competitors, rewarding it for engaging in wholesale copying of copyrighted works without permission," he said.
The message floating out to select publications is that Page wants to return the company to its entrepreneurial roots; to kick-start its innovation engine. That's a good thing, of course. But Page and Google may need to recognize that different rules and different lenses apply for a startup in a Menlo Park garage and an almost $190 billion company that dominates the search market.
Increasingly, Google might have to seek consensus and partnerships to achieve its goals, rather than simply unleashing disruptive technologies on the world.
That may mean Page will have to learn to empathize with, rather than dismiss out of hand, those who don't see the world the way he and Google do. And it could mean sometimes - and maybe even a lot of the time - he'll have to plead his case in the court of public opinion, or else the other kind.
Need for turnaround
Some believe this is all well within Page's capabilities, if he chooses to work at it.
"I've seen a lot of CEOs exhibit complete turnarounds," said Charlene Li, founder of the Altimeter Group, specifically mentioning Facebook's Mark Zuckerberg.
Others are dubious, including Siva Vaidhyanathan, author of the just released "The Googlization of Everything."
"I think that with Larry Page taking over Google, it's going to be more arrogance and more idealism, at the very moment when he should be humble and realistic, in order to get through these very real regulatory pressures," he said.
A series of antitrust probes, privacy blunders and regulatory slaps have scuffed its shiny brand and could undermine its ability to compete over time. Some wonder, however, whether the task of reversing that suits the Mountain View wizard's talents or temperament.
As the big brain behind the key innovations of the world's most successful search engine, no one doubts his bona fides as a technology engineer and visionary. Many say Page, 38, has also matured into an efficient behind-the-scenes manager in the 13 years since co-founding the company.
But it's no secret that Page has a deep aversion to dealing with the news media and lacks the grace and polish that tend to come standard in Fortune 500 CEOs. By various accounts, Page can be awkward, aloof and dismissive of those who don't see the world in the unique way that he does.
Investigations' harm
Therein lies the challenge for Google at this critical moment in the company's history. Increasingly, regulators, rivals, judges and consumer advocates are showing they don't view the world through Google-tinted goggles.
"Their image is on a downward slide," said Rob Frankel, author of "The Revenge of Brand X." "When you couple that slide with a guy like Larry Page, who may not be the most skilled or motivated person to deal with it, there could be trouble."
As it is, the European Commission and the Texas attorney general's office have begun antitrust probes. Senators are calling for public hearings on Google's competitive practices. Agencies around the globe have investigated the company over the so-called Wi-Spy incident, in which Google collected unauthorized user data over Wi-Fi networks.
Late last month, a federal judge rejected a legal settlement that would have allowed the company to forge ahead with the world's biggest digital library, citing antitrust and other concerns. Last week, Google agreed to settle Federal Trade Commission charges that its Buzz product employed deceptive tactics and violated its own privacy promises.
These are no small challenges for a major consumer brand. Each new investigation threatens to further undercut Google's image as a company primarily intent on bringing the benefits of technology to the world, a critical asset for a business that depends on customer trust.
Any ultimate concession, law or especially an antitrust decree would restrict the company's ability to maneuver in an incredibly dynamic industry, like buckling leg weights on a ballerina.
'Horrible public image'
These are tests that require a full-throated defense from a company's most high-profile figure, some analysts say. They demand not just someone who can eloquently articulate Google's position, but someone who cares to. Since his ascension was announced in late January, Page's quotes have been more elusive than apps for Android tablets.
"A CEO has to be the public face of the company, and he doesn't seem to want that," said Rob Enderle, principal analyst with the Enderle Group, whose recent clients have included Google competitor Microsoft.
"But he has to do that job," he added. "Right now, Google has a horrible public image, and he's got to fix that."
Google maintains that its product choices are driven by what's in the best interests of consumers, but these days it chiefly delivers this message through the e-mailed prepared remarks of public relations staffers. A spokesman declined to comment for this column.
But it's not merely about how Google articulates its motives or responds (or doesn't) to criticism. A holistic approach to public relations starts with the product, not the press release.
It would take a prolonged investigation and trial to determine whether Google has actually abused market dominance under antitrust laws. But the conclusions of the FTC and the judge in the Google Books case suggest the company is at least testing the boundaries of privacy and copyright rules. In other words, there's a perception problem, because there's a reality problem.
Trying to rewrite law
Google Books was reportedly Page's brainchild. It's the perfect example of everything that people find both wonderful and worrisome about Google. Few can dispute the immense social good promised by such an ambitious project: essentially making the corpus of world knowledge instantly searchable by anyone.
But Google was tripped up chiefly through its execution, by storming ahead and copying the professional labors of others, without their permission. Its proposed legal settlement was even more audacious: seeking to essentially rewrite how copyright law works through an agreement between private parties, while granting itself a "de facto monopoly" over digitized works for which an author can't be located, Judge Denny Chin wrote in his opinion.
The settlement "would give Google a significant advantage over competitors, rewarding it for engaging in wholesale copying of copyrighted works without permission," he said.
The message floating out to select publications is that Page wants to return the company to its entrepreneurial roots; to kick-start its innovation engine. That's a good thing, of course. But Page and Google may need to recognize that different rules and different lenses apply for a startup in a Menlo Park garage and an almost $190 billion company that dominates the search market.
Increasingly, Google might have to seek consensus and partnerships to achieve its goals, rather than simply unleashing disruptive technologies on the world.
That may mean Page will have to learn to empathize with, rather than dismiss out of hand, those who don't see the world the way he and Google do. And it could mean sometimes - and maybe even a lot of the time - he'll have to plead his case in the court of public opinion, or else the other kind.
Need for turnaround
Some believe this is all well within Page's capabilities, if he chooses to work at it.
"I've seen a lot of CEOs exhibit complete turnarounds," said Charlene Li, founder of the Altimeter Group, specifically mentioning Facebook's Mark Zuckerberg.
Others are dubious, including Siva Vaidhyanathan, author of the just released "The Googlization of Everything."
"I think that with Larry Page taking over Google, it's going to be more arrogance and more idealism, at the very moment when he should be humble and realistic, in order to get through these very real regulatory pressures," he said.
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