Title: | The Digital way of working |
Moderator: | QUARK::LIONEL ON |
Created: | Fri Feb 14 1986 |
Last Modified: | Fri Jun 06 1997 |
Last Successful Update: | Fri Jun 06 1997 |
Number of topics: | 5321 |
Total number of notes: | 139771 |
T.R | Title | User | Personal Name | Date | Lines |
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1896.1 | Not the entire WSJ article | DANGER::FORTMILLER | Ed Fortmiller, BXB2-2, 293-5076 | Wed May 13 1992 13:25 | 2 |
This represents about 2/3 of the WSJ article. The part starting from "RISC and Reward" is what is missing from the DowVision version. | |||||
1896.2 | Who is David Smith? | SCAACT::AINSLEY | Less than 150 kts. is TOO slow | Wed May 13 1992 14:17 | 6 |
This isn't the first time I've seen David Smith quoted in an article concerning DEC. I don't recognise the name. Can someone fill me in? Thanks, Bob | |||||
1896.4 | MIMS::PARISE_M | Southern, but no comfort | Wed May 13 1992 14:33 | 5 | |
We're all under pressure to produce. What we have to figure out is how to put the pressure under customers to buy! | |||||
1896.6 | We all can turn Digital around | JARETH::TREWORGY | Wed May 13 1992 14:56 | 18 | |
The most important point was left out of the article! "While such hugely expensive projects have gone forward, management's efforts to cut other costs often focused on items such as water coolers and magazine subscriptions. In January, a memo circulated at a Digital office in Acton, Mass., identifying the building as a test site for lower-cost toilet tissue, " a project being driven by Win Hindle, corporate staff senior vice president." It is about time someone has recognized the real problem with Digital - too much toilet paper usage. This is something we can all help with. Why use too sheets when one will due? Even better still wait until your lunch break and use the facility at a local service station. For you #1 performers, if you work near a competitor's office, sneak in and use their toilet paper. Maybe we failed in bringing in the papaerless office. Let us not fail this time, let's make Digital toilet paperless by 93. | |||||
1896.7 | washes the back side with water | LUNER::ROBERTS | raised on Anthracite | Wed May 13 1992 14:58 | 4 |
The Japaneese have a toilet that does just that BTW. 8-) | |||||
1896.8 | It may be DECpc 43 controlled.. | RT93::HU | Wed May 13 1992 15:39 | 6 | |
Ditto, the toilet in the Casio of Monte-Carlo also do that. The used one will flip inward and washed, then new one will flip outward. Michael.. | |||||
1896.9 | I think this is the entire WSJ article | DANGER::FORTMILLER | Ed Fortmiller, BXB2-2, 293-5076 | Wed May 13 1992 15:46 | 231 |
1896.10 | PBST::LENNARD | Wed May 13 1992 15:52 | 17 | ||
I have long maintained that DEC seriously needs "Big Company" managers. Maybe we'll finally start seeming some action. BTW, those big company managers should replace, not supplement, many of the hangers-on. Personally, I think it is time for major changes at the highest levels, and I'm not talking about banging on the bird cage again, which seems to be the preferred way to deal with organizational issues here. The cuts being proposed (10-15K) are once again, too little, too late. But, most devastating of all, the next round of cuts will probably again target top-notch people who happen to be trapped on non-performing or out-of-favor organizations. When I see the number 30,000, coupled with a goal of reducing the Greater Maynard Gold-Old- Boy Chowder and Marching Society by 50%, then I'll know we are finally getting serious. SERP'ing out, and thankful | |||||
1896.11 | CREATV::QUODLING | Ken, Me, and a cast of extras... | Wed May 13 1992 16:38 | 6 | |
re .0 So what makes us think that Sculley could help. People I know inside Apple, say he isn't certain of which direction to take, either... q | |||||
1896.12 | RANGER::LEFEBVRE | PCs 'R Us | Wed May 13 1992 17:00 | 9 | |
re. .4: I'll agree with your first statement. Ken Olsen is not the only one under pressure to produce. Anyone in this organization not feeling any pressure to produce should pay closer attention to our situation. Mark. | |||||
1896.13 | Freedow to Act! | LUDWIG::LOGSDON | Wed May 13 1992 22:22 | 18 | |
As the old saying goes, Big Men [or women] make Big mistakes. If Mr Olson says he gave to much Freedow [power] to people he is more than right, however they used it to take Freedom away from others. Whenever an organization brings in new blood it is because they took the freedom from the people they already have and will give it to the new people under what I call "Get the job done syndrome" They will support these "new" people with a much less conservative attitude that they have with present employees because they "brought them in" and have to back them or look bad. I have seen it time and time again that "New Blood gets the support and Freedom" to get the job done that for some reason a long time employee has been asking for all along but no one was listening. I feel this company must have that new blood somewhere in its own ranks and is being held back by........................ | |||||
1896.14 | BIGJOE::DMCLURE | When the going gets tough... | Wed May 13 1992 23:29 | 10 | |
re: .13, > I have seen it time and time again that "New Blood gets the support and > Freedom" to get the job done that for some reason a long time employee > has been asking for all along but no one was listening. My thoughts exactly. Thanks for putting that note in (now I can get home in time for my favorite TV show). -davo | |||||
1896.15 | FDCV14::CONNELLY | globally suboptimized in '92 | Thu May 14 1992 01:04 | 19 | |
re: .11 > So what makes us think that Sculley could help. People I know inside > Apple, say he isn't certain of which direction to take, either... Sounds like he made the best decision he could, under the circumstances. Partnering with Digital would've been seen as the two biggest "proprietary" vendors picking up their marbles and going home together. Now if we had had Alpha ready at the time, and if we had changed our technology licensing practices then, and if we had had a UNIX offering just credible enough to cause some FUD for the other players in that space, and if we had had enough engineers not behind the development environment power curve due to lock-in to the VMS design center... Then MAYBE some other folks would've taken their marbles and come along to play our game. But not as it stood. Good technowetdream, bad business. paul | |||||
1896.16 | Its the risk you take | MSDOA::MCCLOUD | BIG fish eat little fish | Thu May 14 1992 01:40 | 9 |
rep .13 .14 The new blood is inside each and every one of us. The reason new blood's have soo much success isw 1. They are NOT scared to take the risk... My manager often says to my whole group to take the risk and he accepts our mistakes along with our successes. | |||||
1896.17 | more complete version of .0 | SDSVAX::SWEENEY | Patrick Sweeney in New York | Thu May 14 1992 01:43 | 175 |
1896.18 | LUNER::ROBERTS | raised on Anthracite | Thu May 14 1992 10:00 | 3 | |
enough of the MORE complete versions when are you going to post the WHOLE version? 8-) | |||||
1896.19 | New roles give freedom | IW::WARING | Simplicity sells | Thu May 14 1992 11:15 | 8 |
As Robert Townsend says, for the first 100 days of any new job, you're bullet proof. If you get moved within that time, the person who hired you will look like a complete idiot. So, that's the time to really revolutionise things. It doesn't matter whether you come from inside the company or outside... - Ian W. | |||||
1896.20 | "If you're walking on eggs, don't hop." | SA1794::CHARBONND | Mediocrity _is_ achievable | Thu May 14 1992 13:26 | 11 |
re.16 >The new blood is inside each and every one of us. WADR, what planet do you work on? Most of the people here have seen _hundreds_ of co-workers TSFO'd out, new products being built over- seas, are worried sick about the future of the plant, are watching the stock price circling the drain, and won't move for fear of being perceived as candidates for the next RIF. There are hardly any employees under the age of 30, or with less than ten years in the company. After spending ten + years building up pension benefits, vacation time, etc. you _don't_ make waves. | |||||
1896.21 | Take the risk | MSDOA::MCCLOUD | BIG fish eat little fish | Thu May 14 1992 14:04 | 10 |
rep .20 Excectly my point the problem is if everybody is so scared to make changes then we all eventually will be TFSO'd. The only thing I can do is find what I can change and change it. So far it has been profitable change with some mistakes but I am only human. Lets face facts if you try to change something and get canned for making the wrong choice you would have been canned eventually without even trying to make a difference this is not the way I want to go. I will go out fighting if I get canned for it then this is not the company I want to work for. | |||||
1896.22 | * * * * *star stuff* * * * * | PBST::ISBRECHT | Thu May 14 1992 14:38 | 35 | |
re....20 Hi there; ('didn't catch your first name) Apropos your last line... The purpose of life IS to make waves ! All impressive things that we enjoy now had their start in "labor pains"! We're the product of star stuff that had its own birth in a super nova explosion. And if that isn't 'making waves' then I don't know what is. There is no such thing as job security - no security <period>. ...BTW...too bad there isn't a Happy Face key on this here LK201 to impart these lines a fitting chuckle; in Amateur Radio, we say, hi,hi to make up for the stoic character of a code key transmission. I've been following these Notes proceedings with riveted interest, especially since Monday of this week. In line with my ingrained engineering-type of make-up and 'root-cause-analysis' thinking - meaning, to step away to take in the big picture - I'd like to add that the majority of entries have been afflicted by too high a morose 'fault signature'. One reply, to the Churchill Commons Speech Note, even kicks those of us, who might be taking a 'transfer ticket' soon, by saying, ~~~ "you've been useless anyway so why don't you get out and let us do the rowing..." So, to all of you who might be faced with high-impact decisions to either stay on or 'take a hike', never get so tight up with any relationship (personal or business) that you can't 'crack a smile' or whistle a tune and remember that star stuff which gave birth to us all and will also call us home again. Cheers, Karl | |||||
1896.23 | Let's get specific ... | ODIXIE::GEORGE | Do as I say do, not as I do do. | Thu May 14 1992 14:58 | 19 |
Re: .21 All this talk about "changing some_thing_" oversimplifies the issue and is misleading. Digital doesn't need to "change something"so much as it needs to change its attitude, its approach to problems, its ability to communicate, its integrity. For example, 2 weeks ago, I was involved in generating a solution to a Fortune 50 customer. The Account Team accused me of "nitpicking the program to death" because I insisted on creating an effective statement of work _before_ doing the pricing (and believe me, this was not a value-based pricing argument). I was told that that was a delivery problem to be resolved by the delivery manager (_not_ involved in these discussions, by the way). I was told there was "plenty of money in here to cover anything we forgot". Now, very slowly, tell me how to "change this" in a meaningful context. Steve | |||||
1896.25 | We are DIGITAL | MSDOA::MCCLOUD | BIG fish eat little fish | Thu May 14 1992 16:14 | 19 |
re .23 I have no idea what the sultion to your problem is and do not understand why you expect me to know the answer. Changing our attitue is something. >Digital doesn't need to "change something"so much as it needs >to change its attitude, its approach to problems, its ability >to communicate, its integrity This sounds like you are not a part of us or should it read Digital doesn't need to "change something"so much as WE need to change OUR attitude, OUR approach to problems, OUR ability to communicate, OUR integrity All of these things are changes we can make and the only way they will get changed is by us not by management or policies. | |||||
1896.26 | Globe article referenced in .24 | SSDEVO::EGGERS | Anybody can fly with an engine. | Thu May 14 1992 17:01 | 297 |
The Boston Globe Monday, April 27, 1992 Digital bracing for a rocky course Despite the doubts of some, founder tries to steer company through tough times By Josh Hyatt Globe Staff Kenneth H. Olsen is mad, very mad. "What happens inside this organization, nobody has a right to know," shouted the chairman and founder of Digital Equipment Corp. during an interview last week. "It is not public what we do inside." What about stockholders and employees, Olsen was asked, shouldn't they be told the details of the latest reshuffling? "No," thundered Olsen. And as for the press - well, Olsen left little doubt where he stands: "Keep your cotton-picking hands out of things," Olsen warned. "If I bawl someone out, there is no reason I've got to bawl them out in front of you." First revealed about 10 days ago, the $14 billion company' s latest reorganization - its second within a couple of months - left the roles of three vice presidents up in the air. "We change the organization all the time," Olsen said angrily. "I'm not going to go into the details. You'll get it all screwed up anyway." Today, as the company opens the doors on DECWorld '92, its huge exposition for 25,000 customers, there are enough questions about Digital's prospects for returning to financial health - particularly under Olsen - to fill Boston's World Trade Center. The numbers tell part of the story. For its fiscal third quarter, which ended on March 28, Digital reported an operating loss of $294 million, its second operating loss in a row. And the company has indicated that it may not run of of red ink until 1993. "I was disappointed," Olsen conceded. "In spite of what you read in the Globe, we are not about to fire a bunch of people." If Olsen has a master plan - and in some quarters, it is by no means a given that he does - he isn't revealing it. "I don't explain everything," Olsen said. "Every day we change something. We'll tell you results." Those results, whatever they are, will reflect upon no one as much as Olsen. An Massachusetts Institute of Technology graduate who went on to work at Lincoln Laboratory, Olsen and a partner got the idea to launch what they then called Digital Equipment Computer Corp. in the summer of 1957. They changed the name because they were eager to get venture capital and they had read an article that said nobody could make money in computers. They got the investment money, a whooping $70,000, and Olsen to this day loves to quote Gen. Georges Doriot, the pioneering venture capitalist who served on his board until he died in 1987. At the start, his investors were leery about Olsen's stewardship. The venture capitalists took 70 percent of the stock and demanded that another 8 percent be reserved for a key person, a professional manager who would be brought in. That person never materialized, and Olsen has remained an overwhelming president at Digital to this day, though he has never owned much more than 10 percent of its stock. Of course, his unparalleled performance has made him of multimillionaire. No company founder has ever stayed on to build a company the size of Digital, a computer maker second only in revenues to International Business Machines Corp. Digital also has the distinction of being the largest company in the United States that is still run by its own founder, who appears to have stayed on top and in command through a combination of wonderfully wise decisions and terribly shrewd power plays. Indeed, it is quite possible that Olsen will emerge triumphant from these turbulent times. He has come roaring back before, often with a hot idea in tow. Around 1970, recalled one former Digital executive, "everybody said Olsen was out of touch." Digital reasserted its technological leadership with the PDP-11, a 16-bit minicomputer. In 1977, the company produced a breakthrough VAX family of computers, which propelled Digital into IBM's orbit. During the '80s, Olsen's vision of networking - that is, tying computers together - set the company soaring even higher. Complex transition But analysts believe that Digital began falling behind the technological curve as far back as 1987. Hoping to remedy that, Digital by year-end will be shipping computers that employ its new microprocessor, Alpha, reputed to be the fastest microchip ever. "They've taken on the most complex product transition in the industry," said Joseph Payne, an analyst at Alex, Brown & Sons. It takes a real organizational leader, and Olsen is the right guy in the right job." Others aren't so sure. Some believe that Olsen has simply grown too arrogant and too out of touch to see the scope of Digital's problems, never mind healing them. "Olsen is all raw nerves right now, and he's not very happy with any of his executives," said a consultant who works closely with the company. "He's incredibly sensitive." Another consultant - for obvious reason, most are unwilling to allow their names to be used in this story - depicts the giant computer maker as a hostage to its overly attached founder. "I think somebody needs to get Ken Olsen out of there," the consultant said. "He is running the company, right now, totally from motion. Nobody will stand up to him." Company insiders described an atmosphere where Olsen often issues directly conflicting instructions. Just last week, for instance, he sent employees a message - some call them "KenGrams" - indicating that Digital had adopted another company's database product as its standard. Within a few days, another message appeared contradicting that one. "There is no question that management at Digital seems more confused and disjointed than ever before," said Thomas Willmott, vice president of the Aberdeen Group Inc., a market research firm. Another person who works closely with Digital describes Olsen as increasingly impatient and unable to focus on what needs to be done. At a recent meeting revolving around a product decision, this source said, Olsen made it clear he didn't want to read competing business plans or take the time to discuss such matters as pricing comparisons. "He didn't listen," the consultant said. "He said, `I don't have time for this. I've made my decision.' And that was it." Inside Digital, Olsen's outburst last week prompted reactions that ranged from distressed to appalled. Some at Digital clearly believe that shareholders have every right to know if a three vice presidents - William Strecker, F. Grant Saviers and Dominic LaCava, all of whom are listed in the annual report - are changing jobs or might leave the company. Saviers, for his part, said only that he guessed he would stay at Digital. "I don't know where they are," Olsen said of the vice presidents. In the interview Wednesday afternoon, Olsen had difficulty even admitting that the company had resorted to layoffs, which began in January 1991. "We're not in certain businesses anymore," Olsen said. And while the most recent reorganization clearly eliminated the company's hardware engineering unit, Olsen contended that "we are not disbanding any hardware group." On Friday, John F. Smith, Digital's senior vice president, predicted that the company would cut at least 10,000 positions in fiscal 1993, which starts in July. Deepening financial distress In his 35 years at the helm, Olsen has traveled the road from hero to goat and back again about as many times as Richard Nixon. But Digital's distress is deeper now than ever before; until its second fiscal quarter, which ended in December, the company had never reported an operating loss. And in an industry in which competition and technology are changing at staggering speeds - and profit margins leave little wiggle room - some believe that the 66-year-old simply doesn't know what to do. Even if that is true, he isn't likely to admit it. Olsen is "one of those people whose egos are so strong that they have managed to blind themselves to any form of criticism," said Edward B. Roberts, a professor of management of technology at MIT who has known Olsen almost since he started Digital. "He is continuing to bring the company down, while hoping for a magic turnaround." Digital's board or its shareholders may want a more aggressive approach. But by Olsen's own design, there is no apparent replacement for him from inside the company. "Once you pick a successor, it is the kiss of death," Olsen said. "It limits you. You just have to overwork everybody and see who survives." Almost no on does. "Olsen has managed, over the years, almost systematically to kill both challengers and likely successors," said Roberts. Nearly two years ago, Roberts recalled, he sent Olsen a chapter of his book about high-technology entrepreneurs that concerned Digital. Olsen said back a nine-page commentary on Roberts' seven-page chapter. Olsen's most revealing suggestion, Roberts said, was asking Roberts to diminish the credit he gave to C. Gorden Bell, who is considered the technical mastermind behind Digital's flagship line of VAX computers. "He couldn't stand the fact that I was giving Bell credit," said Roberts. Indeed, successor speculation seems to chase one executive after another out of the company. "Ken Olsen has never said that someone might be a successor, could be a successor or even implied that someone might be a successor," said John J. Shields, who was widely viewed as No. 2 when he left, without another job, in October 1989. "When I was there, Ken always tried to keep his options open." Shields is now president and chief executive officer of Prime Computer Inc. in Bedford. In the last year or so, Digital has suffered several important defections. Since leaving in the fall, James Osterhoff has yet to be replaced as chief financial officer. One reason, insiders say, is that the board has been pressuring Olsen to hire from outside Digital, which he is resisting." They don't want a yes-man telling Ken how his finances are doing," said one source. "Very few people want to take on that job." Gary B. Eichhorn, a fast-rising executive who was vice president of general systems business at Digital, also left last year. "Ken has a very specific philosophy not to name a successor," said Eichhorn, now general manager of the workstation business unit at Hewlett-Packard Co. in Chelmsford. "He always told me that this is part of the way he needs to run the business." And Olsen seems firmly convinced that he does need to run the business. By his own admission, he can't even foresee the day when he would not be in charge. "I'm probably guilty of thinking I'll never grow old and never leave," he said. Not likely to be forced out It doesn't seem that anyone is going to force him out, either. Under typical circumstances, the board of directory would be the most likely party to put the squeeze on Olsen." Clearly they have to meet over the next 30 days," said Willmott. "They need to have an intense discussion about the future of the company." But few seriously think that they would consider a future without Olsen in control. Digital's board consists of only eight members, and most seem to be tied closely to Olsen - one belongs to a common social group, for example, and another goes back to Digital's early days. "The board is very interested when we lose money," said Olsen." We explain it to them." The board may not confront the issues head on, but stubborn questions remain about whether Olsen's style of management, or even his personality, are appropriate for the situation in which Digital now finds itself. Both, critics content, were better suited to a time when the company had a virtual lock on its customers. Olsen's personal management style has always been unconventional, to say the least. This is the man, employees report, who canceled an entire product line in 1982 by issuing a parable about tractors. "He throws out a thought that can be taken many ways and says, `Run with this,'" recalls one former executive. "He is truth-seeking, which presumes that he knows the truth." Since the start of the company, Olsen has also been a strong believer in matrix management, a configuration in which all decisions are shared. This leaves no one person with too much power. "The culture at DEC has always been that problem solving is more important than decision making," said Scott Flaig, who left Digital three years ago as director of manufactured and engineering for the telecommunications group. "That has been a wonderful way to grow the business. But now it's hard to find the owner of any given decision. What markets will we serve? What kinds of products will we make? These decisions aren't happening." Growth, in itself, can mask a lot of so-so decisions. But now that the company is shrinking, a consultant who works closely with Digital describes it as highly politicized and almost totally paralyzed. It's very difficult to put your hand on what's happened in there," he said. "A culture has emerge where everybody says they can get something done, but nobody really was." When Digital was growing, and the stakes weren't so high, it was undoubtedly easier for managers to reach a consensus. Now nobody wants to stick his neck out. "Because of his management style, Olsen is just standing back," said the consultant. "But they need a strong leader in there. Maybe Ken's says of morals is getting in the way of doing what he needs to do." It may very well be that Olsen's personality does not mesh will with the changing computer industry, which requires him to make more painful decisions than he did back in the days when proprietary technology and minicomputers - two Digital specially - reigned supreme. "I don't know if he had the heart to do the kind of cutbacks Digital needs," said one consultant. Olsen is idealistic by nature, and some who know him see him as, firmly believing that he and his 116,000 or so employees can dig their way out of this predicament. Payne says the recent elevation of both marketing and software executives shows Olsen "clearly has a view of where computing is going in the 1990's." "Most of the people who criticized Ken don't know him, and generally don't know what they are talking about," added Eichhorn. "I've worked closely with him over the past five years, and he's one of the most brilliant people I've met. The company is going through a transition right now. And they are having some short-term financial problems. Somehow, people equate that with Ken's lack of leadership." Today, as DECWorld opens, both Olsen and his company will try hard to repeal any apparent erosion of customer confidence. "Customers need to hear a story that they and get realistically priced non-obsolete systems from DEC today," said Willmott. Whatever story customers hear, it will be truthful. For as Olsen said during the interview last week, in a loud more: "Making up stories is lying, and lying is wrong and immoral and unethical and damaging and destructive and wrong by anybody's sense." - | |||||
1896.27 | COOKIE::WITHERS | Bob Withers - In search of a quiet moment | Thu May 14 1992 17:14 | 7 | |
1896.28 | RE: .23 - Boy, can I relate to THAT situation! | YUPPIE::COLE | Life's a beach; then you dive | Thu May 14 1992 18:32 | 8 |
Steve, did the aforementioned Account team include the person respon- sible for the final P/L of the account, ie, the AGM, Program Manager, etc? If not, then I would have copied that person on ALL memos henceforth, and documented my concerns in those memos. If they were there, that Account team is in BIIIIGGGG trouble! Disengage ASAP!! | |||||
1896.29 | ODIXIE::GEORGE | Do as I say do, not as I do do. | Thu May 14 1992 18:33 | 19 | |
Re: 25 Steve, if "We are DIGITAL" why do you refer to it as "MY" problem? Isn't it OUR problem. Does it not concern you that we bid and price programs before we understand how to deliver them? I asked for your opinion as to how to both make a constructive change using my example AND not get canned. I hope I did not imply that there was only 1 answer and you had it. In .21 you expressed your opinion of *what* to do - and I agree with you. I'm simply asking you, in this situation, what would you suggest as to *how*? > All of these things are changes we can make and the only way they > will get changed is by us not by management or policies. Once again, *HOW*? The above statement is somewhat platitudinous: it is not an action plan or a statement of work. Steve | |||||
1896.30 | ODIXIE::GEORGE | Do as I say do, not as I do do. | Thu May 14 1992 18:54 | 23 | |
Re: .28 Jackson T., no, my direct conversations did not include the AGM. It did include his Sales Ops manager, though. The sad part of it is that we will probably win the business, and it may even be profitable. But we won't have a clue why and won't be able to repeat it in a competitive situation. And it's not just that Account Team. They're actually pretty good folks who are trying to keep their heads above water. Until NMS collects ongoing ACTUAL program cost and charges the Account Team, there will be a tendency for Account Teams to negotiate BUP/price concessions from the Lines of Business; the LOB then has to worry about ACTUAL margins. But if we do start charging Account Teams with actuals, LOBs would have no real incentive to control program costs. ARRRGGGHHHHH! Plus, I'm afraid this industry is beyond the point where the good intentions of honest men can correct all ills. Steve | |||||
1896.31 | An order in hand is worth 2 in the bush | FASDER::AHERB | Al is the *first* name | Fri May 15 1992 02:18 | 20 |
Steve, Winning the business is something Digital needs all it can get during the current lean period. It keeps manufacturing and the rest of the company "ticking" (even if it's at cost) so that we're ready when the business does pick up. No one can speak for your case except for the account team..that includes you.. but, with every buy in at 0 profit, there should be an account strategy that spells out the "get well". If this is a Fortune 50 like you said, I believe a total account strategy that defines the where/when you profit should be the primary goal with, many cases, acceptance of a perceived "loss" in the beginning. If this is a one time purchase by your local gas station, you are right on as to profit up front. I wouldn't give up on your thoughts and certainly not as a result of this forum. It's your account team you need to work, not the readers of this conference. Let us all know when the win comes in and we'll all congratulate you for you contribution. If you lose, well..no one ever made money pondering the past. | |||||
1896.32 | Sadly, the issue is now resolved ... | ODIXIE::GEORGE | Do as I say do, not as I do do. | Mon Jul 13 1992 20:49 | 7 |
There were actually 2 pieces of business proposed to this customer - one to the corporate level and one to a division. Unfortunately, we have now been told that we lost both of these multi-million dollar opportunities. In one of them, our price was either twice the low bidder or twice the next-low bidder. Steve | |||||
1896.33 | ALIEN::MCCULLEY | RSX Pro | Mon Jul 13 1992 21:48 | 15 | |
.23> I was told there was "plenty of money in here to cover anything .23> we forgot". .32> -< Sadly, the issue is now resolved ... >- .32> we have now been told that we lost both of these multi-million dollar .32> opportunities. In one of them, our price was either twice the low .32> bidder or twice the next-low bidder. looks like the thing we forgot was that bidding a competitive price might preclude padding sufficiently to accomodate unknowns! Wonder how many jobs that little fumble cost? Too bad the account team that couldn't be bothered to sharpen their pencils will likely not be among them... | |||||
1896.34 | Background on Ken Olsen's retirement | SDSVAX::SWEENEY | Patrick Sweeney in New York | Wed Jan 06 1993 12:00 | 22 |
From Fortune January 11, 1993 p.41 "How to stage a coup" Alan Farnham Eventually the dean* may communicate the outsiders displeasure to the CEO to give him a chance to shape up. If he does not, then the board is free to, ethically, to shoot him. In cases where the company's performance is merely bad (not atrocious) evidence of the CEO's unfitness needs to be accumulated. His vacation may prove to be the ideal time to gather ammunition. This often happens in the political sphere, says Robert Conquest, a Hoover Institution Fellow, "One day Khrushchev was the big guy, getting greetings from cosmonauts in spaces Then he left for vacation. When he got back, he was out." Ditto for Ken Olsen of Digital Equipment. His directors waited until he'd left for his annual two-week canoe trip to start grilling analysts and company executives. Olsen, returning from paddling, found himself up a creek. --- *"dean" was defined earlier in the article as the former CEO of a Fortune 500 company serving as an outside member of the Board of Directors. In Digital's case it was Philip Caldwell, former CEO of Ford.--PS |