Peter's principles.

• Position: Northern Telecom CFO Peter W. Currie interviewed by Sun Life of Canada Vice President William E. Hewitt - Executive to Executive - Interview

When Peter W. Currie wants to get away from it all, he does. His favorite vacation spot has no laptops, no fax and no phone. In fact, it's located comfortably outside of cellular range - not what you'd expect from the CFO of Canada's leading high-tech telecommunications company, Northern Telecom Ltd.

But Currie, 45, didn't become CFO of Nortel by staying out of touch. His rapid trip up the corporate ladder includes two stints with his current employer and executive positions with North American Life Assurance Company and Procter & Gamble.

A respected business person who attributes much of his success to working with "superb professionals," Currie is helping to lead the $10.7-billion telecommunications company at a time when deregulation is driving competition. William E. Hewitt, vice president of investments at Sun Life of Canada and a member of Financial Executive's editorial advisory board, catches up with the CFO to get his thoughts on the future of telecommunications, the role of the finance function and Currie's career moves.

HEWITT: In light of all the deregulation that's already occurred in the telecommunications industry, what do you think remains to be done?

CURRIE: I think we're on the right path in terms of more competitive interaction in the marketplace. The priority now is to allow the market to find its own level, to have the regulators step back and let the market forces take over.

Canada's needs are very different from the United States'. The United States is more deregulated today and, with the passage of the Telecommunications Act last January, I think deregulation there has proceeded about as far as you could expect. It's opened up all aspects of local and long-distance carriage to competition and should sort itself out quite efficiently, if not elegantly, over the next five to seven years.

On the other hand, in Canada, the Canadian Radio-Television & Telecommunications Commission isn't helping consumers by trying to be its conscience. Canada needs to determine the real role of the CRTC.

But right now most of my attention is focused on Europe. Full deregulation and eventual privatization of the European PTTs [post, telephone and telegraph authorities] will have a large impact on our company because it will open up markets that were closed to nonindigenous suppliers. When deregulation and privatization of some of Europe's PTTs occur, I think we're going to see a dramatic change in the competitive complexion of Europe after 1998 - more along the lines of what we've seen in the United States and the United Kingdom.

HEWITT: So your most significant regulatory impediment is remaining deregulation in Europe and Southeast Asia?

CURRIE: In Europe, deregulation of existing telephone monopolies is the linchpin. But we're not as directly affected by regulation on a day-to-day basis as is a telephone company like Bell Canada or Nynex. Southeast Asia, however, is a different story. The people there are rapidly turning to alternative carriers.

NAVIGATING FINANCE

HEWITT: What makes your mission statement for the finance function unique?

CURRIE: Mission statements are pretty commonplace. It's their execution that makes any organization unique. At Nortel, our finance function is integral to the success of our individual business units. We're structured on a line-of-business or product basis, with distribution to various market regions around the world. While we have central treasury, tax, investor relations, and accounting and statutory reporting functions, we also have an operational finance organization aligned with each of our business units. That connection has been very important.

HEWITT: Does this disparate structure create any anxieties for you?

CURRIE: Nortel has, perhaps, a different culture from many others. We tend to manage in a less regimented fashion. The fact that we're spread out all over the world and we have different businesses moving at different paces and in different markets means we have to allow our colleagues a lot more freedom than some other organizations would.

This holds true for each of the operational finance units as well. But we have some overarching objectives. For instance, I sit down annually with my senior colleagues in finance and we establish the overall objectives that then get percolated down through the individual organizations. If we come up with a dozen objectives - and I don't think people can cope with many more than that - then each finance council member may have three or four, with some overlapping, of course. Then every month we have a council meeting to ensure we're on track.

CURRIE'S CLIMB 1994-Present Senior Vice President & CFO, Nortel Ltd. 1992-1994 Executive Vice President & CFO, North...