| BUSINESSWEEK ONLINE : NOVEMBER 15, 1999 ISSUE | ||||||||
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| COVER STORY
The Architect of Merrill's Digital Future Technology used to be the Rodney Dangerfield of Wall Street. It was lumped in with the back office, the necessary but mechanical job of clearing trades promptly and accurately. But times have changed, and technology has made it to the executive suite.
Now McKinley has an even tougher job: making sure Merrill succeeds in the online financial services marketplace. McKinley left GE because he wanted to help Merrill achieve a ''technology-induced transformation,'' he says. ''For financial services, the next 18 to 24 months are a fundamental moment of truth. Firms that get it, that embrace technology and are willing to take bold steps and informed risks, they will win.'' CLICKING AWAY. Despite McKinley's enthusiasm, it won't be easy for such a rank outsider to succeed in Merrill's inbred culture. Merrill already has plenty of capable technology bosses, such as Edward L. Goldberg, executive vice-president for operations, services, and technology. And clout at Merrill comes from running a profitable business, not operating what many consider a cost center. McKinley's main job is to work with the managers who run each of Merrill's businesses and help them integrate technology into their business plans. So he has an opportunity to have a broad impact. As chief technology officer at GE Capital, McKinley ran 28 different businesses, oversaw the firm's venture fund, and launched 15 e-commerce initiatives, including leasing planes on the Internet. One technology that McKinley is trying to import to Merrill is ''click to talk,'' which allows someone to go to a Web site, enter their telephone number, click on the site, and get a follow-up phone call within minutes. Overseeing Merrill's joint venture efforts and finding sexy new technology offerings for Merrill clients is a priority. On a huge computer screen hanging on the wall of his office, McKinley displays SmartMoney's Map of the Market, which graphically charts the market based on company and sector market caps. It's not just decoration: He's considering a deal with SmartMoney. An existing partner is Research In Motion Ltd. It makes BlackBerry, a wireless device that gets e-mail, portfolio updates, and news. ''CAN'T DABBLE.'' McKinley is on the advisory boards of AT&T and Internet Capital Group, which has stakes in a portfolio of e-commerce companies, and he is on the board of Proxicom, an Internet consulting firm. But he likes to describe himself as a ''reformed ex-hacker.'' It fits with his on-the-edge philosophy. Says McKinley: ''You can't play in this game and be risk averse. You can't dabble. Dabbling is a huge distraction and gives you a false sense of security.'' If McKinley is any measure, technology isn't just out of the back room at Merrill, it's running down the hallways and ringing wake-up bells. By Leah Nathans Spiro in New York _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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 RELATED ITEMS Merrill's E-Battle COVER IMAGE: Inside Merrill TABLE: Merrill's Online Strategy...Has Many Pitfalls TABLE: Leaping into Cyberspace TABLE: Merrill's Web Presence TABLE: Merrill Towers over Schwab... CHART: ...But Schwab's Market Cap Tops Merrill's...And Schwab's Asset Growth Blows Merrill Away TABLE: A Slew of Partners The Architect of Merrill's Digital Future VIDEO: Q&A with John McKinley ``The Winds of Change Are upon Us'' (extended) ONLINE ORIGINAL: Online Brokerage Stocks: Is Their Time Coming Again? INTERACT E-Mail to Business Week Online | |||
