Monday, 28 January 2008

McKenna to leave LogicaCMG

Posted at 11.00am on Monday 28th Jan 08
One minute I get a news report that LogicaCMG is (very sensibly in my view) setting up a dedicated Outsourcing Services division (see Ovum Holway HotNews report from Ian Brown Click here) to be lead by Jim McKenna. Then I get news that McKenna is to leave in the second half of the year. (see Top executive to quit troubled LogicaCMG from The Times online) McKenna is to start a portfolio career which includes become chairman at voice and data company Azzurri Communications and Rainer, a youth charity.
McKenna served as acting CEO before Andy Green took on the role on Jan. 1.
Seems a bit strange to me! I'll have to delve deeper. So more later.

Posted at 11.00pm on Monday 28th Jan 08
Jim hasn't returned my call but I did have an interesting conversation with Carolyn Esser at LogicaCMG. I think I was meant to get the two pieces of news at the same time. But clearly I wasn't the only one who didn't. The release on the setting up of the Outsourcing Services division makes no reference to Jim leaving (which would have helped even if they were both meant to arrive at the same time!)

I have a lot of time for Jim. I can understand that he wanted the #1 role. All credit to him that he stayed for a proper controlled handover to Andy. Not all of Martin Read's senior management at LogicaCMG behaved in that proper manner. But I have to be honest in saying that I still find it difficult to understand why you give an outgoing director such an important role for six months. Indeed, I tried to search my memory for a precedent - and can't think of one. In politics it would be like a Prime Minister handing over to his successor but saying that he was going to act as Chancellor of the Exchequer for six months before leaving politics for good. Just think what the media would make of that.

I assume that Jim's #1 task now is to appoint a permanent head of the all-important Outsourcing Services Division. The sooner that happens the better.

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