What is REALLLLY GOING ON AT YAHOO?
One minute we are selling off Alibaba net worth of $54 billion and the next minute we are not!
Whenever companies are going through tumultuous times and fighting with aggressive hedge fund shareholders who insist on running the day-to day operations. I recommend implementing a turnaround team. A group of business professionals who will keep the core business running smoothly and keep a roof on the place, while the board and wall street are tap dancing and making noise from the roof top!
Turnaround teams come in and make use of data to set goals and promise turnaround in 15 to 18 months. These teams are strategically implemented to tackle the large business needs of large organizations without necessarily disrupting the company as a whole. The most effective teams are those where there are 5 talented people with varying levels of experience with turnaround initiatives in different industries and occupational fields. I’m not necessarily in agreement that turnaround specialist have to be from the same industry. Most struggling companies need a fresh set of EYES AND IDEAS! All companies want to do 3 things:
- Increase revenue,
- decrease expenses and
- run efficiently as possible to make money for the shareholders
John D. Rockefeller one of my favorite turnaround specialist, was not in the oil business he was in the commodities business. He was approached by a friend to be a passive investor in an oil refinery. Rockefeller was hesitant about the venture, but agreed. One day he was conducting a walk through at one of the refineries. He noticed oil was leaking out of the barrels and onto the floor. He raised the question, “Why are you filling that barrel up with that much oil to the point of overflow? The linemen responded, “we were told by management to fill the barrels up and we have always done this.” Rockefeller told them that was millions of dollars all over the floor. As a passive investor he told management to redesign the barrels with the line inside and the assembly line was only to fill the oil barrels to the line. This implementation saved millions of dollars fairly quick!
Turnaround teams come in and work with the grass roots efforts of the company.
Marissa has done a fantastic work with the Yahoo mobile, she is a technological genius, but will she be able to buy some more time to map out a new business strategy for Yahoo’s core business, Alibaba ecommerce or will they sell the entire business. They should start lobbying for a reduction in capital gains tax or get innovative and come up with another stream of revenue to offset that tax bill.
By the way, congrats on the new babies!