While Nortel has publicly said little about its restructuring plans given it’s in a quiet period before the Q3 results are unveiled in early-November, CEO Mike Zafirovski did a 15-minute video pep talk yesterday for Nortel employees.
While it did not feature much insight into what will happen in the coming weeks/months, it was a frank and straightforward talk about what Nortel needs to do amid a challenging competitive landscape and a volatile and uncertain economic world.
Say what you will about Zafirovski’s performance and strategic focus but he can definitely talk the talk. At a time when Nortel employees are wondering about the company’s future and their job security, Zafirovski did what a good CEO needs to do, by showing some leadership and stepping up to the plate.
In talking about what lies ahead:
“I know this has been a tough few weeks for all of us….The path forward is filled with challenges and the work ahead for us for the balance of 2008 and beyond is significant. I am committed and determined to see this through and put Nortel on the right path.”
“To ensure a better future, we need a new structure and become lean, responsive and affordable to move the company forward. Bottom line, we are in a tough environment. The very toughest I have seen in my business career.”
“The most important job we all face right now is delivering on the fourth quarter and meeting the guidance we gave on September 17. We must move forward as aggressively as we can in this environment. We cannot afford to slow down at all. In fact, we must drive up our efforts and results.”
About the future of the metro Ethernet network business, which Nortel wants to sell:
“I believe in the superb value of this asset. The combination of technology, the customer base and, of course, the people who make up MEN will attract the right partner, and it is the right path forward for metro Ethernet and for Nortel. Yes, the credit crisis and financial markets is making it more challenging but we will not sell MEN at a fire-sale price. But we do remain steadfast in our desire to monetize this asset.”
In responding to a question about whether all of Nortel will be sold, Zafirovski said Nortel is focused on growing its enterprise business and running wireless in a “different fashion”.
“We have remain open to opportunities in these these times but I believe our strategy is sound and we have to execute on it.”
When asked if he was going to leave, Zafirovski said:
“I have no plans to go anywhere.”
In closing, Zafirovski delivered a clear message to Nortel’s sales people:
“I need your complete and intense focus to drive to a strong close the end of the year. Customers understand our actions and are pulling for us. You need to counter concerns and let them know Nortel is open for business…More than ever, I need you to go out there, and face the storms and face the questions and sell really hard. This is the best way to move forward. We lose customer confidence, we will not succeed. I am counting on you to do your very best for Nortel, and use me for the big opportunities and big challenges facing you.”
Mike Z should get full marks for being a great motivational speaker. After his 15 minute pathetic babble the motivation and morale in the company reached a new low. He has truly transformed the business by savagely driving it to the ground. He has to cut some more people so that he can make his bonuses. You would think that the executives know by now that everybody in the company considers them to be incompetent cheats out fill their pockets. Of course they are on some sort of a high believing their own lies and deception to fill their pockets.
WirelessNTguy
Mark are you on the Nortel payroll for making comments like “At a time when Nortel employees are wondering about the company’s future and their job security, Zafirovski did what a good CEO needs to do, by showing some leadership and stepping up to the plate”
The only thing worse than believing this was the useless speech that Mike Z made. For the few that are left at Nortel please don't insult our intelligence. I can accept if it was meant as a joke but you should make that clear.
Another Nortel Watcher
I see that John Manley is one of the potential contenders to replace Dion as the Liberal Party leader in Canada. It is the duty of every Nortel shareholder in Canada that has been betrayed by Nortel to help people understand that John Manley has presided over the destruction of Nortel. As a board member he participated in the selection of Mike Z as CEO and along with his fellow board members has done NOTHING to correct the resulting downward spiral of the value of the company. Is that the guy you want contending for leadership of Canada? Please help to get the word out. Tell your friends and neighbors and post it on as many blogs as you can. Good luck.
Clint
Very well Said. Manley has done nothing in political life and has been one of the key contributors to the demise of the company when he walked in with his suit on with the perception he was a wise choice. An unmitigated disaster. Typical liberal more interested in helping out the rest of the world rather than his own fellow Canadians.
exnt2
The Tories will certainly come up with attack ads if he becomes the leader however remote the probability
exnt2
The Tories will certainly come up with attack ads if he becomes the leader however remote the probability
Mike Z. Rallies the Troops
While Nortel has publicly said little about its restructuring plans given it’s in a quiet period before the Q3 results are unveiled in early-November, CEO Mike Zafirovski did a 15-minute video pep talk yesterday for Nortel employees.
While it did not feature much insight into what will happen in the coming weeks/months, it was a frank and straightforward talk about what Nortel needs to do amid a challenging competitive landscape and a volatile and uncertain economic world.
Say what you will about Zafirovski’s performance and strategic focus but he can definitely talk the talk. At a time when Nortel employees are wondering about the company’s future and their job security, Zafirovski did what a good CEO needs to do, by showing some leadership and stepping up to the plate.
In talking about what lies ahead:
About the future of the metro Ethernet network business, which Nortel wants to sell:
In responding to a question about whether all of Nortel will be sold, Zafirovski said Nortel is focused on growing its enterprise business and running wireless in a “different fashion”.
When asked if he was going to leave, Zafirovski said:
In closing, Zafirovski delivered a clear message to Nortel’s sales people:
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