financialpost.com

The Canadian technology firm Research in Motion (RIM), maker of the Blackberry smartphone, lost its two top executives on Jan. 22, amid the company’s continuing efforts to restructure in light of recent struggles. Jim Balsillie and Mike Lazardis acted as co-CEOs and co-chairmen of RIM for more than two decades, and will stay on as members of the board. Investors and crackberry addicts alike are now looking to the new CEO, Thorsten Heins, to see what he can do to bring the Blackberry back to dominance in the smartphone market.

Mike Lazardis and Jim Balsillie voluntarily resigned their positions on Sunday. As co-CEOs they formed a strong partnership, with Lazardis handling the technical aspects and Balsillie heading the business side of the company. They created the Blackberry smartphone together in 2003, and introduced it to the business world where it quickly became as ubiquitous as the suit and tie. Blackberry had the smartphone market nearly to itself for almost four years before Apple and Google entered the industry. 

The Blackberry is now struggling as it dips in market share and stock value. Blackberry currently makes up less than a fifth of the consumer smartphone market and lost 75 per cent of its stock value in the last year alone. In 2008, RIM was Canada’s most valuable company with shares worth $148 each. Its current stock price is under $18 a share, an indication of the company’s troubles. 

The recent resignations come as no surprise. Pressure from unhappy stockholders to make changes at the top has been mounting for months. 

Their influence won’t be too far removed, though, as both men are to stay on the board of directors. 

Karl Moore, a Desautels professor who specializes in management leadership, notes that their vision and experience are still extremely valuable and shouldn’t be neglected.

“As the founders and visionaries, it is quite difficult to step aside from your creation,” Moore wrote in an email to the Tribune. “It is potentially very helpful to have them on the board, [so] they can bring their experience and genius to RIM as it makes its way to what, I hope, is a brighter future.”

Moore also cautions the new CEO and chair to control the influence of the previous leaders. RIM needs to consider all options to return to the top, including some that Lazardis and Balsillie may disagree with.

“The new CEO must remain the central decision maker,” he said.

Heins, the newly appointed CEO, entered his position after working at RIM for four years and acting as COO for the company since August. His background is more technical than business-oriented, having served at Siemens AG as chief technology officer before coming to RIM. The next six months are critical for Heins, as many shareholders think that the leadership change isn’t large enough and want to bring in an outsider. Vic Alboini, a major shareholder, has said that he considers the new CEO only as part of a transitional team unless Heins can turn things around.

Getting Blackberry back on track might not be the Herculean trial that many investors make it out to be. The groundwork for RIM’s recovery is already laid, with the new Blackberry 10 operating system and a new line of phones in development. Heins may need to crack the whip in the coming months if these projects fall behind schedule, but their release should keep Blackberry up-to-date and competitive. Blackberry is still immensely popular among professionals who value the convenience of Blackberry Messenger and the security of RIM’s encrypted networks. If RIM releases its new products soon and can patch up its spotty messenger network, it should at least be able to stop its backwards slide. Licensing their platform and allowing other phones to access their networks could serve as an added and much needed source of revenue. 

The next six months will prove telling for Heins and Blackberry, and we’re likely to see them sink or swim together.