Okay, Mike Zafirovski is Nortel's new CEO with a sweet compensation
package and enough power to achieve what he wants strategically without
worrying about board interference. So where does he start? Here's a
possible scenario: Once he takes over Nov. 15, Zafirovski spends two to
three months looking at the company from top to bottom: its technology,
R&D, products, management team and partnerships. He then puts
together a plan - possibly cribbing some ideas from ex-COO Gary
Daichendt, who quit in June after his strategic plan was rejected -
and presents it to the board. Ideally, Zafirovski decides to focus on
areas where Nortel is ranked #1 or #2. This could mean exiting the
enterprise market and, instead, establishing partnerships with
companies such as Cisco, whose CEO, John Chambers, has made it clear in
the past he wants to dance with Nortel. Then, Zafirovski sells
or shuts down the business units that aren't viable. This could see
thousands of employees given their walking papers. The next move is
picking one of two new growth opportunities and aggressively pursue
them. It's that simple. If Zafirovski can execute and one of
his new bets pays off, he'll be a hero. If not, he heads back to the
U.S. with a suitcase full of cash and the belief he did everything he
could to reinvigorate Nortel. By the way, one of the first things
Zafirovski might want to when he visits employees in Ottawa is swing by
Meriton Networks,
which is an emerging player in the metro optical market. Nortel could
buy Meriton, pick up some great technology and, in the process, build
some goodwill with employees, investors and the telecom world.
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Zafirovski's Next Moves at Nortel
by
Mark Evans
on Wed 19 Oct 2005 03:56 PM EDT | Permanent Link
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