The Demise of Nortel

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Is it me or does everything read like Nortel anymore:

Russian investigators on Saturday picked through the remains of a burned-out nightclub and detained at least five people in the aftermath of an explosive inferno, the result of an alleged misuse of fireworks that claimed more than 100 lives.

Nortel: 90,000 dead due to infernal implosive misuse

Friday night's fire -- in the Ural Mountain area industrial city of Perm -- swept through a party in full swing at the Lame Horse, a local nightclub celebrating its eighth year in business.

Nortel: Now, thats our kind of horse! You call 'em stalking, we call 'em all lame. Eight years of celebratory restatements. They hired me temp to perm to temp, saying "Ural we need."

The Investigative Committee of the Russian Prosecutor's Office said several people have been detained: two club co-owners, a club manager, the night club art director, and a businessman who provided the fireworks and is now suffering from burns at a hospital.

Nortel businessmen provided fireworks too. No egos burned. Investors scalded. DOA.

The blast and fire engulfed the club, law enforcement officials said, as a performance artist juggled cold-flame pyrotechnical maces.

Nortel had a pyrotechnical Macesdonian juggling a cold-fart performance, leaving the equivalent of a burned-out nightclub.


"The breach of technology while setting off a firework was the cause of the accident"

Aye, Nortel all over again...

It seems a bit bizarre to say "rather than emerge out of bankruptcy protection as a leaner, focused and viable entity", since there is no evidence that the Nortel management could accomplish that. After all, the company has been foundering since 2001; the current crisis is simply the exhaustion of the remaining cash sources. For that matter, it is unclear whether *any* management could have succeeded at this, given the new competitors from South Korea and China.

From that point of view, the earlier that Nortel was liquidated (its valuable resources put in the hands of managers who could utilize them well, and its non-valuable resources subjected to "creative destruction"), the better for its creditors. The last 8 years have served to enrich the executives at the expense of the shareholders and creditors, yes, but all of the foot-soldiers have collected 8 years of paychecks, too. In an optimized world, both would have been terminated long ago.

To all the fine technical people at Nortel, I recommend the words of John Case:

In today's new economy, people really do need to
understand money and business and markets much
more than they need to understand printing-press
operation or computer repair.

The reason, of course, is that more and more of us
will soon be self-employed, or will be out
starting our own company, or will find ourselves
on some struggling small business's payroll. What
we'll need to know is not just how to run a
machine but how to turn a profit.

and this: If it can be done in China, it is not "high-tech".

I really think that in 2005 Mike Z and his buddies' Plan A was that the market would recover and Nortel with it or Plan B would be invoked meaning bankruptcy and liquidation. They lack the skill set to do anything other than Plan B.

''The last 8 years have served to enrich the executives at the expense of the shareholders and creditors, yes, but all of the foot-soldiers have collected 8 years of paychecks, too. In an optimized world, both would have been terminated long ago.''

Yep ! I totally agree.

MZ and his mates always talked about plans, but they never eventuated. It seemed to me that their idea of a plan was small quality-team-type improvements. Like Lean Six Sigma, it was almost always ineffective.
Try to think of any solid strategic moves MZ or his cronies came up with.... all I can think of is, he flogged off UMTS? (basically GSM 3G) While it plugged a loss-maker off the balance sheet, it also seemed to knock the wireless division out of serious consideration by decent customers on major tenders.
They talked and talked of plans, but nothing ever showed... heck even after Chapt 11, they spoke of plans for Nortel to come out of it "by March" then later and later... later... and bust! No plan!!

people really do need to understand money and business and markets much
more... not just how to run a machine but how to turn a profit

Enter Lean Six Sigma. For example, cell phone X takes 19 minutes to repair, period. Replacing specific parts within that timeframe will fix it exactly 87.53% of the time. Your numbers don't match? You needed more/less parts? You're fired.

People would also need to strike a balance somewhere along the lines of "the journey is the goal" or "success is a journey, not a destination".

Companies with a suggestion box are few and far between. Ordinary folks making suggestions will want to be rewarded for their effoerts, but also not fired for doubting their superiors' numbers.

Lying Sick Smegma - the worse idea ever for a support organization. These fools never had a clue, nor did they care to heard from those that did. Comments and Suggestions were not allowed...and in some cases people were quickly shuttled out of the company if they tried to bring an idea to the table.

Dumba$$e$ - the whole lot of them....Mike Z - you stink!

They already have that class, it's called Complete Failure 101

Can we please focus on the future. Everything as been said 100 times about why Nortel went down the tubes. Let's put an end to this big lost of time and saliva. Someone has news on what's coming : MSS, CVAS, the patents ? Please give us a time frame so we can put all this Nortel demise behind us.

An ex-employee, that can't wait to be an ex-creditor

they will likely continue as transition services for eternity. nobody is interested. with the bonus incentives, the longer they go on the better. dont expect much for another year.

You'll get your five cents on the dollar sometime in 2012.

Ok, if so I'll take 4 now and case close ;-)

Its a sad feeling that all of us who have worked for Nortel, gone through the pain which cannot be explained. Whatever the name Nortel means to people, one thing is true that Nortel did have the best professionals in the industry, hard working and customer focused. Even though when the world was going upside down for them, they have served well. I have seen it in trenches and salute all of them. As we are moving to Avaya , the journey will continue hopefully Avaya management find out sooner that they need to get rid of any kind of management they are getting during transition soon, otherwise we will be talking on "Allaboutavaya" soon.....

"... one thing is true that Nortel did have the best professionals in the industry, hard working and customer focused. "

Oh give me a break. The biggest bunch of wankers I've ever known. And I'm getting resumes from people I remember there six, seven years ago. Nope, sorry, we only hire North Americans and Europeans now. Party's over, guys. Go home.

good for you. after you hire all these duds when your company files for bankruptcy and you need a job give me a call. I'd have you cleaning our toilets because thats all you are worth. Maybe the post of lead janitor.

Ananie, you are completely out of scope with your xenophobic comment. I suggest you to look for a Nazi site or some crap like this. You probably are an ex-employee who was fired because of a bad performance. The ones we used to classify as "low contributor". As per the content of your comment, they were right to fire you. You are brainless!
I hope a chinese company swallow you, to show exactly where is your superiority.

Mark Evans
May I suggest to invite All the Big Posters who have posted at your blog in last 6 years to come and post the conclusion for NT stock or/and Nortel corporation, please?
examples
Bo Gowan, Frank Burch, maybe Duncan Stewart, maybe Mark Sue, etc.?
Some of them were dead wrong about Nortel, some of them had perfect view.
I think with their conclusions public would get better picture of Nortel's who and why?

Indeed it would be interesting to let them come clean about a few things they perhaps couldn't say before regarding the value of ethics and stuff.

In all fairness what could they say?

That they were misled about triple profits that were revised tanking ultimatum settlement for mark to market profits, benefit of doubt listing largest asset as tax credit on books they sought to clean so lone and they are getting sued for, refusing government inquiry to point of being subpoenaed, why did they cut severances unlike other ethical companies while looting the corpse with raises and bonuses, how the green team surprised by carrying the traditions same traditions as the past board who plea bargained and timely resigned...we can go on forever.

They were fooled like everyone else extending the proverbial benefit of doubt. Even Manley's law firm defends Dunn under blackout as fraud trials loom on both sides of the border.

One of the largest frauds on earth was bigger than bonusgate and adgate together with this level of mass orchestration and so many still there, look at the no better time to buy Nortel by Avaya, or hoe 90% of top 500 fortune companies buy Nortel BS to this day.

What could anyone say but be embarrassed for this disgraced fraud run to the ground by incompetent pay happy bozos, heck he even promoted than fired hack... it was endless ... endless and to be seen...

They should have gone bankrupt long before, 5 years ago, when they traded at 43 cents. Only lies for theft extended their survival by any legal means available or otherwise. They even voted to keep the fraud bonuses and printed billions more.

They should have folded before the bogus fraud profits and mega rally, huge fraud ultimatum settlement they even tanked with revisions, folded before allowed to print $4B in Nortel paper... what is there to study outside of ethics and good governance as they loot the corpse today. What powerful fools extended the benefit of doubt when the green team was worse than the dream team, all pay happy and corrupt.

It is clear to see today that turn around was pay happy hype and outright lies with intent lacking miracles. With bells on hiding behind their kids education in government inquiry as they get sued for misleading assets too.

They knew what their position was and failed to act than focus on continued remuneration than strategy and innovation. Cuts and refinancing did nothing without direction short of maintaining Roth envy exorbitant pay practices.

The fraud was the beginning to their end, when the end should have saved enormously greater resources and pain by simply folding more honestly at 43 cents years ago.

The endless pay happy events thereafter to this day where they loot the corpse neglecting their employees are to be seen to be believed. Poor corporate governance on steroids. What is there for these future bean counters to study beyond exactly what not to do. There is no template for success outside honesty and hard work providing the greatest chances. Corruption always fails, crime does not pay, crooks are stupid.

Yep, Nortel should have sold everything years ago if only BOD would have had the balls and honesty to really represent shareholders interest like they should do. No, they decided to support new management teams one after the other. Scratch my back and I'll scratch yours, especially if you pay me good. Friends and opportunists have kept these losers alive just for their mutual interests. Shareholders once again have been screwed !! Viva Corporate mafia !

John Manley was a big part of that fiasco.

Nothing to add. You guys have said it quite well!

Jim Duffy and the rest of the media who continue to beat this dead horse needs to get a life! We've heard it before and now the stoies that Avaya may still not have what it takes to beat Cisco are yet another waste of all readers who commit time to reading an article only to find out it's a piece of CRAP like the used toilet paper I flushed down the toilet this morning after taking my early morning crap.

Me, I prefer to time mine before I take my evening shower for numerous reasons. Come to think of it, the ritual is rather dull and repetitive, too. I wonder - if I abstained from it for a while would it get a life, perhaps?

ha ha you use toilet paper? your id suggests its licked clean by that time. ha ha ha send them over. I can use some help to save the environment.

beating on a decomposing corpse. move on instead of repeating the same old story again and again.

lest we forget, and are condemned to repeat it, when some other rising star falls and they burn enormous resources trying to save it =)

Another note from Richard Lowe:

I am extremely happy to have landed on my feet at Ericsson. It worked out pretty well: I survived at Nortel while it moved towards bankruptcy, I got to withdraw my deferred compensation before the bankruptcy filing, collected big bonuses while in bankruptcy, then ended up at Ericsson with an executive job. Yep, things are pretty good with me. Hope to see a bunch of you at CTIA and 3GSM shows. Should get some good air miles going back and forth to Stockholm. So, don't worry about me, I am A-OK, hope all is well with you, and let's hope we can all get our severance, pension, and deferred comp from Nortel.

this is one of the most recent scam and fraud of telecom history, if a inquiry is conducted you would find all the JOE'S JEFF'S MIKE'S involved in this downfall
and personally making millions.....One of the disastrous move to have non telecom guys in your senior management right from day one

this is a bit charitable "a financial free fall brought on by the perfect storm of the global economic crisis, little demand for product, the ripple effect of a previous accounting scandal and strategic missteps. "

What about "highly over-rated, and what turned out to be really crap executives?"