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Nortel Networks - Nicholas DeRoma" Come Together "Nortel Networks is a leading global supplier of networking solutions and services that support voice, data and video transmissions over wireless and wireline technologies. The company is focused on building infrastructure, service, enabling solutions and applications for the new, high-performance Internet. The amount of Internet traffic is expected to grow 2000 per cent by the year 2002. Business-to-business e-commerce is expected to skyrocket from US $43 billion in 1998 to US $1.3 trillion by 2003. Today's "network" is an expanding web of interconnected voice and data networks, private and public networks, and wireline and wireless networks. Borrowing from the Beatles lyrics, Nortel Networks believes that in order for these separate networks to power the Internet, they must " come together " to carry voice, data and video over one powerful infrastructure. The Company: Incorporated in 1914 as the Northern Electric Company, the company changed its name to Northern Telecom Limited in 1976, and to Nortel Networks Corporation in April, 1999. Earlier this year, BCE Inc. announced its intention to distribute approximately 37 per cent of its ownership interest in Nortel to the shareholders of BCE. This historic and defining event for Nortel occurred in May of this year when BCE distributed substantially all of its interest in Nortel to its common shareholders. As a result, Nortel Networks emerged as an independent company. It has become an Internet powerhouse and has the largest market cap of any Canadian company (US $189 billion as of June 23, 2000) and its market cap is in the top twenty of the publicly traded companies in the world. Earlier this year, Nortel Networks announced the acceleration of its operations strategy to move from an organizational structure based on vertical integration (making and assembling most of its parts and systems) to one based on virtual integration (acting as a system house that will link various parts of the supply chain for flexible manufacturing and delivery). For this reason, Nortel Networks has begun to divest and/or outsource to contract manufacturers all but its most complex printed circuit board assembly, much of its manufacturing, and a significant part of its repair business. Nortel Networks is a US $22 billion corporation with over 75,000 employees worldwide. Revenues were up 48 per cent to US $6.3 billion for the first quarter of 2000, and the outlook for the remainder of 2000 projects growth in the 30 to 35 per cent range. The company focuses on growth through strategic acquisitions (Xros, Core Tek, Promatory), alliances (Hewlett-Packard, Intel and Microsoft) and research and development focused on data networking and optical Internet solutions. Chief Legal Officer: Nicholas DeRoma Age: 54 Principal Outside Counsel: In Canada, Nortel Networks uses the services of Davies, Ward & Beck; Smart & Biggar; Stikeman, Elliott; Ogilvy Renault; and Cassels Brock & Blackwell LLP. Other outside counsel, not based in Canada, include Baker & McKenzie; Cleary, Gottlieb, Steen & Hamilton; Hale and Dorr LLP; Gibson, Dunn & Crutcher LLP; and Finnegan, Henderson, Farabow, Garrett & Dunner LLP. Improving In-House and Outside Counsel: Standardization, moving toward working in a paperless environment, simplifying processes on how to manage exceptions. Looks for lawyers with exceptional professional skills who understand the business of the client, excel at managed risk-taking, are creative and adaptable, and are good problem solvers and negotiators. These skill sets are critical now that Nortel Networks is no longer selling to customers in the slow-paced regulated world of the past. The Law Department: The department is comprised of approximately 350 professionals in offices located in North America, South America, Europe and Asia. Nick has responsibility for the legal, security, corporate secretarial and patent and licensing activities of the corporation and its subsidiaries. There are 130 lawyers located around the world including 30 located in Canada. The size of the company, its focus on speed of execution, and the large volume of acquisitions demand a very quick response time from the law department. As a result, in-house specialty teams of eight lawyers in each of the areas of M&A and securities law are utilized to satisfy the pressing demands of the client. There are other in-house specialty lawyers as well. Committed to extensive decentralization in legal services, the department has a lead lawyer for each business unit, following a geographic and product line matrix. M & A Transactions: Recent transactions in the six months ending in June include:
Litigation: Nortel has repeatedly been successful in its defense against patent litigation, never having been found to be infringing and never having paid damages in any suit brought against it. This defense record is a carefully built strategy to discourage patent holders from launching opportunistic suits. Management Challenge: Nortel Network's business and its transformation move at "Internet-time". "The biggest challenge is providing high quality, cost-effective legal advice that is responsive to the corporation's needs in a timely manner. We are obsessed with speed in everything that we do - not just to survive, but more importantly, to lead in a world that is being changed at an increasingly faster rate by the far-reaching effect of the Internet." Nick adds that "leading a large global law department in this environment is indeed a challenge. It is also a huge opportunity for my entire legal team. We are committed to make a significant and direct contribution to the success of the company." Goals, performance, and rewards for employees, including lawyers, follow a six-month rather than an annual cycle. An annual cycle is simply too long of a performance period in the fast-paced environment in which Nortel competes. Style: Combines intelligence, common sense, knowledge of the law, business acumen, good judgment and a sense of humor to achieve professional excellence and results. Key member of the senior leadership team and reports directly to the CEO. Above all, he is a leader, as well as an effective change agent and team player with extensive experience in managing one of the largest law departments in the industry. Career: Born and raised in Hartford, he completed his law degree at William and Mary in Virginia (1971). He passed up a fellowship grant for his LL.M. in favour of a federal clerkship in Washington, D.C. He joined IBM's law department and stayed with IBM for 25 years holding a succession of positions, including General Counsel and Secretary in Asia, in Europe / Middle East / Africa, ending with the position of General Counsel, IBM North America. Wanting to continue his career in a smaller, more agile company, and to make a more significant contribution as a member of the senior management team, he joined (then) Northern Telecom as Vice-President and Deputy General Counsel in Toronto three years ago, and one year later became Chief Legal Officer. Family: Married for over thirty years to his high school sweetheart, Sandra. Reading: He is currently reading Rembrandts in the Attic: Unlocking the Hidden Value of Patentsby David Kline and Kevin G. Rivette and Simplicity: Working Smarter in a World of Infinite Choices by Bill Jensen. Relaxing: Enjoys swimming, travelling with Sandra to new places with different customs and cultures, local cuisine and most of all, meeting people. Nick is also known to play a very respectable game of pocket billiards. Richard G. Stock, M.A., FCIS, C.ADM., CMC, is a partner with Catalyst Consulting. |
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