Verticalnet, Inc.-Tracy Revels

Verticalnet, Inc.-Tracy Revels

Verticalnet, Inc. manufactures software and takes it to the next level by helping companies with consulting services. The Verticalnet (2005) stated, “Recognizing and responding to this gap, Verticalnet created a comprehensive yet cost effective set of solutions tailored specifically for an individual company's business challenges. This approach is unique to the market: We call it Impact Sourcing” (para. 4). Verticalnet also stated, “Impact Sourcing blends sourcing content and best-in-class esourcing software with consulting services to create pre-defined, all-inclusive solutions that impact specific business issues to deliver rapid and tangible results” (para. 5). Just like in the scenario when Gene One decided to go public, Verticalnet, Inc. went public in 1998. Verticalnet, Inc. had their share of problems from their stocks plummeting to massive layoffs since making the decision to go public. “WHEN GENE S. GODICK JOINED VERTICALNET INC. IN the summer of 1998 as CFO, anything seemed possible for the company, at that time an operator of Web-based business communities. But after the roller-coaster ride of going public, watching the stock price skyrocket, seeing the staff grow to a high of 1,700 people, and then watching it plunge to 250 people in 2001, Godick left. He thought the company's business model was flawed and was sure more layoffs would follow. "It was like witnessing a crowd of hungry people struggling to get the last slice of pizza," he recalls” (O’Sullivan, 2005, 2).

In November 2002, Verticalnet’s chairman called Gene Godick to let him know that the CEO and CFO were about to resign and wanted Godick to help prepare the company for sale (O’Sullivan, 2005, 2). Godick decided to return, “Although shepherding a company through bankruptcy — a possible next stage for Verticalnet — wasn't a happy prospect, it was an experience Godick thought could offer useful lessons” (O’Sullivan, 2005, 2). Godick applies the contingency approach to select the correct actions to save the company. Godick knew by going back to Verticalnet, Inc. he was risking his job satisfaction.

The results of Gene Godick returning to the company were favorable. Godick kept his attitude