Managing in Troubled Times Case Study

Case Title:

Siebel Systems, Inc.: Troubles and Turnaround Efforts

Abstract:
Siebel Systems Inc. was one of the fastest growing companies in the information technology industry. It was known for its ability to provide software solutions for Customer Relationship Management (CRM) and Sales Force Automation (SFA). But the global economic slowdown in 2000 brought a spate of troubles for the company, from which it seemed hard to emerge. As the company kept reporting dismal performance year after year since 2002, concurrently the management was also making efforts to stop the losses and achieve a turnaround. As part of the turnaround effort, a new Chief Executive Officer, Michael Lawrie, was appointed to revive the fortunes of the company. But before he could completely implement his strategies, in a sudden move, he was replaced with George Shaheen. The continuous losses, ongoing turnaround efforts and the sudden change of leadership at the helm raised questions about the health of the company and its future prospects.

Pedagogical Objectives:

• To highlight turnaround efforts and strategies adopted by Siebel Systems Inc.

Keywords : Siebel Systems Inc.; Information technology services; Business processing outsourcing services; Turnaround strategies; Restructuring plan; Michael Lawrie and George Shaheen; Customer Relationship Management (CRM); Tom Siebel; Sales Force Automation (SFA); Managing in Troubled Times Case Study; Incompetent managers and poor decisions; Troubled times and leadership change; Oracle, SAP, IBM, Salesforce.com; Computer services and software; Turnaround specialist; Divestments and spin-offs