“Keep in mind, you still had a lot of Nortel people used to the glory days who think, ‘We’ve just got to get through this economy. “There were flashes of brilliance but no coherent strategy for producing hit products.” “The R&D labs that had produced the world’s first all-digital phone network and won the race to dominate fibre-optics in 2000 had descended into mediocrity,” Ottawa Citizen business columnist James Bagnall wrote in his incisive 2009 series documenting the firm’s decline. Razor-thin profit margins (mid-single digits) left little to reinvest. Nortel was also slipping in every market it was in - holding a first- or second-place position in only handful of the 30 or so segments the company competed in. To start, the average revenue generated per employee had declined to less than half that of Cisco workers. Their analysis revealed several unsettling points collectively lethal to Nortel’s survival. Kunis said at the time, “and it doesn’t seem to know it.” The “two Garys” immediately embarked on an exhaustive tour de force review of Nortel’s operations. Owens was installed and with the campaign to overcome the scandal in full swing, Gary Daichendt and Gary Kunis, two former executives of rival Cisco Systems Inc., were hired as president and COO and chief technology officer, respectively. In early 2005, a little less than a year after Mr. 14, 2009, demonstrated a remarkable deficiency in moving the firm forward. Looking back, certain former company officials and outside observers say that faced with a fast-shifting global market place, those overseeing Nortel until its filing under the Companies’ Creditors Arrangement Act in Canada on Jan. Not to mention, in the wake of one of the most demoralizing periods in the 114-year-old firm’s history, some needed optimism.Īn air of uncertainty in the company’s direction, however, would soon take its place - and become a permanent fixture. Owens, a veteran of 34 years in the military who joined Nortel’s board in 2002, did bring a stabilizing presence, however. This advertisement has not loaded yet, but your article continues below.
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