SpectatorBytes

Microsoft’s control over Yahoo has reminded me about the importance of “religion” to succeed in technology. I believe “religion” is one of the key underlying reasons why Yahoo’s management and board has resisted Microsoft’s overture.

Digital media companies are founded and scaled around a particular “set of beliefs.” These beliefs reflect a particular way to look at the world, insights on how the market dynamics will evolve, and vision on how to serve the specific needs of a market in the future. These beliefs shape a company’s product development, organizational culture, business approach, and acquisition strategy.

Sets of beliefs are becoming increasingly critical to succeed for digital media companies. In a hypercompetitive environment, companies need to be laser-focused on what they are trying to accomplish. A clear set of beliefs allows companies to do that. It also enables them to move fast and avoid pitfalls (e.g., copying competition, misunderstanding market dynamics, etc.) In a world where the difference between achieving success or becoming a failure has become increasingly hard to identify, a clear set of beliefs becomes even more critical. It allows all essential constituencies (management, employees, investors, partners) to be on the same page and work jointly towards the same vision. It also allows companies to simplify their interaction with their existing customers and potential new ones.

Many businesses and companies that I have seen fail because they fail to have a clear set of beliefs. A CEO articulating a vision that is different from a company’s product or services is the clearest example of that phenomenon. Partnering with companies that do not share similar sets of beliefs is another. Recruiting talent whose experience has been built around other sets of beliefs is another.
Needless to say, one has to have the “right” set of beliefs. However, I find that in today’s digital media market at least having one improve your odds of long-term success.