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Microsoft, Yahoo!: Who's running the show?

Posted on July 30, 2009 at 4:08 PM
Filed under: Joint Ventures and Alliances
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ManWomanSil.pngNow that the details of the Microsoft Corp. (NASDAQ:MFST)-Yahoo! Inc. (NASDAQ:YHOO) search pact are out, talk has turned to integration. Even though this is not an acquisition, the classic merger challenges are all present and accounted for. They include technology integration, leadership and management structure, talent retention, compensation and cultural integration. And because Microsoft and Yahoo! are fresh off a bruising battle, all of these are ratcheted up.

Rather than tackle them all here, let's zero in on a biggie, though one that could well be overshadowed by the technology integration. That is leadership. We don't know who will ultimately lead the alliance, but it's clear that much of the integration will be run by managers, many who were involved in negotiating the "100-page playbook" Microsoft CEO Steve Ballmer referred to in Wednesday's conference call. As Silicon.com reported, people from the engineering and sales ranks were called on often to provide input throughout the negotiations.

Already there's been criticism that managers appear to be taking the lead in what's expected to be a two-year integration. But there are plenty of consultants who would say this is exactly as it should be. Business unit managers, sales and marketing team leaders, and IT specialists are in the best position to determine how integration decisions will impact their businesses.

A sales manager, for instance, will know better than a senior executive how her team might respond to new sales mandates or how to best approach cross-selling opportunities. Same with an R&D project manager, who could have valuable input into how to retain a top engineering team.

That's not to say a strong leader to resolve disputes and make difficult decisions isn't a must. But in these early stages, having tactical mangers deeply involved in integration may be more important. - Suzanne Stevens



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