On the heels of disappointing second quarter 2020 fiscal results, ScanSource this week announced major changes in executive leadership. The changes reflect the company’s continued investments in its Intelisys business to drive growth, the company said. Second-quarter financial profits of $11.4 million were down from $20 million reported last year.
Mark Morgan has been appointed president, Paul Constantine has been named executive vice president of supplier services, and Mike Ketchum, current senior vice president, finance, will take on the additional role of managing operations that support Intelisys sales partners and will serve as senior vice president of finance and operations. All three will report to John Eldh, chief revenue officer at ScanSource, who was hired in October.
“We remain committed to adding more resources as we move forward to the next phase of growth for Intelisys and our partners,” said Mike Baur, chairman and CEO of ScanSource.
At the same time, Baur also announced that Jay Bradley, president of Intelisys – a ScanSource company, since the acquisition of Intelisys by ScanSource in 2016 – and Carol Beering, vice president, sales operations, will assume new advisory roles, “bringing their focus and knowledge of the business as they assist in the continued strategic planning for Intelisys,” he said. Bradley and Beering will report to Baur.
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That change signals that Bradley and Beering are stepping aside to pass the baton to Morgan, Constantine and Ketchum.
“Being president of Intellisys has been a great ride. I’ve been fortunate to work with a wonderful team and the best sales partners in the industry. Since the acquisition by ScanSource, we have seen great growth among our partners and an industry that continues to show unbounded opportunity. As we continue to integrate the ScanSource and Intelisys businesses, Carol and I are happy to pass the baton to Mark, Paul and Mike, all of whom are incredibly passionate about helping our partners succeed and will be instrumental to Intelisys’ next phase of growth.
It was just last year that Andrew Pryfogle, senior vice president, cloud transformation at Intelisys, moved to Pax8.
On its Feb. 5 earnings call, Baur noted that the company missed its sales forecast, primarily from lost sales as it reorganized its North American VAR sales team, which was part of what is referred to as the One ScanSource strategy. That strategy is to increase customer value by cross-selling and growing recurring revenue.
“We are setting up our VAR sales teams to sell solutions, connectivity, cloud and SaaS, including offerings from our Intelisys and intY acquisitions,” he said.
The reorganization disruption that Baur refers to are actions the company took last April. At that time, ScanSource combined its five North America VAR business units into one, reorganized teams by customer segments, changed customer assignments, introduced team selling, implemented Salesforce CRM, and adopted a new sales compensation plan.