New Nortel Enterprise boss talks about game plan

In an unexpected move, Nortel this week replaced its enterprise chief. After 20 years with Nortel, Enterprise Solutions President Steve Slattery is leaving the company Oct. 1. Taking over immediately, however, is Joel Hackney, Nortel’s former senior vice president of Global Operations and Quality, and another of CEO Mike Zafirovski’s colleagues from General Electric. Hackney, credited with driving many of Nortel's recent operational, supply chain, customer and business improvements, shared some thoughts with Network World Managing Editor Jim Duffy on the sudden switch, which comes while Enterprise Solutions is enjoying some solid momentum -- although apparently, things aren’t moving fast enough.

Enterprise Solutions grew 23% in Q2, its fourth consecutive quarter of year-over-year growth. Why the switch?

We just finished our strategy session, and we’re pleased with the progress, but we think there’s a lot more we can do. What we’re focused on is accelerating the progress. It’s all about accelerating the momentum that’s in place.

What do you want to do differently?

Customers are looking for a real choice. Every time we become more visible in the marketplace – either through investments in go-to-market, on product innovations, or in partnerships and key alliances -- the paybacks are coming back in a meaningful way. So what I want to do is really double down on the investments, focused on go-to-market and to continue the alliances that we’ve done in meaningful way with Microsoft, IBM and LG. And really focus on getting our message to the market much more broadly and aggressively.

Do you plan to rely more on partnerships and M&A, rather than internal development?

Partnerships are absolutely a critical piece of what we’re doing. When we look at business process intersecting with communications in the enterprise space, it’s clear to us one person can’t solve it or bring all the solutions. So that’s why we have made the major alliances like we have. We feel we can continue to grow this business and actually accelerate the growth organically. So we are continuing to make those investments. But we are also very open in looking at opportunities inorganically. So it is a combination of both.

There’s been a lot of speculation recently on Nortel’s M&A strategy, and Steve Slattery even mentioned last week that Nortel has spent the last 18 months sizing up potential acquisition targets. Are you ready to pull the trigger?

I wish I could answer that question directly. On that one, I obviously can’t speak to any specifics other than to say that the inorganic element of our growth plan is something that is important, and we’re focused on that element as much as we are the organic, but we need both.

Any specific product areas where you’re looking for the inorganic contribution?

Customers need a real choice in data. Our strength in voice is well known and well documented. We’re always looking at opportunities to build our capability for a direct relationship with key end-users while still partnering with channel partners. Anything specifically that does either or both of those is obviously attractive to us.