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Diverse offerings As technology options increase, corporations are depending more and more on businesses that can both implement and manage their communications systems - and companies like Norstan are stepping in to capitalize on this growing market. In 1973, Norstan was founded as a reseller of telephone equipment with a customer base in Canada and the American Midwest. Today, the company offers voice mail, videoconferencing, interactive voice response and high-volume call center systems. As a reseller, the company avoids manufacturing and development costs and has been able to expand and diversify with ease - it sells products made by Siemens, Aspect Telecommunications, Lucent, and Sprint. However, the company has increasingly shifted its focus to become more service-oriented, offering technology consulting to clients. Transition time In 1993, it became clear that there was more money to be made as a service provider than as a mere equipment reseller. So Norstan began the transition from a product-oriented business to a service-oriented organization, specializing in information technology and communications systems integration. Over the next few years, it acquired two technology consulting firms: Prima, based in North Carolina, and Minnesota-based Connect Computer Inc. The two were folded into the company's existing professional services arm to form Norstan Consulting. With these purchases, Norstan also added high-quality data communications services to its voice and video business. Revamp and expand In April 1998, Norstan initiated a structural reorganization, which included the integration of its consulting businesses, and the Call Center Solutions Group. The same month, it launched a start-up enterprise, called Connaissance Consulting. In June, Norstan picked up WORDLINK, a telecom solutions company based in Champaign, Illinois. Norstan gained 150 new consultants and benefited from WORDLINK's customer base in the Midwest and on the West Coast. The company further capitalized on its expanded customer base by offering services to their international branch offices. For example, because it has a longstanding relationship with British Petroleum's Cleveland office, it was able to secure a contract to integrate and manage the company's voice and video systems in the U.S. and Europe. Disappointing results Norstan's 1998 restructuring led to a significant drop in profits. Continuing losses in 1999 prompted President and CEO David R. Richard to resign in December. He was replaced by Chairman Paul Baszucki. Executive Vice President and CFO Kenneth S. MacKenzie also resigned, and Norstan announced that it had ended its efforts to sell the company. Richard cited the company's poor execution of its strategy as the main reason for the changes. To make things worse, in March 2000 Norstan Consulting was forced to alter its strategy as the IT business unit posted significant losses. In response to the losses, Norstan Consulting narrowed its focus to e-business and customer relationship management consulting, eliminating 180 jobs (25 percent of its consulting workforce) as a result. According to the company, the losses were due to concern over Y2K (IT projects were delayed until after January 1) and the "short-term, disruptive impact" of the previous management changes.
Norstan recruits on college campuses, and does much hiring based on referrals from employees or others in the telecom business. It also advertises openings in newspapers and in the "careers" section of its web page. The interview process starts with a phone screening, followed by a "fairly relaxed," meeting with a supervisor. "Things may get very technical," if you're looking to do something like engineering or system design, but in general, "things are only stressful if you let them be."
It's the small stuff "The company believes in its employees, customers, shareholders and the local community." "The people are excellent," say employees, who feel very strongly about "our corporate culture and values." They say Norstan has "a value system that reflects ethical, responsive and profitable business practices." In addition to its commitment to the customer and the shareholder, the company has a genuine commitment to its employees and its community. Norstan encourages staff to participate in local projects like Habitat For Humanity on company time." And one worker revealed that "the president sends my kid a birthday card with $1 in it every year." "It's small stuff," he says, "but it makes a difference to me." Less cash, more cache Though "other companies pay more," workers are willing to sacrifice a little cash for "the chance to jump in and basically run your own projects." Employees are given "as much responsibility as they can handle." In addition, "Norstan is pretty good about recognizing extra efforts," one source says, "and people get promoted as soon as they deserve it." As one of our sources explains, the profit sharing and stock purchase programs are an added incentive: "I will work towards achieving the company goal because I am working towards my own future." The company also encourages personal development through its Education Services arm, which runs training centers around the country. The best part is, "the company will help with most or sometimes all of your tuition." "It's a good place to get that jump on technology if you're right out of college," explained one insider. 'By no means a sweatshop' Sources say work hours "are what you make them." People are "laid-back for the most part," but at the same time, they "move at a very fast pace." Employees work overtime to get projects done, "but we are by no means a sweatshop." On average, people work "just over 40 hours per week." "A self-starter would do very well in this culture," notes one source. "Initiative is highly prized here," said another, "and if you meet our sometimes strict standards, the rewards are tremendous." The management structure is described as "loose," though there's an implicit understanding that no one is going to "babysit employees." "Dress code depends on what you do, who you do it for, and where you do it." Most wear business casual attire, though the higher your position, the better you dress. "The only real rule is no jeans - except on Friday." Diversity on its way There's "a good mix of men and women" on the lower levels, but you'll find "few women in management positions." However, employees say the company is "changing dramatically" for the better. "The company is pretty white and male," said one insider, "but some departments are getting younger and more diverse."
Alan Perry Corporate Recruiter Norstan Communications1 605 North Highway 169, 12th Floor Plymouth MN 55441 (612) 513-4590
Ameritech;Andersen Consulting;Bell Atlantic;Cap Gemini;Computer Sciences;Deloitte Touche Tohmatsu;Ericsson;GTE;Lucent;SBC Communications;Siemens;Technology Solutions More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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