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Here are a few highlights from the memo:
We lack a focused, cohesive vision for our company. We want to do everything and be everything -- to everyone. We've known this for years, talk about it incessantly, but do nothing to fundamentally address it. We are scared to be left out. We are reactive instead of charting an unwavering course. ...Our inclination and proclivity to repeatedly hire leaders from outside the company results in disparate visions of what winning looks like -- rather than a leadership team rallying around a single cohesive strategy.... we focus on nothing in particular.
We lack clarity of ownership and accountability. overly bureaucratic. ... Equally problematic, at what point in the organization does someone really OWN the success of their product or service or feature? Product, marketing, engineering, corporate strategy, financial operations... there are so many people in charge (or believe that they are in charge) that it's not clear if anyone is in charge. ...
...We lack decisiveness. Combine a lack of focus with unclear ownership, and the result is that decisions are either not made or are made when it is already too late. Without a clear and focused vision, and without complete clarity of ownership, we lack a macro perspective to guide our decisions and visibility into who should make those decisions. ... analysis paralysis.
We end up with competing (or redundant) initiatives and synergistic opportunities living in the different silos of our company.
• YME vs. Musicmatch
• Flickr vs. Photos
• YMG video vs. Search video
• Deli.cio.us vs. myweb
• Messenger and plug-ins vs. Sidebar and widgets
• Social media vs. 360 and Groups
• Front page vs. YMG
• Global strategy from BU'vs. Global strategy from Int'l
... Weak performers that have been around for years are rewarded. And many of our top performers aren't adequately recognized for their efforts.As a result, the employees that we really need to stay (leaders, risk-takers, innovators, passionate) become discouraged and leave. Unfortunately many who opt to stay are not the ones who will lead us through the dramatic change that is needed.
...We have awesome assets. Nearly every media and communications company is painfully jealous of our position. We have the largest audience, they are highly engaged and our brand is synonymous with the Internet.
...There are three pillars to my plan:
1. Focus the vision.
2. Restore accountability and clarity of ownership.
3. Execute a radical reorganization.
...
The entire memo can found on wsj.com here [online.wsj.com], subscription required.
A Yahoo spokesman said the memo "highlights that we have an open, collaborative culture and a senior management team that is intensely committed to helping Yahoo fulfill its potential as an Internet leader."
I agree it's good they're having these conversations internally, and I think it's too bad this got leaked. Is this news or simply a company caught with it's zipper down? I think it's the latter.
That is 1/4 of the battle
Next 1/4 is to convince all the other head honchos that it needs to be implemented
Then identify areas and staff that need the chop ( I have never been a big believer in outside management consultancy but in this case would use )
Then sweep and clean together with focussed strategy and stick to it
best of luck to them and all the staff or the writing will be on the wall ( all the advantages to be the number 1 or 2 on the net ) and could all be lost through lack of focus
steve
Yahoo needs to do something. I think they have a problem with "labeling" everything with the Yahoo brand. To me, Yahoo is great news. To Bob, it's his email. To Mary, it's search. So, I see something labeled "Yahoo," I think I know what that is. In tech, bright and new is good. Yahoo is a strong brand and use it where it works for you, but they shouldn't let it weigh them down.
If you start a new service (i.e., video) create a new brand around and promote the devil out of it on Yahoo and elsewhere.
Burdened down with a slow-moving bureauecy in Yahoo's world is costly. This memo lays out some good ideas. Can a firm like Yahoo ever act like an innovative start up?
It's a good memo and I don't think it hurt Yahoo that it was leaked.
I don't agree. Look at the "radical reorganization" part:
3. Execute a radical reorganizationa) The current business unit structure must go away.
b) We must dramatically decentralize and eliminate as much of the matrix as possible.
c) We must reduce our headcount by 15-20%.
15-20% headcount translates to 1,500-2,000 employees!
But yes, you never know how will market react.
We are scared to be left out. We are reactive instead of charting an unwavering course. ...Our inclination and proclivity to repeatedly hire leaders from outside the company results in disparate visions of what winning looks like -- rather than a leadership team rallying around a single cohesive strategy.... we focus on nothing in particular.
We lack clarity of ownership and accountability. overly bureaucratic
And this is a revelation? What major corporation doesn't act like this? It's why the small guy continues to out-think them. They take hold of a bull by the horns and change everything that made it what it is today buy adding meetings to plan meetings because they are scared of making a mistake since they are busy stuffing their pockets with large incentives and stock options and leaving out the people that truly deserve it. I once worked for a company like this and when they repeatedly scorned innovative thoughts because you could not 'prove' what revenue would be derived from such an undertaking, I left. Thank you for telling me it wouldn't work. I am much happier now :)
When $175 million in stock options is riding on the line, they will never take a chance on something new. When quarterly results determine the size of their bonus, 3 to 6 months out is all they are willing to risk.
