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mendyk 7/26/2016 | 1:15:26 PM
Let's put it to the test If this works, does Verizon win some sort of prize for proving that two wrongs can in fact make a right?
wanlord 7/26/2016 | 1:35:04 PM
I get it I get why they are doing it. Desperation. They haven't been able to figure out how to create anything internally, or change the telecom culture that exists. The culture clash will be very interesting.  There is a big difference between how things are managed and how employees are treated in VZ vs. these companies. Just go to the VZ HQ and see how quiet the sterile office is and how sad it feels with everyone stuck in their little cubicles not communicating. Blocked from any use of social media or tools to communicate and be open.  They don't even see the value of providing free coffee in work areas, forcing employees to take 20 mins out of their day going to the cafe and standing in line. Huge productivity suck.  They want to be Google and Facebook, but don't want to pony up the perks that bring in the best talent and inspire employees to make them happy. The moment I see the VPs and XOO's sitting out with their teams instead of hiding out in their bunker offices, then I will believe they are serious.
mendyk 7/26/2016 | 2:04:57 PM
Re: I get it Good points -- they also reinforce the perception that Verizon's top management struggles with the issue of effectively managing both its legacy businesses and its new-growth opportunities. Also, it's hard to escape the conclusion that VZ's top management sees its workforce strictly as a cost burden, as opposed to a revenue-generating asset.
brooks7 7/26/2016 | 2:12:39 PM
Re: I get it Dennis,

I would argue that the residential assets are primariy a drain.

mendyk 7/26/2016 | 2:26:22 PM
Re: I get it Yes, and McAdam has made no secret about his disdain for that business. Still, as the CEO of the entire company, it's his job to make that part of the business work as best as it can. And to wanlord's point, VZ isn't acting like an organization that understands what it takes to compete with the Webscale bunch.
brooks7 7/26/2016 | 2:41:14 PM
Re: I get it Dennis,

I completely and utterly disagree.  If you have a bad business, then stop doing it.  Don't throw good money after bad.  The challenge is that they can not just abandon the business from a regulatory standpoint.  They have been selling it off chunks at a time.  But you can not assume that it is possible to make the residential wireline business a good business into the future.  

I took Wanlord's point to be that you can't make a telco into Google.  I agree with that.  The best thing you can do is fire all the telco guys.  Problem is that this is not realistic.  So, the next best thing is to stop trying to build the business and to buy it.  When you buy it, run it separately and let your legacy business wither.

Let me use a bit more detail on the commentary from the post I did earlier in the other thread.  I see advertising as a 95% GM business.  If I can buy a cash machine that is there and cobble together good pieces of failed businesses, then I have a scaled business already.  The problem is trying to put telco people in charge of that business.  It never works.

They are treating Verizon as a giant P/E fund and repositioning the firm.  Seems most excellent to me.


mendyk 7/26/2016 | 2:47:31 PM
Re: I get it So then why doesn't McAdam engineer a spinout and isolate what he and others consider to be dead weight? He's getting paid close to $20 million a year. Are shareholders getting their money's worth from that spend? As far as the cash machine goes, if things were that easy, more companies would be doing it. That's kind of the problem when top management gets lazy -- they start looking for giant piles of money that take little or no effort to secure. I see nothing to suggest that Verizon can execute the plan you suggest.
Joe Stanganelli 7/26/2016 | 2:50:57 PM
Re: I get it @wan: I think there are numerous fair criticisms one can level at VZ, but their culture not being like that of a "hip" startup that provides free coffee is not, in my mind, one of them.  Dumb, desperate Millennials who overpaid for their college degrees and went into too much debt may fall for the "oh, boy, free snacks!" benefit as making up for low salary, but even modestly more seasoned workforce members understand that work doesn't have to be -- and probably shouldn't be -- like a giant playground.  (Indeed, a number of ex-employees of such "free food and fun times" startups have gone on to bitterly complain about their former employers' poor culture, poor hopes for advancement, poor benefits, and poor salary on such sites as GlassDoor.)

Sure, there is productivity to think about, but there is also practicality.  FB, Google, and the like in Silicon Valley pay TONS of money on benefits to keep their employees on campus and in the office working and collaborating as long as possible... but that environment isn't for everyone, and isn't worth it for everyone.

(Also, I've learned from personal experience that if you're interviewing for a job and you discover that the executives don't have real offices, run away.)
Mitch Wagner 7/26/2016 | 3:05:23 PM
Re: Let's put it to the test What's the overall strategy here? Verizon seems to have two businesses without an overall connection here: Service provider and ad platform. 
Mitch Wagner 7/26/2016 | 3:06:16 PM
What next for Marissa Mayer? Common wisdom is that she's a failure. 

But is she? Or did she keep the company going longer than others woudl have, and deliver maximum return for shareholders?
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