I think the Globe and Mail was the first to report that RIM’sÂ beleaguered CEOs Jim Balsillie and Mike Lazaridis are out â moved upstairs to the boardroom. Â The strangest thing about the story, and really the past few years, is the total denial by the leadership that Blackberry is in a death spiral.
Research In Motion Ltd.âsÂ new chief executive officer says the company is doing everything right and does not need a change in strategy, and must instead focus on harnessing its talent to improve the BlackBerry and revive sales.
âIt’s a fantastic growth story and it’s not coming to an end,â Mr. Heins said in an interview with The Globe and Mail. âWhat you will see with me is rigour and flawless execution.â
When asked whether he thought the appointment of Ms. Stymiest as chair and himself as CEO would be enough to satisfy investors, Mr. Heins retorted, âChange to what? Change for what?â
He continued, âI mean, what’s the objective of a change? We’ve made a lot of changes in the past 18 months. Not changes, but also evolution. I changed a lot of my management team, in hardware, software âŠ I’ve trained a lot of other people in the last four years. What do you think I did? âŠ We didn’t stand still in the last 18 months, we did our homework. And I think we will complete our homework soon.â
Even in appointing a current co-COO, who looks even lessÂ charismaticÂ than either of the two people he replaces (video below), RIM is hedging its bets on Blackberry 10/QNX, which it won’t release until the end of 2012 on phones âif it bucks recent trends and ships on time. Â Heins joined RIM just as the iPhone was released in 2007, and he has seen the company’s market share dive.
RIM’s tablet effort, the Playbook, is barely selling and only when priced below cost. Â It still somehow does not natively do email.
It is hard not to feel bad for the position this once great company is now in.
(Making it easier, RIM has scheduled an 8am ET Monday conference call with the press on the details. Press release follows)
Research In Motion Names Thorsten Heins President and CEO
âąÂ Â Â Board Acts on Recommendation of Co-CEOs to Implement Succession PlanÂ Â
âąÂ Â Â Mike Lazaridis Named Vice Chair of the Board
âąÂ Â Â Jim Balsillie Remains a Director
âąÂ Â Â Barbara Stymiest Named Independent Board Chair
âąÂ Â Â Prem Watsa Named Independent Director
Waterloo, ON âÂ The Board of Directors of BlackBerryÂź maker Research In Motion (RIM) (NASDAQ: RIMM; TSX: RIM) today announced that, acting on the recommendation of its Co-Chief Executive Officers to implement the succession plan they previously submitted to the Board, it has unanimously named Thorsten Heins as President and Chief Executive Officer.Â Mr. Heins was also appointed to RIMâs Board. The Board acted after conducting its own due diligence. Both appointments are effective immediately.
Mike Lazaridis, former Co-Chair and Co-CEO, has become Vice Chair of RIMâs Board and Chair of the Boardâs new Innovation Committee. As Vice Chair, he will work closely with Mr. Heins to offer strategic counsel, provide a smooth transition and continue to promote the BlackBerry brand worldwide.
Mr. Heins said he looks forward to continuing to work with Mr. Lazaridis, globally recognized as a technology pioneer. He said, âMike created a whole new way of communicating and I look forward to continuing our close collaboration.â
On the transition to CEO by Mr. Heins, Mr. Lazaridis said, âThere comes a time in the growth of every successful company when the founders recognize the need to pass the baton to new leadership. Jim and I went to the Board and told them that we thought that time was now.Â With BlackBerry 7 now out, PlayBook 2.0 shipping in February and BlackBerry 10 expected to ship later this year, the company is entering a new phase, and we felt it was time for a new leader to take it through that phase and beyond.Â Jim, the Board and I all agreed that leader should be Thorsten Heins.â
Jim Balsillie remains a member of the Board. âI agree this is the right time to pass the baton to new leadership, and I have complete confidence in Thorsten, the management team and the company,â he said. âI remain a significant shareholder and a Director and, of course, they will have my full support.â
Mr. Lazaridis said that he decided to move from Co-Chair to Vice Chair of the Board in order to return the publicâs focus to what is most important: âthe great company we have built, its iconic products, global brand and its talented employees.â
Mr. Lazaridis added, âThorsten has demonstrated throughout his tenure at RIM that he has the right mix of leadership, relevant industry experience and skills to take the company forward.Â We have been impressed with his operational skills at both RIM and Siemens.Â I am so confident in RIMâs future that I intend to purchase an additional $50 million of the companyâs shares, as permitted, in the open market.â
Mr. Heins said he believes that RIM has tremendous potential.Â He joined RIM from Siemens Communications Group in December 2007 as Senior Vice President for Hardware Engineering and became Chief Operating Officer for Product and Sales in August 2011.
âMike and Jim took a bold step 18 months ago when RIM purchased QNX to shepherd the transformation of the BlackBerry platform for the next decade,â Mr. Heins said.Â âWe are more confident than ever that was the right path. It is Mike and Jimâs continued unwillingness to sacrifice long-term value for short-term gain which has made RIM the great company that it is today.Â I share that philosophy and am very excited about the companyâs future.â
Mr. Heins said that RIM has a strong foundation on which to build. âWe have a strong balance sheet with approximately $1.5 billion in cash at the end of the last quarter and negligible debt.Â We reported revenue of $5.2 billion in our last quarter, up 24% from the prior quarter, and a 35% year-to-year increase in the BlackBerry subscriber base, which is now over 75 million.â
Mr. Heins said, âBlackBerry 7 has been well received.Â We are very excited about PlayBook 2.0 and BlackBerry 10.Â The reception of our products at this yearâs Consumer Electronics Show was encouraging.â
He continued, âRIM earned its reputation by focusing relentlessly on the customer and delivering unique mobile communications solutions. We intend to build on this heritage to expand BlackBerryâs leadership position.â
Mr. Heins said that RIM has grown quickly. âAs with any company that has grown as fast as we have, there have been inevitable growing pains,â he said. âWe have learned from those challenges and, I believe, we have and will become a stronger company as a result.
âGoing forward, we will continue to focus both on short-term and long-term growth, strategic planning, a customer- and market-based product approach, and flawless execution. We are in the process of recruiting a new Chief Marketing Officer to work closely with our product and sales teams to deliver the most compelling products and services.â
Barbara Stymiest, who formerly served as a member of Royal Bank of Canadaâs Group Executive and has been a member of RIMâs Board since 2007, has been named the independent Board Chair. John Richardson, formerly Lead Director, will remain on the Board.Â Prem Watsa, Chief Executive Officer of Fairfax Financial Holdings, also was named to the Board, expanding it to 11 members.
Speaking on behalf of the Board, Ms. Stymiest said:Â âWe believe that Thorsten is the right executive to succeed Mike and Jim.Â He has 27 years of telecommunications experience, including four years at RIM in senior management positions.Â As a Board, we have been impressed with his outstanding management skills, his leadership and his accomplishments within the company.â
Ms. Stymiest also expressed the Boardâs respect and admiration for Messrs. Lazaridis and Balsillie, the company they built, and the steps they have taken to position RIM for the future.
âThey created RIM, nurtured it, and in the process not only built an iconic brand, but literally pioneered the smartphone industry,â she said.Â âIt is Canadaâs largest tech company and one of the largest in the world.â