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Sue Swenson Leaving Sage in 2011

December 1, 2010 by Wayne Schulz

sage sue swenson.jpg

Sage have just announced that North American CEO Sue Swenson will leave the company (retire) in 2011 (exact date unspecified) to be replaced by Sage France’s Pascal Houillon.

If I were to bet I’d say that Sue’s last day will be on or about June 18, 2011. This just so happens to conveniently coincide with the day when Sue Swenson’s 260,815 stock options vest with Sage UK according to this company announcement of June 17, 2008.

Sue Swenson joined Sage in 2008 after a surprise 2007 management restructuring that saw a number of Sage executives ousted. In her almost three years at Sage she appeared to be largely batting cleanup and did not take a central visible role in communicating to Sage’s channel or in meeting with the VAR community. Other Sage VARS described Swenson as a slightly reclusive CEO who appeared focussed on the job at hand rather than mingling with the Sage channel.

As near as we could tell Swenson was brought in to create an organizational structure where the various business units could exist on their own if needed. Other than an annual appearance at the Sage Insights conference (now Summit) few consultants or VARS reported much interaction with Swenson. She was rarely spoken about by other Sage employees. Her lack of integration with Sage’s channel partners appeared unusual given that Sage repeatedly states their commitment to operating through the use of business partners.

During Sage events, most notably at 2009 Presidents Circle, Swenson did not play any role and was barely mentioned from the podium save for when employees were questioned about her absence.

Her departure announcement follows that of Jodi Uecker-Rust who left in October 2010 after spending about a year at Sage running their biggest North American division. Prior to Sage Jodi Uecker-Rust ran the Great Plains software company as a defacto #2 to company founder Doug Burgum and was also a key employee at Microsoft who architected much fo the Microsoft acquisition of Navision.  While a replacement has been named for Sue there’s not yet any indication of who will replace Jodi Uecker-Rust.

Update 12/3/2010: Seth Fineberg at WebCPA reports that Pascal Houillon will assume leadership of Sage Business Solutions in January 2011.

As for the rest of Sage’s earnings related news –  North America shrank 4% in total revenues (the most of any division) yet held the line at 15% EBITA. Nearly all of Sage hit the 15% mark.

I’m still reading the earnings release report now – you can review here:

http://www.investors.sage.com/news/press_releases/?id=79768

Relevant North America Narrative:

North America

Total revenues in North America contracted 4%* to £549.9m (2009: £575.8m*). Organic revenues contracted 3%* (2009: 8%* contraction) with an organic contraction of 2%* in the second half of the year. Organic subscription revenues declined 2%* (2009: 2%* contraction), while organic software and software-related services revenues fell 9%* (2009: 23%* contraction). In the second half of the year, organic software and software-related services revenues contracted by 4%*, against a contraction of 13%* for the first half of the year.

The business environment for SMEs in North America remains challenging, although we did see some improvement in confidence over the year. Within our North American business we have seen progress across a range of initiatives such as premium support and renewals, cross-sell of payments into our ERP base, the launch of several connected solutions, continued increase in our customer satisfaction and brand awareness scores, and the reinvigoration of our channel partners.

Sage Business Solutions, our largest US division, declined organically by 3%* in the year, and by 1%* in the second half of the year. However, we did see good growth in the second half of the year in certain key products such as Simply, ACCPAC and Sage ERP X3. Our mid-market ERP products are well positioned in the market, with a number of compelling releases planned for 2011. Whilst the US entry-level market remains cautious, we have had success in building our position in the Accountants channel, and Peachtree Business Care premium support contracts now account for almost 50% of Peachtree subscription revenue. Our CRM and construction vertical businesses continued to experience relatively weaker demand for new software, whilst our not for profit business grew strongly. We have launched a number of connected services targeting these markets, for example e-marketing (linked to our CRM solutions) and e-philanthropy for non-profit organisations, and these are showing early positive signs.

Sage Payment Solutions Division saw growth in the number of merchants and spend volumes, but a continued competitive pricing environment. Revenues were therefore flat* in the year. We have diversified our revenue mix by targeting mid-market businesses, which have a longer average customer life than small businesses. With a flexible platform for integration into other Sage products, cross-sell revenues into the Sage base increased by over 70%* to £7.8m, and this remains a substantial future opportunity.

Sage Healthcare Division has continued to see growth in the Intergy product, and a contraction of the Medical Manager product giving an overall contraction of 5%* on an organic basis. We have made significant progress on our customer service, and we continue to see good customer wins for Intergy, although the impact of the American Recovery and Reinvestment Act (“ARRA”) funding is not expected to have an effect until April 2011 onward. To benefit from ARRA, users have to demonstrate meaningful use of Healthcare IT, so we were pleased that in October 2010 Intergy was certified for meeting the requirements for meaningful use. We have launched a new version of Medical Manager in the year which has been very well received by our customers. Our focus remains on serving our Medical Manager customers better, building our brand in the market and positioning Intergy to benefit from ARRA. Sage Healthcare Division’s EBITA† margin showed continued improvement to 20% (2009: 17%*).

The EBITA† margin was 22% (2009: 18%*). The prior year margin excluding restructuring charges was 20%*.

Sue Swenson Out At Sage North America

Filed Under: Sage software Tagged With: jodi uecker-rust, pascal houillon, sage, sue swenson

Jodi Uecker-Rust Out At Sage

October 5, 2010 by Wayne Schulz

This morning we noticed a huge spike in search traffic centered around the name “Jodi Uecker-Rust”. Just as I was about to send out emails trying to see if there may be some personnel changes at Sage North America news broke that the President of Sage Business Solutions, Jodi Uecker-Rust has left the company for personal reasons.

So far as I can tell this news hadn’t leaked in advance of the announcement although we spotted search traffic picking up around Jodi’s name based on the post we’d done questioning why she was only an interim leader when she joined Sage back in February 2009.

Jodi is what could be termed a “heavy hitter” in the world of accounting software. She spent her career working first for Great Plains Software and ultimately Microsoft (who acquired Great Plains). For a period of time she was very widely considered to be the # 2 in command behind former Great Plains leader Doug Burgum. Jodi was a key player in the acquisition of Navision by Microsoft and even moved her family overseas for a period of time to oversee the deal. She retired early from Microsoft in 2004 to devote time to some non-profit organizations that she was involved in.

In an email sent to the channel by Paul Johnson, EVP Sage Business Solutions and Tom Miller, VP Channel Management – the departure is stated as for “personal reasons”. Both Tom and Paul go on to say that a replacement is expected to be named for Jodi in the near future.

Strangely the notice of such a key departure doesn’t come from Sue Swenson, CEO but rather from executives who reported to Jodi. I have an email into the folks at Sage Public Relations and will update this post as more information is available.

Update from Sage PR –

To get directly to your question, the message came from Paul and Tom because they have been the principal senior-level communication links to the business partner community so we felt that they were the appropriate ones to inform the partners in this case, too. I hope that helps to clarify.

Text of Jodi Uecker-Rust Departure Letter As President Sage Business Solutions – 10-5-2010:

Thank you for being a valued business partner and for your commitment to Sage.

I joined Sage for numerous reasons that were important to me…the opportunity to make a difference in people’s lives, the exposure to new learning, and the challenge to grow both personally and professionally. Yet at the core of that decision was my knowledge that you, our dedicated partners, were indeed the cornerstone of our past and future success, and that Sage is fully committed to that partnership.

Over the past 20 years I have always believed and passionately supported the fact that you are the key to ensuring customer success. This week I will be departing Sage continuing to believe in you and your entrepreneurial spirit. Please know it is a bittersweet decision for me to leave Sage at this time when the momentum is clearly positive; but for personal reasons, it is the right time.

We are fortunate at Sage that we have “partners” in our blood, and I am confident in the knowledge that the Sage leadership team will continue to partner with you for long term success.

Thank you again for your commitment to Sage, congratulations on a successful year, and best wishes for an even brighter year ahead.

Thanks to everyone who sent this in.

Filed Under: mas200, Sage 100 ERP Tagged With: departure, executive, jodi uecker-rust, sage

Sage Software Insights 2010 Keynote Videos – Now Online

June 26, 2010 by Wayne Schulz

Sage just posted links to all of their keynote videos from their recent Insights 2010 conference held in Denver Colorado May 17-20, 2010.

This is the first time that I’ve noted the videos being available online and think it’s a great idea for Sage to share these presentations for those who otherwise were unable to make the conference itself.

Most of the value of Sage Insights conferences are the networking with fellow consultants and comparing notes with what’s worked well in your business for the last year as well as asking your peers for advice on what new strategies they may be planning for the coming year.

Below are select keynotes that Sage executives delivered during Insights 2010:

Video of Sue Swenson Keynote – CEO of Sage North America

Sage Business Solution Keynote with Jodi Uecker-Rust, Himanshu Palsule & Tom Miller

Sage Channel Strategy – Tom Miller (Channel Chief)

Himanshu Palsule, Executive VP, Product Strategy/Marketing, Sage Business Solutions

Laurie Schultz – Senior VP and GM, Mid-Market ERP Solutions – Mid-Market ERP Keynote

Via: Sage LinkedIn Group

Filed Under: Sage 100 ERP Tagged With: himanshu palsule, insights2010, jodi uecker-rust, keynote, sage, sue swenson, tom miller

Former Microsoft VP, Robert Deshaies To Lead Sage Construction and Specialized Business

January 25, 2010 by Wayne Schulz

Sage North America  just announced that Robert Deshaies, a former  VP who helped developed the partner strategy for Microsoft and also worked on their SaaS strategies as well as managing field operations for MS Dynamics.

Robert Deshaies is the second Microsoft executive to join Sage in the last year. Tom Miller joined Sage in June 2009 as their Vice President – North American Channel Management after having spent a combined 17 years at Great Plains and Microsoft.

In February 2009 Sage made permanent the appointment of Jodi Uecker-Rust as the President of Sage Business Solutions. Jodi herself was widely known as Doug Burgum’s second in command for many years at Great Plans and subsequently Microsoft when they acquired Great plains.

Deshaies appears to replace Himanshu Palsule who is still very much at Sage (I can vouch for that personally as he’s here at President’s Circle in Arizona as is Robert Deshaies).

While there’s no title given for Himanshu’s new position, he was recently the only Sage North America executive featured on the Sage ERP X3 webcast live from Paris France.  Perhaps an announcement is pending on his new role and title.

The move to hire talent from the Great Plains / Microsoft pool is certainly a positive one for Sage. Great Plains had long been respected for their strong commitment to their sales channel as well as unrelenting focus on customer support.

The full press release follows:

Sage Organizational Announcement

Introducing Robert Deshaies, EVP SBS

Dear Sage Business Partner,

I am pleased to announce the appointment of Robert Deshaies as executive vice president, Sage Business Solutions. Robert will lead our Construction and Real Estate Business as well as our group of Specialized Solutions businesses (Sage FAS Fixed Assets, Employer Solutions, and the Value product families). He will also assume the interim day-to-day general manager’s responsibilities for our Construction and Real Estate (CRE) business until a new leader is hired, after which he will continue to provide oversight.

Robert brings more than 20 years of industry experience to Sage. Most recently, he was with Microsoft as vice president of the U.S. Partner Group, accountable for partner strategy, group management, business development, marketing, and sales. He has also led sales, marketing, and services for Microsoft’s eastern region, including all products and partner channels. Before working at Microsoft, Robert gained extensive experience and knowledge in business software with State of the Art, Solomon, and Great Plains in product management, sales, marketing, consulting services, and general management. As such he brings a very strong understanding of the industry and business to Sage.

Please join me, too, in thanking Himanshu Palsule, who has been providing executive leadership to the Specialized Solutions team, while also leading our divisional business strategy. This change will enable Himanshu to focus 100 percent on our business strategy to insure we have industry-competitive solutions today and into the future. With more than 12 years at Sage and over 20 years in our industry, we are fortunate to have Himanshu’s focused leadership in this critically important area of product and marketing strategy.

We have a great opportunity before us and I believe these announcements will accelerate our position in the industry.

Thank you for your ongoing support and commitment,

Jodi Uecker-Rust
President, Sage Business Solutions
Sage North America

Filed Under: Sage software Tagged With: himanshu palsule, jodi uecker-rust, robert deshaies, sage

Welcome Jodi Uecker-Rust to Sage – why the Interim Leader title?

February 9, 2009 by Wayne Schulz

UPDATE 5-6-2009: As predicted in our original post shown below, Jodi Uecker-Rust was today appointed as President Sage Business Solutions. This is part of a sweeping re-organization that follows a 500 employee workforce reduction on 5-5-2009.

Well respected Great Plains (subsequently Microsoft) veteran Jodi Uecker-Rust has just been announced as the Interim Leader of the Sage North America Business Management Division. This spot was left vacant when Nina Smith departed Sage December 9, 2008.

Jodi is what could be termed a “heavy hitter” in the world of accounting software. She spent her career working first for Great Plains Software and ultimately Microsoft (who acquired Great Plains). For a period of time she was very widely considered to be the # 2 in command behind former Great Plains leader Doug Burgum. Jodi retired early from Microsoft in 2004 to devote time to some non-profit organizations that she was involved in.

Why the “Interim” leader label?

One thing I spotted right away is the label “Interim” in Jodi’s title. This seems to indicate that Jodi’s final position may not be leading the Business Management Division but could in fact be a far bigger position?

There’s no question  Jodi has the experience to lead the Sage North America BMD, so the title of Interim seems to indicate that further reorganization might be in the cards.

Also the wording of press release indicates that Jodi “join(s) us in order to continue our transformation in Sage North America”.

If I were forced to make a guess  I’d say that  the different divisions at Sage may ultimately consolidate in some form. Perhaps Jodi’s task is to eventually lead them. She has enough experience in this area that her expertise and organizational opinion may have been wanted before any potential  re-organization happens.

The structure of Sage changed to much more of a divisional setup immediately following the management shakeup in 2007 that saw CEO Ron Verni,  CFO Jim Eckstaedt depart.

Another option could be an upcoming round of acquisitions with Jodi ultimately leading a new division or acquired company.

And finally, there could be absolutely nothing to the title.

In any event, welcome to Sage North America Jodi!

Filed Under: Sage 100 ERP, Sage software Tagged With: great plains, jodi uecker-rust, Sage software, sue swenson

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