COMPULSORY OUFSTIOV - 25 MARKS WHITESPACE'S PEANUT BUTTER MANIFESTO WhiteSpacel which was eece the web's advertising siam and the most visined sites oe the internet, las in recent times seen siguificant market value decline. The once revered marke leader has been loosing market shane to rivals Goople and Facebook in the digital advertising vpace which is gotine more coepetitive wid the entry of Twitter, Amaron and the Linkdin. Growth had slowed, Google had overtaken WhiteSpoce! in terms of online advertising revenues, and the share price had fallen by nearly a third since the start of the year, with an imminem problem of Mirmsonf takeover which coeld spell dinger firr WhiteSpace? Over all, employees, sharcholders and internet users have been at the toceivins ed of this coplotative managenent. Leadership was sharply ciriteised for lacking ownership and strategic direction. It would soon be realized than Scaior Executives had perwonally besefined from the problem faced by Whinespace! The situation has been perceived as synonumoes to the tragudy of flec cammote a proilcm in esonomics that occurs when individaals neglect the well-being of society. the common good in gurtait of persetal gain and this is relsad with two carrents that lave developed in Eoonomies. It wat "Groar" Gecod perensed aplication of common rewourceloconmon endownent from fulfilling its parpere, the is fion serving the common seats of all stakcholders. In November 2006, Brad Gaelinghouse, MBA graduale and a WhiteSpose' Sonior Vice Proident, wote a memo to his top managers afgaing that WhiteSpace', the diverified Intrent Ceepury, was speriling resourses too thinly, like ptanut bulter en a shice of brad. Edited extracts from the mame follow: Three and half years apo, 1 enthusiastically joined WhiteSpaset The mugritade of the epportanity was coly matched by the magainde of the assets. And an amaring ieam las been ropoeuble fir thballing White5pace? But all is not well. 1 imagine there's much discussion amoopst the Conpony's senior moat leadership around the challenges we face. At the risk of being modudant, I watted to shire my take en ear current situative and offer a recommended path forward, an attempt to be part of the solution nather thun part of the problem. Recegnixing Our Problems We lack a focused, cohesive vision for eur company. We want to do cecything and be everything - to evaryone. We've known this for years, talk about it incessamtly, tul do noting so findumettally ablerss it. We are scared to be kff ovi, We are reactive instead of charting an unwzwering oours. We are sppurnted into silos that far loo frequently don't talk to each other. And when we do talk, it aia't to collaborate on a clearly ficused DC ACDOL Foo4 strategy, but rather to argue and fight about ownership, strallegios ind tactios. I've heand our strategy decribed as spreading peanut butter across the myriad oppoctunities that cotritue to coobe in the online world. The result a thin layer of investment spread across everything we do and thas we foces en soching in particular. We lack clarity of ownership and accountability. The most painfal munifentation of this is the mussive redundancy that exists throughout the organization. We now operate in an orguniratical strochure - admittedly created with the best of intentions - that has becoene overly bureauminc. For fir noo nan employees, there is another persee with dramatically similar and averheping responsibilities. This slows as down and burdens the company widh unsecsary costs. Equally protedenuric, at what poiat in the organincive des someone scally We lack clarity of ownership and accountability. The most painful manifestation of this is the massive redundancy that exists throughout the organization. We now operate in an organizational structure - admittedly created with the best of intentions - that has become overly bureaucratic. For far too many employees, there is another person with dramatically similar and overlapping responsibilities. This slows us down and burdens the company with unnecessary costs. Equally problematic, at what point in the organization does someone really OWN the success of their product or service or feature? Product, marketing, engineering, corporate strategy, financial operations... there are so many people in charge (or believe that they are in charge) that it's not clear if anyone is in charge. This forces decisions to be pushed up - rather than down. It forces decisions by committee or consensus and discourages the innovators from breaking the mold... thinking outside the box. There's a reason why a centerfielder and a left fielder have clear areas of ownership. Pursuing the same ball repeatedly results in either collisions or dropped balls. Knowing that someone else is pursuing the ball and hoping to avoid that collision - we have become timid in our pursuit. Again, the ball drops. We lack decisiveness. Combine a lack of focus with unclear ownership, and the result is that decisions are either not made or are made when it is already too late. Without a clear and focused vision, and without complete clarity of ownership, we lack a macro perspective to guide our decisions and visibility into who should make those decisions. We are repeatedly stymied by challenging and hairy decisions. We are heid hostage by our analysis paralysis. We end up with competing (or redundant) initiatives and synergistic opportunities living in the different silos of our company. REQUIRED: i. Explain five (5) reasons why the issues facing WhiteSpace were strategic. Find examples of all the items discussed in characteristics of strategic decisions. [10 marks] ii. Explain in two (2) ways how the problems facing WhiteSpace would have impeded their strategy success? [5 marks] iii. As a Strategist for WhiteSpace, based on your understanding of the "tragedy of the commons", recommend five (5) policies/strategies you believe could be introduced by the Board of WhiteSpace in order to address their problems and restore WhiteSpace to its position as industry leader, while fulfilling their commitment to stakeholders. [10 marks] [TOTAL =25 marks] DC: ACD01-F004