Download - Yahoo Leadership Challenge
University of Applied Sciences Dresden Master International Business
Summer Term
Change Management
Lilo Pabst
Kiana Frank
1
CHANGE MANAGEMENT
Yahoo seems to have lost the internet. (Honan, 2012)
3
1. Yahoo! History
2. Leadership Change Matrix (Dunphy & Stace) A. Collaborative & Consultative Leadership
B. Directive & Coercive Leadership
C. Evaluation of Leadership Change Matrix
3. Classification into Organizational Theory A. Machiavelli
B. Argyris
C. Kruse
Table of contents
4
David & Jerry‘s Guide to the World Wide Web at Stanford University
1994
1996 Yahoo! goes public
(Oreskovic, 2015)
. 1. Yahoo! History
4
David & Jerry‘s Guide to the World Wide Web at Stanford University
1994
1996 Yahoo! goes public
(Oreskovic, 2015)
. 1. Yahoo! History
Survival Yahoo! share at 5$
early 2000s
Yahoo! in constant rivalry with Google
Crisis Dot.Com bubble Yahoo! share at 118$
2000
2001
(Carlson, 2013a; Oreskovic, 2015)
4
David & Jerry‘s Guide to the World Wide Web at Stanford University
1994
1996 Yahoo! goes public
(Oreskovic, 2015)
. 1. Yahoo! History
Survival Yahoo! share at 5$
early 2000s
Yahoo! in constant rivalry with Google
Crisis Dot.Com bubble Yahoo! share at 118$
2000
2001
(Carlson, 2013a; Oreskovic, 2015)
2012
- CEO: Jerry Yang Jun 07 - Dec 08
- Failed takeover bid by Microsoft
2007 2008
2009 2010 2011
- CEO: Carol Bartz Jan 09 - Sep 11
- Dismissal of 2000 ppl
- CEO: Tim Morse Sep 11 - Dec 11
- CEO: Scott Thompson Jan 12 - May 12
- Dismissal of another 14% of the workforce
- CEO: Ross Levinsohn May 12 - Jul 12
(Carlson, 2013a; Carlson, 2015, p.105/129-131/208-213; Oreskovic, 2015)
4
David & Jerry‘s Guide to the World Wide Web at Stanford University
1994
1996 Yahoo! goes public
(Oreskovic, 2015)
. 1. Yahoo! History
Survival Yahoo! share at 5$
early 2000s
Yahoo! in constant rivalry with Google
Crisis Dot.Com bubble Yahoo! share at 118$
2000
2001
(Carlson, 2013a; Oreskovic, 2015)
2012
- CEO: Jerry Yang Jun 07 - Dec 08
- Failed takeover bid by Microsoft
2007 2008
2009 2010 2011
- CEO: Carol Bartz Jan 09 - Sep 11
- Dismissal of 2000 ppl
- CEO: Tim Morse Sep 11 - Dec 11
- CEO: Scott Thompson Jan 12 - May 12
- Dismissal of another 14% of the workforce
- CEO: Ross Levinsohn May 12 - Jul 12
(Carlson, 2013a; Carlson, 2015, p.105/129-131/208-213; Oreskovic, 2015)
2012 CEO: Marissa Mayer Jul 12 - Present
2002 -2012 Executive at Google
2012 CEO at Yahoo!
1998 Stanford University M.Sc. Computer Science
1999 Employee #20 at Google
(Postinett, 2016; McLean, 2014; Carlson, 2013a; Carlson, 2015, p. 136/144;Fairchild, Kowitt, Leahey, & VanderMey, 2014)
Revenue in m$
... despite Mayer’s change initiatives, there was no significant
improvement regarding the financial performance of Yahoo!
increased their revenues in the same
time span from 37 bn$ to 75 bn$ (+100%)
(Fin
an
zen
.Ne
t, 2
016;
Sta
tista
, 201
6; R
uss
ell,
201
4)
5
. 1. Yahoo! History
Leadership Change Matrix by Dunphy & Stace
Leadership Style Scale of Change
Australian service industryEnterprises subjected to environmental change
(460 respondents from 13 companies)
Dim
en
sion
sSa
mp
le
(Du
np
hy,
Sta
ce
, 199
3, p
. 905
-920
)
“[...] leaders make the biggest difference between success and failure in implementing high magnitude change [...] accounting for (at least)
50% [...]“ (Rowland, Higgs, 2008, p. 62)
. 2. Leadership Change Matrix
6
1.2 Yahoo! - Steps for Change
Fine
tuni
ng
Inc
rem
ent
al
Leve
l
Mo
dul
ar
Leve
l
Co
rpo
rate
Leve
l
Collaborative
Consultative
Directive
Coercive
Man
agem
ent S
tyle
Types of ChangeThe Dunphy & Stace
Style of ChangeManagement
Matrix
STYLE - 1 Participative
Evolution
STYLE - 2Charismatic
Transformation
STYLE - 3Forced
Evolution
STYLE - 4Dictatorial
Transformation
Samstag, 2. April 16
(Dunphy, Stace, 1993, p. 908; Senior, Fleming, 2006, p.285)
7
. 2.A Leadership Change Matrix - Collaborative & Consultative Leadership
1.2 Yahoo! - Steps for Change
Fine
tuni
ng
Inc
rem
ent
al
Leve
l
Mo
dul
ar
Leve
l
Co
rpo
rate
Leve
l
Collaborative
Consultative
Directive
Coercive
Man
agem
ent S
tyle
Types of ChangeThe Dunphy & Stace
Style of ChangeManagement
Matrix
STYLE - 1 Participative
Evolution
STYLE - 2Charismatic
Transformation
STYLE - 3Forced
Evolution
STYLE - 4Dictatorial
Transformation
Samstag, 2. April 16
(Dunphy, Stace, 1993, p. 908; Senior, Fleming, 2006, p.285)
7
. 2.A Leadership Change Matrix - Collaborative & Consultative Leadership
1.2 Yahoo! - Steps for Change
Fine
tuni
ng
Inc
rem
ent
al
Leve
l
Mo
dul
ar
Leve
l
Co
rpo
rate
Leve
l
Collaborative
Consultative
Directive
Coercive
Man
agem
ent S
tyle
Types of ChangeThe
Dunphy & Stace
Style of Change
Management
Matrix
STYLE - 1 Participative
Evolution
STYLE - 2Charismatic
Transformation
STYLE - 3Forced
Evolution
STYLE - 4Dictatorial
Transformation
Samstag, 2. April 16
•FYI-meetings once per week > Wins of the month & work anniversaries > More transparency (Carlson, 2015, p.258)
• PB&J (Process, Bureaucracy & Jams)
> Online suggestion box for improvement > PB&J list is public (Sellers, 2013a; Sellers 2013b; Carlson, 2012a; Carlson 2015, p. 262)
• Smartphones & fitness tracker > Usage of devices similar to those of Yahoo target users (Carlson, 2012b; Carlson, 2015, p.261)
Participative Evolution & Charismatic Transformation
(Dunphy, Stace, 1993, p. 908; Senior, Fleming, 2006, p.285)
7
. 2.A Leadership Change Matrix - Collaborative & Consultative Leadership
1.2 Yahoo! - Steps for Change
Fine
tuni
ng
Inc
rem
ent
al
Leve
l
Mo
dul
ar
Leve
l
Co
rpo
rate
Leve
l
Collaborative
Consultative
Directive
Coercive
Man
agem
ent S
tyle
Types of ChangeThe Dunphy & Stace
Style of ChangeManagement
Matrix
STYLE - 1 Participative
Evolution
STYLE - 2Charismatic
Transformation
STYLE - 3Forced
Evolution
STYLE - 4Dictatorial
Transformation
Samstag, 2. April 16
8
(Dunphy, Stace, 1993, p. 908; Senior, Fleming, 2006, p.285)
. 2.B Leadership Change Matrix - Directive & Coercive Leadership
1.2 Yahoo! - Steps for Change
Fine
tuni
ng
Inc
rem
ent
al
Leve
l
Mo
dul
ar
Leve
l
Co
rpo
rate
Leve
l
Collaborative
Consultative
Directive
Coercive
Man
agem
ent S
tyle
Types of ChangeThe
Dunphy & Stace
Style of Change
Management
Matrix
STYLE - 1 Participative
Evolution
STYLE - 2Charismatic
Transformation
STYLE - 3Forced
Evolution
STYLE - 4Dictatorial
Transformation
Samstag, 2. April 16
•Endofhomeoffices> Home offices increase productivity (The Young Turks, 2013)
> Personal duties: child care/aging parents (The YoungTurks, 2013; Pathak et al., 2015, pp. 12-14)
> Financial benefits to home offices (Hendricks, 2014; Strategic Direction, 2013, pp. 15-17)
Forced Evolution & Dictatorial Transformation
8
(Dunphy, Stace, 1993, p. 908; Senior, Fleming, 2006, p.285)
. 2.B Leadership Change Matrix - Directive & Coercive Leadership
9
Acknowledge achievements
Introduction to ban of home offices
Reasoning for ban
Appreciation
(Sw
ishe
r, 20
13; C
arls
on
, 201
5, p
. 263
; Ne
uvi
an
s, 2
016)
Yahoos, Over the past few months, we have introduced a number of great benefits and tools to make us more productive, efficient and fun. (…)
(…) communication and collaboration will be important, so we that is why it is critical that we are all present in our offices. (…)
(…) We need to be one Yahoo!, and that starts with physically being together. (…) Being a Yahoo isn’t just about your day-to-day job, it is about the interactions and experiences that are only possible in our offices. (…)
Thanks to all of you, we’ve already made remarkable progress as a company — and the best is yet to come.
Announcement of home office ban
. 2.B Leadership Change Matrix - Directive & Coercive Leadership
9
Acknowledge achievements
Introduction to ban of home offices
Reasoning for ban
Appreciation
(Sw
ishe
r, 20
13; C
arls
on
, 201
5, p
. 263
; Ne
uvi
an
s, 2
016)
Sudden top-down changes: negative
effects on long-time employees and their
motivation
Yahoos, Over the past few months, we have introduced a number of great benefits and tools to make us more productive, efficient and fun. (…)
(…) communication and collaboration will be important, so we that is why it is critical that we are all present in our offices. (…)
(…) We need to be one Yahoo!, and that starts with physically being together. (…) Being a Yahoo isn’t just about your day-to-day job, it is about the interactions and experiences that are only possible in our offices. (…)
Thanks to all of you, we’ve already made remarkable progress as a company — and the best is yet to come.
Announcement of home office ban
. 2.B Leadership Change Matrix - Directive & Coercive Leadership
1.2 Yahoo! - Steps for Change
Fine
tuni
ng
Inc
rem
ent
al
Leve
l
Mo
dul
ar
Leve
l
Co
rpo
rate
Leve
l
Collaborative
Consultative
Directive
Coercive
Man
agem
ent S
tyle
Types of ChangeThe
Dunphy & Stace
Style of Change
Management
Matrix
STYLE - 1
Participative
Evolution
STYLE - 2
Charismatic
Transformation
STYLE - 3Forced
Evolution
STYLE - 4
Dictatorial
Transformation
Samstag, 2. April 16
•Endofhomeoffices> Home offices increase productivity (The Young Turks, 2013)
> Personal duties: child care/aging parents (The YoungTurks, 2013; Pathak et al., 2015, pp. 12-14)
> Financial benefits to home offices (Hendricks, 2014; Strategic Direction, 2013, pp. 15-17)
Demotivation of employees
Constant fear paralyzes company
10
(Dunphy, Stace, 1993, p. 908; Senior, Fleming, 2006, p.285)
. 2.B Leadership Change Matrix - Directive & Coercive Leadership
•Abuseofemployee'strust > Mayer lays off people although promised not to (Goel, 2016)
> Mayer has nursery for own children (Larson, Peterson, 2013)
> Mayer is always late for meetings (Carlson, 2013b)
Forced Evolution & Dictatorial Transformation
11
Corporate Transformation using a directive/coercive style is the most common change strategy used when an organization needs to radically re-establish
itself in a changed environment. (Dunphy, Stace, 1993, p.912)
Leadership heavily influences success of
change
Style of leadership has to adapt to business culture
& environment
• Ban of home offices not well accepted
• Abuse of employee’s trust leads to resistance
• Spark new ideas/ambition
• Employees had high expectancies at beginning
Evaluation - Leadership Change Matrix
. 2.C Evaluation of Leadership Change Matrix
(Dunphy, Stace, 1993, p.912)(Rowland, Higgs, 2008, p.62)
12
Great Man Theory- Mayer considered
outstanding and dedicated leader
Focus on benefits for all (≠individual) - Home office ban
Emotionally distant, low degree of personal empathy
- Child nursery only for own children
- Mayer is constantly late
Machiavelli
. 3.A Classification into Organizational Theory - Machiavelli
(Sc
hm
id, M
uc
ho
w,
2014
, pp
. 91-
95)
13
Argyris
Single Loop Learning = problem solving without fundamental re- orientation
- Yahoos only followed instructions from their supervisors
. 3.B Classification into Organizational Theory - Argyris
(Arg
yris,
197
7)
13
Argyris
Single Loop Learning = problem solving without fundamental re- orientation
- Yahoos only followed instructions from their supervisors
.
Double Loop Learning = problem solving includes a re-orientation
- PB&J: employee participation
- Smartphones to help identify with younger target group
3.B Classification into Organizational Theory - Argyris
(Arg
yris,
197
7)
14
Deutero Learning = reflection and analysis of previous learning & problem solving processes: “Learn how to learn“
. 3.B Classification into Organizational Theory - Argyris
(Arg
yris,
197
7)
14
No trust in CEOs as former leaders didn’t support the company
Initial efforts by Mayer paid off (impressed employees with new
company culture), Mayer acts as role model (late night e-mails)
Mayer’s hypocrite attitude caused her employees to lose trust: punctuality, child nursery, lay-offs
No learning
Learning
No learning
- Take focus off Mayer as CEO - Create awareness of problems by conducting business theater or paradoxical intervention
Recommendations:
Deutero Learning = reflection and analysis of previous learning & problem solving processes: “Learn how to learn“
. 3.B Classification into Organizational Theory - Argyris
(Arg
yris,
197
7)
1. CEO does all or nothing
• Mayer decides on changes on her own
2. Spread rumors
• Secret lay-offs
3. Overstrain employees with tasks
• Many parallel projects, sudden ban of home offices
4. Find someone to blame for problems
• Never takes responsibility for her mistakes (late for meetings)
15
Kruse: 8 rules causing a company's deadlock
(Kru
se, 2
008)
. 3.C Classification into Organizational Theory - Kruse
5. Bend & wait Yahoos survived 5 other CEOs and will survive Mayer too
6. Survival of the fittest Mayer wants people who aren’t open to change to leave
7. Discrepancy between speed of decision-making and implementation Mayer implemented ban of home offices over-night
8. Too hasty decision-making followed by immediate questioning Mayer never questions her decisions afterwards
16
Kruse: 8 rules causing a company's deadlock
. 3.C Classification into Organizational Theory - Kruse
(Kru
se, 2
008)
... for your attention!
Any Questions?
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Argyris, C. (1977) Double Loop Learning in Organizations, Harvard Business Review, https://hbr.org/1977/09/double-loop-learning-in-organizations, link accessed May, 2016.
Carlson, N. (2012a) Marissa Mayer Just Gave EveryYahoo Employee An iPhone 5, Business Insider Online, http://www.businessinsider.com/marissa-mayer-just-gave-every-yahoo-employee-an-iphone-5-2012-9?IR=T, link accessed April, 2016.
Carlson, N. (2012b) Marissa Mayer Sent A Late Night Email Promising To Make Yahoo ‚The Absolute Best Place To Work‘, Business Insider Online, http://www.businessinsider.com/marissa-mayer-sent-a-late-night-email-promising-to-make-yahoo-the-absolute-best-place-to-work-2012-8?IR=T, link accessed March, 2016.
Carlson, N. (2013a) The Truth About Marissa Mayer: An Unauthorized Biography, Business Insider Online, http://www.businessinsider.com/marissa-mayer-biography-2013-8?op=1&IR=T, link accessed May, 2016.
Carlson, N. (2013b) Marissa Mayer Is Late All The Time, Business Insider Online, http://www.businessinsider.com/marissa-mayer-has-a-bad-habit-of-being-late-all-the-time-2013-1?IR=T, link accessed May, 2016.
Carlson, N. (2015) Marissa Mayer and the fight to save Yahoo!, NY/Boston: Twelve Publishing.
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Hendricks, D. (2014) 5 Ways Telecommuting Saves Employers Money, https://www.entrepreneur.com/article/235285, link accessed May, 2016.
. Sources
19
Honan, M. (2012) How Yahoo Killed Flickr and Lost the Internet, http://gizmodo.com/5910223/how-yahoo-killed-flickr-and-lost-the-internet, link accessed May, 2016.
Kruse, P. (2008) 8 Regeln für den totalen Stillstand in Unternehmen, https://www.youtube.com/watch?v=Ug83sF_3_Ec, link accessed May, 2016.
Larson, L.; Peterson, H. (2013) Yahoo! boss Marissa Mayer under fire for building personal nursery next to her office - before telling employees they can NOT work from home, http://www.dailymail.co.uk/news/article-2284828/Yahoo-boss-Marissa-Mayer-angers-employees-building-nursery-baby-office.html, link accessed May, 2016.
McLean, B. (2014) Yahoo‘s Geek Goddess, Vanityfair Online, http://www.vanityfair.com/news/business/2014/01/marissa-mayer-yahoo-google, link accessed March, 2016.
Neuvians, N. (2016) Change Management, Lecture 2, Slide 15.
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Pathak, A.; Bathini, D.; Kandathil, G. (2015) The ban on working from home makes sense for Yahoo: It needs the innovation and speed of delivery that come from office-based employees, Human Resource Management International Digest, Vol. 23.3, pp.12-14.
Postinett, A. (2016) Die Todesspirale scheint unaufhaltsam, Handelsblatt Online, http://www.handelsblatt.com/unternehmen/it-medien/yahoo-chefin-marissa-mayer-die-todesspirale-scheint-unaufhaltsam/12913908.html, link accessed March, 2016.
Rowland, D.; Higgs, M. (2008) Sustaining Change: Leadership That Works, NJ: Wiley-Blackwell, pp.62-63.
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Schmid, T.; Muchow, K.-C. (2014) Klassiker der Organisationsforschung (12) Nicolló Machiavelli, in: Organisations-Entwicklung, 33, pp.91-95.
. Sources
20
Sellers, P. (2013a) Interview: Marissa Mayer‘s 3 biggest decisions as Yahoo CEO, Fortune Magazine Online, https://www.youtube.com/watch?v=fALEg5HtF-w, link accessed April, 2016.
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. Sources
Secondary Literature
Leitl, L.; Braun, G. (2016) Auf zu neuen Ufern - wie sich Unternehmen besser organisieren, Manager Magazin, http://www.manager-magazin.de/unternehmen/artikel/agile-managementkonzepte-von-holacracy-bis-scrum-a-1075193.html, link accessed May, 2016.
Pechlaner, H.; Raich, M.; Schön, S.; Matzler, K. (2010) Change Leadership: Den Wandel antizipieren und aktiv gestalten, Wiesbaden: Gabler Verlag.
Rao, A. (2013) Changing the culture at Yahoo!: Marissa Mayer’s challenge; IBS Center for Management and Research.
Stolzenberg, K.; Heberle, K. (2006) Change Management: Veränderungsprozesse erfolgreich gestalten - Mitarbeiter mobilisieren, Heidelberg: Springer Medizin Verlag.
Vahs, D. (2012) Organisation: Ein Lehr- und Managementbuch (8th ed.), Stuttgart: Schäfer-Poeschel Verlag für Wirtschaft.
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. Sources