Wednesday, July 6, 2011

RIM: Head in the sand?

More evidence of trouble at RIM. The Boy Genius Report published a letter it claimed was written by a senior executive at RIM. BGR claimed it had verified his identity. Its pretty damning:

"Mike and Jim, please take the time to really absorb and digest the content of this letter because it reflects the feeling across a huge percentage of your employee base. You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.

Before I get into the meat of the matter, I will say I am not part of a large group of bitter employees wishing to embarrass us. Rather, I believe these points need to be heard and I desperately want RIM to regain its position as a successful industry leader. Our carriers, distributors, alliance partners, enterprise customers, and our loyal end users all want the same thing… for BlackBerry to once again be leading the pack.

We are in the middle of major “transition” and things have never been more chaotic. Almost every project is falling further and further behind schedule at a time when we absolutely must deliver great, solid products on time. We urge you to make bold decisions about our organizational structure, about our culture and most importantly our products
...."

Then he makes his point:

"We urgently need to invest like we never have before in becoming developer friendly. The return will be worth every cent. There is no polite way to say this, but it’s true — BlackBerry smartphone apps suck. Even PlayBook, with all its glorious power, looks like a Fisher Price toy with its Adobe AIR/Flash apps.

Developing for BlackBerry is painful, and despite what you’ve been told, things haven’t really changed that much since Jamie Murai’s letter. Our SDK / development platform is like a rundown 1990′s Ford Explorer. Then there’s Apple, which has a shiny new BMW M3… just such a pleasure to drive. Developers want and need quality tools.

If we create great tools, we will see great work. Offer shit tools and we shouldn’t be surprised when we see shit apps.

The truth is, no one in RIM dares to tell management how bad our tools still are. Even our closest dev partners do their best to say it politely, but they will never bite the hand that feeds them
..." Letter

The rest of the letter makes good points. Reminds me of the gripes we had at Citi and GM when they ran into trouble. Cultures that had no accountability, ran off the achievers, and worried more about turf and egos than producing products consumers wanted. Believe it or not, RIM actually responded although in a predictable corporate fashion:

"It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a “high level employee” in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner..."
RIM's response

Uh-huh. I can tell you why the employee did this, because such a letter would've gotten no attention whatsoever and if it had been noticed, small minded executives would've retaliated. However, the letter continues:

"RIM recently confirmed that it is nearing the end of a major business and technology transition. Although this transition has taken longer than anticipated, there is much excitement and optimism within the company about the new products that are lined up for the coming months. There is a fundamental business reality however that following an extended period of hyper growth (during which RIM nearly quadrupled in size over the past 5 years alone), it has become necessary for the company to streamline its operations in order to allow it to grow its business profitably while pursuing newer strategic opportunities..."

Ooooooooook. No new products this year, you're getting lapped by Google, Apple, and now HTC, and you just delayed new product launches. More emails came in from other employees. Did I mention you are now literally giving away the Torch that was supposed to be your savior because no one bought it? Or did I mention Apple and Google are developing their own push email and messenger services that will end your monopolies in those areas? Two more employees responded. One wrote a letter that sizzled even more than the one published above:

"However, each one of us has been handcuffed by overdone, poorly planned and every more poorly executed process. It can take weeks of time to make small changes, and months to make major ones. Whenever something goes wrong (incident, problems, even non-customer impacting) a lengthy and involved process of finger pointing starts, and without fail, a new process is born. And, sadly, since the announcement came out about the financial problems and layoffs, it’s become worse. Many of the managers are saying we need to rely more heavily now than ever on process. To those of us who need to deal with this process, which consumes days of work generating documents that no one will read, it’s an obvious case of CYA on the managers part. If they say ‘but we followed the process!’, they seem to hope their heads won’t be on the line. We are no longer a company that is innovative and energetic, we are drowning in paperwork....

2) AT&T: Internally, there’s a large joke that we should be called “RIM-T&T”. A lot of our senior leadership has come from there, and they come in with ideas from an old, stodgy, process driven industry. Having worked in a telecom like position in the past, I know how much paperwork and process they love — AT&T (and Bell, and other carriers) are dealing with a century of regulation, knowledge and process. Maybe they have some great best practices, but you don’t see ‘new and innovative’ happening a lot at AT&T. It also opens up a lot of questions about business directions when many senior leaders came from one of our carrier partners.
..." Letters

They hired senior management from the company with the worst service and pricing in the industry and are surprised they have problems? The rest of the letter is quite good and worth reading.










3 comments:

Anonymous said...

Short RIM's stock.

Anonymous said...

The more I read about RIM's problems, the more I realize that they are far more screwed than I originally thought they were. They are displaying incredible arrogance in their absolute and total denial of how poor their products are in comparison to google and apple. Which doesn't really matter; they wouldn't have a prayer even if they did acknowledge how much their products suck. They are the AOL of the cellphone industry. Or worse.

Reed said...

I guess I'm showing my age, but when I read about RIM's situation, I am reminded of an Atlanta company called Hayes. If you are old enough, you remember Hayes Smartmodems and that there was a time when dial-up modems were "Hayes compatible". Hayes was the standard for modems and had the lion's share of the market, but they refused to open their eyes to the changing world, ignored their competitors (particularly US Robotics), and continued to sell their modems for twice what others were, believing that their reputation was enough to entice people pay double.

RIM clings to their position as the business handset leader. Problem is they lost that position some time ago. They may still have the largest install base in terms of secure messaging servers, but the trends are turning away from them completely. Their strategy appears to be ensconcing themselves in a blanket of bureaucracy and hoping for a miracle.

A friend of mine worked for RIM in Dallas and quit out of frustration. His experience as related to me was not far from those expressed in the linked article. He often discussed the difficulties in Canadian vs US groups and how the Waterloo HQ was paranoid of the US operation taking over.

In three years, RIM will be where Nokia is today. Or maybe worse.



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