Off-Line - Company Operations

Telecommunications, Nov, 2000 by Dennis Barsema

When Dennis Barsema graduated from Northern Illinois University with a business management degree in 1977, he had three choices for employment: IBM, Burroughs, or the national office of his fraternity. "I didn't like IBM due to its 'stuffiness' (this was the late '70s). I chose to work as a salesperson for Burroughs because it offered me $500 more than my fraternity did. Who knows where I would be if not for that."

And what if he hadn't joined Centigram Corp. in 1996 and, moved to San Jose? "I might never have had the opportunity to take the CEO position with Red back Networks in 1997," he said. At that time Barsema "was stone-broke, so I couldn't 'lose everything'. My greatest concern was picking the right people. In a small emerging company, you don't get to make hiring mistakes for key positions. You have to put the right people into the right jobs."

When hiring key executives, Barsema looks for a will to win, compassion, likeability, consistency in decision-making and "how they treat people." He believes that nothing ruins organizations faster than people who play office politics. "They become a cancer and must he removed. That takes time and is a distraction to everyone," he said.

Barsema advises fellow telecom execs to "be the first to find the problem and come tip with the solution. Get to market six to 12 months ahead of any competitor and get the early-mover advantage. Build as strong a sales force as you can. I know this sounds basic, but I have seen too many companies build inferior sales forces and then wonder why the business doesn't ramp as fast as they think it should."

Barsema believes the best marketing tool is a superior product: "Nothing promotes a product better than happy customers."

* Who was your mentor?

* I've had numerous mentors, and several stand out from my years at Paradyne Corp. They taught me that you can be successful by practicing kindness, fairness, and being equitable in your dealings with people.

* If you could do anything in your life over again, what might that be?

* I love music and wish I'd worked harder at learning to play an instrument. It would be a wonderful distraction and provide balance to everything else in my life. My dream would be to play with the Rolling Stones!

* What do you think of all the astonishing IPOs of late?

* Clearly, Wall Street is paying closer attention to a company's P-to-P (path to profitability) plan than it did 12 months ago. It is not enough to show great top line growth: Companies who show a strong P-to-P are being rewarded with very good valuations.

* What gadget not yet invented would you most like to see come into existence?

* A device in my car that would allow me to move all slow cars ahead of me off the road (safely, of course).

* Where do you want to be in 25 years?

* On the PGA senior golf tour.

* What book are you reading or have just finished reading?

* Before I Say Goodbye by Mary Higgins Clark. I only read fiction. The real world scares me to death.

* What is the biggest change you foresee in the telecom industry over the next five years?

* I see tremendous consolidation in all areas. There will be no successful $200M companies. They'll have to either get big real quick or get acquired. Those that stay at the $200M revenue rate will become part of the walking dead. Wall Street will forget them.

* What are your office hours?

* During the week, I don't care how many hours I work, but I don't like to work weekends. Those two days are for my family.