Strategy in the bad timesPosted: April 8, 2012
Yahoo Job Cuts: Dan Loeb Remains Unsatisfied – Deal Journal – WSJ: “Yahoo Job Cuts: Dan Loeb Remains Unsatisfied”
When times get tough, coherent, long-term strategy often goes right out the window. Instead of thinking through a comprehensive plan and using it to guide tactical decisions, panicky managers start slashing staff, capital projects and resource outlays helter-skelter. Morale fails, the best employees jump ship, core assets and capabilities languish or are sold outright. And thus begins the death spiral. A comprehensive, coherent plan not only guides reallocation of resources and cost reduction activities, but it also provides reassurance to the employees, suppliers, customers and investors you want to keep.