Alida, a Toronto-based customer-insights software company, has appointed Efrem Ainsley as CEO after Ross Wainwright stepped down last month. The executive shakeup signals the latest change in strategy for the company formerly known as Vision Critical, which was founded by the son of pollster Angus Reid.

Alida brought Wainwright into the top job in December 2019 to lead a rebranding of the company from its original name, and to scale a firm that had positioned itself as a software-as-a-service company under his predecessor. 

He helped shift Alida’s sales focus from market-research departments toward individuals within businesses who have tangible impact on solving problems and pushing products to market.

An “aggressive restructuring”: Wainwright’s work culminated in an overhaul of operations last October that eliminated about 20 per cent of the company’s costs. “We hit everything,” said Ainsley, who served as COO prior to assuming the CEO role. That included laying off about roughly 20 per cent of its global staff, or 70 to 80 workers. Alida now employs 352 people.

In the black: The cost savings helped push the company back into profitability last quarter, said Ainsley. Alida was eking out a small profit—about one per cent—when Wainwright joined, but sacrificed that margin to grow the business and take on more investment, which it did in the latter half of 2021. The company has raised US$154 million in a mix of venture capital funding and debt, according to PitchBook. Its major investors include OMERS Ventures, Propelr Growth and W Capital Partners. In 2017, Angus Reid sold a stake he held in the company for $44 million, but founder Andrew Reid remains a shareholder.

Hyperfocus: Alida wants to sharpen its focus this year on selling to its ideal client. That’s one in tech, media, financial services or retail that has more than $5 billion in revenue, said Ainsley. Such large-enterprise customers are least likely to stop using its products and most likely to pay for more services over time. 

A decision to leave: Wainwright and Alida board chair Phillip C. Deck had been discussing the right time for Wainwright’s exit “over many beers, over many months,” Deck said. Wainwright, whom Deck described as “a go-go-go, expand guy,” decided after the October transition that he didn’t want to lead the company’s next phase. 

A short shortlist: There wasn’t much of a search for a new CEO, as Wainwright, Ainsley and the board agreed Ainsley was the right choice. Deck framed the change as a quick and smooth one that serves the company’s interests. “If you wait too long, then it’s going to be ugly,” he said. Ainsley will join Alida’s eight-person board, on which Wainwright remains pending further discussion. 

“A build year”: Alida isn’t currently looking for more funding. “No need,” said Ainsley, as the firm is adding cash to its balance sheet. That could change in a few years, he added, though he’s unsure what form that would take. “I appreciate the company is 22 years old and, at some point, folks will look for liquidity.” 

Alida had previously mooted the prospect of an initial public offering, but that was before a freeze fell over the markets, especially for new tech entrants. While an IPO is still possible, Ainsley said, software companies like Alida are better off using the current lull to drive profitability and streamline operations. “It is not a great time to be selling the company,” he said.

Correction: This story was updated to correct the spelling of Propelr Growth.