Today's Wall Street Journal contains an article reporting on the Yahoo reorganization announced yesterday. For what it's worth, the story didn't make any of the three major columns on page one. Nor the top half of the stories listed in the center columns "What's News." Nor any editorial regarding the major shake-up.
Late last month, I wrote a piece commenting on the recently-publicized internal strife regarding Yahoo's lackluster performance. Back in August, I wrote this one, which highlighted the firm's strategic malaise. In that light, I would have to say that this reorganization looks bad. Gender notwithstanding, I think it's rare that having a CFO become a major operating executive is a good thing for a growth business. Yet, this is what Semel is doing, by adding line responsibilities to CFO Susan Decker's plate. Most CFOs, if they are good at what they do, don't really have a growth or creative mindset. If they do, then what the heck are they doing in a sombre suit (or dress/skirt) as CFO?
Further, the mass exodus of top managers notwithstanding, Terry Semel, who brought you these past years of wayward performance, is still running the show. This looks very, very bad.
The best that the Journal could come up with about Decker is a Yahoo spokeswoman's remark,
"If anyone can do it, I'm sure it's Sue Decker."
Well, what else would you expect a company spokeswoman to say- "We're not expecting much, but she's already here, so, what the heck?"
Rather, the WSJ piece is decidedly guarded on its review of Decker's career. As I contended last year, regarding GM and Ford, and, on an ongoing basis, GE, I smell the whiff of 'careful what you write about this person, she may soon be CEO of a large, if mediocre, online corporation from whom we'll want advertising, and to whom we'll want access.' The report is full of pulled punches about Decker's lack of any past operating success, much less experience. And that she is, basically, a one-time equity analyst cum corporate finance functionary.
In her new position, Ms. Decker will be responsible for Yahoo's "main revenue-generating activities, including its sales of online advertising for Yahoo and partner sites." The move is reported to be, in some observers' opinions, "a test of her fitness to succeed Chief Executive Terry Semel, 63 years old, upon his retirement."
Blogger is not cooperating with my attempt to paste a Yahoo-sourced (ironic, yes?) chart of stock price performance for Yahoo, Google and the S&P500 for an extended time period. It shows that, for the five years since Semel took over the firm, it has not actually outperformed the index, thanks to a precipitous fall in the stock price back in 2001. Since Google went public, it has easily outperformed Yahoo.
Thus, one might question whether any parts of the Semel-led team are capable of fixing what is wrong with Yahoo. As the 'peanut-butter manifesto' alleged, supporting my earlier observations, the firm has a mediocre presence in many online areas, but a commanding one nowhere.
Will Susan Decker and Jeff Weiner be fixing this shortcoming?
With problems of the scope and duration that Yahoo has, it's telling that the board did not intervene to replace Semel and his team with a new, more creative crew which is not wedded to the firm's past errors.
As it stands now, this reorganization, with Semel still in place, looks like rearranging the deck chairs on the Titanic.
As always, time will tell. Glad I'm not a passenger on this voyage.....
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment