Beyond The Underdog

RIM is in disarray — so much so that the co-CEO's have graciously announced they are taking a pay cut, reducing their annual salaries to a mere $1.  Apparently this act of self sacrifice is supposed to demonstrate their commitment to the company they founded and remind RIM employees that ritual offerings at all levels will need to be made in order to survive. What it also indicates is that Mr. Balsillie and Mr. Lazaridis unconsciously know their managerial efforts don't deserve much more.


It's been one hard luck story after another for RIM the past few years.  There's an antiquated mobile operating system that needs to be replaced and keeps being delayed, the less than stellar launch of the PlayBook, key executives departing, lowered stock prices, lowered revenues and declining sales (except in Indonesia where the deprived locals apparently love their tiny keyboards and will attack each other to get at them).


Call it failure to execute.  There are those who know how to win with the lead and there are those who know how to win when coming from behind.   While in his prime, more often than not all Tiger Woods had to do was shoot a good opening round, post his name on the top of the leader board and watch the rest of the competition fade away. So huge was his intimidation factor, the other players would resign themselves to playing for second place.  


Conversely, Canadian golfer Mike Weir seems only able to win when coming from behind.  In seven of his eight PGA wins, including the 2003 Masters, Weir rose up from behind on the final day to pull out the championship.  It comes down to a mental outlook.  With everything to lose, Tiger thrived on testing his resolve not to falter.  MIke Weir, with nothing to lose, thrived on pushing himself to make something magical happen and play his way to the top.


RIM is unable to win from behind. In the early 2000's, they were practically the only smartphone game in town. Uncontested, they ruled the roost.  When Apple came along with the iPhone and turned the concept of a smartphone on its head, the real tournament began. Enter Google soon after with their Android efforts and in short order, RIM is looking up at new leaders on the board.


Say what you will about their tactics, but Microsoft knows how to  come from behind.  They thieve, sue, and bludgeon the competition until they get a toehold in the market.  They did it with Windows, they did it with Xbox and they'll do it again with with Windows Phone 7 and their partnership with Nokia.


Like RIM, Apple has never been good at playing from behind. So, they don't bother. Their success comes from studying the playing field and then reinventing the game to one they know they can win.  If ya can't beat 'em, then play something else.

Our stock just dropped what?

Will RIM survive?  I used to think they'd see the winds of change, revamp their products quickly and keep their installed based somewhat intact.  They'd find a way to compete with a decent share of the mobile market and even challenge with some new products.  As a Canadian, I hoped they would.  


But each company report and each press release indicates this won't happen.  The recent excuse of choosing to wait for new chipsets to update their phones smells of desperation and I don't buy it for a moment.  Behind the scenes is a company faltering — lacking vision, disorganized and unable to regroup.  


And for that reason, RIM's co-CEO's need to step aside. Give them credit for inventing the smartphone market and creating a worldwide buzz.  But now faced with dominant competition, its glaringly apparent they don't know how to win coming from behind.  


Give it to someone who can.