Re: Spoke with Greg Baroni today - Laurie
in response to
by
posted on
Dec 01, 2009 02:13PM
Thank you for your aggressive quest for insight and for sharing the insight gained. Much appreciated by all.
As for what Baroni had to say, after sleeping on it, I've come to the conclusion that for the most part he said everything I would want and would expect to hear.
My take is that knowing the market is the key. Actually, knowing the market segments available for pursuit. The product line is known and somewhat fixed, but there are a variety of market segments available to pursue. Isolation of the market segment offering the best fertile ground makes sense - the market segment where there is near term interest in acquiring our product(s), with plenty of money to be spent, and where there is the least viable competition. Identify the most desireable initial target market segment.
It also makes sense that you'd want/need to know which market segment is to be aggressively targetted first before seriously searching for a new CEO. If it is going to be in the medical data world, you'd want a CEO with background not only in secure data handling, but also in the medical world. Likewise for military, homeland security/law enforcement, big business, etc. Again, the product line is relatively fixed, but it can be deployed in any of several specific markets. The target market dictates the desired attributes of your new CEO.
Once we successfully break into that target market segment, other market segments should take notice and hopefully react accordingly. This especially when recognizing that some market segments are inherently linked (e.g., Fed/State/local law enforcement, homeland security, and military).
As for the BoD, I am pleased to hear that Baroni is pushing them to be more engaged, and to hear that his perception is that they are responding to the push. I am very pleased to hear that his perception (assuming he was being completely candid with his comments - and there is little reason to think overwise) is that the BoD is truly "committed to making sure that we have a return on our investment". They may be groping their way along, and may have many shortcomings, etc., but the implied message IMO is that the BoD has made direct statements to Baroni along these lines, and thus the retail shareholder isn't completely ignored as many here frequently suggest.
As for the BoD replacement thing, it wouldn't surprise me if Baroni considers himself a viable candidate. And this dovetails into my other concern that was raised the minute I read that Baroni and Company were hired: the results of the study/evaluation could be skewed in a direction favorable to them (or Baroni himself). At that time I suggested that perhaps Baroni will ultimately become our new CEO. In some ways this is frustrating, and in other ways it very well be the best thing for the company. At minimum, the BoD will have had an opportunity to get fully acquainted with Baroni and his knowledge, skills and abilities. But, as always, we'll be relying on the judgment of the BoD in making the selection - no escaping that.
Along these lines, it'll be very interesting to see how this plays out. If the initial target market segment is in the medical world or the big business proprietary data protection world, I wouldn't expect Baroni to be the ideal CEO candidate.
What would be most interesting, and controversial, would be if we aggressively pursue business with foreign (not necessarily hostile) entities in any market segment. Actually, just getting a contract with a foreign entity organization. As is pretty obvious to most, and as was pointed out in a recent segment on data security on "60 Minutes", though various foreign entities aggressively try to and succeed in hacking into a myriad of US data systems, WE, the USA, dedicate mucho resources in this same endeavor - and we are the best at it. Those foreign entities may be a target market for our products. Man, would THAT garner some attention! Patriot?!
JMOs FWIW, and thank you again Laurie.
SGE