CrossKeys CEO making way for 'presidential leader'
James Bagnall
Ottawa Citizen
KANATA, Ont. - It's
a rare entrepreneur
who has the
temperament,
experience, and skill
necessary to guide a
startup through
several stages of
growth.
John Selwyn, who
said yesterday he will
be stepping down as
chief executive of
CrossKeys Systems
Corp., is not a
member of this select
group.
"Last year I found
myself agonizing over
decisions that today I
would find slam-dunk
easy," he said in an
interview. "But I'm
not certain the
company can afford to have me learning on the job."
Ian McLaren, currently president of MCI Systemhouse Canada,
will take over as CrossKeys' top executive May 1, corresponding
with the start of the Kanata firm's next fiscal year.
It promises to be a challenging initial assignment for Mr. McLaren,
42. Two months ago -- even as it revealed its 10th straight quarter
of improved earnings -- CrossKeys warned investors to expect
weak sales over the next two quarters. The main culprit was the
unexpectedly sudden winding down of a key project funded by
Siemens AG of Munich.
Mr. McLaren believes there's still plenty of growth left in
CrossKeys, which was founded seven years ago by Mr. Selwyn.
"All of us have gone through phases where we have to regroup," he
said, "and CrossKeys has good strategies in place now as well as
some of the best engineers in the business."
Mr. Selwyn maintains that CrossKeys' core business --
performance management software for telephone companies and
other service providers -- is healthy enough. "My goal was to pass
the baton with all the difficult decisions made," he said. "We've set
the stage for the next fiscal year."
By this he means that CrossKeys has upgraded its main product
lines and is in the process of expanding its global sales channels
through partners such as Ascend Communications Inc. of Alameda,
Calif. However, CrossKeys still generates more than half its sales
through Kanata-based Newbridge Networks Corp., which holds a
significant minority stake in CrossKeys.
Indeed, CrossKeys was the founding member of Newbridge's
family of affiliate firms and was the first to go public.
The result, until very recently, was nearly seven years of steady,
occasionally spectacular growth and the construction of a software
firm that employed 326 at the end of January. But, with rare
exceptions, its share price languished -- perhaps because
institutional investors and some customers may have sensed Mr.
Selwyn's ambivalence about the top job.
"I am at heart an engineer," said Mr. Selwyn, "and what CrossKeys
needs is a presidential leader and a presenter. That's what Ian
brings."
Mr. Selwyn's decision to step aside did not come easily but it was
his to make. The former Gandalf Technologies engineer informed
the CrossKeys board of his intention about nine months ago. Mr.
Matthews tried to talk him out of it, but later accepted Mr. Selwyn's
rationale. Mr. Selwyn will help Mr. McLaren with the transition then
plans to take a year off by spending time in New Zealand. |
