EMI under Faxon regime….chhhhhhhanges

Paul Williams/Music Week 9/08/10

EMI is scrapping its Global Business Unit structure with the departure of executives including Nick Gatfield, as CEO Roger Faxon sets out a vision for the company that puts its artists at the centre of its plans.

Gatfield will exit alongside Ronn Werre and Billy Mann after Faxon concluded the major needed “a much simpler approach”. Their planned departures follow the announcement last week that Ernesto Schmitt was leaving the company.

“While there is broad appreciation for the people and skills it has brought us, in trying to focus the business on the key business streams we seem to have created a confusing maze of accountabilities and responsibilities,” he said in a memo issued to staff yesterday. “For this business to work every one of us needs to know to whom we are responsible and for what. We need a much simpler approach. So we are going to completely dismantle the GBU structure, and put in its place a simpler organisational structure. At the same time, we are absolutely going to preserve the value that the GBUs and its people have created.”

Faxon told staff EMI had to change from a product to a service company and had to “deliver more successful outcomes for our artists”.

While the GBUs were going, Faxon was quick to stress EMI was “not going back to our old structure”, which he said also “encouraged division and isolation”. “We need a structure that puts teamwork at its centre with clear accountabilities and clear authorities,” he told staff.

The new structure he has set out has what he calls three major building blocks:

• A strong office of the CEO, able to draw on a staff organisation focused on developing the ideas, strategies and practical tools essential to driving the business forward on a new path.

• Operating ‘hubs’, with the resources to support and lead their regions.

• Local business units focused on execution and delivery with the authority to act.

Initially, there will be three operating hubs covering Europe/UK/ROW, North America and Latin America, while he said there was an intention to create more hubs around the different kinds of businesses it operated so EMI could provide each of them with the greatest amount of support possible.

In North America Faxon himself will lead the hub, supported by group COO Leo Corbett, while David Kassler will oversee what is called the “Europe plus” hub comprising the UK, mainland Europe, Australia, Japan, Africa, the Middle East and the remainder of Asia. Latin America will be headed by the head there of EMI Music Publishing, Nestor Casonu, alongside Juan Manuel Garcia.

The central functions team will comprise:

• Finance (led by Shane Naughton)

• Legal/Business Affairs (Kyla Mullins)

• Technology (Simon Hollins)

• Supply Chain & Procurement (Gareth Thomas)

• Digital New Business (Mark Piibe)

• Human Resources (Jenny Bryant)

• Artist Relations (Caryn Tomlinson)

Overall, Faxon’s plan for EMI is to transform it into an artist-focused global rights management business, but he acknowledged that “cannot be done overnight”. “The changes we are announcing today are the first steps in a process, and over the coming weeks there will be a series of initiatives to ensure that we put our strategy into action,” he said in the internal memo.

He added the initiatives would broadly fall into six central themes:

• Unmatched insight into emerging consumer and market trends

• Excellence in new music, the lifeblood of our business

• A revitalised catalogue, with a robust re-discovery and recommendation process

• Broadening the revenue base through global rights management

• Scalable, low-cost organisation and infrastructure

• Industry reform

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2 Responses to “EMI under Faxon regime….chhhhhhhanges”

  1. Birtrude Xao Says:

    Caryn Tomlinson finally will be put to sleep and out of her misery. Payback is such a b*tch

  2. Birtrude Xao Says:

    However I am certain she will continue to kiss anyone’s butt

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