I endorse this move wholeheartedly. Spinning out AOL into an independent entity with its own set of metrics and deliverables; focused leadership team; and its own currency and its own defined set of competitors is a very wise and much needed move. Click here for the All Things Digital story. AOL has a massive audience; massive web reach; great communications products such as AIM; great under leveraged brands; the best content sites in the industry; the best third party ad network with Advertising.com; and big revenues, profits and cash flow.
It now has very focused management again and I believe the people of AOL will view this move very positively as will AOL’s partners and advertisers. Kudos to all of those that made this happen. Focus and an engaged team of people will deliver the one thing that is needed - GROWTH. With growth comes clarity, success and value creation. Onward.
Tags: AOL, Ted Leonsis, Ted's Take, Time Warner
Armstrong is from Google; Google is a flatly managed company, with most people on an equal level and working across functional boundries. AOL has an old-world corporate structure and frowns upon lower-level workers taking initiative in contacting other departments. For instance, HR has about 60 employees, with something like 1 evp, 8 vps, 10 directors, 10 managers and any initiatives have to be approved up the ladder. If AOL is to survive, management has to be thinned drastically and the rigid hierarchy abolished. But they needed to keep the people who loved their work, took initiative and were, above all, loyal to the company. When they let my wife go in March, probably the best worker I know, it cemented my belief that even Tim won’t be able to turn this around; a company’s most important asset is it’s people, and I don’t mean the folks with a vp or director in their job title. You cut the best worker bees and wise moves by focused management can’t be executed.