Mitec goes ‘flat’ with management to bring customers closer to plans

Mitec Telecom Inc. is changing its executive line-up - again. It’s only the latest in a long list of such announcements from the Montreal-based communication equipment provider. But judging from the words of one company rep, this time the moves are less about filling holes in the C-suite, and more about impressing customers. "All the customers know very well the people appointed to these positions," says Scott Lawrence, the firm’s spokesman. "That’s one of the reasons the company did this." The fresh "flat management" system is better for customers than was the traditional pyramid paradigm, says Lawrence. "Previously the company had executive vice-presidents, and underneath there was another layer of management," he points out. "Now all these people are reporting to (CEO) Keith Findlay." Customers interacting with the new Mitec heads get a more direct connection to the firm’s leader as a result.Mitec also announced that Jean-Marc Roberge, executive VP, global operations, will leave the company October 14. "Jean-Marc’s principal mandate was to help restructure and improve the efficiency of our operations, and his talents were instrumental to the success of these initiatives," Findlay said in a press release. "I want to thank Jean-Marc for the key contributions he has made."According to Carrie MacGillivray, an analyst at The Yankee Group Canada, Mitec had better make its reasons for the most recent moves widely known, or customers might question the firm’s prospects. "If they’ve done it with a strategic goal in mind, to achieve a certain end result, it could be successful and it could improve the company," she says. But if Mitec doesn’t get the message out that its latest reshuffle is good for business, "I think it would leave customers and investors skeptical." Lawrence says the firm is developing a strategic plan for new niche markets such as network operators, but the business blueprints are still in the works. "I don’t have anything definitive on that at this point." Mitec’s most recent corporate chair-change follows many similar shifts at the company. In September 2002, Hubert Marleau left the position of chairman of the board of directors. The following month, Mitec’s founder Myer Bentob, left the company. This past July, Rajiv Pancholy, a former Nortel Networks and Microcell Telecommunications executive, resigned. Findlay, CFO at the time, took on the interim president-CEO title. Given so many upheavals, how does the firm assuage concerns that it’s unstable? Lawrence points out that accountability and determination are key factors in success. "One of the things behind the new structure is the people in place have a good deal more responsibility, but also more accountability," he says. If things go well, Mitec will reward the new execs. Otherwise they’ll have to explain themselves. Accountability breeds positive results. As well, "a lot of these people have been with the company for some time," Lawrence says. "I think they’ve been looking for an opportunity to shine."

Mitec goes ‘flat’ with management to bring customers closer to plans

News | 10/05/2005 4:00 am EDT

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