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My Coffee with Carol Bartz, and Other Observations About Yahoo's New CEO

Posted Jan 14, 2009 12:55pm EST by Sarah Lacy in Internet, Media, Newsmakers

Last week, I wrote about Carol Bartz's impressive tenure at Autodesk and how well respected she is within the high-tech community. Given her appointment yesterday as CEO of Yahoo, I wanted to share more of my first-hand experiences with her.

I covered Autodesk for BusinessWeek, and watched as the company sprang from obscurity based not on being the sexy technology of the day, but on strong operating results and stock appreciation. I did the exclusive interview with her for the magazine when she retired -- a shock and disappointment to nearly everyone at the time.

That day, we met at a Starbucks by her house and when I showed up, she was deep in conversation with someone I didn't know, wearing jeans and a baseball cap. I didn't pry but it was clearly something emotional and personal. She saw me walk up and told me quickly and politely she'd be with me in a minute, then turned her total attention on this friend for another five-to-ten minutes. When she joined me at my table, she apologized saying she'd just ran into a friend by happenstance, and then breezily asked what I wanted to talk about.

Her manner was as unadorned as her outfit. In fact, she'd planned on dressing up in a nice suit, but that morning her daughter was in the throws of teen angst and Bartz said she just needed to "hang with her" rather than using her time to put on the CEO-facade of suit, coiffed hair, sensible-but-feminine-shoes and makeup. There were no talking points, certainly no PR chaperones, and she answered nearly every question I put to her, even the uncomfortable ones. Well, everything except what she was doing next, and whether she might wind up in another CEO slot one day. If it was an act, it was a brilliant act.

In ten years of being a reporter, I found her unlike any other tech CEO at that level, especially highly-guarded female CEOs like Meg Whitman and Carly Fiorina. She doesn’t have a veneer. She's unafraid to talk about her role in the industry as a woman. She says something conclusive when she speaks, not a lukewarm point to please everyone. She gets tech, has a backbone, and most important, is a leader who pumps people up. 

But don't take this to mean she's some cheerleading softy. It's easy to find disgruntled ex-employees, because she is tough and demanding. But inside the company she also had that cult-like status of Steve Jobs or Larry Ellison, where employees would say to newbies, "Have you met Carol yet?" "Have you heard her speak?" Yesterday, I ran into an Autodesk employee who lamented she'd gotten there just as Bartz was stepping down. She said there was palpable excitement that was missing once she left. Bartz knows how to inspire people. Unlike Jerry Yang -- by his own admission-- she's a born CEO. (And I actually mean that as a compliment in this case; I don't always!)

Expect non-performing heads to roll; Bartz isn't shy about firing people. Back in 1995, she fired one of Autodesk's top engineers Carl Bass for a malcontent attitude. When the head of engineering called her, panicked, to say she couldn't fire Bass, she fired back "Excuse me? I can do whatever the hell I want. With that attitude we don't need him here," Bartz told me in 2006. But true to her almost-maternal, utterly rational management style, she eventually hired him back, under certain very strict conditions. "She said she was happy to have me, but I had to have a real job, because if I didn't have enough to do I'd cause too much trouble," Bass says. Eleven years later, Bass became her successor.

Critics point out that she doesn't know the Web. First off, I don't think she knew CAD software before joining Autodesk either and that turned out OK. Second, I'm not sure Yahoo's past senior management got where the Web was going. They were frequently criticized for not being able to clearly articulate any kind of clear vision. Third, Yahoo doesn't need a Web expert right now, it needs a leader who can steer through 2009 and keep the company in one piece, get Wall Street off its back, and reignite the competitive spirit, up and down the ranks.

22 Comments

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 01:22PM EST

This article (and its author) would have more credibility if Autodesk were spelled correctly. (No mid-cap... Not AutoDesk). How can you cover the company for Business Week and not know how to spell it?

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 01:36PM EST

I understand not wanting to anger shareholders, but Yahoo should stop soliciting want-to-be reporter(s) to write about Bartz. Overall, it was an ill-decision. Can someone ask the most important question, which is why Yahoo choose her? I don't think shareholders want to read a bunch of crap from a bunch of cheerleaders. Its strange that Sarah Lacey has being a reporter for 10-years, but write like she is writing a book report in grade school.

MichaelC
MichaelC - Wednesday January 14, 2009 01:40PM EST

Your article is headlined "My Coffee With Carol Bartz...". What questions did you ask her at your coffee shop meeting, and what were her answers?

Rich
Rich - Wednesday January 14, 2009 01:46PM EST

Also Carol "Bratz" is wrong too. It's Bartz. Author must've had the 'tween toy doll on the brain.

Aaron MC
Aaron MC - Wednesday January 14, 2009 02:07PM EST

Go-Go Gadget turnaround! Maybe she'll actually whip Yahoo! into shape. My advice, buy AOL.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 02:13PM EST

SOME women have the unfortunate (but understandable) tendancy to overdo the machismo - presumably because they feel they have to prove something, to either th

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday January 14, 2009 02:33PM EST

Will you make a better money for the company..............The result of financial position tell the quality of Chief Executive Officer.....Is she capable to do it...........prove..?...

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 02:45PM EST

SOME women have the unfortunate (but understandable) tendancy to overdo the machismo - presumably because they feel they have to prove something, to either themselves or others. Of course it's a difficult spot to be in. She'd probably kick me in the balls for saying that!

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 03:05PM EST

She fired Carl Bass?! Well that one didn't stick. He went on the be the COO and then the CEO when Bartz left. In what way does that constitute "fired". That's some heavy handed decision making. This article is more propaganda than journalism.

M C
M C - Wednesday January 14, 2009 03:08PM EST

One of the most irritating things " writers" do is not check their input before letting it go to print. It seems that these days you do not have to spell correctly, just print and be happy with ruined spelling and punctuation, not matter how far off you are from the correct version. It is no wonder the rest of the world thinks we are not as smart as we think we are.

Carol
Carol - Wednesday January 14, 2009 04:04PM EST

I don't see the typos...it's Carol Bartz and Autodesk? Hello??

Lucy K.
Lucy K. - Wednesday January 14, 2009 03:41PM EST

BTW, don't hyphenate words that end in ly. And her daughter was in "throes," not "throws." As someone else said, nice article. But 10 years as a reporter? Perhaps time to learn the editing basics.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 04:29PM EST

Thanks for giving us your personal perspective. I like her no-nonsense style and her use of "salty language" on conference calls is rare for any executive (other than crooks like Jeff Skilling with something to hide), but especially for a female executive.

andrewmnyc
andrewmnyc - Wednesday January 14, 2009 05:36PM EST

Maybe I'm missing something Big, but I thought that the article was actually helpful...it gives a 'flavor' as to who this person is. The idiocy of focusing on spelling as a way of diminishing the report suggests an agenda that's separate from whether Yahoo will benefit from Bartz' arrival. I,for one, am encouraged to hear what the writer has described. The one thing that we don't know yet...and can't know right now...is whether Bartz will truly "get" how important Yahoo is the to the WWW...and the fact that it MUST re-assume a leadership role...both in terms of privacy and free-speech (imho).

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 14, 2009 06:10PM EST

I liked the article too. She reminds me of Hurd, only she cares about people to some extent. However, there are job cuts on the way. Yahoo has more fat than bacon.

Peter
Peter - Wednesday January 14, 2009 06:12PM EST

Having worked for Autodesk under Carol for a while, I can only confirm the Steve Jobs alike "halo" she used to have with employees

MikeC
MikeC - Wednesday January 14, 2009 07:45PM EST

I'm cool with you reporting but we don't need your input, like you know technology, web, or how Yahoo can succeed any better than the existing executive team. I liked the article until you start talking about what you thought. No credibility, whatsoever. Of course being a "web expert" matters... to lead is totally different from driving innovation that would make Yahoo succeed.

Yahoo! Finance User
Yahoo! Finance User - Thursday January 15, 2009 02:52AM EST

Where's the spelling errors? Bartz will add some much needed direction, focus, and some professional management to this internet icon. Even Google's founders had the foresight to hire Eric Schmidt.

Yahoo! Finance User
Yahoo! Finance User - Thursday January 15, 2009 01:15PM EST

That meeting at Starbucks was the perfect opportunity to fire you. I can’t believe she passed it up.

Yahoo! Finance User
Yahoo! Finance User - Thursday January 15, 2009 03:05PM EST

First, the reason the author is, well,the author, is because she can actually get in front of people like Carol Bartz. Carol is an incredibly accomplished woman worth hundreds of millions of dollars. She has tons of interview requests daily. The author is obviously respected or connected enough to get an audience with Carol. Second, Carol's presumed toughness is not an act. If you spend 5 minutes with her, you get the sense that she is utterly genuine and not trying to be something she's not. She's a born leader. There's a difference between asking tough questions and just saying negative things about someone. I guess some folks think unless negative things are said, no journalism is being committed? Third, I'm sure the author did ask a tough question or two, such as why Carol for Yahoo and what about her inexperience with web-based companies? The Wall Street Journal couldn't get those answers out of Carol. Do you think a seasoned high-profile CEO like Carol is going to say anything she doesn't want aired pubicly? She's smarter than that. Fourth, Carl Bass didn't get back into the company against Carol's wishes. She not only took him back in on her terms, she handpicked and groomed him to be her successor. Sure, that's not in the article, but don't assume Carol wasn't in control of that situation. She was, completely.

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