Nokia case study and yahoo case study are in many ways similar, while few critical evaluations are poles apart. But they have one striking likeness, their inability to understand their core user behaviors and changing market patterns which eventually led them to lose ground against their prudent and ever evolving competitors.
Yahoo that used to be the czar of the Internet valued at more $100 billion, almost as big as Facebook and Google are today. However, due to lack of foresight, innovation and leadership, it was forced to sell its principal business to Verizon for $4.8 billion in cash. Certainly an ironic end to the Internet Super Star!
When Yahoo CEO Marissa Mayer took charge of turning around business statistics in favor of yahoo, she adopted stack ranking to evaluate the performance of Yahoo employees. Inspite of the fact that many major industry players had shunned this system of employee evaluation because it did not encourage healthy work culture and in this ecosystem one could never promote collaborative output from the assigned team members, all that any team member was concerned about was to improve his/her ranking. Many critics believe stack ranking forced Yahoo team members to openly contend with each other, disallowed capable people from working in the same group as a team, forcing employees to select tasks that got them closer to their personal goals rather than doing anything collective. It only encouraged more of a rat race like environment and this eventually proved fatal for the giant because it is innovation and innovation alone that drives such companies. CEO Marissa Mayer should have followed Google’s strategy for evaluating and appreciating their employees. Not only Google, there were many other examples to learn from as well. Microsoft too gave up the practice of stack ranking in late 2013.
At HireHere we believe in offering employee friendly ranking systems which only promote collaboration and cordial work environment that boosts innovation and allows talented people to ponder on their out of the box ideas.
Most of our employees still have yahoo email IDs and it was nostalgic to know, “once the king of Internet has been acquired by another innovative and capable giant, Verizon.” Nevertheless, like first love one can never forget yahoo,
because many of us created our first email ID on Yahoo! We strongly believe Verizon will be able to restore the past and lost glory of the fallen pioneer.