EJV Loses Mintz, As The Layoff Of 19 Cuts Staff By 12 Percent

EJV Partners L.P. lost its head of sales and marketing, Gerry Mintz, ten days ago, after his two-year stint in the post. The departure was largely the result of long-standing differences of opinion between Mintz and EJV president Bruce Peterson. Days after Mintz bowed out, the EJV laid off 19, some 12 percent of its total staff.

The layoffs affected sales, development and operations, though analytics programmers and documentation staff were the hardest hit.

But at the same time, Peterson says he plans to hire nine new staffers. The shuffles in and out of the EJV's door come as the vendor pushes for more sales and less development -- in response, sources close to the vendor say, to partners' increasing impatience to see revenue results.

However, Peterson concedes that product development is still incomplete. "We have had to do more data and valuation development than we had originally anticipated," he says.

Of the vendor's three areas of focus, Data and Data Valuation still require further attention, says Peterson. Meanwhile, Analytics, is complete for the markets that the EJV's UniVu fixed-income data and analytics service now covers. It is largely from this area that developers were cut last week.

Nevertheless, last fall the EJV shifted senior executives' focus toward winning and keeping new customers. At the time, Peterson indicated that the EJV's UniVu data and analytics service was mature enough to require fewer development resources (IMD, Oct. 12, 1992).

As a result, the EJV finds itself without a sales chief at a most inopportune moment. However, the vendor is actively seeking a replacement, says Peterson. Internal candidates are getting first priority, he says. Peterson also indicates that new hires will be sought with close ties to trading desks -- a signal that EJV senior executive Dick MacWilliams may be a strong candidate to replace Mintz. MacWilliams is a former bond trader.

Peterson would only describe Mintz's departure as "precipitous," citing an agreement reached with Mintz not to discuss the cause of the departure.

But EJV observers say the two had different -- and apparently irreconcilable -- visions of the course the EJV should chart.

Mintz's background comprises substantial experience on the development side, as well as in sales and marketing. He joined CMQ Communications, the Canadian quote vendor acquired in 1987 by Telerate, initially in development and later in marketing. To join the EJV in 1990, Mintz left his job as marketing manager for Telerate's Americas region and general manager for Telerate Canada.

With less than 400 of its UniVu terminals installed -- and far fewer actively used by paying customers -- the EJV's revenue remains but a trickle, sources say.

The staff that the EJV intends to hire will likely be deployed to build databases and handle the pricing valuations that partners submit daily. However, Peterson vows to add sales and sales support staff also.

In the wake of the cuts last week, which included one sales associate, the EJV now has a sales staff of five: three sales representatives -- responsible for bringing in new business -- and two sales associates -- charged with keeping them happy thenceforth.

The simultaneous layoffs and search for new hires -- while not uncommon in companies re-defining their business strategies -- struck some EJV staffers as potentially morale-busting.

Peterson says the decision to do both at the same time was driven by the firm's shift in development requirements. Different skill sets are required for the different functions, says Peterson, who says he will seek candidates with close ties to trading desks.

Names and resumes of the 19 newly jobless are being circulated among partner firms, in hopes that some could find homes there.

Mintz's future is also as yet undetermined as he explores both consulting and other options.

Peterson says that most existing customers have been apprised of the staffing changes and are comfortable with them.

The move is clearly an effort by the EJV to bring performance more in line with partners' expectations. While product development work continues, Peterson says his next goal is to encourage sell-side firms to use the EJV network to transmit to buy-side institutions more of the research and analytical data than they do now.

The pieces would appear to be in place for the EJV to do just that. It has already gained commitments from nearly as many non- partner sell-side firms as partners.

But customers are installing UniVu at an average of well under twenty positions each. Even partners continue to make limited use of the system. If the EJV is to become a force, that must change soon, before investors' patience runs out.

With Peterson's admission that product development is not yet final -- and the new personnel line-up -- the road ahead looks bumpy indeed.

But 1992's sale of the EJV Brokerage system has certainly shown that EJV Partners is willing to shift strategies when necessary.