The Wisdom of Realignment

By Chris Gonsalves  |  Posted 2005-02-21 Print this article Print

and Reshuffling"> Whats the wisdom behind the recent realignment of the business units to focus on industries, along with the corporate reshuffling?

This is the way almost all commercial software companies organize themselves today. You have to recognize that CA did not have its development units organized in a terribly coherent fashion. They were a bit spread out; there were a number of different management models being used.

One thing I concluded very quickly was that we needed to bring development together under a single leader to create a more integrated structure that would include development, marketing and support. That would be a way of getting better responsiveness to the customer and get a better handle on the investment. It turns out CA had run a very effective experiment in this with the eTrust brand, which Russ Artzt had been running for a couple of years, and the experiment had been incredibly successful. I dont take any credit for the idea. When we looked to see what worked, there was proof.

I ran IBMs largest software business unit for seven years, so Ive got more than a passing acquaintance with how this system works.

How confident are you that Artzt can repeat the success hes had with eTrust across the entire portfolio?

I dont personalize down to an individual. Russ and his team and the development organization in general can do this. He has the management team that also understands what needs to get done and is interested in winning in the market.

The movement of Mark Barrenechea and Yogesh Gupta has made for some confusing—and apparently overlapping—job descriptions. How do their positions work?

Yogesh works for Russ Artzt and has common technology, architecture and strategy looking across the business units. Mark Barrenechea works for me and looks across the company with a concentration of, strategically, where do we want to go as a company. What business do we want to be in? What acquisitions do we want to make? So his role is very much companywide with a technology focus but looking at repositioning the company. Yogeshs role is as the technology strategist inside Russ Artzts organization. So they are very different roles.

Are more executive appointments coming soon?

Theres still some things we have to figure out. We need a business development guy, and were close to announcing that. We probably need a few more things in the finance organization. Senior VP level. Thats about it right now.

How will you restore investor faith?

There was a whole set of things in our deferred prosecution agreement; most of those we offered as things that were necessary renovations to the CA infrastructure, [such as] putting in place an ERP [enterprise resource planning] system and replacing a rats nest of old apps, built over 30 years and not well-integrated.

Weve put in place a chief compliance officer, [former United Technologies Corp. executive Patrick] Gnazzo. [Were] putting two new independent directors on the board as part of the agreement. Theres a lot of things. We are rebuilding the finance department to establish the right set of checks and balances that, frankly, never existed before; re-establishing a legal department, which had a series of problems in the past; and then honestly delivering on our promises in the marketplace.

Is there a culture change going on at CA?

I think so. CA didnt have a strong culture. Its a function being built by acquisition over the course of a relatively short period. IBM had a chance over 100 years to build a strong culture. One of the things I have to do is make sure we build a culture that is customer-focused—that is about being a trusted adviser to our customers. To be an ethical company in everything we do. That all needs to be inculcated into the body of the organization.

The good news is that our employees have seen firsthand what happens when a company loses its way. Its not as though you have to go out and convince them that something is needed. Its about showing them a vision of what the company can do and their role in it.

What parts of your experience from IBM are your bringing to the task at CA?

Im not consciously trying to bring any parts of IBM culture to CA. IBM does a lot of good things around process and focus on customer. Ill bring those. On the other hand, one of the things Ive learned from CA is the resourcefulness of the people, their entrepreneurship, their ability to endure almost any kind of [obstacle] management throws at them and be able to persevere.

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