THE CONTEMPORARY RENAISSANCE OF YAHOO!

1
The Contemporary Renaissance of Yahoo!
Amaie !"#$reen Termannsen
Intro%&ction to Or$ani'ationa Comm&nication
(A Information Mana$ement
Cass teacher) Marei*e (&ss
N&m+er of characters) 11,-1
Han% in %ate) ./01.0./11
Copenha$en (&siness Schoo
THE CONTEMPORARY RENAISSANCE OF YAHOO! .
Introduction
2anity Fair recenty co#ere% an in3%epth piece on the ea%er of the m&tinationa internet $iant 4
Yahoo 4 s&$$estin$ that a 5$itterin$ s&rface often %efects attention from a messier reaity67 in%icatin$
at a certain mysti8&e at the reno9ne% corporation :Mc!ean7 ./117 p;1<; This in%ication points to the
infamo&s Marissa Mayer7 the c&rrent CEO an% =recent= a%%ition to the or$ani'ation of Yahoo; The
foo9in$ paper 9i see* to hi$hi$ht %ifferent aspects an% theories of or$ani'ationa comm&nication at
Yahoo7 an% ho9 the company has chan$e% thro&$h its or$ani'ationa c&t&re an% ea%ership of Marissa
Mayer; In partic&ar7 the theoretica 9or* of E%$ar Schein 9i +e &se% to foc&s on the si$nificance of
c&t&re 9ithin an or$ani'ation s&ch as Yahoo; Firsty7 the anaysis 9i f&rther o&tine the &se of
important references; !asty7 these fin%in$s 9i +e foo9e% +y a case anaysis an% a coser oo* at the
c&t&re of Yahoo7 as atere% +y chan$e an% ea%ership; Conc&si#ey7 the paper 9i aim to pro#i%e ne9
insi$hts into Yahoo=s %e#eopment &n%er Mayer=s ea%ership;
Theoretical Framework Literature Review
In this section7 a +rief intro%&ction 9i +e s&ppie% on the iterat&re pro#i%e% on Mayer an% the
or$ani'ation of Yahoo7 from the e>am case; These iterary fin%in$s inc&%e recent ne9s an% artices on
Yahoo7 9ith main points concernin$ ea%ership7 technoo$y7 company history7 an% chan$e; Thro&$ho&t
these con%ense%7 onine fin%in$s7 my points of ree#ance ha#e +een foc&se% on the concepts of c&t&re7
chan$e an% ea%ership; In recent years7 Yahoo has +een &n%er m&ch criticism foo9in$ the post3Yan$
era :the company=s co3fo&n%er<7 9hich has $i#en rise to insta+iity 9ithin the or$ani'ation :Ye&n$7
./11<; ?ith a on$ ist of e>ec&ti#es an% empoyees fire%7 a%%e% 9ith the contin&a repacement of
CEOs7 the company=s pop&arity ha% p&mmete% e#en f&rther; Paire% 9ith too many misse%
opport&nities 4 s&ch as the p&rchasin$ of Face+oo* in .//@ 4 the company ha% aso +ecome a pace
9here ac8&ire% start&ps 9ent to %ie :Mc!ean7 ./117 p; ,<; The f&t&re 9as fairy %im an% the company
seeme% +&rnt o&t; Then Mayer Aoine% the Yahoo team in B&y ./1. :In%#i*7 ./11<; Since then7 Yahoo=s
THE CONTEMPORARY RENAISSANCE OF YAHOO! 1
ea%er has +een of m&ch interest foo9in$ her a%mission to the post; As the yo&n$est e#er Fort&ne -//
CEO7 Mayer has +een &n%er 9atchf& o+ser#ation %&rin$ her first year an% a haf at Yahoo7 to see ho9
she 9i han%e the company not ony in its present state7 +&t aso in its f&t&re :Eis7 ./11<; As a fairy
contemporary ne9s tren%7 Mayer aso attracts attention %&e to her a$e7 competences7 her +ac*$ro&n% at
Coo$e7 her 9or* ethics7 an% the fact that she is a rather $amoro&s an% $ee*y creat&re in a mae3
%ominate% corporation; The positi#e i$ht that has +een she% on her s&ccess so far7 ma*es for an
interestin$ an% critica anaysis of Yahoo=s so3cae% 5renaissance6 :Stone7 ./11<;
Case Analysis Yahoo
Cheney an% his feo9 associates propose that the c&t&re of an or$ani'ation is %eepy em+e%%e%
in an% e>presse% +y patterns an% ha+its of comm&nication :./117 p; D-<; This i%ea certainy rin$s tr&e7
9hen oo*in$ at recent chan$es an% esta+ishments at Yahoo; Not ony %o these ne9er chan$es
e>empify the e>istence of the core c&t&re at Yahoo; So too7 %i% the or$ani'ation +efore Mayer steppe%
in; The chan$es ma%e thro&$h the i*es of ne9 ea%ership ha#e7 ho9e#er7 atere% Yahoo=s c&t&re in
some aspects; Thro&$h empirica research7 it +ecomes apparent that Mayer often comm&nicates an%
i&strates this c&t&re to sta*eho%ers7 the p&+ic an% the me%ia in a #ery open an% honest 9ay; This is
perhaps aso a $i#en7 consi%erin$ her position an% her %&ties; As Mayer hersef e>caims7 she is not
5conf&se%6 a+o&t 9hat nee%s to +e %one7 an% is #ery %etermine% to t&rn the company aro&n% :Stone7
./11<; This nee% for %rastic chan$e aso 9o&% ha#e prompte% her to p&sh for a more ti$ht3*nit
comm&nity at the 9or*pace7 as 9e as a re%esi$ne%7 poishe% sense of c&t&re to hep the 9or% see that
Yahoo co&% in%ee% +e f&n once more;
Schein=s %efinition of or$ani'ationa c&t&re from 1EF-7 impies that c&t&re is a +asic set of
ass&mptions that has +een in#ente%7 %isco#ere% or %e#eope% in earnin$ ho9 to cope 9ith iss&es of
e>terna a%aption an% interna inte$ration :Hatch G C&niffe7 ./1.7 p; 1@/<; These patterns ha#e
thereafter +een ta&$ht to feo9 co9or*ers an% mem+ers7 in an effort to s&stain a Aoint c&t&re of simiar
THE CONTEMPORARY RENAISSANCE OF YAHOO! ,
perceptions7 feein$s an% reations 9ithin the or$ani'ation; S&ch artifacts 4 as Schein cas them 4 are
aso important in *eepin$ mem+ers of a c&t&re to$ether7 9hether it +e at a 9or*pace or in a socia
conte>t; The reason that c&t&re is s&ch an important aspect in the case of Yahoo7 is the fact that the
company has ha% to en%&re se#era %ifferent perio%s &n%er %ifferent CEOs7 9ith a contin&a %ecine in
saes7 mar*et pop&arity7 an% stoc* #a&e o#er recent years; Hn%o&+te%y7 the c&t&re of Yahoo has
therefore aso ta*en a +o97 +eca&se it has +een 5pa$&e% +y ayoffs7 an% n&mero&s empoyees ea#in$
the company for #ario&s reasons6 :Ye&n$7 ./11<; Hn%er Mayer=s ea%ership7 ho9e#er7 peope ha#e
+e$&n to notice the impro#ements at Yahoo; Se#era empoyees ha#e aso ret&rne% to the corporation7
an% as Ye&n$ points o&t7 there are more Ao+ appicants than +efore :./11<;
Se#era of the artices %o a%#ocate that Mayer has %eci%e%y trie% impro#in$ the company
c&t&re from the start :Mc!ean7 ./117 p; 1<; She has %one so +y intro%&cin$ the i*es of free foo% at the
canteen7 ne9 smartphones an% aptops for empoyees7 an% +y comm&nicatin$ her pans an% strate$ies
ceary :In%#i*7 ./11<; These acts of %ecision ma*in$ :or aspirations for f&t&re con%&ct< co&%7 for
e>ampe7 +e seen thro&$h the ens of Schein as the secon% e#e of c&t&re 4 consisting of espoused
values and beliefs; There is a ot of sef3a9areness at the this secon% e#e7 9here the or$ani'ation=s
mem+ers :Mayer an% her associates< %isc&ss7 confirm or chaen$e strate$ies an% $oas :Cheney et a;7
./117 p; DF<; Thro&$h the &se of these strate$ies7 the o% c&t&re of Yahoo 9o&% +e chaen$e% for the
+etter; The free foo%7 smartphones an% aptops thereafter +ecome #isi+e artifacts of the Yahoo c&t&re7
aon$ 9ith the i*es of the company o$o7 the p&rpe Yahoo tone7 the +i% to a+oish 9or*in$ at home7
an% the possi+e re3s&ccess of the company7 etc;
5Perhaps the most intri$&in$ aspect of c&t&re as a concept is that it points &s to phenomena that
are +eo9 the s&rface7 that are po9erf& in their impact +&t in#isi+e an% to a consi%era+e %e$ree
&nconscio&s6 :Schein7 ./1/7 p; 1,<; As Schein points o&t7 it=s not a9ays cear to &s 9hat the core +eiefs
an% #a&es of a company are7 an% sometimes they are hi%%en; Atho&$h c&t&re %oes not 9ant to feat&re
THE CONTEMPORARY RENAISSANCE OF YAHOO! -
in%i#i%&as7 as it is more a+o&t team9or* an% coa+oration7 the me%ia cra#e it7 an% th&s Mayer has +een
in the imei$ht :Mc!ean7 ./117 p; .<; The Economist %oes not 8&ite +eie#e that Mayer has ma%e the
most on$3term7 positi#e mar* on empoyees yet :thro&$h this ne9fo&n% c&t&re<7 +&t Eis points o&t
that her most si$nificant chan$es to the company ha#e +een c&t&ra7 in attemptin$ to reme%y the
5intrinsic pro+ems that ha#e so9y eaten a9ay at the search en$ine=s ree#ance;;;6 :./11<; In other
9or%s7 she has attempte% to repro%&ce an% re3create the c&t&re at Yahoo7 th&s aso ma*in$ it a socia
constr&ction of the or$ani'ation :Cheney et a;7 ./117 p; E1<;
The recreation of a company=s c&t&re o+#io&sy +rin$s a+o&t chan$e; Chan$e is aso create% +y
%isco&rse7 an% this is e#i%ent in the history of Yahoo; As Schachter procaims) 5YahooIs fa9 9as that it
ha%nIt ma%e %ecisions in years +eca&se it ha% no con#ictions6 :Mc!ean7 ./117 p; -<; Not ony has
Mayer +ro&$ht a+o&t c&t&ra chan$e7 +&t aso in the company=s operatin$ proce%&res; She has %one this
+y foc&sin$ more on the taent aspectJ +y ac8&irin$ start&p +&sinesses7 entreprene&rs7 PhK researchers7
an% e#en ar$er companies7 s&ch as T&m+r :Stone7 ./11<; L&rt !e9in %e#eope% a simpe mo%e for
chan$e3reate% comm&nication7 s&$$estin$ that chan$e is m&ch i*e 9ater) a9ays mo#in$7 free'in$ an%
&nfree'in$; He +eie#e% that chan$e occ&rs in fo&r phases) :1< reco$nition of a fet nee% for chan$e7 :.<
%e#eopment of the chan$e nee%e%7 :1< impementation of chan$es7 an% :,< ro&tinisation of the ne9 9ay
:Cheney et a;7 ./117 p; 1.F<; ?e co&% appy this same theoretica mo%e to Yahoo7 reco$ni'in$ that the
company 9as in +a% shape an% ha% ost its appea; ?ith %ire nee% of chan$e an% no CEO to ea% the
company :foo9in$ the re%&n%ancy of Caro (art'<7 Yahoo empoye% Mayer in hope of impementin$
positi#e chan$e :Ye&n$7 ./11<; In t&rn7 Mayer %e#eope% an% comm&nicate% her #isions an% i%eas7
+e$an %e#isin$ a ne9 c&t&re7 an% asty +e$an to ro&tinise the ne9 chan$es at Yahoo; The aterations
that she has ma%e ha#e $i#en her s&ccess; One res&t of this7 is Yahoo=s stoc* increase of appro>imatey
D-M7 9hich has %o&+e% since Mayer Aoine% the company :Mc!ean7 ./117 p; 1<;
!asty7 one co&% most i*ey a$ree that Mayer=s ea%ership has +een an important process 9hich
THE CONTEMPORARY RENAISSANCE OF YAHOO! @
has in#o#e% chan$in$ an% inf&encin$ peope=s attit&%es an% actions :Cheney et a;7 ./117 p; 1F1<; Her
mana$eria choices7 s&ch as en%in$ the option to 9or* from home7 co&%7 ho9e#er7 +e seen from a
critica perspecti#e i*e Keet'=s7 statin$ that corporations ten% to 5contro an% cooni'e6 mo%ern ife
:Criffin7 ./1.7 p; .D1<; The i%ea of ea%ership is f&n%amentay a+o&t creatin$ positi#e chan$e thro&$h
the &se of comm&nication; Atho&$h Mayer=s s&ccess to %ate has +een attri+&te% to her enth&siastic
%emeano&r7 it may aso ha#e +een a necessity; !ea%ership theorist7 Leith Crint7 hi$hi$hts the
importance of ea%ership as a 5sociay constr&cte% phenomenon6 :Cheney et a;7 ./117 p; 1FF<; This
constit&ti#e approach s&$$ests that information on sit&ations an% in%i#i%&as is not eno&$h to
&n%erstan% the i%ea of ea%ership :Cheney et a;7 ./117 p; 1E-<; Instea%7 it is important that 9e reco$ni'e
that the roe is a socia constr&ction; In this case7 Mayer has ta*en the %ecision to create somethin$ that
pre#io&s Yahoo ea%ers ha#e faie% to %o; Mayer=s $oas an% aspirations for Yahoo are aso i&strate%
thro&$h the 9ays in 9hich she chooses to comm&nicate the t&rnaro&n%; She aso comm&nicates these
transformational processes thro&$h her pan to recr&it 5$reat peope67 5+&i% $reat pro%&cts6 an% to
re#erse Yahoo=s %ecine in the a%#ertisin$ +&siness :In%#i*7 ./11<; It is perhaps %&e to the positi#e
connotations associate% 9ith leadership7 that Mayer has +een a+e to shine so far;
Conclusion
In s&mmary7 this paper has aime% to pro#i%e se#era anayses of the recent c&t&ra chan$es an%
aspects of ea%ership7 as e>empifie% +y Marissa Mayer at Yahoo; Thro&$h the impementation of
c&t&ra chan$e7 the company has seen a risin$ in 9or*er morae7 an% an increase of interest from
empoyees7 shareho%ers7 entreprene&rs an% the me%ia; One co&% th&s attri+&te some of Mayer=s s&ccess
to her +aance of positi#ity7 cre%i+iity an% enth&siasm for chan$e; Interestin$y7 Schein states that the
simpest 9ay a ea%er $ets their messa$e across is thro&$h charisma :./1/7 p; .1-<7 9hich Mayer most
%efinitey possesses; C&t&ra si$nificance is important to an or$ani'ation to%ay7 an% as 9e are seein$
9ith Yahoo7 it is +ein$ rema%e in Mayer=s ima$e :Eis7 ./11<;
THE CONTEMPORARY RENAISSANCE OF YAHOO! D
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