Strategic? People!

“In the latest attempt to persuade restive investors it can fix itself, Yahoo! is reorganizing its management ranks. The widely expected revamp, unveiled June 26, centralizes product and sales operations under President Sue Decker.

“The reorganization comes a day after co-founder and Yahoo CEO Jerry Yang and Chairman Roy Bostock sent shareholders a public letter explaining why the company rejected a deal that would have combined its Web search operations with those of Microsoft.

“The public statements follow a flurry of management departures in the wake of failed takeover discussions with Microsoft. They also signal Yahoo is ratcheting up efforts to rally support for its independence ahead of an Aug. 1 annual shareholder meeting. Yang, Decker, Chief Financial Officer Blake Jorgensen, and Yahoo directors will take their appeal straight to large investors in a road show due to begin next week…

“The reorganization presents little fundamental change in Yahoo's top leadership, which has been roiled by high-level defections recently. In the past year, Yahoo has seen the departure of more than 100 managers, including top executives such as Jeff Weiner, former executive vice-president for Yahoo's Network Div., who left last week…

“Some of the people who left did so because they were growing weary of the off-and-on Microsoft negotiations. They decided to make their move after Microsoft walked away from its proposed buyout, as they faced many more months of uncertainty about Yahoo's prospects and direction. With the reorganization, they say, more talent could walk out the door. ‘The patience is growing thin’ within Yahoo's walls, says one former Yahoo executive. The sentiment is shared outside the walls, too.”

(“Yahoo Tries to Heal Itself – Again.” Robert Hof. www.businessweek.com. June 27, 2008)

LEAD WITH STRATEGY, then people will follow?

Alternatively, lead people, and your strategy will emerge, coalesce and crystalize!