What Happened to Yahoo: Why Tacit Knowledge is More Important Than Deliberate Practice

Hatched by Kazuki
Jul 30, 2023
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What Happened to Yahoo: Why Tacit Knowledge is More Important Than Deliberate Practice
In the early days of the internet, Yahoo was one of the biggest players in the game. They were the go-to search engine and their revenue growth was skyrocketing. But as time went on, Yahoo started to lose its way and eventually faded into obscurity. So what exactly happened to Yahoo? And what can we learn from their mistakes?
One of the main problems Yahoo faced was a lack of focus. Unlike Google, Yahoo was not solely focused on being a technology company. They had other sources of revenue, such as advertising, that made them complacent. Yahoo didn't feel the need to extract the full value of their traffic because advertisers were already overpaying for it. This lack of focus and ambivalence about their identity as a technology company ultimately led to their downfall.
Another issue Yahoo faced was their approach to programming. They treated it as a commodity, with product managers and designers controlling the user-facing software. The programmers were simply there to translate their ideas into code. This led to a decline in the quality of programmers they hired, and as we know, once you have bad programmers, it's difficult to recover. Good programmers want to work with other good programmers, and Yahoo's decline in this area created a death spiral from which they couldn't escape.
On the other hand, Google had a hacker-centric culture from the beginning. They valued the importance of great programmers and created an environment where they could thrive. This hacker-centric culture was a crucial factor in Google's success. Great programmers want to work for companies that foster a culture of innovation and excellence. Yahoo's failure to prioritize this aspect of their business put them at a significant disadvantage.
Now, let's shift gears and talk about the importance of tacit knowledge. Tacit knowledge is knowledge that cannot be easily captured through words alone. It is learned through imitation, emulation, and apprenticeship. This type of knowledge is especially valuable in domains that require complicated judgment and instant solution selection.
Deliberate practice, on the other hand, can only exist in fields with a long history of well-established pedagogy, such as music and math. It involves following a list of procedures blindly, which can hinder the development of expertise and creative problem-solving skills. Tacit knowledge, on the other hand, allows for a deeper understanding and intuitive decision-making.
The field of Naturalistic Decision Making (NDM) focuses on ways to make the acquisition of tacit knowledge more effective. It emphasizes the importance of learning from masters, working under their guidance, and absorbing knowledge through emulation, feedback, and osmosis. This approach to learning is often overlooked but holds immense value in developing expertise.
So, what can we learn from Yahoo's downfall and the importance of tacit knowledge? Here are three actionable pieces of advice:
- 1. Prioritize your identity: It's crucial to have a clear and defined identity as a company. Don't try to be something you're not. Stay true to your core values and focus on what you do best.
- 2. Foster a culture of innovation: Create an environment that attracts and retains top talent. A hacker-centric culture, where great programmers can thrive, is essential for success in the technology industry.
- 3. Embrace tacit knowledge: Recognize the value of tacit knowledge and prioritize learning through emulation, feedback, and osmosis. Don't rely solely on explicit knowledge or deliberate practice. Seek out opportunities to learn directly from masters in your field.
In conclusion, Yahoo's downfall can be attributed to a lack of focus, a failure to prioritize great programmers, and a disregard for the importance of tacit knowledge. By learning from these mistakes and implementing the actionable advice provided, companies can avoid a similar fate and position themselves for long-term success.
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