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The good news is there is a right way to handle this sort of thing. Do figure out what the bottleneck is, and come up with a new plan that can break it down. Such a sad ending for an iconic corporation, and an all too common one, I’m afraid.įrom Sears and Radio Shack to Kodak and BlackBerry, I can name dozens of public companies and many more startups you’ve never heard of that never came to terms with their underlying issues and, pick your favorite food metaphor, went the peanut butter or the spaghetti route, to no avail. Over the next decade Yahoo tried countless CEOs, strategies and turnaround plans until the board finally threw up its hands and sold out to Verizon for a tiny fraction of what the company was worth in its heyday.
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In what came to be known as the “ Peanut Butter Manifesto,” he explained that the once-dominant Internet portal had lost its way and, instead of focusing on a new cohesive vision, spread itself too thin. The first sign that Yahoo hit a wall was in 2006 when an executive named Brad Garlinghouse wrote an internal memo that somehow leaked to The Wall Street Journal. Don’t keep throwing spaghetti at the wall until something sticks.
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If anybody on your leadership team knew what was wrong and how to fix it, don’t you think they would have said something by now? Pounding on everyone to pull a rabbit out of a hat and do more with less as your business spirals into oblivion is a great way to destroy morale and lose the most important asset you’ve got – your talent. Don’t beat up your team or yourself searching for answers. Until you get to the bottom of what happened and decide on the right course of action, it most definitely is not business as usual. Positive thinking may be all the rage but when a company hits an unexpected plateau or growth stalls, it’s a sign that something is very wrong. You know what they say about doing the same thing over and over and expecting different results? It’s not just insane in the business world it’s a recipe for disaster. When it happens to you – and chances are it will – I don’t care if you’re a small-business owner, a startup founder or the CEO of an S&P 500 company, these are the do’s and don’ts to keep in mind: Don’t think happy thoughts : hoping things get better and saying it’s all just ‘business as usual’ are only going to keep you stuck. The next thing I said to that team of executives was a line from jazz great Miles Davis: “When you hit a wrong note it’s the next note that makes it good or bad.” Everyone screws up it’s what you do next that counts. Where did we start to suck at this? What is going on?” And when it happens, it’s not uncommon to find bosses standing around with blank stares wondering what the hell went wrong.Īs GoPro founder Nick Woodman so aptly put it in a recent interview, “Wait.
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In the business world, realizing that what worked before is not working now is par for the course.Įvery successful company stumbles and stalls, from Apple and Microsoft to Starbucks and Coca-Cola. And I wasn’t just blowing smoke up their you-know-whats either. That’s what I told the leadership team of a $50 million family-owned food company I’d been working with for some time. “Look, you’re not the first business to hit a bottleneck.