Symantec Corp. yesterday announced that it has created a new strategy that includes a new Office of the CEO, expanded products and services, and also layoffs of various executives and middle management staff. The company says these measures are designed to streamline and simplify the company so it can deliver significantly improved performance for customers and partners.
According to a media statement issued by the company yesterday, Symantec’s new strategy is clear cut. “We want to enable people, businesses and countries to focus their energies and time on achieving their aspirations, instead of being consumed with how to keep their digital lives safe and protected,” said Steve Bennett, Symantec president and CEO. “This is a story about more focus and better execution by Symantec to make things better and easier for our customers and partners. Our path is straightforward: Offer better products and services tailor made for customers, and make it easier for them to research, shop, buy, use, and get the help and support they need.
With the goal in mind of continually improving its existing products and services, and at the same time developing new, innovative products and services that solve important unmet or underserved needs, Symantec wants its customers to have more and better choices that will continue to meet their evolving needs and deliver better value. With that being said, Symantec is focusing on 10 key areas that combine existing products and services into new, innovative and comprehensive solutions that meet multiple customer needs with integrated and higher value offerings. The overall development process is estimated to take six to 24 months depending on the specific offering.
These future offerings are intended to align with meeting three key customer needs: Making it simple to be productive and protected at home and work; keeping businesses safe and compliant; and keeping business information and applications up and running.
“Customers will still be able to pick and choose the solutions they want to use, but from a broader menu of innovative products with higher value,” Bennett said. “We’re not offering packages that they have to take it or leave it. Customers can still decide what’s right for them and buy accordingly, but have the added option of migrating to new integrated offerings which provide added flexibility we know they will need to combat constantly evolving threats, particularly via mobile and the cloud.”
Of course in order to deliver this increased value, Symantec says it will ramp up its R&D in the coming months to better meet these needs, as well as establishing strategic partnerships where it can integrate what it does with others to add even more value for customers. This will help customers stay ahead of increasingly challenging information and protection challenges at the endpoint, network and data center levels.
Symantec’s sales process will continue to rely heavily on the channel to manage current customers and free up Symantec’s sales force to focus on generating new business. Symantec will also enhance the marketing organization with more strategic resources and capability to accelerate focus and organic growth.
In addition, the company has, as part of this news strategy, created a new Office of the CEO. This comprises a small team of executives (CFO, president of products and services, and COO) has been established to make collective operational and functional decisions with Bennett on a daily basis. Also reporting directly into the CEO are direct reports based on function (such as HR, Finance, Legal, etc.) and the sales geography leaders. A group of extended staff --including the chief officers of functions such as IT, marketing, communications, and technology – will be another group reporting into the CEO.
In addition to creating these new groups, Symantec also said that it will begin to eliminate executive and middle management positions, in order to meet the need for a reduced work force. Accoring to the company, this process is set to be completed by June.
“Symantec is a strong company with leadership products, brands and great employees,” said Bennett. “Past leaders and employees of this company have left an outstanding legacy of assets for us to build upon as we move forward. The next step is to change things that allow us to adapt quicker to the marketplace, and in the end, continue Symantec’s tradition and high standards for delivering tremendous value to our employees, customers, partners and shareholders.”
Regarding financials, Symantec says it is committed to deliver more than 5% organic revenue growth and non-GAAP operating margins better than 30% over the next two to three years. After FY14, organic revenue is expected to build steadily driving a CAGR of more than 5% during the FY15–FY17 period as the company executes its plans. The expectation is to reach 30% non-GAAP operating margins by the end of FY15.
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