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Author: Neurodancer One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3604  
Subject: Re: Eric Schmidt Date: 7/20/2000 8:50 PM
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Hey Bruno!

This is an interesting thesis, but it would never happen. There are no synergies to be had with a merger between NOVL and XRX -- they operate in entirely different markets and XRX, for one, is so bloated that the last thing they need to do is add more lines...

There are a lot of interesting comparisons between the two. They both are companies that were strong / dominant in the 80s. They both are having problems adapting to the competition in the 90s. They both have (had) effective leadership problems.

Let me posit some reasons why such things could never happen. 1st, Paul Allaire has proven with Thoman that he won't let go of the reins to a younger, more dynamic leader. What are the odds that he would be forced out to allow more radical change?

Culture. Xerox is highly resistant to any moves a "dynamic" or "visionary" leader may try to make. The majority of the "old school" types would need to spend at least 6 months analyzing causals and benchmarking before they would even consider a change. Thoman had hinted at clearing house of such fat, ineffective managers -- that never happened. What makes you think it will happen now?

When I read the subject line on your message, I perked up and thought the light at the end of the tunnel might be in sight. Someone like ES is needed at Xerox, but those same veterans that gave Anne Mulcahy a standing ovation at the XEN broadcast announcing her promotion will resist such a "visionary" outsider with all their might. They prefer to go with more insiders at the helm -- I think that light may be an oncoming train (to complete the analogy).

Just my $0.02...

N
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