RIM shakeup gets chilly reception – The Globe and Mail

Research In Motion Ltd.’s (RIM-T15.67-1.57-9.11%) new chief executive officer set out the first steps in his turnaround plan, telling investors that the BlackBerry maker will become “more marketing-driven” and more focused on meeting consumers‘ tastes.

But Thorsten Heins, who took over after a huge weekend shakeup that saw former co-CEOs Jim Balsillie and Mike Lazaridis resign their posts, balked at the idea of a quick fix to raise RIM’s share price, such as breaking up the company, as some investors have suggested.

Speaking to analysts for his first time in the top job, Mr. Heins admitted Monday that RIM has made errors and said it still acts like a startup in some ways, despite the fact that it has $20-billion U.S. in revenue. To turn the firm around, he said it will have to ramp up its marketing efforts, particularly in the U.S., and streamline the development of new products.

“We need to be more marketing driven. We need to be more consumer-oriented because this is where a lot of our growth is coming from,” he said. “We need to engage more with the consumer base.”

Investors, however, were not convinced by what they heard, and some panned RIM’s decision to install Mr. Heins, the former chief operating officer and a hardware specialist, at a time when the firm has fallen far behind Apple and Google.

RIM shares fell more than 9 per cent in Toronto, their largest one-day decline this month, in heavy trading.

via RIM shakeup gets chilly reception – The Globe and Mail.

Strange Random Management Quote:

Lots of folks confuse bad management with destiny.” – Kin Hubbard (American Humorist and Writer, 1868-1930)

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Posted on January 24, 2012, in Article and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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