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By Nick O’Flaherty
Yahoo is the slowest-growing U.S. Internet company in its class—a trend the company is furtively trying to reverse. With Marissa Mayer at the helm, and former Goldman-banker-turned-‘Chief Development Officer’ Jacqueline Reses at her side, Yahoo has been busy restructuring and acquiring - but with Q1 results showing a 4% dip in sales and profit rising only 36% there is still a ways to go.
In recent months, the magnifying glass on Marissa has kept the company even more tight-lipped than usual. Obviously a company in Yahoo’s position can’t reveal all of its strategies, but if the leadership have a clear purpose and vision for their brand, then it’s time to leverage the attention, and start to tell that story. Here’s a way to go about it:
First, define your journey.
We know Yahoo wants to win in mobile and personalized content, its last six acquisitions have been about building the capabilities, products and people to help get them there. Those bets are good – and are an indicator that Yahoo is moving from click centric to consumer centric, but it needs to reconcile the fact that at its core it’s still an ads-for-content company– and that core is not doing so well.
From the outside, its efforts could be seen as a series of quick fixes to magically shape shift, while it leaves its core business to languish (maybe Yahoo Stream Ads will change this!). As a perpetual optimist, and believer in Marissa - I don’t think this is the case - and the Yahoo journey of transformation is well planned. They just haven’t let anyone know about it yet. Let us in! We want to know where the business is going, why – and how the legacy business will play a role along the way. We’re not asking to give away all the secrets – but get us excited, and admit when you’ve gone off the path a bit. A bit of honesty and humility would also be welcomed in a world of platitudinal investor chatter and empty press releases.
Defining a brand purpose that explains Yahoo’s role in the world will show customers that this journey is rooted in the needs of real people, and it will motivate and focus the business along the way.
Second, remember what made you great.
Most companies begin with an ambitious leader on a mission to solve a problem, to fill a gap in the market, or bring a genius idea to reality. They are new, exciting, different. Customers flock to them, everyone wants to work for them, they grow at a dizzying rate, they go public, get rich, they are hugely successful, mission accomplished – or is it…? Wait, what was that mission again?
But it seems a law of physics— as many businesses get older, bigger, more diverse, more complex, more siloed, have more mouths to feed, and increasing pressure to serve shareholders – they slip into a gentle, sometimes imperceptible, state of decline. Think of a struggling Starbucks in 2008, before Howard Shultz returned as CEO to bring them back to customer-centric strategies and their original, neighborhood feel.
Yahoo’s problem, similarly, was not adapting its collegial, quirky, creative DNA into a sustainable competitive advantage. And now more than ever, with all of Marissa’s focus on the new, she can’t afford to forget the old. Not only is it disheartening for Yahoo’s legacy employees to see the focus on the new kids and their toys, there is a treasure trove of value in Yahoo’s history and culture that seems to have been neglected.
They were once the pioneer who defined the creative, non-corporate culture of Silicon Valley. To consumers, Yahoo has never been “evil” or abused its size and power (when it had it) and many want to see them win. Channeling the atmosphere of a younger Yahoo will set the right conditions for their new people to thrive and work together with their existing teams. That DNA will lend them credibility and authenticity not just with talent, but with audiences and advertisers too. Its low ego and willingness to collaborate are exactly right for the next era of this tech company’s growth.
Finally, build your brand on collaboration.
Collaboration is fundamental to Yahoo’s DNA, and it’s key to winning in tech. Already, Marissa has made overtures to partner with Apple to take on Google which is a great first step. But it’s not just about business collaboration – it’s collaborating with the public too.
Yahoo should take a cue from one of its contemporaries in the tech world, Mozilla— a brand that’s built entirely on collaboration from inside and out. Mozilla’s mission to promote openness, innovation and opportunity on the Web is their ultimate decision-making filter. They have a global community of thousands of volunteer contributors whose opinions and perspectives are at the center of all their business moves. Moreover, they trust that community to be stewards of their brand – to share it, improve it, and love it like their own.
Yahoo needs to realize that people have a stake in their success too. And if they want to understand what would “make their daily routines truly delightful,” they’ll need to get way more intimate with their consumers. Beyond users, beyond clicks. A passionate partnership that leverages all of the ways a brand can listen to and work with its audience today is the best way to build products and programming that are thoughtful, relevant and attention grabbing.
Despite the media scrutiny of Marissa, I feel people are genuinely excited to see where she can take Yahoo right now (I know I am!). And the path could be a bright one by clarifying where you want to go and building a brand purpose to get you there.
Nick O’Flaherty is strategy director at Wolff Olins New York. A version of this article originally appeared on iMedia Connection.