Jha sets 90 days for review and action at Motorola: New handset CEO expects products on his watch to launch in a year

Sanjay Jha, the newly minted co-CEO of Motorola Inc. and designated turnaround artist for its handset division, told an audience of analysts and media this morning that within 90 days he would review Motorola’s device platforms, product roadmap and make hires in areas where he doesn’t have experience.
The latter includes product design, or what Jha called “compelling form factors.”
“You’ll see me make some strategic hires in areas where I don’t have experience,” Jha said in the course of a brief presentation to analysts and media this morning with co-CEO Greg Brown.
Jha said it would take a year for devices under his supervision to reach the market.
The presentation this morning provided a number of insights into Jha’s and Brown’s perspective on the road ahead.
One analyst – Maynard Um at UBS – asked about the intended capital structure for a spun-off handset division, given that this would be crucial to Jha’s decision to take his new job.
Brown appeared to hold out the possibility that the company would remain in one piece. He said a spin-off is “potentially” set for the third quarter of 2009, dependent on financial and operational successes in the handset division, as well as the findings of the 150 people currently at work on issues related to a spin-off.
Jha, 45, said that his discussions with Motorola began in late June, which means that he had six weeks to look under the hood in terms of due diligence, though he cited his four-year working relationship – Jha came to Moto from chipset giant Qualcomm Inc. – with the company as lending additional visibility into the company’s handset business.
Jha said he favored Motorola’s current diversity of device platforms but that he would approach a review – and the question of whether to narrow the number – with an open mind. It is possible that the company will not proceed with every product now on its roadmap, but Jha said it was “not realistic” to make short-term changes in those products.
The new handset leader confirmed the importance of the 3G device market and acknowledged Motorola’s weakness in that area. He also confirmed Brown’s multi-vendor chipset strategy, which analysts now speculate may include closer ties to Qualcomm.
In response to a question on what challenges exist “beyond hardware,” Jha cited supply chain efficiency, user interface design, distribution, branding and delivering “value to the consumer” – in short, the gamut of challenges for any CEO of a multinational handset vendor.
Jha acknowledged that he would need help, thus his remarks on strategic hiring.
One unspoken question, hinted at in the exchanges with the audience, was whether Jha would raid Qualcomm for former colleagues in his efforts at Motorola. Jha did not specifically address confidential aspects of his agreements with both companies but said he would be “mindful” of any related restrictions.
One analyst congratulated Jha on his “courage” – and later said he was “joking” – to which Jha responded that the decision required “less courage than you think.”
The two executives – it was Jha’s first day on the job – made the obligatory prepared remarks aimed at various constituencies.
Brown said today was “a big day in Motorola’s history” and praised Jha as the “ideal person” for the job with “deep understanding” of technical matters and “strong carrier relationships.” Jha’s hiring, Brown said, is “a testament to the potential” of Motorola’s handset business and will attract talent.
Investors appeared to agree, sending Motorola’s stock up nearly 10% in morning trading.
Jha also cited the “potential” for Motorola’s handset division and lauded the company’s “talented, hardworking associates around the globe,” the “solid progress” under Brown’s leadership and the “tremendous value for shareholders.”