The loss of key personalities such as DBS founder and chairman Ken Davy and former chief executive Nick Ansell has hampered Sesame as it has struggled to find a stable period, says the Durlacher report.
Davy, widely known as the father of IFA networks, parted ways with Sesame in April 2002 and has since founded a rival network Simply Biz.
Simply Biz has now reached 600 RIs, with many coming from Sesame.
Ansell, who left later the same year in August 2002, was founder of IFA Network before it was bought by Misys in May 2000. He became DBS chief executive in August, 2001.
Durlacher says Misys lost its way in the 1990s, facing accusations from members that it had become arrogant and lacked flexibility.
As a result of this and the inability to hang on to executives, Durlacher concludes that Sesame has been the least innovative IFA network in recent years.
The report says: “The importance of personalities, particularly in managing relationships with network members, should not be under- estimated. For example, Ken Davy, the founder of Sesame's DBS, has managed successfully to recruit several hundred ex-Sesame members to his new venture.”