ERP and CRM stalwart Sage Group plc has taken an important step in the reorganization of its North American division, known as Sage Software, naming telecom industry veteran Sue Swenson president and CEO of the division.
The search for a CEO began last fall, when Sage ousted then-CEO Ron Verni and CFO James Eckstaedt. At the time, officials at United Kingdom-based parent firm Sage Group said the leadership of the North American division needed a different skill set to match the business' reconstituted structure.
In May 2007, Sage restructured its North American operations into four business lines, including the Business Management division, housing Sage Software's ERP, CRM, and related products; the Industry & Specialized Solutions division, for construction, real estate, and non-profit companies; the Healthcare division; and the Payment Solutions line.
At the time of the executive departures in October, Sage officials said they would seek a replacement with experience in managing complex business organizations. Since then, Sage Group CEO Paul Walker has acted as CEO of Sage Software.
Swenson will assume the role on May 1. She comes to Sage following a succession of management positions, primarily in the telecommunications industry. She is currently chief operating officer at digital media content provider Atrinsic, Inc., formerly New Motion, Inc., and spent the bulk of her career at telecom provider Pacific Bell in high-level marketing and customer service roles. She also spent time in executive roles at Cellular One, Leap Wireless, and T-Mobile.
In her career, Swenson has "managed periods of rapid growth and industry change," according to Sage's statement. Her experience in the telecom industry should be an asset to Sage Software, said Ray Wang, an analyst at Forrester Research who covers the enterprise applications market.
"I think about what you need to do with dealers and dealer networks in telco; it's very similar to partners and indirect selling," which is a strong component of Sage's go-to-market plan for its enterprise applications, Wang said in an interview with Managing Automation.
When Swenson takes the helm of Sage Software, she will inherit Sage Group's largest division, but also its poorest performing one of late. Although Sage boosted its fiscal 2007 revenue by 43% over the previous year, the spike came courtesy of a number of acquisitions. The more revealing measure of organic growth crept up just 4%, making it the laggard among Sage's worldwide divisions, which include the United Kingdom, mainland Europe, and the "rest of the world" catchall.
In fiscal 2007, North America accounted for £508 million in sales, while mainland Europe contributed more than £343 million; the United Kingdom, £217 million; and the rest of the world, £76 million.
While Wang said it is too early to speculate on what Swenson's strategy might be for reviving organic growth, "you can count on some of that [telecom] experience in partner enablement [and] customer service to help."
Sage has built its business through many acquisitions — seven alone in 2005, followed by five more in 2006. It has also seen its customer base shift over this decade, from almost entirely accounting-based roles to more industry-specific functions within customer organizations.
A Sage spokesperson told Managing Automation that the search for a replacement CFO continues. Andrew Griffith, Sage Group's director of treasury and M&A, has been acting CFO for North America since Eckstaedt left in October. Swenson will be involved in the search for a permanent replacement, according to the spokesperson.