Sunday, November 19, 2006

The Peanut Butter Manifesto

When I read the peanut butter manifesto memo from Yahoo!’s Brad Garlinghouse, I thought it was pretty bold and interesting. Interesting because this memo is a true reflection of how new age companies have made transparency a way of doing business and encourage employees to really live their brand. Bold because forcing focus is the best way to improve business expertise and secure a market leadership position.

Garlinghouse has a true desire to create an authentic environment where passion leads to innovation and success. Many other businesses could learn from his thinking and willingness to put his ass on the line.

Passion and focus are essential for success. Too many businesses, large and small, want to conquer all and over extend product lines and services. While I clearly understand that line extensions increase market share, over extension inevitably leads to failure. Failure happens when companies push unfocused growth over quality and sustainability. Sometimes it’s good not to be the corporate conglomerate monster that gobbles up everything in its path.

Look at the past to predict the future. When a company steps outside of its core competency and only sees the numbers, it will likely take on ventures it has little understanding of or expertise in. Decisive decision making is driven by a clear understanding of what your authentic brand is and everyone gets it. Not leading with authentic passion gives competition a chance to run you over.

I hope that Garlinghouse is able to lead Yahoo! and doesn’t loose his shirt in the process. If he is successful in transitioning the organization, he could position Yahoo! as the new leader.

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