e-marketplace player corProcure is feeling the strain of trying to hit a moving target, according to insiders, who paint a picture of a company burning up precious time and money while zigzagging uncertainly toward a workable business model.
Staff morale is said to be low, a key player on the executive team has resigned and the company is reportedly cutting back on consultants to stem its outflow of cash. Less than a week ago, staff were given what amounts to an ultimatum, one source claimed. "They were told they had three months to get their act together or it is finished."corProcure CEO Len Ward denied any ultimatum was delivered to staff. They regularly receive messages about business objectives and performance "but there is nothing sinister about that", Ward said.
Concerning staff morale, "there are always some individuals who feel threatened. But corProcure is an exciting place with people working long hours. I don't understand how that can be seen as low morale . . . it is exactly the opposite."
Although corProcure won't divulge its cash burn, an accepted industry average for developing e-exchanges of its scope is about $1 million a month. On that basis, corProcure will have churned through about $8 million since its formation last August.
In recent months, it has progressively whittled back the number of consultants, with PricewaterhouseCoopers absorbing most of the cutbacks. It is believed the consulting contingent has been reduced by about 20 per cent and there are now only 10 to 15 among corProcure's approximately 50 staff.