The Clock's Ticking: A Memo to Yahoo's New CEO

New Yahoo (YHOO) CEO Carol Bartz has a long to-do list -- chart the company's strategy, weigh a potential search partnership with Microsoft (MSFT), boost morale and round out her management team -- and not much time to deliver amid a weak economy that is hurting online advertising, say experts at Wharton.

On Jan. 13, Yahoo named Bartz, a Silicon Valley veteran, to be Jerry Yang's replacement as chief executive although Yang will remain as "Chief Yahoo" of the company he co-founded in 1994. In addition, Yahoo president Sue Decker said she would resign. Until the announcement last week, Bartz, 60, was the executive chairman of Autodesk (ADSK), a computer-aided design software firm where she was CEO for 14 years before stepping down in April 2006. Bartz also worked at Sun Microsystems (JAVA), Digital Equipment and 3M (MMM).

Yahoo chairman Roy Bostock, who, along with Yang, declined merger overtures from Microsoft throughout 2008, said in a conference call that Bartz is "a seasoned ... and highly regarded technology executive with a decisive leadership style and proven track record."

This past month has been a busy time for Silicon Valley leadership changes. In addition to the news about Bartz, Apple (AAPL) CEO Steve Jobs announced that he would take a six-month leave of absence to address health problems that have drawn media attention in recent weeks. The companies' situations contrast sharply: Apple is led by a dominant and respected personality who may, or may not, be planning an exit strategy; Yahoo is looking for the type of leader that Jobs represents. As Wharton management professor Lawrence Hrebiniak puts it: Yahoo needs someone with "spunk. Bartz has to come in and take action."

Analysts overall have been positive about Bartz's appointment although many suggest that she lacks online media experience. Bernstein analyst Jeffrey Lindsay said in a research note that Bartz "has been a good CEO," but is "not a natural choice for Yahoo." Citi analyst Mark Mahaney agreed that Bartz "brings to Yahoo organizational chops, a fresh perspective and substantial technology industry experience," adding, however, that she would need to hire a lieutenant with extensive media industry experience. Gartner analyst Allen Weiner characterized Bartz as a "solid and safe choice" who will need Yahoo insiders for media.

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