If
first impressions
count for anything, new Nortel CEO Mike Zafirovski made it clear he has
a strong handle on what needs to be done to resuscitate Canada's
flagship high-tech company. At a press conference earlier today,
Zafirovski was asked a softball question: "what do you see as Nortel's
biggest priorities and opportunities". Rather than dance around
the question with something like "Well, I've got to spend some time
talking to our people, blah, blah, blah", Zafirovski quickly snapped
off six
points. This includes improving profit margins, making sure R&D
spending is well focused, and the creation of a clear strategic
direction. It was enough to make the hearts of financial analysts
flutter with
excitement! While Zafirovski steps into the spotlight, it was difficult
not to get the impression that ex-CEO Bill Owens was less than happy
about leaving the scene. Nortel denied they asked him to step aside but
it was clear Owens best-until date had expired and he probably saw the
writing on the wall. Given the reported troubles between Owens and COO
Gary Daichendt, who resigned after less than three months on the job,
it was interesting that Zafirovski made it clear he has no interest in
having a COO. I get the feeling Zafirovski has been given complete
control over operations by Nortel's board, which is the price you have
to pay to attract world-class talent. It will be very interesting to
see how much Nortel had to pay to convince for the privledge.
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Mark Evansthe blog - examines the world of telecom and technology from a distinctly Canadian perspective.the person - lives in Toronto, CA with his wife and three children, and works as director of community with PlanetEye Inc. 
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Monday, October 17
Nortel's New CEO Talks the Talk
by
Mark Evans
on Mon 17 Oct 2005 02:48 PM EDT
If
first impressions
count for anything, new Nortel CEO Mike Zafirovski made it clear he has
a strong handle on what needs to be done to resuscitate Canada's
flagship high-tech company. At a press conference earlier today,
Zafirovski was asked a softball question: "what do you see as Nortel's
biggest priorities and opportunities". Rather than dance around
the question with something like "Well, I've got to spend some time
talking to our people, blah, blah, blah", Zafirovski quickly snapped
off six
points. This includes improving profit margins, making sure R&D
spending is well focused, and the creation of a clear strategic
direction. It was enough to make the hearts of financial analysts
flutter with
excitement! While Zafirovski steps into the spotlight, it was difficult
not to get the impression that ex-CEO Bill Owens was less than happy
about leaving the scene. Nortel denied they asked him to step aside but
it was clear Owens best-until date had expired and he probably saw the
writing on the wall. Given the reported troubles between Owens and COO
Gary Daichendt, who resigned after less than three months on the job,
it was interesting that Zafirovski made it clear he has no interest in
having a COO. I get the feeling Zafirovski has been given complete
control over operations by Nortel's board, which is the price you have
to pay to attract world-class talent. It will be very interesting to
see how much Nortel had to pay to convince for the privledge.
RIM-Palm Dancing; What Say You Microsoft
by
Mark Evans
on Mon 17 Oct 2005 11:43 AM EDT
Last month, it appeared Palm had snuggled into bed with Microsoft with the launch of the Windows Mobile 5.0-powered Treo 700w. It was seen as a coup for Microsoft, which has been trying to become a bigger player in the wireless market. So what does one make of the news today that Research in Motion has licensed its software to be used in Palm's Treo 650 and future Palm OS-based Treo smartphones? For Palm, it gives them another way to boost sales to corporate users but Microsoft can't be too pleased RIM's in the picture.
Nice Knowing You, Bill Owens
by
Mark Evans
on Mon 17 Oct 2005 08:42 AM EDT
Just when you thought things at Nortel were about to get "normal" again, CEO Bill Owens suddenly walks away.
It is a strange and somewhat unexpected move because the 65-year-old
had given every indication he was enjoying his status as a Fortune
500 CEO after struggling to find his way in the private sector for the
past 10 years upon leaving the U.S. Navy. It makes you wonder what
really went down with ex-president and COO Gary Daichendt, who apparently quit in June
because he wanted to be CEO but Owens and/or the board showed
no sign it was going to happen any time soon. In a
nutshell, Owens' departure retirement - was he fired, pushed or did he resign? -
is another one step forward, two steps back move for Nortel, which has
now had three CEOs in the past 18 months (Anyone remember bean-counter Frank Dunn,
who allegedly cooked the books to trigger a lucrative bonus
structure?). The positive in Owens' departure is his
successor is Mike Zafirovski, who was president and COO with
Motorola until he resigned last January. Ironically, Owens was finally supposed to get together with
the Canadian media later this week at corporate headquarters just outside Toronto. I suspect this isn't happening but
I wonder if Zafirovski will be talking instead? So far today, Nortel shares
have climbed 7%, which makes you think that investors are applauding
Zafirovski's appointment or cheering Owens' departure, or a combination
of both. CIBC World Markets analyst Steve Kamman sees the hiring of
"Mike Z" as "tremendously positive news" and believes he has "the
guts/drive/stamina to clean house and actually implement it".
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