Q&A with Yahoo! CFO Blake Jorgensen

Q: Why come to Yahoo!? What appealed to you about this job, especially at a time like this?: For me, it's the perfect time. This is the perfect time to rethink the business and define its next chapter of growth. There are very few businesses that have a consumer franchise like Yahoo!. There are just so many people who love using Yahoo! services. And to be involved in that and also be part of a team that is setting the new direction for the company is incredibly exciting. While there are challenges and a lot of hard work ahead, that makes it so much more rewarding.
Q: What's your management style?: I'd say "open" as a starting point. I don't tend to like hierarchy, which can be good and bad. I like to hear ideas from all levels of the team, which means sometimes I will go directly to more junior people in the organization to ask them how they would approach something. I think it's a great way to unearth interesting ideas, identify future talent for the company, and give a voice to the broad organization not just senior management. I also like to have a good time with people I work with so we joke a lot, even for finance people. While I’ve been very impressed with the focus and dedication of our finance and compliance teams and the rigorous controls they maintain, we try whenever possible not to take ourselves too seriously and I try to make sure that the team around me shares that philosophy. Despite the fact that we're dealing with serious issues, we need to maintain a style in which people have fun and enjoy working with each other.
Q: Any examples you can share of that?: I probably shouldn't say. We've made fun of certain members outside of the Yahoo! community and I've been chastised over what I can and can't say about our competitors. No pranks yet, other than relatively sophomoric ones. But hopefully they're coming.
Q: This is your first role as a CFO. What experience informed you most to take on this role?: I'd say a combination of experiences. Having investment banking, corporate development and financing experience gives me a view on how Wall Street works, and combined with my consulting experience, which has primarily been around strategy development and general management, it's a unique combination. Also, Yahoo! has an exceptionally strong finance team (corporate finance, business operations finance, accounting), which allows me to spend more time leveraging my skill sets versus worrying about some of the basics of operating an accounting or finance organization.
Q: I would imagine that Y!'s CFO role has been much more of a strategic operator than you'd find in most places.: I think so. One, because Sue [Decker] approached the job with a much more strategic view. She built an exceptional team and that freed her up to be more focused on strategic and operational issues. Two, probably more important, is the willingness of the management team to not put people in a specific box or role. Everyone knows what they need to get done but we share responsibilities and thinking across the strategic landscape and so we try to leverage each other's skills — not focus solely on our specific job functions.
Q: How would you describe working with the current executive team?: First and foremost, everyone is very open. And there's limited politics in an organization of this size, which is surprising. Most large public companies are fraught with political infighting that tends to stymie activities that senior management should be focused on. Getting a chance to work with Jerry [Yang] in his new role is fantastic because his passion for the business is so strong, as is his desire to make Yahoo! successful. And with Sue's incredible intellect and views on the business, it's just an amazing combination. Add [David] Filo’s technology strengths and strong vision for the business and you have a fantastic management team. I admire their depth of understanding of the business, both from the technology and the consumer and advertiser side of the world, as well as their willingness to open their minds up to all different types of strategies. The broader senior management team is incredible in its depth of experience and creativity. The biggest challenge is how do we get all our thinking aligned and make sure that we're working together on a common vision.
Q: What do you think are the biggest misconceptions folks in the finance world (or outside world) have about Yahoo!?: I think a key misconception is underestimating the value of the Yahoo! franchise. Wall Street places an unfortunate emphasis on the short-term and thus on some of our competitors' successes and they underestimate the power of the Yahoo! platform, what we've built and what we can do with it. Our job is to manage the business for shareholder value creation, and we need to develop and implement strategies that leverage the power of our franchise.
Q: As you focus on how to make the business more profitable, what are some of the things that you won't change?: The value in our business is driven by growth and we need to continue to find ways to drive growth in our business in a consistent, sustainable way. While the underlying costs are important and the margins are important, at the end of the day, we have to focus on balancing growth and profitability. And more importantly, our number one asset is people and we need to constantly remind ourselves what it takes to attract and retain really good people. Part of that is creating a positive work environment that includes things that make them more productive like a gym, free shuttles, a healthy cafeteria, etc. But much more importantly, we must provide a well-defined strategy, clear goals, and appropriate incentives and rewards. While the free coffee is something that's near and dear to my heart, at the same time it's part of the overall goal to make sure that our key assets are happy all the time. And caffeinated as well. Now if I had my way, we'd also have free beer, but that would probably ruin our productivity.
Q: What experiences were significant milestones in your career? What successes are you most proud of?: I'd say the most significant milestones are when I decided to do something completely different. I live by the view that every 5-10 years you want to shake your career up and do things that are new. And I think everybody has a chance to do that at a place like Yahoo! because there are so many different opportunities. For me it was literally changing from being a consultant to a banker, entering an area where I had background knowledge but no specific experience and willingness to jump into something where the risks were high and the rewards were even greater if you were able to survive. And in terms of the success I'm most proud of, seven people and I started a business that we built to 800+ people and $500 million in sales in 18 months. It was very fulfilling to grow something that you created from scratch. What also makes me proud is helping other people become successful in their jobs. Even if it's as simple as someone right out of school, giving them an opportunity, helping guide them, and watching them become successful in their careers.
Q: What was your first job?: A cook at McDonald's when I was 15, in a white polyester uniform. I always remember waking up in the morning and smelling like onions. This was long before anyone ever used gloves (you used your bare hands), and they had these reconstituted onions that you'd put on the hamburgers. No matter how much you scrubbed your hands, you always smelled like onions. I worked two jobs so I was always conscious of going to work in an office during the day and smelling like onions.
Q: Who do you admire most?: My answer is probably trite, but I'd say three people. My father, my mother and my wife. My father for his creativity. He ran an advertising agency for years and what little creativity I have, I learned from my father. My mother for her tenacity and hard work. She was just very much of the mindset that if you work hard, you can get what you want. She never let me believe that I couldn’t do something, as impossible as it might have seemed. And then my wife, for her constant drive to be successful and always pushing me out of my comfort zone.
Q: What’s the best piece of financial advice you’ve ever received?: My Grandfather always said "spend within your budget." You can be aggressive but always understand what your downside is as well as what your budget is. I think many people personally get in trouble because they spend without a view as to what their budget would allow and many companies get in trouble because they don't think appropriately about what the downside is or think about where the money is going to come from to fund certain opportunities or projects. So part of the strategy is to make sure that you've always got your forecasts well thought out and, as part of that, you understand where the budget's going to come from and how you're going to maintain that budget over time.
Q: Have you always balanced your checkbook?: I have. I started balancing it when I opened a bank account when I got that first job at McDonald's at 15.
Q: How do you blow off steam?: I love to ski. Having grown up in Salt Lake City, Utah, I grew up about 20 minutes from Alta so I learned to ski when I was basically two. I still ski as much as I possibly can.
Q: What's your style – moguls?: Everything really. I love steep hills. I love powder. Heli-skiing when I can afford it – it's an expensive habit. I do downhill and telemark skiing. I'm skiing up in the Lake Tahoe area as often as I can. I tend to ski Alpine Meadows – I like the lack of crowds and it's a place my friends seem to want to ski. I'll go everywhere but I tend to go there most regularly.
Q: Coolest place you've skied?: It'd have to be Chamonix in France because there are no boundaries. It can be dangerous, but at the same time you can find some amazing off piste places to ski. There are incredible vertical cliffs called couloirs where you can ski through just amazing territory and ski for long distances – 10-15 miles of trail. It's fantastic.
Q: What’s the one thing on your desk you can’t work without?: My mechanical pencil because I like the fine point, and my click eraser because I'm a perfectionist. And Post It notes… I love them.
Q: I understand you have a Crackberry addiction.: Yes. It's been going on for a long time. I had the very first version of the Blackberry – it looked like a pager and most people probably don't even remember it. My worst habit used to be commuting across the Golden Gate Bridge, driving with my knees and checking my messages. Luckily my wife is equally as addicted. I once tried to get her attention in the car while she was in the passenger seat by sending her an email.
Q: How tall are you?: 6 feet, 4 inches. My brother is taller.
Q: How many cups of coffee do you drink a day, and what's your drink?: Six to eight cups of very hot, black coffee a day, plus at least 2 double or triple lattes.
Q: What is something that few people know about you?: I can’t sing – but I sure would like to be a country western singer.
Q: What is your motto?: Work hard, play hard, have fun!
Q: Finish this sentence: "Before I die, I’d like to…": Ski every day for a year — in all the great places to ski in the world.
Q: What was the first concert you ever went to, and what do you remember most about it?: I don’t remember the first, but I have been a DeadHead since I was in my early teens. I have seen some fantastic Dead shows over the years.
Q: What is the superhuman power you'd most want to have?: Flying – I would love to be able to fly over the traffic on the highway.
Q: What did you want to be when you were little?: Garbage man, fireman and doctor – looks like I may have a job that rolls all those together and much more.