Pep and circumstance

Michael Capellas has a plan. So far, that’s all we know following his companywide conference call this week with WorldCom employees. His plan actually sounds more like a plan to have a plan to get the company out of bankruptcy.

And, boy was he excited about that nominal step forward. According to published reports, he used the words “outrageous” and “commitment” a handful of times on the one-hour call, and was altogether very upbeat. He talked about WorldCom having “the will to win.” Smells like progress to some, but seems to the rest of us like a pep rally that was hollow at its core.

Capellas said he will unveil a plan by March 1 that will bring WorldCom out of bankruptcy in 100 days. There are no details of this plan yet, which is what most employees and observers wanted to see at this point. Instead, we’ll all have to wait another month and a half.

What could the plan entail? Massive layoffs and sales of major assets are two popular guesses. Capellas has been clinging to the belief he wouldn’t have to resort to the latter. Also, expect a new (but not really “new”) strategy for the enterprise market. With the cloud of the WorldCom accounting scandal still lingering over the company, enterprise has often been discussed as WorldCom’s most vulnerable market segment at the same time that many WorldCom competitors have been crafting their own new enterprise strategies.

For now, WorldCom remains the world’s largest bankrupt company--and still doesn’t have a clear future. In reality, there are not very many ways for big companies to come out of bankruptcy: Either cut operational costs through more layoffs and asset liquidation, or else sell the entire company to another firm that can swallow the debt.

Capellas may believe that offering a brief preview this week of what’s to come will be enough to keep major customers and valued employees interested. But WorldCom doesn’t need a pep rally. It just needs to get back in the game.