Siebel re-shaping plans laid bare
Published: 11 Oct 2004 12:10 BST
In many ways, Mike Lawrie seems to be just the sort of guy software maker Siebel Systems needs to lift it out of its dark days.
It's true that he doesn't exactly ooze charisma and intensity. He doesn't court controversy or come off as a grand technology visionary. But the 26-year IBM veteran -- who was tapped in May to run the troubled company after founder and chairman Tom Siebel stepped aside -- may have qualities better suited to the task than did his predecessor.
During his first public appearance as Siebel Systems' chief executive at the company's annual convention this week, Lawrie exuded a calm and steady manner as he talked about a renewed focus on customer satisfaction and new business opportunities. He also struck a conciliatory chord, acknowledging the company's strained relations with many clients.
Siebel was once one of the largest and most prosperous software companies in the world. But in the post-bubble era, Siebel's financial fortunes have suffered, and its once-lofty stock price has plummeted. The company faces lawsuits from angry shareholders and fines from the U.S. Securities and Exchange Commission for breaking fair-disclosure rules. At one point, Tom Siebel even offered to sell his company to Oracle.
The time was ripe for change in May, when Lawrie stepped in. He still has a lot to work with. Siebel is still considered one of the top players in enterprise software, with $1.35bn in revenue last year and more than $2bn in cash. And in a promising omen for Lawrie, the company announced that it would beat earnings projections for the third quarter -- the first full earnings period under his management.
Lawrie sat down with ZDNet UK sister site CNET News.com to offer his take on Siebel's problems, what a turnaround will take and what's wrong with the Larry Ellison school of management.
It looks as if Siebel's going to beat earnings projections for the third quarter. Is this a sign that the company's turning a corner?
I don't know. I would say this is one data point. This is one step. But one data point and one step is not a trend. Ask me a year from now, and I will tell you what this was. But I don't know what it is today.
Is it true that Tom Siebel approached (Oracle CEO) Larry Ellison about selling Siebel to him?
I don't know. You'd have to ask Tom about that.
But surely you've talked to Tom about it.
No, I really haven't talked to him. My view is it really doesn't much matter what was discussed a year ago or two years ago or three years ago. My focus has been on where we are today and where we're going as a company.
Obviously, Oracle is tied up now with other matters, but do you think it's a bad idea for Siebel to merge with a bigger software company, like an SAP or an Oracle?
I don't know if it's a bad idea or a good idea. Every publicly traded company is for sale every day. We had 18 million shares of our stock change hands today. So we're for sale every day of the week. What's important is the value that that brings to our shareholders, and if it makes sense from a shareholder value standpoint -- and only then as a leader of a public company. You have to look at all those alternatives.
Previous
Did you find this article useful?
189 out of 434 people found this useful
Digg
Slashdot
Del.ici.ous
Stumble
Reddit
