I did some work with a company recently where the Group VP, in charge of four product divisions, decided to launch a priority setting effort to place more resources against the high potential projects, eliminating struggling, marginal efforts, hopefully leading to market share growth. He got his five VP’s together and indicated his intent and also said that in the process of providing the sharper focus, he hoped that budgets could be cut in the range of 4-6%. Each VP was to come back with their proposal.
Bob's Gutsy Leadership Blog
Archive for May, 2014
It is rare to find a person who reverses these priorities, and hence, it is always wise to put these needs out on the table very early when you discuss possible organizational changes.
That new CEO is not helping any in that recently the WSJ reported that when she was asked to describe her vision for Yahoo, she has variously called it a “daily habits” company, a “personalization company,” and a search engine where “you become the query.” How would you like to be an employee in that company trying to understand where your company is going and how your part of the organization can best help the cause?
In 2006 with the business stagnating, a new CEO was hired, Angela Ahrendts, to pull the company out of its doldrums. She quickly forced the organization to face reality. They had strayed from their heritage of being very British, quite up-scale, and the quintessential provider of quality coats.
Strong leaders watch carefully for key inflection points, trends in technology or customer habits that are going to impact their organization, and they jump out in front of them. But…this needs to be done carefully, finding ways to test the impact before making any final commitments.