Weblog - Invensys (archive)Invensys archives - March 31, 2009 and previous
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Invensys in decline - read the original article. Invensys was formed by Allen Yurko, after UK-based Siebe merged with BTR. Siebe had previously acquired Foxboro, Wonderware, Eurotherm and several others. When growth eluded Yurko, he merged Siebe with BTR, another UK hodge-podge, and changed the name to Invensys. With further decline, Yurko bought BAAN, a bankrupt Dutch software company. Invensys continued a downward spiral. Allen Yurko was booted out and Rick Haythornthwaite was brought in as CEO in October 2001. Haythornthwaite could not halt the slide and sold off the best parts of Invensys to raise money. In June 2005, Haythornthwaite exited, leaving Invensys in the care of hired-gun Ulf Henriksson, who joined as COO in April 2004 from Eaton, with a "golden hello" worth more than £2m in cash and shares. Invensys seemingly continues towards an eventual break-up and piecemeal sale. |
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Weblog Comments - InvensysWeblog comments will include date of submission, most recent first.Monday, March 30, 2009 Utter B.S. regarding Wonderware staying out of MES and other areas like EMI. Since the early 90's, there was significant money to be made, and we were in the best position to capture it due to our very strong channel. However,the head of development continually stood in the way of progress in these areas, instead focusing on the money pit we know today as Archestra. The Cimnet acquisition is paying for itself just fine, thank you. The numbers are strong, better than expected, and Factelligence and EPM have helped secure/protect our strategic position in a number of very large accounts, where our HMI/SCADA business was definitely in jeopardy. Monday, March 30, 2009 ...and again on the need for measuring solutions. I pointed out the acquisition of Cimnet: one solution there would be "do not waste $23 million". It's not that people do not have better ideas, it's the fact that you cannot prevent something that you do not expect to happen. A solution would be to stick with what you do best and what got you some success in the past: data acquisition, control, etc. Do not try to play in the SAP, Oracle, IBM sandboxes. Or, at least, play along not against. So, sometimes it's just too late... Monday, March 30, 2009 To the "bean counter"...yes, of course, the financial metrics are what will determine the measure of success. But the problem to date is that Invensys leadership has created endless proforma financials without a coherent strategy to actually achieve them. Anyone can create an Excel spreadsheet to present during STRAP/AOP that says anything they like. Actually executing on a multiyear growth plan requires a very different set of skills. Most of the decisions we are making now are based on a quarter or two lookahead, not a multiyear perspective. And we will pay the price for this shortsightedness if we do not recognize it and address it. You can reduce costs all the way to zero with the stroke of a pen, but you will be out of business in a week. Monday, March 30, 2009 Foxboro released RBATCH-II batch product on SOLARIS-8. There is no information about future of RBATCH-II Sunday, March 29, 2009 The reason I call some bloggers malcontents is because I read a lot of griping but no solutions. Some of you will have access to the market and financial figures needed to sketch out a workable alternative. What are the elements of a realistic alternative strategy? What should the company look like in 5 years? What turnover level? EBITDA? How much capital will be required? How would you raise the capital? Post it on the blog and forward it to the incoming chairman. Anybody can criticize. But it take some thought and some quantification to submit a realistic alternative strategy. Unfortunately many of the “malcontents” that write on this blog think that the company exist to employ them. When is the last time Invensys paid a dividend? The employees of Invensys are hired to create wealth for the shareholders. Sunday, March 29, 2009 Wonderware's acquisitions were forced by the inability to create and new and interesting products organically. Nothing new has really come out since InTouch in the early 1990's. As mentioned many times, we need a change in the development leadership; they rule with fear and have influenced our development and product directions down numerous dead ends and failed to let us move into new high value areas. Instead we spent a boatload of money on Archestra and App Server and were forced to spend more tens of millions on acquisitions because we were caught with our pants down when the competitors came up with new stuff. Anyone who dares to publicly question our misguided directions does not last long. We lost some good people in the past year who really could have made a difference. Saturday, March 28, 2009 Invensys is out of touch. After the big consolidation (again, an "inward" driven strategy more than a new proposition for the market) the goal has been stated to be manufacturing execution and enterprise interoperability. Wonderware spent 20+ million dollar to buy yet another MES product (in the last few years, we saw them changing from InTrack, to PEM, to MEM, to Factelligence), which point blank DOES NOT work. As it happened for their batch software, this is not yet integrated to the ArchestrA elephant (no matter what they'll tell you). And in investing all this money on something that clearly is not in high demand in this economy, nor it will be as the downturn ends. The offering is clueless, and often carried out by incompetent representatives. And yet you see this some-few-hundred-people outfit behave as arrogantly as they were Honeywell or Emerson. Saturday, March 28, 2009 - for the "very senior position with Siebe" who called this a blog of "malcontents": How do you expect there not to be malcontents, when management continues to make moves that negatively effect the organization and the ability to serve the customers and compete? Ulf has made numerous dreadful decisions, including hiring Paulette and allowing HQ to be moved to Dallas, hiring people like Lance Vandenbrook to lead sales, and dismissing valuable, experienced people who understand the industry and have valuable expertise, as well as customer's trust and relationships. IPS is becoming completely irrelevant to the customers and the industry. The focus under current management is entirely internal. And worst of all, they can't even execute the internal focus well. Customers don't care or look to IPS for value anymore! Friday, March 27, 2009 I stand by my comments about uninformed malcontents. I was with Siebe in a very senior position. I happen to know that Yurko (and Miller) deserves all the blame that is meted to him, and then some. Siebe used to play the game of USGAAP vs UKGAAP. In Windsor there was one senior accountant that had the "totem pole" to keep track of all the accounting irregularities, particularly sale-and-lease-back, and acquisitions. When the rules finally caught up with Yurko, he was forced out! Stephens left in disgust in 1998, and Marshall should have acted earlier. But Siebe was riding high on contrived financial statements. To put it in perspective: there was 50% between the financial results prepared according to UKGAAP and USGAAP prepared for a syndicated bank loan! Ulf may not be very good, but the value of the shares collapsed well before he came to Invensys. I have my own thoughts on the matter. But I have not seen a reasonable rationale offered on this blog that explains any alternative strategy and how it can be achieved. Friday, March 27, 2009 To answer some of blogger's questions: Invensys' market share in process (according to latest ARC analysis) is declining, to an "also-ran" position. Cash position is misleading when you consider the pension liability. It should be put to work. Why must Ulf go? Because he has no plan for moving the company forward and has made many poor key personnel choices. He was a fine choice for restoring financial stability, but now a new leader is needed. Friday, March 27, 2009 - to the blogger who referred to "uninformed malcontents", and asks "why Ulf should go": I find the comments unintentionally hilarious. Why would there be negative comments about a company that is less then 20% the total size it was just 7 years ago with less then a quarter of the total employees? I just can't imagine. This is a company that was in financial trouble when the market was booming. Does that strike anybody as a well managed company? I know Allen Yurko gets bad press in this column, for some bad decisions that were actually pushed by the the unlamented Lord Marshall, but Invensys is the classic case where a CEO that was knowledgeable but in trouble is replaced by a CEO, Rick H, who knew absolutely nothing and made things much worse. There are still some great people at IPS and Rail but the numbers drop every month and the average age increases. Too many are just trying to make it to retirement age before the inevitable take over or collapse. There are no real malcontents - just realists. Thursday, March 26, 2009 I have been monitoring this weblog for a few years. It seem to me that the main contributors are uninformed malcontents. Only one entry for the last several months seems to have any interesting information that is not complaining without any facts. That is the recent entry about the attempt to divest Eliwell. Does anybody have confirmation of that? How do we stack up vs competition in the process control industry on market share? We seem to have a lot of cash in the bank, who are the fools that say Ulf should go? Why? Wednesday, March 25, 2009 Big ISYS selloff today. Down 7% while the FTSE 100 held its own, on nearly twice the usual volume, yet no news. What might this obviously pre-informed movement portend? Sunday, March 22, 2009 I do enjoy reading this blog as it genuinely proves and reassures me that I made the right decision to leave Invensys. Having kept in touch with many of my fellow workers from the IPS glory days, I find that the cream of the group have moved on to greener pastures. Let me tell you that there is a need for the expertise of the better people left at Invensys and if you are going to leave, now is the time. The smarter, more aggressive companies are positioning themselves for the inevitable recovery, and those that do, will ride the next economic boom, grow marketshare and thrive. From what I am hearing and seeing, inwardly focused companies like Invensys, who do not understand who ultimately pays the bills, will not survive. Thursday, March 19, 2009 Yes, jobs are scarce. And yes, we need to be grateful we have them. But how would you feel when your job or your office-mates' jobs are given to completely and totally unqualified people in another part of the world purely because they are cheaper and are in a favorite location of your boss? And what does this do for our customers? Nothing good, that is for sure. Then we outsource development to people, also friends of the boss, that are not competent and we have to handhold and rewrite most of their work. Our leadership is free to do as they wish, but they need to put the customer in the picture as well when considering the impact of their choices. They also need to think about the true savings, when the quality of the work is less then acceptable and onshore resources are still needed to fix it. Wednesday, March 18, 2009 Jobs for engineers are scarce, particularly middle aged ones. It may upset your pride or sense of justice to go to work at IPS every day. But consider the alternative ... no job. It's not a vocation or even a career, but it pays the bills. Find other things in life to satisfy your higher intellectual or spiritual needs. Just fake it and make it. Do whatever you have to do to keep your job and keep taking their money as long as you can. The mission is personal survival, not the glory of IPS and its executives and stockholders. Wednesday, March 18, 2009 One time many years ago, my father went on a deep sea fishing trip with a lot of the senior management of his company. When the boat returned to shore many hours later, the unloved CEO had myteriously disappeared - overboard they presume. He was never found and never heard from again. A new, well liked leader took his place and the company turned itself around and became very prosperous. If I told you the name of this company, you would all know it. Perhaps IPS needs to arrange a fishing trip... Wednesday, March 18, 2009 Stop crying! You've got exactly what you deserved. Did you do something when you saw the wrong decisions and/or actions? Invensys has plenty of 'yes men', and I'm not sure it's only at the top management level! Wednesday, March 18, 2009 Folks, politics is an inevitable part of any large group of people, whether in a community, a company, or a country. That said, one difference inside of a company is that you don't have a vote and you can't throw your leaders out of office if they're doing you wrong (nor can you impeach them for ethics violations). It is really hard to suck it up and keep your mouth shut when you see things that make you cringe. But in this day and age, if you want to keep your job, sometimes you have to internalize it. No wonder people go 'postal' at times. Tuesday, March 17, 2009 When I started here 6 years ago this was a company where almost everyone was happy to be at work. There was a real sense of community, and trust. Now, it's turned into everyone for themselves. This isn't the same company anymore, and it's sad. I agree with the last post: if we admit there is a problem we can weed it out and work on it. However, in the current culture of so-called "open door policies", saying you think there is a problem lands you in the unemployment line. Until some real change starts at the top, we cannot fix anything down here in the trenches. Tuesday, March 17, 2009 I think the rose-colored-glasses blogger is missing the point. We could be a lot better if there was a change in leadership at a number of places in the company. We want it to be better, we really do. The politics and poor decision making that are being made at that level make it really hard to get excited about coming to work. Invensys can be a great place to work again and a vibrant, growing, healthy company. It just isn't that now. Monday, March 16, 2009 Making headway? I guess you haven't been watching the DCS market share reports. We have a lot of work to do, and the first step (like an alcoholic) is admitting that we have problems. Then we can fix them. Monday, March 16, 2009 Invensys is making headway as a company. Negative comments that are baseless and border on character assasination are just not acceptable. If anyone is unhappy with the company, they should just leave, rather than perpetuate such a negative spirit. Now is the time for everyone to work together to make Invensys a better company, not tear it down further. Wednesday, March 11, 2009 Regarding the post about Ulf leaving - let us certainly hope that he takes his 'chosen ones' with him. Not exactly a team that demonstrates or lives the 'Invensys Values' we are asked to live up to. Tuesday, March 10, 2009 With a little luck, Ulf will be gone soon and the company can move forward on its path to having a future, not just a past. And with his departure, hopefully a new leader will clean house and get Invensys back on track. Tuesday, March 10, 2009 Earlier this year, a large UK based private equity firm has offered to acquire CONTROLS for a very attractive price. Ulf has turned down the offer. Sources inside Invensys believe that going forward, Invensys will need the EBITDA from CONTROLS to shore up the other businesses. According to Business Week in September 2008, "banking sources" valued the CONTROLS business between £400-500 million. According to this inside source, Invensys contacted Carel with the view of selling Eliwell during May/June 2008. (Apparently the asking price was too high for Carel, since no deal was concluded) Tuesday, March 10, 2009 Don't forget Invensys Rail Group! Some of the user interface technology in IRG is much more capable than the corresponding WonderWare/InFusion offerings. There is much to learn between the different businesses, though large egos stand in the way. Monday, March 9, 2009 There are other parts of Invensys doing much more interesting things: See Virtual plant at : http://ips.virtual-plant.com Thursday, March 5, 2009 It would be wrong to assume that all the software needs to come from Wonderware. There are other parts of Invensys doing much more interesting things. Thursday, March 5, 2009 In theory good, but in practice it will be a problem, because people and personalities are involved. The WonderWare software, while, OK for its target audience, does not have the capability or performance to meet the needs of the DCS platform requirements or operator station requirements. So, to build something that works would likely mean that a lot of budget would be redirected from other projects. I think if we undertake this project, we need a new leader for development that does not think the world revolves around Archestra. Thursday, March 5, 2009 I think that it depends a lot on the details. Lots of potential synergy between Wonderware and IPS (which it formerly was a member) but previous efforts to port Wonderware products over to the DCS world have been somewhat less than successful (Archestra, Infusion etc). Eurotherm is an odd duck in the group. Their primary products are temperature controls for the extrusion/molding market. Hard to imagine how they would add value to the "new" IA without a significant rework of their products. Wednesday, March 4, 2009 - Re: Integration of Wonderware, IPS, & Eurotherm: Each component has its strengths and weaknesses. A good integration of products can offer advantages to customers. A key part of the secret to success will be the tools provided to build and maintain an integrated system. To build and deliver the system at reasonable cost, and to be able to maintain/modify/growth the system after installation will require tools that are friendly, efficient, and reliable. The system builder must be able to efficienly deliver good quality configuration/programming and documention. The end user must be able to live with the system without incurring excessive costs in time and training. Past experience has shown us that many complex tools, while powerful aids to the original builder, are not well-suited to the simpler requirements of our day-to-day plant maintenance. They are abandoned or bypassed, the investment in their purchase and training of personnel is wasted, and the system itself deteriorates because nobody likes to use the tools to maintain it. Remember Keep It Simple, Stupid. (KISS) Wednesday, March 4, 2009 Could be a good thing (combining those three businesses). For customers, a more integrated approach to their needs is probably welcome. Not sure they worked together in a particularly coordinated fashion in the past. If I'm a customer and can go to one place for DCS,IA,Open Software platform, applications, consulting,other products---I'd rather do that than have to deal with different vendors. Proof is always in the pudding, but has nice potential. Tuesday, March 3, 2009 So what does the assimilation IPS, WonderWare, and Eurotherm mean to the customers of those respective brands? A good thing? A bad thing? Some of both? Thursday, February 26, 2009 Yes, IDC has been around for years, but Pankaj was given a specific charter to dramatically increase the percentage of work done external to Invensys, and Sudipta is a major driving force behind this decision. He has also chosen to give outsourcing work to some companies he knows from his SAP days. Those projects have not gone particularly well, as we have had to rework quite a bit. Sudipta, as far as we can tell, looked at India alone, and did not look at China, South America, Africa, or Eastern European providers. Pankaj has good work being done in China right now. Pankaj has generally been quite practical and considerate of what is right for outsourcing and what is not, but he is being heavily pressured to go against his own experience and best judgment. Thursday, February 26, 2009 IDC was started 6-7 years ago, long before Sudipta joined Invensys. The emphasis on off-shore development has been going on for several years now. Sudipta's origin IS not tied to IDC. It is really based on copying of IT / software industry practices. India had established itself as the hub of off-shore development and so it was natural to go there. Tomorrow if the IT industry starts development centers in Africa and claims cost savings, that's where management will go next. Whether it provides the claimed benefits or not is a different story / discussion. Thursday, February 26, 2009 - N. Keith Duncan [Keith.Duncan@IPS.Invensys.com]: I am a 20 year employee with Invensys/Foxboro and have spent many years living and executing projects overseas. I currently reside in the USA and manage a number of development projects. Over all of my years with the company I have always found excellent employees around the globe, with everyone working towards the common good of the project at hand. I must take issue with your recent "xenephobic" comment. Just this past week I conducted a Lessons Learned session on a project that was jointly executed between Foxmass and IDC. I received consistent and positive feed back from the teams conerning the collaboration between the various groups. Given that this mirrored my own 20 year experience, I was very pleased. While weblogs can at time be beneficial, the anonymous nature tends to enhance negativity and not necessarily present a true picture. Please include my comments so that your readers may see a more complete picture of life within Invensys.
Regards Wednesday, February 25, 2009 Read the latest issue of JimPinto.com eNews, 25 February 2009: Meanwhile, speculation is rife on the JimPinto.com weblogs. Sudipta, Wonderware's Pankaj Mody (VP Development), Rashesh Mody (Global Product Management) and Vinay Moorthy (VP Engineering Solutions) are all from India; and a significant share of software developments are being transferred to the Invensys Development Center (IDC) in India. So turf wars and xenophobic comments are flying back and forth through anonymous weblogs. Wednesday, February 25, 2009 SimSci management at IDC, is no different from the management of other business units at IDC. Tuesday, February 24, 2009 "We could not continue to operate the plant competitively in the current economic environment. The home appliance market has dropped with the economy," said Kathy Maynard. Nonsense. IC in Holland has been a long time cash cow for the organization. So much so that its corporate fees have increased by as much as 80% in one year. Head quarters in Carol Stream has done so little to bring new business to Holland that the local employees (non-sales) have personally brought in millions in recent new sales. All of which will disappear when the operations move to Mexico. Theses new customers want the local manufacturing and will most likely drop Invensys in the coming months. It is unfortunate that more Americans will lose there jobs to an ill-laid plan that will undoubtably cost the organization millions. Tuesday, February 24, 2009 Why no InFusion software on the two deals at Qatargas and with SEPCO in Gujarat? Is there something wrong with it? Monday, February 23, 2009 There is one notable exception to the quality/capability issue at IDC, and that is the SimSci team. They do good work. Sunday, February 22, 2009 The only "zero" at IDC India is the amount of quality software that is produced. I would like to see an investigation into some of the USA and UK management and whether there are any questionable motivations for moving so much work to a place that so clearly is not capable. Saturday, February 21, 2009 News flash - Invensys Controls to shut down Holland, MI and Chihuahua plants by December. Saturday, February 21, 2009 - Re: "The ZERO was invented in India, blah-blah-blah": Yeah, right. Poor Maya... But wait, I also heard that English was invented in India, too. But the Brits stolen it. Friday, February 20, 2009 The recruitment of Software Managers at IDC is big mockery of technology. A person with civil engineering background recruited as Project Managers for PI group. He works only with Microsoft spreadsheets. A commerce (accouting) graduate recruited as documentation manager. It will be hell to ask them prepare a document by giving all necessary inputs, because their computer/IPS understanding is a VERY BIG ZERO. Project Managers from SCADA,WONDERWARE mostly will be near TABLE-TENNIS tables, I think from 6-7 hours a day. Mind they are from BAAN systems? Wednesday, February 18, 2009 I agree with comments regarding management of IDC. Most of the people close to management cannot get a job once they are given the pink slip. Most of the project managers butter top management and some how are surviving in the organization. Technically all project managers are BIG ZERO. It would be good if they respond directly to these negative weblogs. Wednesday, February 18, 2009 The end of the buisness year is approaching and I think the work force is about to pay for the mistakes that mangement has made over the last few years. Wednesday, February 18, 2009 Forget quality, forget cost. Management only cares about themselves. Most of the managers one or two levels below Ulf couldn't find a job somewhere else if they wanted to, so they kowtow to him at the expense of personal honor and self-respect. Invensys hasn't really done anything innovative since IA and InTouch. InFusion is a terrible, horrible joke within the company, since Archestra is largely unusable to replace IA. Yet those responsible still manage to survive, due to their ability to bend with the wind and bend at the waist to service their masters. Tuesday, February 17, 2009 People recruited at IDC thru referral are typically discarded from other IT companies. The referral system is a good source of income for project managers apart from their salary. Most of the people recruited thru referral leave the organization after six months. Most of the project managers are busy with other tasks. Since top management is not aware of IPS technology, they recruit low-standard people with nepotism. What can they contribute to the organization? Till now IDC has not released any product on it's own. Sunday, February 15, 2009 Management only cares about the costs and not the quality at this point. That used to not be the case. They were told by Ulf to greatly increase the percentage of development offshore, and that is what they have done. In doing so, they have failed their company and themselves by not advising Ulf that this was not the best thing to do. Saturday, February 14, 2009 Copying of public domain software by IDC engineers without understanding it's implications are common. Project managers are not in a position to identify whether it is copied from public domain or developed by IDC engineers. It is common to fool project managers at IDC to claim public domain software as the original developed code. Project managers/Senior Software enginees/Principal Software enginners at IDC are not technically sound to work in such high technology automation software. Saturday, February 14, 2009 I worked at IPS development in the US. I also had some IDC developers on the team. We did code reviews for software developed at IDC and on more than one occasion, code was copied verbatim from a public website into the product. The manager on the project was even fine with it, despite the copyright violations. IDC may have saved costs but the quality is below par in general. Thursday, February 12, 2009 My advice on leadership would be to import more execution-oriented visonaries from the wider automation field, manufacturing industry. Invensys needs the brave and razor like focus exhibited by companies such as Cisco, or Yokogawa. The process guys are too engineer-like and move too slow. There are some great execution guys out there, and with the market in disarray, Invensys could make it attractive for them to jump over. However I bet they wont; it's a DCS thing. Thursday, February 12, 2009 I would like to compare the management at IDC, Hyderabad simillar to what has been expressed at HQ. Management at IDC, is not aware of any technological advancements, leave alone the IPS technology. I can simply say that IDC, Management including Project Managers needs replacement with good technical people. Thursday, February 12, 2009 - to the anonymous blogger: What else should we add? I fully agree with your comment, and much more with your worry to be the next one.... If you are recognized, then 100% you'll be the next one to go! I just want to underline that if you simply exchange 'Wonderware' with 'Controls' (EMEA) you'll read my comment. Should I tell you all the story of competent people just fired because of their ideas? Invensys values: Courage...to be sacked. PS: I'm also commenting here anonymously because I do not want to be the next one ... Wednesday, February 11, 2009 WonderWare is not in much better shape than IPS in terms of qualified executives. Current managemrnt is a nice enough, but is in no way ready or capable of running the company! There were plenty of more qualified people to do so, but they lack the, ahem, "pedigree". Wednesday, February 11, 2009 I fully agree with this previous comment, because this applies not only to development or other HQ areas, e.g. it's also the management in the strongest Wonderware region worldwide (talking about EMEA) that behaves exactly this way. If someone reports what's really going on, he's called a moaner and is put on the deathlist. That's why we lost too many excellent people and lots of valuable expertise in the last 4 to 5 years. Senior managers in EMEA are champions in self-profiling, "Excel-sheeting" and over-administration. They don't really care about customers (except that they are keen on getting their money), nor do they care about employees as individuals (how could they do so with "zero social competence"). The poor numbers that we see actually are excused as a result of economic downturn and glossed over by exchange rates, but they are more likely a result of wasting money in the past for creating unproductive overhead, pathologic travelling, countless meetings, recruiting of replacements for "outplaced" people and not investing in strengthening our market position. Wonderware used to be an outstanding company with an outstanding culture, an outstanding reputation and outstanding people. Since the take-over by our UK-based friends, Wonderware has only been seen as a cash cow, and all attempts of integration and cooperation with IPS and others have failed so far. It's not a Wonderware problem, it's an Invensys problem. As long as our decision makers do not watch out and listen, there will be no change in the frustration of the majority of employees. What is posted in this log is less than the tip of the iceberg, believe me. Good luck, Ulf, Sudipta and others, not only in cutting costs and dedicated people, but in creating a sustainable future for us all. But you will not succeed only by changing organizations. You need to watch a bit more carefully what some of your reports and their marionettes dare to sell you! And by the way: talent management is not brainwashing people to fit a regime, but creating an organization that leverages on the skills and talents of people (as long as you still have them). PS: I'm commenting here anonymously because I do not want to be the next one ... Monday, February 9, 2009 - Re: Advice from previous weblog - "If constructive feedback has to be given, give it in a right manner and let your voices be heard thru a proper channel": What's the difference between reporting what's really going on and complaining? It's not always clear. I like what I'm doing at Wonderware and the people I work with, but the senior managers keep saying dumb things and excpect us all to believe it with a straight face. I won't make any points by telling anyone that Management doesn't know what its doing. They aren't good about listening and they tend to take things really personal. I've seen enough people clobbered for that over the last 7 years already. I don't want to be the next one. I figure I can say things out loud at work and get hung out to dry (and not have any effect). Or, I can say something here on the weblog and hope that someone at WW or Invensys reads this and starts paying attention to how the developers are treated and why so many are out looking for work. Monday, February 9, 2009 Looking at this tale of woe - the theme is clear - no-one seems to have any confidence in the Invensys CEO and his HQ leadership team. Ulf has surrounded himself with Honeywell half-wits, constantly bringing in favorites from past lives, alienating and losing the odd good-new hires, firing or emasculating the ones he doesn't like regardless of performance or their standing in the organisation - Caliel - Brown . . . He only offloads his bigger mistakes when - and only when - farce has taken hold. Remember the Football Allstars hired by Ulf to sort out APV? They were surely the stupidest man to EVER be put on an Invensys salary. How many presidents did APV have? 4 or 5 in last 4 years in Invensys? We lost count! The best thing Ulf did was sell APV to SPX - to do what he could never do i.e. fix and return a once good business to it's right place. Not that SPX are making any friends here right now; but at least they have a track record for delivering sustainable results. We can but hope we survive the treatment! PS: So when will Ulf offload Paula? Actually he can't as he needs someone to play his favorite tunes for his game of Executive Musical Chairs! Perhaps he did offload her, but she changed the termination letter from Paula to Paullette...a sleight of hand Ulf that may have missed until it was too late... Monday, February 9, 2009 - RE: Invensys share price: Saturday's Daily Telegraph, UK had the following explanation of the recent surge in the Invensys share price:
Sunday, February 8, 2009 I have to disagree about Sudipta's track record. He was the driving force behind the resurgence of SAP's interest in manufacturing, which was a significant success for SAP and for the industry as whole. He deserves this opportunity as well if not more than anyone else, and he should be judged on results, not on expectation and supposition. Saturday, February 7, 2009 Invensys stock up strong on higher than usual volume. Either a response from the UBS buy signal, or someone is accumulating. Or both. Ulf stands to make a nice payday when this thing is sold. Saturday, February 7, 2009 Bhattacharya hasn't stuck around in a job long enough in his career to have actually accomplished much, so it is impossible to judge whether he will succeed or fail. He is very good at telling people what they want to hear, but very suspect on execution. No shortage of ambition, however. Friday, February 6, 2009 - RE: "Ok you whining lot": The capabilities of Senior Management at IPS have been in decline for over 5 years. To state the truth, it has been a true Gong show. If IPS wants any hope of gaining market share, they will stop hiring incompetant "yes men" and try and recruit some real talent, or even better, listen to the people who know the most, those who deal every day with the existing customers that cling to the hope that IPS will get their act together! Friday, February 6, 2009 Though I must give props for considering Berra as your leader - that would NEVER happen! John Berra is riding out his deserved legacy of directing Emerson into the powerhouse that it is and will contnue to be. He is way too well respected in the industry to ever consider talking with Invensys. DREAM ON ! Friday, February 6, 2009 If I were to try to give it a go, I would try to lure John Berra away from Emerson to run the whole lot, and I would give let him choose who he wanted to run IPS. However, I think Invensys' days are numbered as a viable entity, so at this point, I would more likely keep Ulf while he disposes of many of the individual businesses at fair value which should substantially exceed the current market cap. What I most assuredly would not have done is to install such absurdly unqualified leadership at IPS and WonderWare as was done this week. Friday, February 6, 2009 - spinning off Waonderware: The opposite is more likely - spinning "in" WonderWare into IPS, along with Eurotherm. The combined entity will have more bulk and will sink into the ocean more slowly. Friday, February 6, 2009 UBS puts out a "buy" rating on Invensys. Perhaps the first sign of pending acquisition activities? Friday, February 6, 2009 Ok you whining lot. You complain about CEO decisions on talent. If you had the whole automation world to chose from, who would you hire in any leadership positions? Stop complaining. Help your bosses out here; or maybe you dont know how. Thursday, February 5, 2009 The "complainers" might well be the rats jumping ship. There was a strong rumor when WW was split off from the rest of IPS that it was being shopped to the usual suspects. This might be the first indication that they might follow the path of APV. Thursday, February 5, 2009 All you complainers out there, stop making fools of yourselves by writing this stuff about the company from where you get your daily bread. At least have respect and decency for the brand you work for, if not for individuals. These comments bring out the frustration you guys have in your life and clearly show that you have been a victim of identity crisis and or have not made it - where you wanted to be in your career - or have not be able to put forth your point of view in front of your managers. Its a vicious cycle, my friends. Look deep and think deep. If constructive feedback has to be given, give it in a right manner and let your voices be heard thru a proper channel. If you feel you are the so called saviours and gurus of where the company should be, stand up in front of the mgmt team and express your desire to contribute in re-building the strategy for the company, rather than these side-bar comments which simply reflect your poor attitude towards the situation. Wednesday, February 4, 2009 What a classic Ulf note. Lacking in substance and direction but full of management speak. If the IPS team thought Paulette was bad, just wait. Ulf reaffirms once again that he and his inner circle have not the slightest clue when it comes to personnel decisions! Wednesday, February 4, 2009 Bhattacharya is completely and totally unqualified for this position. This is a dark, dark day for Invensys. Wednesday, February 4, 2009 - From Ulf Henriksson, CEO, Invensys PLC:
The IA integration team, a cross-functional group drawn from all three businesses, is under the leadership of Jeff Greene. The team has now met with me and is off to a great start as they explore the opportunities that could arise from closer integration of our IA businesses. Their focus is on defining the new market space between the automation and ERP layer—and then developing the strategy that will make us the leader in that space by fully capitalizing on the strength of the people, technology and industry expertise resident in our three IA businesses. We will share more about the team’s progress as the exploration continues and more definition on this strategy becomes available. At the same time we explore our IA synergies, it is imperative that we continue to serve our clients and succeed in our own business as well. As we move along both of these paths simultaneously, I’m announcing several interim leadership changes to ensure we serve the day-to-day business needs of our IA clients and have a strong close to the fourth quarter in these businesses. Sudipta Bhattacharya , President of Wonderware, will manage the day-to-day operation of our IA business groups (Eurotherm, IPS, Wonderware) as interim Chief Operating Officer, reporting to me. Sudipta was appointed Wonderware Business President in November 2007. He joined Invensys from SAP AG, where he served as senior vice president of supply chain, manufacturing and product lifecycle applications. Sudipta holds a bachelor´s and dual master’s degrees in chemical engineering with specializations in Chemical Plant Design, Fabrication, and Membrane Sciences. He also has a degree in business administration with specialization in Marketing, Finance, and Operations Management. Prior to his roles in the software business, he spent the initial eight years of his career working as a chemical engineer with the Tata group companies where he built domain experience in managing production shifts, plant design, simulation tools, and DCS systems. Reporting to Sudipta, and assuming functional responsibilities across our three IA business groups on an interim basis will be:
Phil Clark --SVP of Sales and Marketing In addition, the following individuals will report to Sudipta in their business-group specific roles:
Ricardo Agostinelli - IPS President for Latin America Within IPS, I have made the decision to merge the APAC and Middle East Regions (the latter will include Libya and Egypt). The EURA region of IPS will now include Europe, Russia and Africa (excluding Libya and Egypt). This regional alignment will enable us to accelerate the consistent implementation of our strategy. The new APAC/ME Region will be led by Nabil Kassem, who has been leading the Middle East Region for IPS. His experience in both the ME and APAC is strong, and he has a track record as a leader who successfully develops people and grows businesses. Lawrence Wee, who was leader of the IPS APAC region, will be leaving at the end of February. I want to take this opportunity to thank Lawrence for his contributions and wish him the best in his future endeavors. Stuart Batchelor will continue as Interim leader of IPS’ EURA region. Both Nabil and Stuart will report to Sudipta Sudipta’s focus is on ensuring we finish the year strong and create momentum heading into the first quarter. He and I will meet regularly with the IA leaders to make sure we stay aligned and meet our commitments. My request to all IPS, Wonderware and Eurotherm team members is to please support Sudipta and all these leaders in their above roles and to continue to focus on our clients and their success. Thank you for your efforts to keep Invensys strong.
Ulf Henriksson Tuesday, February 3, 2009 As for the example posted about stream routing for PRO/II and ROMEO, the offshore people do not own these products, they are supposed to do what is agreed upon based on assigned projects. They are not given the responsibility to steer the products. It is the responsibility of marketing and sales. If the problems are so critical, they need to be assigned as projects with budget and resources and the problem will surely be worked on right away. Tuesday, February 3, 2009 What makes this even more curious at IPS is that the individual responsible for development was not a supporter of outsourcing or offshoring - he was sometimes strongly against it. Yet he cowered with fear when 'told' to increase our offshoring percentage, and did what he was instructed to do, knowing full well that it would not be the best thing for Invensys. But it may have been the best thing for him. Now we sit and wait for Lake Forest to shrink away to irrelevance over time. Claims that we would be the base for IP-centric development ring hollow, since he can no longer be believed or trusted. Tuesday, February 3, 2009 I used to work for Invensys and am now working for an EPC. Invensys' competitors are also doing this - ALL these are under the illusion that it saves money and can bring down project costs. I have nothing against the people from the offshore centres. All this offshoring work thing are as a result of :
Now it seems that all of a sudden, all the long term and immediate projects are to be "slowed down" or totally cancelled by plants and end-users a result of the current economic slowdown. What I see as infuriating is that the locals are being laidoff and "retrenched", but yet some of the offshore people are still hanging around. I think resentment will set in soon when this is not handled properly. Monday, February 2, 2009 How do you expect anything but a cost-cutting mindset whilst you have leadership that has no ideas whatsoever for organic growth? Notice that the insular group of leadership in the software side of the business is also highly biased towards a particular offshoring location. It certainly makes one ruminate as to whether there may be ethical concerns below the water level. As the saying goes, you can cut costs all the way down to zero, but you'll be out of business then. Invensys is certainly on this path. The only solution for saving Invensys is a wholesale change to the leadership team(s) in the various businesses. This needs to start with a change at the top. Invensys's competitors are out-manoeuvering, out-strategising, and out-executing Invensys at virtually every turn. Mr. Henriksson has done a fine job of restructuring the company's debt and cleaning up the financial messes left behind by his predecessors, but he has largely failed to create any type of unifying strategy - beyond slogans - for the company that prepares it for the future. This is not his forte, nor is it that of those on his leadership team. Attempts to unify the various automation businesses within Invensys have been abject failures, and there is no reason to believe that the recent appointment will have any substantial effect on realising a different outcome this time around. Even in these trying economic times, whilst a cost management programme is important, we must have someone at the helm who can chart a path for a viable future for Invensys and can, at the same time, identify cost management activities that do not mortgage or destroy our future. Others have highlighted the incredible waste and ineffectiveness in the HR and EH&S organisations. Talent management is a complete joke - our HR organisation has failed terribly in this task, and has created a talent development process based far more on politics than performance. Our product development results and returns of investment are well below the industry norms, and fault must be laid not at the feet of the employees, but on the leadership. These are but a few of the challenges that face the company today, and employees and shareholders deserve leadership that is prepared to face and surmount these challenges. Monday, February 2, 2009 - RE: blog "Outsourcing/offshoring sucks." Consider a simple live example, 80% of Simsci-Esscor (a group of IPS) revenue comes from the ROMeo and PRO2 products. In these products they are number of stream routing issues. Why can't onsite people try to fix these types of issues? Is it something like "onsite people do not understand the problems and agreed solutions associated with the project(s) they are working on? And blindly blame outsourcing group. Saturday, January 31, 2009 - add-on from Ex-IDC employee: Serve in heaven or rule in hell? It's hell out there in US with job cuts and bad econony. Only the guys who can rule have place here today. Unfortunately not everybody is born to rule. India/China may be heaven for now but only if you are ready to serve your onshore masters in US, are always respectful, submissive and acquiescing. Innovation has no place in your workplace. Where would you like to be? Friday, January 30, 2009 - from an Ex-IDC (India) employee: Agreed, "the outsourced/offshored people do not understand the problems, etc." Because, well, they are not made to understand by their counterpart on the other end. That is you who have the proper understanding. And why would you? You have worked hard to gain the expertize and it is the job of the outsourced guys to learn it themselves. I can assure you, that the understanding and expertize will NOT come easily because the outsourced people don't have the client interaction and other advantages that the USA guys have. They don't know the "real" problem; they just do what they are told based on some design document prepared by someone they haven't seen, or will see once in six months. So what are you worried about? The outsourced guy is just there to help the "experts" to do menial jobs. So prove that you are the expert in your field to your bosses. If you are not, then your job will be outsourced. Outsourcing is the reality of the day. Use it to your advantage or quit. Friday, January 30, 2009 I agree with you that offshoring sucks. First of all, its hard to communicate with these people. We just called a meeting at Wonderware to discuss the issues we are having. The list is huge. The senior managers do not not understand how to deal with these issues. They simply cannot solve the problems. Lack of communication, etc. And, they do not take the issues seriously like lower level managers do. Many of us pulled together to try to handle this problem ourselves. We will see what happens.... Friday, January 30, 2009 Outsourcing/offshoring sucks. Period. I don't care what company you work for, the outsourced/offshored people do not understand the problems and agreed solutions associted with the project(s) they are working on. The only reason companies do it is to save money, and even then they are not saving money because it just leads to more frustration and wasted time in communication efforts. I have worked at GE, ABB, and IPS and seen the same result at all three. Upper management thinks they are saving money and does not realize how much they piss off their own employees. Friday, January 30, 2009 - Appointment – SVP – Industrial Automation Integration Ulf Henriksson announced today that Jeff Greene, former President of Eurotherm, has been appointed to lead the IA Transformation project as SVP – IA Integration. Chris Bates, Eurotherm CFO will be stepping in to lead Eurotherm on an interim basis. Ulf : The IA project will define the synergistic value and options for integrating capabilities within our three Industrial Automation (IA) businesses (IPS, Eurotherm and Wonderware) and build an action plan to unlock the potential that synergies can offer to both Invensys and our customers. Comments: Interesting move that seems to be the opening shot to rebrand everything to IA. Hope this comes off better than the move to port Wonderware software over to IA customers under the infusion banner. Thursday, January 29, 2009 The applications engineers at IDC (India) with more than 15 years exp, have only 10% of the product knowledge. Without full knowledge, they raise software bugs which are not bugs at all. Thursday, January 29, 2009 "Do not under-estimate offshore operations" - the previous blog, evidently written by the offshore people. Complete BS. Thursday, January 29, 2009 Do not under-estimate offshore operations, People at offshore have good Experience, Excellent Innovative technical minds and are backed by strong leadership quality people. Wednesday, January 28, 2009 If Ulf and his brains-trust had their way, they would close Lake Forest and Foxboro and move everything offshore. They'll do it, one way or another. Tuesday, January 27, 2009 Read Jim Pinto's 2 items in the latest issue of JimPinto.com eNews, 27 January 2009: Monday, January 26, 2009 As Invensys continues to drive cost out at the expense of innovation and expertise, customers have good reason to look elsewhere for solutions. Ulf has bought in to the offshoring/outsourcing of the company, and there is little that can be done now to stop the demise of the organisation. Monday, January 26, 2009 When gold coins was distributed at IDC (India) for "100 years of Foxboro", top management resorted to all sorts of methods to grab them. People who worked for Foxboro in technical position at IDC did not receive them. People who are not aware of the difference between a "system call/library call" and claim themselves as principal software development engineers and project managers, took them most. It is pity that IPS management is showing a blind eye for IDC mismanagement. Sunday, January 25, 2009 A $250M order that is executed poorly does nothing to help a company. How can an order be executed well when you cut all the knowledgeable personnel? The real "proof" (not some copy and paste about one order) is the historical track record of Invensys, all the way back to the Siebe merger. They take good companies and ruin them through the "buddy-system" management process. All of these guys are part of the problem in world economics today; people of privilege accepting large sums of money to do a job they are not even closely qualified to do. And getting the job because you are a golf buddy of the CEO. Then filling high paying positions below you with more unqualified friends and cousins. All decisions at Invensys are short-sighted and are they are made to cover up bad management. Example, buying Baan, then having to sell a bunch of companies to balance the books so the management team looks competent to anyone who does not scratch below the surface. Remember when they rebranded all the companies to become Invensys a few years ago? How idiotic was that? Take names like APV with a 75 year client base and call it Invensys? Why? And management probably spent 2 months discussing this after hiring their friend's consulting company to review the decision. I have heard the stories from people close to this inside circle and it is laughable. The seasoned people who have an understanding of the business and the customer base are almost all gone now; a product of the many employee purges through all of the management changes. Good luck to everyone still under the Invensys umbrella. The best you can hope for is to be one of the Invensys fire-sale companies. Maybe then you can re-build the company you labored for and are proud of (ie - Foxboro). APV was very lucky to get out. Sunday, January 25, 2009 Actually, quite a few companies receive orders of that size, particularly within the China market, due to the centralized decision making and vendor selection process. Do your homework before posting next time. Saturday, January 24, 2009 IPS is becoming stronger. In some areas in the world (not in the US) Invensys is considered to be one of the healthiest Automation vendors. Below is the proof:
Friday, January 23, 2009 Sometimes Rail makes money as well. Depends on whether they are in feast or famine mode. IPS Foxboro/Triconex have the installed base and are the money makers. Been there/done that on rebranding both to Invensys. What a fiasco! The competition had a field day with that one. New and different (branding or otherwise) is commonly seen as untried and risky. Much safer to stay with the tried and true. Hard to build a realistic value proposition on repainting the flagpole. Only leadership that doesn't understand the industry would propose revisiting such stupidity! 'Tis to be expected with the consistent practice of hiring of senior people who don't have a clue but are able to talk a good game from outside the industry. The only change management that seems to be driven here is the change from consistent best practice to chaotic disruption and the latest managment fad. Friday, January 23, 2009 The Times issues a BUY recommendation on ISYS Tuesday, and the stock plummets another 6% today. With the depressed price plus the implications of the collapse of the pound relative to the dollar, why hasn't one of the US companies made a move yet? Friday, January 23, 2009 Not true. IRG is making money as well. Thursday, January 22, 2009 I'd like to know just exactly WHERE you THINK all the money is made. For YOUR information, IPS is the ONLY organization making any money. Thursday, January 22, 2009 Cash injection to revive the company or throw in the towels at the right time? At this point, it is sadly like a seriously ill patient in a hospital. Do you want to put more money in to try the latest procedure and miracle drug? Or do you just let him pass on comfortably to the next world? Emotional decision? You bet, you are talking about venerable brand names like Foxboro, Triconex and PRO2. Moral decision? Of course, you are talking about the livelihood of many people. Rational decision? It is all about ROI, cash and the poor shareholders Ulf - your call. Make a decision. Thursday, January 22, 2009 Cash injection? Invensys is sitting on over 200 million British Pounds of cash on the balance sheet. What are you talking about? IPS is the problem. Ulf let Paulette make mistake after mistake. When he finally realized what he had allowed, he had no choice but to fire Paulette before questions were asked about him. If it was planned how come no replacement is around and Ulf needs to now manage it personally? Interesting times ahead. Will Ulf now go through with the plans to destroy Foxboro products or finally realize where the bucks are made? As for Invensys being taken over? It's when rather than if. Once Ulf comes clean the stock will tank and Invensys will be history. Thursday, January 22, 2009 No way they can be preparing for an acquisition - just look at the balance sheet! I can't see anyone with half a mind providing funding for an acquisition, nor would any company worth acquiring agree to an acquisition by share exchange, given the share performance of the company. My opinion - they need both a cash infusion (perhaps from selling one or more of the remaining businesses), and MORE IMPORTANTLY they need an infusion of executive and operating management that understands the markets they are in and what they need to do to succeed in those markets LONG TERM. Wednesday, January 21, 2009 My purvey on the trading statement is that Invensys is on a track focused on cost reduction and preparation for sale, not on business growth and expansion of market share. There may also be a nearly opposite plan afoot - to undertake bold acquisitions - which shall almost certainly fail, if past performance is any guide. Wednesday, January 21, 2009 From your comments "many of the recent P1 bugs can be traced directly to work at IDC. Their expertise in our business is very minimal. Also, the development leadership is very questionable", it states that IDC is BPO (call center) company for Invensys. Tuesday, January 20, 2009 IDC is very good in QC,Testing and document generation. Technical minds for QC/TESTING/DOCUMENT preparation are excellent and very good. As for as software programming and bug fixing it is a BIG ZERO. Technical minds for software DESIGN/PROGRAMMING/BUG FIXING is non-existent. Tuesday, January 20, 2009 Stock is tanking, and has underperformed the FTSE lately. There are obviously some deep fundamental doubts about ISYS's future prospects. Watch for scattered big block buys, indicating a potential accumulation in advance of an acquisition move. Tuesday, January 20, 2009 What does everyone think about today's trading statement, and specifically the comments on IPS? Were today's comments a reflection of a horrible end to 2008, when the customer base/the whole world was sitting on its hands unsure of what to do next, only certain that now was not the right time to invest? Or is IPS a genuinely cyclical business that is set to show double digit declines for the next 2 years? Is the automation industry just a nasty boom-bust business like the power market, or are there structural grounds for optimism? Tuesday, January 20, 2009 Invensys plc, the technology group, today published the following Interim Management Statement covering the period since 30 September 2008:
Summary The global economy has continued to deteriorate since we reported our half year results in November 2008. However Process Systems achieved good order intake despite some delays in order placement by some customers and Rail Group continues to perform strongly benefitting from large government financed investments in transport infrastructure. Controls has shown some resilience but has had to contend with more difficult trading conditions. The Group results have benefitted from the translation impact arising from the strength of the dollar and the euro against sterling and we expect that our performance in the second half of the year will be broadly in line with that achieved in the first half. Q3 Performance Overall the Group had strong order intake during Q3 2008/09 with the award of three large projects bringing total orders during the period to £1.0 billion. Process Systems had good order intake, particularly in software and solutions including a £127 million order for control and safety systems for four reactors at two nuclear power plants in China. This more than offset the cautiousness of other customers in placing orders in the current uncertain economic climate. Rail Group continued to have strong order intake in its core markets of the UK and Spain, supplemented by two large export contracts, including a £123 million project for signalling and train control for a new mass transit line in Singapore. Controls saw further deterioration in global demand as many customers reduced their production and inventory levels and this was exacerbated by extended customer plant closures during December. Process Systems revenue in the third quarter rose helped by currency translation but at constant exchange rates, was negatively affected by some customer-led delays in project implementation and reduced volumes as well as pricing pressure on product sales. Operating profit was impacted by the lower volume of product sales and therefore reduced. Rail Group produced another good performance as it continued to deliver on its strong order book. Controls profitability was significantly reduced due to the lower than expected volumes, particularly in North America but it continued its good cash flow performance. Cash Flow Operating cash conversion was strong across all businesses resulting in Group operating cash conversion in excess of 90% and at 31 December 2008, we remained debt free(1) with £238 million of net cash on the balance sheet. Management There has been a leadership change at Invensys Process Systems (IPS) with Ulf Henriksson, Chief Executive of Invensys plc, taking on the additional role of acting Chief Executive of that business pending the appointment of a permanent successor at IPS. Outlook The strengthening of our order book during the period, together with the less cyclical nature of Process Systems and Rail Group's end markets, reinforces our confidence in the medium term outlook for the Group; however in the short term, we are having to manage difficult and uncertain trading conditions in some of our markets. We expect Process Systems markets, especially oil, gas and power, to remain generally stable but in the short term we are likely to experience further delays in both project and product orders and revenue as customers react to poor economic conditions. We expect Rail Group to perform strongly supported by its significantly increased order book. At Controls, it remains unclear what ongoing order levels will be following the extended plant closures by customers during December and early January and we are likely to accelerate our cost reduction programmes. Overall, based upon our current expectations for market conditions in the final quarter of the year and with the assistance of currency benefits due to the strength of the dollar and euro against sterling, we expect our performance in the second half of the year will be broadly in line with that achieved in the first half. Tuesday, January 20, 2009 Tooting IDC's horn is obviously a comment from an IDC team member. The only topic we could agree on is that there are some bright technical minds there, yet little practical knowledge. Sadly, many of the recent P1 bugs can be traced directly to work at IDC. Their expertise in our business is very minimal. Also, the development leadership is very questionable - all the way to the top. Monday, January 19, 2009 ROI on IDC hyderabad is very high. Experienced, innovative technical minds matched with good management is the key for the popularity of IDC. I see IDC becoming more stronger day by day. Surely invensys should be looking forward for investing and expanding it. Friday, January 16, 2009 Skyrockets in flight? Customer delight? Oy vey! If accompanied by music, APV employees were lucky if they were able to keep their food down. I have a newfound appreciation for the pain and suffering of APV. Friday, January 16, 2009 I have to echo the sentiment that the FIRST place to look for cost cutting would be in our ridiculous HR organization. Fat, fat, fat and very little value to the business. Paula is a personal friend and confidant of Ulf, however, so I seriously doubt if he has the nerve to do the right thing and get rid of her very high salary and high cost team. The next place to look would be the ludicrously large and expense EH&S group. These pieces of the company are bloated and ineffective and need to be trimmed by 50-60% or more, and the current leadership removed. Friday, January 16, 2009 Although it is possible and maybe even likely that Ulf would put Lance Vandenbrook in the position - as everyone knows, family and friends come before the business and shareholders with Ulf - it would be laughable. LVB knew nothing about the process industry while with APV and his Cusotmer Delight theme was a joke, he window dressed the company so Invensys could unload it for a descent price. Lance knows even less (if that is possible) about the controls and automation business. As a competitor, I would welcome - in fact love - if Lance were put at the helm. He would continue the blood letting of the remaining talent, bring in his family and friends and commotitize the IPS offering - just like he did at APV. Friday, January 16, 2009 If Ulf taps Ron Wichter, he will be making another huge mistake. Ron has come in and imposed an untenable vision for how IPS should do its business; the bottomline being that many heads of workers must roll to make financial numbers. The strength of IPS is its people and the solution for growth is to get the exception people of IPS closer to the customers to deliver high quality results. Putting in another bottomline cost-cutter with little to no knowledge of the automation industry will be abject failure leading to the best and the brightest going to the competition. Friday, January 16, 2009 Lance Vandenbrook may be a longshot but a possiblity to move up the ladder again. Family relationships seem to be the most important factor in promotions at Invensys. Did he initiate his "skyrockets in flight" - Customer Delight nonsense at IPS like he did at APV? Thursday, January 15, 2009 If Ulf sends the head of our very expensive HR organization on her way, they might swing by Houston and take the North American H/R head out the door while they're at it. There will be no need to recruit for replacements. Thursday, January 15, 2009 Ron is a high probability for a key role in the next regime. It will be interesting to see if Ulf sends the head of our very expensive HR organization on her way. That would save a lot of money and I bet she was directly involved in some of these executive hires and fires. Thursday, January 15, 2009 What do people think of the new operations guy Whichter? could he have been brought in to replace our beloved ex leader? Thursday, January 15, 2009 One point of clarification. People did lose their jobs due to the relocation. It is not a rumor. My job was not outsourced. The function was moved to Dallas. Many people have been laid off in Foxboro over the past 15 months; some of those functions were moved to Dallas, too. The relocation has been devasting to those people who have been affected. So much talent has been lost. And God help the people who are still looking for jobs in this economy. Thursday, January 15, 2009 Seems that this move by Ulf on Paulette is too sudden to have been an ongoing performance issue. His terse note and his lack of preparation as to a successor seems to indicate that this was a complete surprise. It is also worth noting that this is not his style in that he has been very tolerant of those that he obviously likes (as opposed to Ken Brown). My thought is that this appears to have been triggered by an event which must have clearly dictated this action. We may never know the whole story but rumors abound. Wednesday, January 14, 2009 Top management at IDC, Hyderabad is full of nepotism. It is true that brothers's daughter of top management was taken as trainee and then after one year promoted as software engineer. Many brilliant trainees were given marching orders. One can see third grade engineers working in IDC. Wednesday, January 14, 2009 I don't understand how one can say that no Foxboro employees were affected by the relocation; there were job losses attributable to that move and concurrent organizational changes. To introduce a strategy to grow services and consulting as complementary offerings to the existing Foxboro and Triconex brands sounds fundamentally sound, in my opinion. Ask your Triconex contacts about the price pressure they face. I suspect they'd agree that a well-crafted and executed introduction of services and consulting that provide value would be worthwhile. They probably just haven’t seen such a plan yet. Phil himself sat in front of the Sales group several months ago and said “The problem we have (with the focus on Services and Consulting) is that we don't have anyone internally who has actually DONE this before.” What kind of statement was that? If he doesn’t address the issue, who will? Maybe the EDS'ers did well in managing a steady-state services business at their last place, but it would appear that the actual implementation of such a business isn't their 'long suit'. Finally, the fact that Foxboro might not be the best facility to bring a customer misses the primary issue, in my view. It is the moribund, closed-minded, non-participative, thisisthewaywevedoneitfor100years attitude of long-time management inside the facility that needed to change. (KB was a very notable exception.) Those attitudes are self-limiting. They also tend to be invisible to those who manifest them. If Eberhart's bold move was an attempt to change that, give her credit. Wednesday, January 14, 2009 Paulett is gone and yes, there are few people that are sad about it. However, I want to at least clarify on a couple of blogs here that are false:
To the point about the relocation, I agree that Foxboro is not exactly the facility that I would bring a customer to; no offense. Lots of Foxboro employees got mad when the move occured (although NONE of them were affected). Rumors about people losing their job because of the relo were just that, RUMORS. However, people did lose their jobs because of outsourcing decisions and that itself is a shame. While I am not defending Paulett I felt it only fair to at least print FACTS not speculation. Especially since I am still an employee and care about what others read (and think) about Invensys. Wednesday, January 14, 2009 I've been involved with IPS for many years. The idea that you have to "turn around" something is flawed. This framing of the problem leads to the conclusion that we need a "fix" and this in turn leads to "fixers" selling their stories (ie: the current EDS service fixers). It leads to plans created from on high and forced down the throats of the people actually doing the work. It leads to a new team coming in and having a whack at the pinata. It leads to self serving actions of management (dallas move & cronyism). In any bureaucracy people follow power first and sound ideas second (else your head may roll ie: Phil Clark actions). It's the responsibility of management to make sure the two are together. We need leaders which listen to and understand the customer. Leaders who facilitate the people actually doing the work. Leaders which are stewards and workers which are enabled to focus on and solve customer problems. Not more plans, just common sense and great execution. An excellent contractor I've worked with at Triconex has pointed this out to me over the years. How right he is. Wednesday, January 14, 2009 As Foxboro and Triconex go so goes IPS. Many bit players in the IPS family with delusions of grandeur. But without Foxboro/Triconex and their associated installed base there is no IPS. Wednesday, January 14, 2009 +1 on Ken Brown. Wednesday, January 14, 2009 With a few of the Invensys leadership team supposedly in India this week on short notice - one speculates whether Invensys is shopping itself to Reliance or Tata... Tuesday, January 13, 2009 Ulf should take a closer look in other regions, ESP Asia Pacific. Approved cases of working relationships with friends, relatives, spouse are common, only at executives level. Tuesday, January 13, 2009 To whom it may concern: Foxboro the so called 800 lb. gorilla has been the biggest cash cow IPS has. To make a statement saying Foxboro is to blame is just dumb. If ULF HAD PUT KEN BROWN IN CHARGE THERE WOULD BE NO PROBLEMS. Get it? This mistake is on Ulf's plate and no one else's. Tuesday, January 13, 2009 The only reason for all the money spent on Plano was that Paulette would not have a significant commute and an opportunity for her husband to pull in a significant check for the renovations. This seems to have been the main consideration underlying all of her actions. Any consideration of what is good for the business is overridden by what was good for Paulette. This also could be seen in the seemingly endless number of former friends, family and associates that she brought in as vice presidents, all with dubious agendas and no apparent business expertise. Monday, January 12, 2009 Ulf could do a lot better than Gill, too. It remains to be seen what he will actually do. Monday, January 12, 2009 Ulf could do a lot worse than bring back Jeswant Gill - ex IPS Apac President - to replace Paulette. Monday, January 12, 2009 Ulf has been directly involved with most of these hiring decisions. First, Ms. Eberhart, then, Mr. Bhattacharya. Both poor choices, for different reasons. As the other person mentioned, Ulf's ability to identify leaders is seriously in doubt. Perhaps it is now Ulf that should move on, as his skill set is no longer needed at Invensys. Monday, January 12, 2009 I thought it was Mike Caliel before Paulette...? Unless I am mistaken Burnell was just VP NA and VP Sales. Anyway, every new leader after 2001 were given an impossible task of turning things around...but I think they are all well paid for it so they should not complain. Monday, January 12, 2009 I believe that the "destruction" of IPS is due to the stranglehold of Foxboro on the company's agenda. Many saw it a brilliant strategy to move the seat of power from Foxboro to Plano and many employees I met at conferences liked what they saw. Many called it liberation to be out of the shadow of Foxboro!! It was felt that IPS could without fear or favour decide it's path without the 800-lb gorilla (Foxboro) pulling it's weight to suit all IPS policies, processes and technology to suit Foxboro's unique needs! Saturday, January 10, 2009 Why am I not surprised! Burnell, two years and out; Eberhart, two years and out. Who is next? Or is it correct that Paulette was brought in to package IPS up for sale? Having met Paulette, I must admit that I do respect her and if you want to go against her very strong will, yes you could call her all sorts of things. One thing I do know, you cannot call her crooked, stupid or lazy. She was definitely blindsided by how badly the books had been cooked by a previous regime and was left with a mess to clean up by the bungling Burnell. Here is the big question? Who will buy IPS? There is life after Invensys.... Friday, January 9, 2009 The issue is the stability of management. Every couple of years a new management team comes in then leaves. It’s a revolving door. No company can achieve world class status at this rate. Ulf needs to address this issue. Friday, January 9, 2009 I worked at EDS, and Paulette was the emptiest suit I've met in 25 years at Fortune 500 companies (and EDS had a fair share of those). She really didn't know her business and couldn't make decisions. She changed her mind constantly and appeared mostly interested in the perks that went with her title as opposed to making a contribution. I am always amazed when people get so far in their careers with so little to go on ... As for her being a witch ... well, there are plenty of people who would vote "yes" on that one. Friday, January 9, 2009 Ulf wouldn't know talent if it smacked him in the head with a board. He has made numerous poor personnel choices, many of whom are still with Invensys. Friday, January 9, 2009 Word is that the rapid departure of Paulett was due to a number of significant accounting irregularities. Lots of sketchy stuff has been going on from the beginning and this is the final straw. The move to Plano (hint: customers are in Houston) with her husband winning the lucrative contract the removate the new office space. Numerous new senior staff hires with virtually no experience or value add to the business. Only core competency here seems to be the ability to focus on personal benefit with little regard for the overall IPS business. Ulf can certainly pick winners. Thursday, January 8, 2009 - Open letter to Ulf:
Please do yourself and all of us a favor. Get rid of these ex-EDS and other Plano flunkies. Move back to Bristol Park. Go back to the basics and try to get Foxboro, Triconex and other IPS divisions back to their true potential. There are still some good Foxboro managers remaining. Hire back the ones that Paulette let go if they are still available. I/A is still one of the best DCSs out there. Triconex is the de-facto safety shutdown system in many refineries. ROMeo and other optimization applications are well ahead of competition. Get a focused marketing team that can truly sell the IPS solution. Look at Honeywell, a vendor with substandard products and great marketing that is leapfrogging IPS at every opportunity. Ex-employee, now a customer. Thursday, January 8, 2009 Paulett is not a witch. She was just given an impossible task. So now what will happen to all the ex-EDS? Thursday, January 8, 2009 Paulett Eberhart, formerly President and CEO of Invensys Process Systems, is no longer with Invensys. Who next? Thursday, January 8, 2009 Paulett no longer works for invensys and I'm glad the witch is gone. Thursday, January 8, 2009
IPS management change I am announcing today that Paulett Eberhart, formerly President and CEO of Invensys Process Systems, is no longer with Invensys. I will be stepping in as Acting President and CEO of IPS with immediate effect and will be spending the next few days with the IPS leadership team in Plano working with them on their AOP reviews. I would like to thank Paulett for her efforts over the past two years and wish her every success in the future.
Ulf Henriksson Wednesday, January 7, 2009 - Regarding the Tuesday Jan 6 comment: IPS North America is not down - it is growing at a better than in the past 7 years. Get your facts straight. Tuesday, January 6, 2009 The family culture exists in IDC, Hyderabad. One can see brothers, wives ... with the help of top management. HR at does IDC does not exist at all OR they are dumb. Tuesday, January 6, 2009 IPS business is down in North America - up in Asia. Can reduction of IPS NA staff be far away? I think not. Sunday, January 4, 2009 What Invensys era? Invensys has never had an era - it is just a mediocre company with less than mediocre management collecting big salaries for themselves and large $$ payments to their spouses and other relatives (IPS). Invensys values? Are you kidding? Sunday, January 4, 2009 It would not surprise me in the least to see Invensys change hands in 2009. Whilst these rumours have been persistent for years, the fact that Ulf is nearing the end of his useful life with the company, the addition of Sir Nigel Rudd to the lead the board, the departure of Steve Hare, and the inexperienced leadership at the various Invensys businesses - with the exception of IRG - would lead one to infer that the high water mark may well have been reached. Barring some substantial turnover in the leadership ranks - at head office, IPS, and Wonderware - the best times may be behind us. Saturday, January 3, 2009 - re.:"Is 2009 year going to see end of Invensys Era?": I think the Invensys Era was over when it was still Siebe. It will likely just wither away to an infinitesimally small entity as the latest CEO discards or sells the remaining fragments. Wednesday, December 31, 2008 Is 2009 year going to see end of Invensys Era? Sunday, December 28, 2008 A shift to Windows for I/A won't happen until Archestra actually works. Saturday, December 27, 2008 If Invensys is going ahead with I/A on microsoft technologies, then what happens to the people running I/A on Solaris. Is it possible to shift them to I/A on Vista. What about applications running only on SOLARIS? Saturday, December 27, 2008 HR at IDC will have work once-in-a month. They will send a mail to employees to look into the minutes of meeting. Less amount of work, but more staff. Without any technical background,they recruit people. Friday, December 26, 2008 HR at Invensys is a bit of an inside joke. The amount we spend - and the number of senior staff associated with HR - could be much better spent on people who actually add value. It seems that many of the HR initiatives are largely hand waving and rah-rah, with no real commitment or substance behind them. Thursday, December 25, 2008 Saw something in an earlier post about I/A 8.x on Solaris. I thought that Foxboro/Invensys was throwing UNIX development overboard and moving exclusively to Microsoft's platform(s). Additionally, how have they decided to cope with Microsoft all but dead-ending XP for Vista ? By the way, I/A for XP is the best I've seen from them in a long time. Tuesday, December 23, 2008 Watch what happens next. Some bag holders are going to get caught. IPS starts a serious decline. Controls continues its, and the Rail division at best holds its ground. Can't believe there hasn't been a warning or at least appropriate guidance. This stock will be below one UK pound when it comes clean. Watch the lay offs start in Process systems. The HQ move to Texas was a joke now the bill has to be paid. Monday, December 22, 2008 Very interesting that in the past couple of weeks ISYS has not been consistently tracking the broader FTSE, and there has been a lot of volume accumulation on the downside of dips (with no corresponding volume on the upticks). Someone may be squirreling away shares! Sunday, December 21, 2008 Once support for I/A 6.X and 7.x ends. Then people has to shift to I/A 8.4(SOTM) on solaris 10. How long it will take to phase out I/A 6.X and &.X? Friday, December 19, 2008 If Invensys wants quality development process and results, Invensys needs restructuring of its development leadership, starting with the top, the source of most of the problems (or at least the impediment to fixing most of them). Thursday, December 18, 2008 If IDC wants quality engineers, then IDC must perform restructuring of IDC Leadership Team. Wednesday, December 17, 2008 I've noticed that the terms 'Ethics' and 'Values' are sometimes used in error. These terms are sometimes synonyms for 'something I don't like'. Wednesday, December 17, 2008 Two words ...... Cosourcing and Genpact..... Goodbye Foxboro, we hardly knew ye. Wednesday, December 17, 2008 So much for Invensys Values, eh? Moot point though, since Sir Nigel will dispose of the pieces in short order. Tuesday, December 16, 2008 Indians are ready to do any kind of junk work like documentation,porting and testing, so hiring them will easy at IPS. They are very good in doing all kinds of work, rather to become a specialist in one field. One can find Indian Engineers in IDC,Hyderabad viewing UNIX binary files in MS notepad/wordpad. Recruitment needs to be checked at IDC. Tuesday, December 16, 2008 The Indian bias at Wonderware is going off the charts. It is happening with our new hires (even here in the US), our outsourcing partners, we are even being asked to consider these partners first for integration work. I have no problem with talented people who have value to add to our company joining our team. I must say that many of the recent additions do not fit that description. I am uncomfortable with where we are headed and the ethics behind it.
Tuesday, December 16, 2008 - Re: "gender-neutral" comment:
The industry is supposed to be gender-neutral. Is it? Tuesday, December 16, 2008 - Re: "Invensys Process new exec team is almost all women with no industry experience." The fact that you feel it necessary to point out gender in a gender-neutral industry is already biased. Monday, December 15, 2008 Word is that IPS/Foxboro let go of the entire marketing group in Foxboro, MA - true? Sunday, December 14, 2008 What was reason for no layoffs at Invensys Development Center, Hyderabad (IDC). One can see three engineers working on the same problem. Lots of duplicate work. For Testing one CR, there will be FIVE engineers. Sunday, December 14, 2008 - Regarding "If you're not in India or aren't Indian, watch out.": Perhaps we can have ourselves naturalized as native Indians to keep our jobs? Where are those Indian men and women looking for a spouse? Sunday, December 14, 2008 Things are about to get interesting. Sales in Controls continue to drop. Process systems is rapidly loosing market share and even the sucessful Rail business is in trouble here in the US. A profit warning must be on the cards and I believe that the only reason it has not been given is the stock would have dropped out of the FTSE100. Invensys employees, especially those in Process Systems should expect major layoffs and plant closures in the near future as reality starts to dawn on the inept management. Thursday, December 11, 2008 Eddie at PAS was wise to bring in Chris. Good move for both of them. Thursday, December 11, 2008 - Re: Wonderware layoffs: If you're not in India or aren't Indian, watch out. Wednesday, December 10, 2008 Just received news that Chris Lyden has left Invensys (no surprise) to become President of PAS. At Invensys Process the new exec team is almost all women with no industry experience. I'm not sure that I'm optimistic about its survival - not so much about women, but more about leaving behind the base of the company in pursuit of being an industrial EDS- -which has now disappeared. Wednesday, December 10, 2008 9 People were laid off from Wonderware, Lake Forest. What a nice Christmas present for those families. Wednesday, December 10, 2008 Nice that someone was able to manipulate the price enough to stay in the FTSE 100. That would not be a nice welcoming gift for Sir Nigel. Tuesday, December 9, 2008 - Reuters Messaging - Invensys rallies as FTSE future safe-traders (extract): Shares of Invensys jump by 14.6 percent to top the list of FTSE 100 gainers, with traders citing that the firm is not set to fall out of the blue chip index. The quarterly review of the index measures market capitalisation as at close of trading on Tuesday, and companies that fall to 111th spot or below drop into the mid cap FTSE 250 index. The changes will be confirmed by FTSE on Wednesday and will be implemented at the start of business on Dec. 22. Friday, December 5, 2008
Excellent article in the Times discussing why Invensys shareholders should be excited about the move (employees, perhaps less so).
It will be interesting to see what changes happen within the organisation, not just the board. Thursday, December 4, 2008 If history is any indication, Sir Nigel's appointment as chairman surely portends a near term sale of Invensys. Thursday, December 4, 2008 So much for a "new Invensys"...look at the other "great" companies this fellow has been associated with and their stock performance. Uggh.
Nigel Rudd to be Invensys chairman - LONDON (ShareCast)(Extracts) Sir Nigel Rudd will become a non-executive director and deputy chairman at engineer Invensys on 1 January next year. The firm intends to make Sir Nigel chairman when the present incumbent, Martin Jay, retires following the Annual General Meeting next July. Rudd has currently got his hands full at Barclays where he's deputy chairman and senior non-executive director. He's also chairman of airport owner BAA and car dealer Pendragon. Thursday, November 27, 2008 Yes, Rick Bulota wanted to fix the issues. I was very disappointed when he left. Monday, November 24, 2008 - Wonderware question: Did Rick Bulota's leaving have anything to do with the development issues? Monday, November 24, 2008 Regarding Invensys performance, in the context of this weblog, you need to look at Process Systems, not overall Invensys. IRG continued to be strong, while IPS rev/earnings numbers were flat. The investor section on Invensys.com has presentations detailing the individual business numbers for 1H and the impact of currency on results. Sunday, November 23, 2008 Invensys reported a 13% percent improvement for the half year vs last year. Does anybody know how much of this improvement is due to the strengthening of the dollar VS the pound? Friday, November 21, 2008 - Changes at Wonderware - from a Wonderware Insider : Ulf and Sudipta are very unhappy with Pankaj. Two new VPs are being hired and one on the way. The goal is to hire people to do what Pankaj should have been doing all along. People are unhappy with Pankaj's legacy style of management (not leadership). They seek change from younger VPs. : You can expect a major change in the head count of Lake Forest staff in the near future. Friday, November 21, 2008 We are hearing that there may also be a layoff here in Lake Forest. What a nice Christmas present that would be! I hope not. We are already understaffed and stressed to the limit. Adding more people who don't know that they're doing just because they're lower cost won't help, it will be a disaster. Monday, November 17, 2008 The issue is not merely with IDC leadership - it is with overall dev leadership. A change might be well advised in the organisation at that level. Sunday, November 16, 2008 The experience certificate given by HR department "mentioning experience" never matches with the designation given to the employee. With this, One can understand the level of HR. Very inefficiant..... Saturday, November 15, 2008 The business head and project managers at IDC, Hyderabad, India are not in a proper position to evaluate their team members correctly; technically they are not capable. The result: a) A senior software engineer doing non-technical work got 10 percent hike. And b) a senior technical specialist working on three critical products, ZERO hike. Senior Invensys management(US) should look into the CV's of managers at IDC. Friday, November 14, 2008 400 laid off at IPS on Thursday, November 13. (Note: Another blogger asks: Should that be 40? Typo?) Marketing, Sales, and Development hit. I was a part of the lay off and hold no ill will, but I figured many people would be interested to know. I was labeled 'High Potential' and one of the global goals cascaded was 'talent retention and growth.' I could pontificate, but that is imprudent. The only clear insight is that all is not well if they had to let HIPO's go. Wednesday, November 12, 2008 The top management at Invensys USA/UK must be aware of the following facts: At IDC, Hyderabad you have more Software Development Managers who will do just people management without any technical assistance to their members. They do only postman job, by simply forwarding mails. 98 Percent of the technical members at IDC, Hyderabad cannot differentiate between ethernet address and IP address. Check it out yourself. Wednesday, November 12, 2008 If the IDC is that terrible, it sure took you long enough to report this problem. Saturday, November 8, 2008 The referral program at IDC is nothing but sharing money among top level. They recruit inefficient people and divide money among themselves. Saturday, November 8, 2008 Invensys Development centre at Hyderabad, India is nothing but garbage. Inefficiant HR, no Technical brains, Admin and Finance department. Software development managers don't understand, what the team members are working on. Thursday, November 6, 2008 LONDON, Nov 6 (Reuters) (extract) - Invensys reported a 12 percent rise in first half operating profit on Thursday and said it had strengthened its financial position. The company reported operating profit of 120 million pounds ($190.2 million) on sales 1 percent higher at 1.09 million pounds. It said its industrial automation business was well positioned, but it had reduced expectations for industry shipments in its controls business, reflecting recent economic events. "Overall, we expect the group to make further progress in the second half compared with the first half of the year," it said in a statement. Invensys, which rejoined the FTSE 100 index of blue chips earlier this year, was forecast to report revenue of 1.1 billion pounds and operating profit of 125.7 million pounds, according to a Reuters consensus. Tuesday, November 4, 2008 Given that ISYS is only a few pence off the HSBC target price, and earning are coming up in a few days, perhaps an interesting short play. Who has a read on the ISYS results? Saturday, November 1, 2008 But the one did all the good job for IPS mideast are forced out the company. the roots of grass roots busness was cut. Saturday, November 1, 2008 Actually as an Invensys employee in Middle east, I beleive we are doing a good job. We have taken two hudge grass-root projects a multi million dollar projects, upgrades and more. So Invensys id not declining at least in the middle east as far as I know on the other hand Invensys is rising. Friday, October 31, 2008 US bank JP Morgan (JPM) has lowered its 2009 and 2010 earnings estimates for Invensys, the FTSE 100 technology group. Earnings per share estimates for 2009 and 2010 have been reduced by 7% and 16% respectively. The downgrades are primarily because of reduced expectations relating to earnings in the Controls division in both years, and lower forecast earnings in Process Systems in 2010, which will more than defray expected gains from favourable exchange rate movements. JPM has reduced its sum of the parts-based price target to 215p from 332p. Wednesday, October 29, 2008 HSBC lowered its target from 320p to 180p. Monday, October 27, 2008 Invensys stock is 120p now. Can we buy now? HSBC is behind Ulf. He is fearless. He can hire all his buddy, HSBC will pay the bill. Friday, October 24, 2008 Party Time? Time to sell or be bought! Emerson might be down 40% but that is simply the street being down on techs or profit taking. Emerson Process Management is healthy and continues growth, taking share from Foxboro/IPS, YOK, E&H and everyone else. Be interesting to see which companies survive these financial times. I'd be surprised if IPS makes it. You gotta bet that Siemens, Honeywell and Emerson will come through - Invensys you have to wonder.... It's these time that truly exposes management or lack there of, good luck Ulf! Friday, October 24, 2008 It is party time for Invensys. every one is down. no one cares. perfomance? what perfomance? oil? nuclear? Emerson is down 40% so what? Tuesday, October 14, 2008 Did anyone else go to Wonderworld? I wanted to get reactions to the various announcements. The speakers weren't very good. The topics were okay, but the spearkers were often dull. Tuesday, October 14, 2008 I'm anticipating a down quarter at Invensys. Cost controls may help the earnings side, but revenues could be well below forecast. Monday, October 13, 2008 You'll know soon enough regarding IPS "growth". Your answer perhaps already resides in the current share price, at about 152p. The UK analysts may have already factored in revenue/earnings expectations. Tuesday, October 7, 2008 Can anyone provide any feedback to the growth of IPS. I am hearing the top line is growing in South America, USA, and APAC - is there any truth to that? Tuesday, October 7, 2008 Stock price spiraling down, well past what the overall market effects should have caused. Invensys is now ripe for acquisition. Very very ripe. Sunday, October 5, 2008 Ultimately, this whole transformation exercise - FoxMass to Dallas, hardware to software, DCS/Tricon to Infusion etc etc - will need to face the real questions...
Friday, October 3, 2008 No doubt that ABB and Emerson (and even Yokogawa) are greatly outperforming Invensys. ABB is probably a more apt comparison when considering the entirety of the Invensys portfolio. Merely recasting ones self as a technology and solutions company is easy - executing on it is substantially more difficult. While Invensys seems focused on operational improvement and cost slashing, the industry peers seem focused on expanding their global presence and market depth. Two very different philosophies, indeed. Thursday, October 2, 2008 Did anybody attend Emerson Exchange this week? What a shining example of what a company should be. One billion dollars in growth last year (not through acquisition). Sunday, September 28, 2008 - Re: "Invensys acquires Quantum Engineering. So much for shifting away from hardware!" What makes you think they are moving away from hardware? Significant parts of their profit come from selling kit. Not an informed comment methinks... Saturday, September 27, 2008 The controls business (Barber-Coleman, Paragon, Ranco, Robertshaw) has been on the blocks since the divestiture initiated by Rick. Last week the industrial controls division, a $1.2 billion company six years ago, was reduced to the shadow of the Robertshaw business remaining in Mexico which will be shuttered soon. The value destruction of this business, which supported the rail and energy group for over a decade, is almost criminal. Closing each entity within controls with a last buy or an undervalued sale because of the lack of intestinal fortitude to run them has lost stockholders hundreds of millions. Not to worry, you're still paying rent for hundred of empty offices and building around the world. Big price increases (ala Chan Dynasty) for what's left of controls customers until it's closed. Good luck rail business. I hope the Saudi's come through. Thursday, September 18, 2008 Invensys acquires Quantum Engineering. So much for shifting away from hardware! Wednesday, September 10, 2008 Wonderware is VERY small compared to IPS. And SAT is VERY VERY small compared to either of them. Monday, September 8, 2008 Any thoughts on Wonderware's acquisition of SAT and creating "Wonderware Mobile Solutions"? Sounds like quite an intersting venture for them. As Wonderware is a part of the IPS organization, yet they are acquiring new technology and taking market share, how can IPS be considered to be in decline? Or do most of these bloggers think of IPS as only Foxboro and view Wonderware seperately? Monday, September 8, 2008 While the current leadership is clearly better than Yurko (and Haythornthwaite), they have also outstayed their time at Invensys. A different type of management team is needed for the next chapter, post-recovery. Friday, September 5, 2008 I left Siebe just before it became Invensys. Yurko was still there and Mueller was COO. What happened to these two guys? The kindest thing I can say is that in my opinion they were incompetent!! I had considered going to the Serious Fraud Office, but my solicitor advised against such action. A few year later I lerned about the details of the "totem pole" and who kept it (incidentally, this guy went on the be CFO and that CEO of a large coporation). I regret not following my instincts. Friday, August 29, 2008 Having gratefully left Invensys, I can confess that there is a life after IPS. Since my departure, I have received numerous calls from past business associates, inquiring as too what is going on with this organization. The latest new management regime has taken it upon themselves to raise prices and cancel business agreements in what appears to be an attempt to increase revenue to compensate for their inability to close new orders. End users in my area no longer consider IPS as a player in the industry and I believe that it is only a matter of time before the real financial situation for this company becomes clear. With the competitive nature of the controls industry, the loss of traction can signal the end for a struggling company such as Invensys who continually tries to reinvent themselves under management with no knowledge of the industry that they are providing goods and services for. Thursday, August 28, 2008 In response to the message of 22nd June 2008, as an Invensys Middle East employee, I agree with the comments that the increase in sales figures are solely a result of the boom in oil prices. Maintenance and upgrade projects that were considered unviable till a couple of years back have been revived resulting in many upgrade orders from the installed base. This does camouflage our inherent weaknesses and there are no grassroot projects that have been won against competition. While we pat ourselves and think that we have done am excellent job, a look at the competition will put things in perspective. All major competitors like Honeywell, Emerson, Yokogawa and ABB have sales bookings about 4 times that of Invensys Middle East. And the exodus of trained and long term employees to competitors continues. Tuesday, August 19, 2008 A company in decline. We have lost a significant amount of people and important knowledge base. There are so many new faces that the place is unrecognizable. "Golden Boy" rules with fear and intimidation, and has to put out emails saying "I never said that!" while people are forced out by disagreeing with him. As the people who do the real customer contact and work leave, an oblivious senior management keeps adding SVP's and VP's to their Dallas HQ. Thank God I don't own any stock. Would anyone want to buy Foxboro now? Thursday, August 14, 2008 IPS now has an "interim VP of Nuclear Delivery". Does he get to ride the bomb down? I guess that would be an interim job wouldn't it. Wednesday, August 13, 2008 Question: Just how many IPS employees have "business" in China this week and next?........ Tuesday, August 12, 2008 What happened to Chan Galbato ?? Saturday, August 9, 2008 The IPS CFO leaving is not a surprise, however the challenge will be to retain the key business operations people while at the same time searching for their replacements in Dallas.....the next few months are critical to sustaining the business. Saturday, August 9, 2008 Rick Bullotta left?? Wow, almost exactly one year from his date of appointment. I don't have a good feeling about this whole thing... Thursday, August 07, 2008 - Wonderware: Rick Bullotta has left the building... Rick Bullotta is no longer with Wonderware as of today. He left in a very peculiar way... Thursday, July 31, 2008 I think the IPS management changes are a necessary evil. For too long, the company ran with dark-age policies and procedures and struggled to be a leader. Some people have commented about losing customer focus. I think just the contrary. I think the new Client-Care model will bring IPS closer to customers. Perhaps IPS will lose a few clients, but the overall there will be gains. I work in an area of IPS that has been on the short end of the stick for years. We were an afterthought to most projects and operations. Consider us a "bolt-on" service offering -- such a shame. If IPS had been listening to the customers and finding out what they really need, we'd have been right at the front end of all client communications and dealings. The tide is turning. There are lots of rumors about the death of "old Foxboro." Maybe it's time. IPS is a new approach, with new ideas, but it's not throwing away the 100+ years of innovation, relationships, and experience. Just because HQ has moved to Plano and many new management players are Texans doesn't mean the world is coming to an end. Cheer up. No pain means no gain. Wednesday, July 30, 2008 - Re: blog of 29 July - What's happening at IPS? Over many years, starting with what was once Foxboro, I have never seen such a performance. There is now a constant churn in the middle and upper management. The proliferation of new departments and positions leaves most of us wondering if there is any other objective than adding a few more lines to CV's for the next move. Each new player expounds "corporate goals" in the sort of general terms of a first-year MBA student. From my point of view, admittedly limited, the primary cause for concern is the lack of actions bringing benefits to our customers. We have become too internally focused. Much energy is consumed with the endless internal re-organizations. Co-ordinated, medium-term, "do-able" action plans that will benefit both ourselves and our customers seem to be missing. Our technical talent is increasingly focused on new products and "productivity" tools, instead of learning what our customers want, and delivering it. If we lose our knowledge of our customers' processes and operations, then we will just be another seller of generic hardware and software. This may be our future, but it saddens me to see "leaders" replaced by "managers" at the expense of our customers and our hard-earned reputation. Wednesday, July 30, 2008 For those who haven't heard, Invensys is closing their Controls design center in Plain City, OH. This center was responsible for designing residential thermostats, gas valve controls, defrost controls, etc. It was also the home of the smoke and CO detector design group before that division was sold off. Over the last five years Invensys has invested over a million dollars in this facility, particullarly in the test lab which was a first class organization. The equipment will be moved to the headquarters in Carol Stream, but as far as I know not a single employee has accepted a relocation offer. Invensys is losing around 30 design engineers and 20 test engineers. No word yet on who is going to continue the design work, but if I had to guess I would say that Invensys is going to squeeze everything they can out of the existing thermostat and defrost control lines, then let them die a slow death. There's also no word on what's going to happen to the manufacturing facility in Chihuahua. They spent about half their time manufacturing smoke and CO detectors (which has gone away) and the other half manufacturing thermostats. I don't see how the plant can afford to stay open much longer. Tuesday, July 29, 2008 What is your opinion on what is going on at IPS? Is it normal for a company to have so many new positions constantly being added? Should I be concerned that we are focusing too much on internal organizational structure and taking our eye off of the ball? i.e. customers, efficiencies, product development..... Or maybe it's a good thing? What's your take? Monday, July 14, 2008 I am sure your blogger of the 28th February is pleased that IPS have removed the EMEA President due to continued poor performance. Shame he will be replaced by an IT person as IPS have now issued a standing instruction to their HR departments that new employees must be from the IT industry (or be from Texas!) Sunday, July 6, 2008 Rick Bullotta is now part of the combined IPS Wonderware Development Organization. Sunday, July 6, 2008 - Re: Rick Bullotta question: Rumor has it that a direct reportee questioned Sudipta's 20% growth goal following the best growth year ever, and was summarily dismissed. Sunday, July 6, 2008 Did Rick Bulota leave WonderWare? I noticed he is no longer on the web site. I would be surprised, since he just joined them recently. Thursday, June 26, 2008 The June 23 analysis is spot on. Using the Control Magazine Top 50 Global Automation Vendor data it is pretty apparent that the current Invensys story is simply good timing. In 2003 Invensys was #4 globally with a 9.2% market share. In 2004 Invensys dropped to #6 globally. In 2005 Invensys was #8 globally and in 2006 was #9 globally with a 5.3% market share. During this time the overall market (Top 50 global automation guys) grew 40.9%. As they say, a rising tide lifts all boats. Tuesday, June 24, 2008 - from an Invensys analyst: Really good stuff on Invensys - can't argue with any of it. Ulf is interesting. I think he really does believe he can make something of Invensys beyond financial and margin recovery (and his share/options could be worth over £20m if all goes well). Also in my time of following the company (only 4 years) I think there has been a consistent tendency to underestimate them, especially by the short-termist, reactive analysts. Controls and Eurotherm still look like hard work, though Rail may be more attractive because so much new network is being built around the world and they seem to be winning their share. I look forward to the Indian/Chinese interest. I still think the pension is a barrier to any takeover and it may take towards 500p/£4bn to win over the key shareholders. Will anyone pay that or, as you say, will it just go in bits? I found Ulf very personable when I met him last year and very open. I have no idea what he is like around the company of course except I heard he is first in and last out. I don't doubt he would be better off running one of the big guys, though he may do it via a takeover of Invensys? Ulf says Invensys is a normal company now. Churning through the Invensys Annual Report and the relentless corporate crap about values I tend to agree with him (though I almost found myself nodding approval at one point!) Tuesday, June 24, 2008 I remember reading a press release some time ago boasting that the Triconex brand had been certified for use in nuclear plant control. Many are predicting a resurgence in atomic power - please comment on how Invensys or any of the other automation majors are positioning themselves to capitalize on this. Moreover, do any of the other majors have in their product portfolio a modern line of nuclear certified systems offerings? A bigger question is do they see this is a potential future profit center? Monday, June 23, 2008 JimPinto.com eNews # 250, 23 June 2008 includes analysis of Invensys results for 31 March 2008.
* Latest Invensys Results Extracts:
Click to read Pinto Analysis of Invensys Results
Sunday, June 22, 2008 As an ex Invensys employee I was quite surprised to see the year-end results. Especially after the EMEA mid year meetings and that Invensys ME was well off target on revenues for the year (Sales were close to target). Credit, where credit's due. Ulf and the Invensys employees have certainly turned the company around. However I was also wondering, (and I haven't done the exercise,) if the oil price hadn't been so high and the oil companies making such large, unprecedented investments in expansions and new plant, would Invensys have done so well? In other words, is the true performance of Invensys being "hidden" by the large amount of "additional" work coming from the oil business. Can someone advise? Tuesday, June 17, 2008 As a shareholder, I love this gossip blog. Can keep me entertained for hours. Good thing Invensys hasn't decided to offer all the weblog subscribers a means to share opinions off the public arena to avoid the public humiliation. Fortunately this doesn't seem to bother Invensys. Rumours now are that Invensys (again) will attempt an IS outsourcing. They also tried this in 2002, signing a 1bn deal with IBM Global Services. It was started off by Yurko, and later backed by Haithorneswaite. However the CIO changed some SVP's mind, and the deal went down the drain joined by millions of US$ for wasted efforts on both sides. With the VP and SVP refresh rate Invensys per tradition can deliver, I am sure that none of those exec gentlemen are around any longer, and the fact that Invensys didn't let itself outsource is a long forgotten factual bit of information. So yes, by all means, believe that IS literally is as uncomplicated as accounting and finance, and try it on AGAIN! And lets see how it will go this time round. After all, its just shareholder money. The winners clearly will be the readers of this blog. Best rgds: The holder of 22,000 still worthless Invensys share options.... Friday, June 6, 2008 Who is the new VP-EMEA of M&I? Where does he come from? Where has Franco Franelli vanished? Wednesday, June 4, 2008 Another "small" profitable center is chipped away . . . Burco, was part of the Rail Group is now gone. Who needs a few extra million dollars a year ? Tuesday, June 3, 2008 Talking of Invensys Middle East mnagement, is there such an entity? The whole setup is on auto-pilot with the only business coming in being expansions & modifications of existing systems. As they say when the tide rises everything floats including things that normally sink. Friday, May 30, 2008 Could not agree more with the comment about the EMEA Field Devices Director. Everyone who has intercated with him, will tell you he has no clue about the M&I business. His sole claim to fame seems to be his proximity to the Middle East management. Thursday, May 29, 2008 The new sales transformation has some serious issues. Several specialists are feeling marginalised and hurt. Some appointments like EMEA Field Devices Director are seriously flawed. A guy who didn't do anything worthwhile in Emerson and nothing at Invensys in ME since joining has been rewarded with a plum position of heading EMEA. This might lead to serious problems for M&I business and looks like a downslide is on cards. Wednesday, May 28, 2008 - Future of the Controls business? Pretty bleak from what I see. Europe effectively does not make any money and the relationships with major customers is not good. Asia Pac is not growing even with the relocation of customers from the other regions China, Thailand etc. Can't comment on the Americas really Which is the main part of the business but the 10-70% prices increases pushed through 18 months with no notice have not helped already poor relationships. Expect more Plant closures and consolidations and the ex Honeywell people to gather around the PLc Honeypot. Sunday, May 25, 2008 - from an Invensys shareholder: I read your piece on consolidation in the automation industry. I agree that Invensys seems rather stuck on a path of incremental growth, although listening to Ulf at the finals presentation I got the impression he's playing a long game, especially with In-Fusion. He also seemed to think he was going to be buying rather than selling, but of course he may not have much choice. As a shareholder I suppose I am reluctant to see Invensys sold, though there is a price for everything. If you had to put your money on it who do you think will take them out and when? I confess to not having a clue, though I suspect the pension liability (soon to be revised upwards and probably too expensive to be sold on) is a barrier and any buyer of the whole (rather than just the pieces) would be left with parts that did not suit them. Though often neglected, the rail division might be attractive? Sunday, May 25, 2008 The Invensys EMEA (Europe, Middle East & Africa) Field Devices Director is an ex-Emerson guy. This tells it's own story. Why will anyone leave Emerson instrumentation and join Invensys instrumentation? Saturday, May 24, 2008 Rick Haythornthwaite rises higher and higher following his "glory days" at Invensys. He is now Chairman designate of the retail side of the UK's largest real estate company. Friday, May 23, 2008 The way Invensys is looking at it's instrumentation business can be gauged from their recent appoitment of a Field Devices Director for EMEA (Europe, Middle East and Africa). If this guy does not close up their business nobody can and we in the competition are watching the fun. Friday, May 23, 2008 - from Walt Rovira [walter_rovira@teledyne.com]: In JimPinto.com eNews 23 May 08, you write: "...there are those who suggest that Foxboro's instrumentation side is for sale." Who are "those" people?
I would be interested to contact "those" people. I believe an Invensys divestiture of Foxboro's legacy instrumentation lines (pressure, temperature, flow and analytical) can significantly improve Invensys shareholder value and allow the company to focus their strategy. Friday, May 23, 2008 I would like to see some opinions and thoughts on the Invensys Controls division. With the recent sales of their reversing valve business and safety products business, what are the prospects for future growth? Are there more divestitures on the horizon? Thursday, May 22, 2008 Not that I don't sympathize with the many APV employees that come to your weblog to find some empathy amongst each other, but perhaps the Invensys weblog isn't the place for this anymore. Invensys as a whole is performing very well these days and at least in my division, Wonderware, we are all incredibly happy with the direction we are heading. Logging in to this weblog and seeing all the concerns from the APV group gives the blog a negative feel that the core of Invensys doesn't feel anymore. 4 years ago, sure, EVERYONE was on these blogs. But Invensys has changed and I for one would like to see our optimism appropriately represented in these blogs. Or if that's too much (as I understand it's always easier to make an effort to complain about things than it is to be positive) atleast having silence on the site. Pinto Note: You're right. APV news/views will no longer be posted on this weblog. Wednesday, May 21, 2008 Anyone who thinks that Lance delivers anything more than smoke and mirrors is kidding themselves. I too worked with Lance and could see his poor leadership and poorer management style. He finds ways to manipulate numbers to appear to be delivering the results. All Lance's fans were giving him props for turning APV around - he did nothing of the sort. He window dressed the company for a sale. His philosophy is the stuff that anyone can learn in business school. Operations and management at APV Lake Mills had done a fine job in the past particularly Wheelwright and Keene. Lance is a farce and he will fail at IPS. Monday, May 19, 2008 Bravo to the posts on May 18 and May 19. It's wrong to single out Lake Mills, however. Until APV figures out how to be externally rather than internally focused at ALL the factories, APV is destined to keep repeating its past. Fixing supply chain must go hand in hand. Also, there is no Us and Them. Flow is now on the hook with APV and unless the issues are corrected quickly, it will start to effect share price. If you thought previous management was ruthless, stay tuned to see what happens in the coming months. Monday, May 19, 2008 Having worked with Lance, he knows how to deliver the vision. The problem is - if the operations group doesn’t deliver, the vision will become out of focus quickly. An example of this is the poor leadership at the Lakemills factory. It won’t be long before (if not already being discussed) SPX will clean that house. Sunday, May 18, 2008 APV is still a cash losing company; just read the SPX first quarter results, specifically the flow technology segment in which every cash issue directed at APV. Therefore, for every comment on the changing management and their predecessors, the employees should look at themselves and understand that no matter who is in the management team, it is the bottom line that counts. SPX is a company driven by the bottom line. Friday, May 16, 2008 Just my opinion: But I have noted a couple quotes that have been posted on this blog. If you have ever heard Lance speak to a group and are familiar with his barrage of cliches you know that he is on this blog posting. and in some cases he is defending himself. I sat in on one of his Townhall meetings at APV and he mentioned this weblog, and some of the rumors posted about closing the Buffalo office. If you want the truth about Lance read the September 11, 2007 blog; it says it all. We at APV are glad he is gone, and his useless friends that he put in management positions. Friday, May 16, 2008 - re. Thursday, May 15, 2008 - from a news reporter: HR was outsourced also. Two well respected and very comeptent Foxboro senior engineering managers are being shown the door and replaced with new faces. I don't want to mention their names here but most engineering folks know who they are. Thursday, May 15, 2008 - from a news reporter: We're hearing from IPS employees here that the Foxboro, Ma. Operation (formerly The Foxboro Company) is being not-so-gradually outsourced. Financial functions have already been sent to India. One employer told me that the company’s goal is to eliminate the Foxboro property within two years. Heard anything? I’m trying to get employees on the record before attempting to verify with IPS. One source has the workforce reduction over the past 12 months at 30 percent. Thursday, May 15, 2008 So I guess that answers the "what were they up to" question. Solid performance, getting the financial house in order, and poised for growth. Way to go, guys. Thursday, May 15, 2008 LONDON (ShareCast) - FTSE 250 movers: Invensys eyeing further progress: Bosses at Invensys expect to make further progress this year following an 18% increase in full year operating profit despite weakness at its Controls business. The firm, whose shares have been popular in 2008 so far, said operating profit for the year ended 31 March 2008 rose to £254m from £216m the year before on revenue up 5% to £2.11bn. However, orders slipped 3% to £2.04bn as an improvement at Process Systems was offset by a decline at Rail, reflecting uneven order intake, and the anticipated reduction at Controls. The Controls unit, which provides components, systems and services for residential and commercial building markets, saw orders fall 7% to £618m and revenue by 6% to £624m. It blamed most of the decline on some softening of demand in the US and Europe as housing markets deteriorate. The division makes up around 30% of group sales. Monday, May 12, 2008 Any word as to what Ulf and Sir Lance are up to? Sunday, May 11, 2008 Jim: I thought the world had simply gave up on Invensys. Glad to read your notice of system issues and that you are backup and running! Thursday, May 8, 2008 Jim, sorry to see that your web log for Invensys has ceased to exist. Perhaps you can resume it in the future.
Jim Pinto Thursday, February 28, 2008 - re: IPS in Europe and their performance: The reason - a regional president more capable of influencing the Senior management in Invensys than in delivering business results - how much longer will Invensys continue with such underperformance? The most capable regional president (Asia Pacific) left recently – he no doubt joined a company that rewards people who deliver rather then talk a good job ! Tuesday, February 26, 2008 Kinda makes you wonder what's next for Foxboro and Triconex. My prediction - Foxboro is now in the "dressing up" stage and Triconex is being prepped. I guess only time will tell and I'm betting that by September we'll pretty well know hot the cards are being dealt. Monday, February 25, 2008 Anyone with a brain should have been able to see that Ulf and Lance were window dressing APV for a sale for the last 2 years. They let go of all their experienced higher salaried people and did some creative book keeping to get APV ready to unload. I feel bad for all the kids and middle managers brought in that bought into Lance's BS and now will be on the street. Sunday, February 24, 2008 APV is no longer a part of Invensys. Everyone blasted Lance, yet look at the decline in APV sales since he jumped shippe or rather his buddy Ulf got him out before the sale. Who is left running APV? SPX got screwed when they purchased APV. They will soon find out. I wonder how long before SPX figures out that they doen't know how to run the company? Thursday, February 7, 2008 So Q3s came out fine in the end, but can anyone shed any light on the weakness in IPS in Europe - flat for the quarter - which they blamed on goverment/oil company squabbles holding up the placing of orders? not heard that one from anyone else in the industry, sound credible or not? Thursday, February 7, 2008 Ulf says: Today I am pleased to announce another good quarter of operational and financial performance. For ourselves and the market, these continue to be the ongoing Group-level indicators highlighting the progress we continue to make during this financial year on our journey to becoming a high performing, sustainable and cohesive company. And stocks were up 11% last I checked. Thursday, February 7, 2008 As you can see from the Q3 results they announced today, things seem to be looking pretty strong across the board. From what I can see, Wonderware is indeed doing quite well and gaining momentum, but so are many of the other parts. Invensys isn't "shrinking", it is "getting fit". Mr. Henrikkson and his team have done an excellent job in cleaning up the financial picture, refocusing the company, and the stage seems set for a reinvented Invensys. Wednesday, February 6, 2008 I hear all this doom and gloom, yet WONDERWARE seems to be the exception...lots of good buzz in the market on growth and new focus ...what gives? Wednesday, February 6, 2008 Stock tanking (again) ahead of tomorrow's Q3s, Emerson and Whirlpool yesterday talked a pretty good story (to follow on from Honeywell, Rockwell etc.), am I the only one confused? Tuesday, February 5, 2008 - to the "Not a wannabe": What company do you work for now? Maybe some of the Invensys cast-offs can join you? Monday, February 4, 2008 I used to work for a small but profitable part of Invensys and became a share holder. I wrote off the value of the shares long ago and only hold onto them in case someone with some financial accumen gets hold of the company. They said Invensys was in decline in 2001 and now it just keeps getting smaller surely there can't be much left to sell? I am suprised you guys keep posting the messages as it is obvious no one from the company in a position of authority bothers to read what is really going on. How can they keep spending on new offices and reshaping when the company continues to go down the pan. I am glad I got out 3 years ago to work for a company with real values and ambitions rather than a bunch of wannabes who are only interested in lining their own pockets. Monday, February 4, 2008 Responding to the "dancing girls" comment. Years ago, at a Wonderware Distributor Conference, the USC cheerleaders performed, and one had an ACTUAL "wardrobe malfunction". Monday, February 4, 2008 Jobs moving to India, layoffs, staff meetings in Las Vegas. What's next for Invensys Process Systems, dancing girls at the sales meeting? Sunday, January 13, 2008 - respondig to "How is Lance doing?": The only change I can see Vandenbrook has made is getting IPS NA to make the forecast. From where I am sitting he is only executing what he is told. Seems the EDS team sitting in Dallas is making all the calls. There seems to be a lot of focus on spending money on new systems, corporate offices, and meetings, not much else. Time will tell. Thursday, January 10, 2008 I am curious to know how the "hero" of APV and the one who will save IPS, Lance Vandenbrook, is doing at IPS. What chnges have occured, any improvements? Tuesday, January 8, 2008 A funnier/lighter side to the Invensys predicament was published in the letters page of the FT, see below, published: January 3 2008 - from Mr John Le Sage:
My first grandson, Keir, was born in February 2002. I subsequently bought shares in Kier Group for £4.30 and sold them for £16.60. My second grandson, born in 2004, was called Corin. I bought shares in Corin Group and they doubled. My third grandchild is due in July. I hope they don't call it Invensys.
John Le Sage, Saturday, January 5, 2008 Now that APV is gone, what will happen to the rest of the Invensys businesses? Who will be the scapegoat now? Saturday, January 5, 2008 APV gone, Firex gone. Brands and products diminishing. Share price 50% of what it was 6 months ago. Time for Ulf to get his finger out and get hold of this business and deliver for shareholders. Shape up or ship out Ulf !!! Tuesday, January 1, 2008 Monday, December 31, 2007 - Extract Charlotte Business Journal SPX Corp. has completed its purchase of APV, a manufacturer of process equipment and engineered products. When the deal was announced in October, it was valued at $510 million. APV is a division of Invensys plc, which will become a part of SPX's flow-technology segment, makes pumps, valves, heat exchangers and homogenizers for the food, dairy, beverage and pharmaceutical industries. APV has 3,000 employees in more than 40 countries. The addition of APV will bring the total number of SPX employees to 17,000 worldwide. SPX markets flow technology, testing and measurement equipment, thermal equipment and services, and industrial products and services. Friday, December 28, 2007 I am beginning to believe that Paulett Eberhart was really hired into IPS with a pre-arranged agreement with EDS. Part of the grand plan to transform/evolve IPS into something that EDS would find appetizing -
Friday, December 21, 2007 - news extract: Invensys has agreed to sell its Firex safety division to the UTC Fire & Security unit of United Technologies for $44m in cash. The deal for Firex, which makes residential smoke and carbon monoxide alarms, is expected to complete by the end of January. The business generated operating profit of $4m on revenue of $80m in the year to 31 March 2007. Invensys said the sale proceeds will be used to pay down debt, adding that Firex, together with the reversing valve business sold recently, will be treated as discontinued operations in the third quarter 2007/08 results due to be announced on 7 February. Tuesday, December 18, 2007 The IPS APAC guy is gone. But he left a black hole which many of projects has negative margent and negative cash flow. He forced out all country managers and his financial controller so he can do funny accounting. Some one better send auditor there before he leaves. Friday, December 14, 2007 Something just doesn't quite fit in about this EDS buying IPS thing. EDS, I assume, is a service and consulting company. Zero products. The only possible motivations for any IT type company to buy IPS would be Wonderware (which is technology & technology since WW sells thru 3rd party channels) and software part of IPS which would be Simsci (which is technology & products plus some consulting and application expertise). But hang on - EDS has never handled products before - so the WW and SimSci products are unlikely to be the real targets. So you are left with people expertise from Simsci. Good bunch of people but to buy over the whole IPS just for that? Unlikely although possible. Thursday, December 13, 2007 Heard that CEO, IPS APAC has been moved. IS this true? Who will succeed him as new CEO? Tuesday, December 4, 2007 The word on the street is that this partnership of EDS/IPS is going to happen and with 300 offices in the new HQ to fill, the word is soon. Triconex has been hawked around of late and as one of the more profitable divisions. What does that say for the other hardware and services divisions? Wonderware, Arhestra A and InFusion will form the backbone of the new strategy for IPS. Seems Jim's predictions are about to come true. Sunday, December 2, 2007 EDS buying IPS? It really sounds far fetched, but I suppose never say never. No matter what one may say about consulting, MES etc, 80% of any DCS company's turnover will come from where they have been coming from - EPC bid, Enduser MIV/MAC sometimes, MRO business covers the rest. The business model and selling channel are so very different from EDS and unlikely to change much going forward. Sure consulting and MES and IT integration can be good margin but if you are serious about DCS/SIS business, that is NOT where majority of your turnover is going to come from. Thursday, November 29, 2007 How much truth is there to the news about EDS buying Invensys, selling off the IA, Triconex and M&I manufacturing facilities, and then continuing to sell Triconex only (buy/resale), focusing more on services and consulting (EDS model?)? Yokogawa has partnered with Accenture, Honeywell with IBM to address this whole IT infrastructure space, and for those EDS competitors to tap the installed base of Yokogawa and Honeywell, respectively. Seems like it makes a lot of sense as the IA market is quite mature, saturated, etc, and IPS has a huge installed base for EDS to run its fingers thru. And EDS certainly doesn't want to get into being a hardware vendor, but more of a solutions provider. Also heard that the M&I business may get sold to GE... Monday, November 26, 2007 APV USA - Invensys leadership endorses "One last stick in the eye" to APV even after the sale. APV USA just went through a very badly planned "SAP Upgrade" which saw the order enter department in the USA refuse to accept orders for a week because of the confusion and lack of planning. For the last two weeks; "No way" to find parts, "no way" for order shipment updates, "no way" to get confirmations and forget trying to review new business as all were focussed on emergency situations. Give Invensys and the APV USA transitioned leader Lance V their due. They left the hard work till after they were gone, and sold what they could. That type of behavior seems to be rewarded too often. The sale of APV to SPX takes effect at the start of the new year. It should happen faster. Sunday, November 25, 2007 Reading the transcript of Q2 conference call, "InFusion is now up to order rates almost $ 200 million." That is almost one third of IPS business. I am not sure if we can trust the number. But if the number is correct, then InFusion did not bring in much of financial benefits. Saturday, November 24, 2007 The stock is tanking because people close to the company realize how poor things really are. Controls recently lost a major account here in the US. Process Systems are not generating any cash and Controls never have. Reading the posts on here IPS seem more concerned about the location of their headquarters than their customers. Meantime I believe that the Railroad business (the only business making cash) is in trouble with a major customer going bust. If I remember correctly the Railroad customer was in the UK for the London subway and was the biggest order in Invensys history, so it has to be a major blow. Selling APV was a good move but the company's silence on these other problems is strange. Could be the problems are not true and the stock is simply oversold on the rumours. Let's see if there are any announcements now that Thanksgiving is over. If the third quarter results are poor then the stock could go into freefall. Sunday, November 18, 2007 The problem is cash. IPS missed cash in Q1 and can not recover in Q2. As a result, the H1 cash conversion is only 24% and brings the group cash conversion to 69% for H1. This is more than just delay few invoices. The real problem is IPS took orders with bad cash teams to grow the top line. With 20% turn over in sales marketing force, no one can figure out what is happening. But shareholders are smarter. They know something is wrong. Friday, November 16, 2007 - Re. Stock price drop: I was surprised that the stock dropped. The last financial news release seemed positive but I guess it's a matter of not meeting the analysts expectations whatever they were. There could also be some negative things going on that haven't been made public but are known to the analysts. Friday, November 16, 2007 This morning the shares were down to 251p which puts them below their 12 month low again. Since July they've fallen 177p or 41% from their height of 428.25p. (In the same period the FTSE 100 has fallen about 300 points or just 4.5% so they can't really blame the market). I thought getting rid of APV and sorting out the pension fund was meant to improve things. Does this make them more or less likely to be a bid target? Tuesday, November 13, 2007 Moving Asian HQ to China may seem like a no brainer, but may not be ALWAYS the right thing to do. Taxation, banking and financial restrictions are many reasons why Shanghai (the "obvious" choice within China) is not always superior to Singapore, Hong Kong or even Kuala Lumpur. Contrary to popular thinking, it is very expensive to hire/retain quality people with good enough English skills in Shanghai. And Chinese are NOT as pan-Asian in their outlook as Singaporeans, Hongkongers or Malaysians - Chinese cannot manage the large and important markets like India and Korea well. So retaining Asian HQ in Spore or HK or KL may still has its merits for mid term future. Monday, November 12, 2007 Hmmm...not sure how this "Singaporean running IPS China" perception comes about. Both IPS Business Group GMs in China and all their eight sales and operation directors are born, bred in mainland Chinese. One of the GMs is probably holding a US passport, but he is Chinese no doubt. The service director is Chinese, the HR director is Chinese. The only Singaporean Director in China is the Logistic head. OK - Wonderware China is run by a Singaporean, but that is quite seperate. Monday, November 12, 2007 On the posting (08 Nov.) requesting assistance in analyzing Invensys and IPS and the process industry. How do I contact you?? [See email address in original weblog] Monday, November 12, 2007 IPS probably has the most localised management among all the major DCS/Automation companies in China. NOT THAT THIS IS A SURE FORMULA FOR SUCCESS THOUGH. May be good to have some mix of Asian/Spore/Western expats. Inject some global perspective and good mgt practice. Honestly I think if they can afford it, they would sent more expat there right away. And of course there is a good level of politics like every where else...and of course they are fighting uphill... Sure you are talking about the right company? Sunday, November 11, 2007 Most companies move their AP HQ to China in order to capture the growth there. But IPS moves in Singapore managers to manager China business with poor acceptance. IPS business is declining there except Triconex. This is a typical example of IPS internal politics over business. Sunday, November 11, 2007 "Senior Rockwell Software Exec" is not who you think. He is/was a direct report to the head of Rockwell Software, and was also with GEFanuc. Yet another industry talent added to the WonderWare team. Something must be going on! Friday, November 9, 2007 Pankaj Mody is the "father" of ArchestrA. He has been at Wonderware since the mid-90's, and has driven the product/project from the beginning. Friday, November 9, 2007 Who is Pankaj Mody and where is he from? New VP of Dev for both IPS and WW.... So Invensys is serious about keeping IPS? Thursday, November 8, 2007 It's not a "Senior Rockwell Software Exec" that is joining Wonderware; its a Branch Sales Manager in the UK who has sold a bit of MES, and is chasing the big bucks he is being offered as an "MES Sales Consultant" WITH A BIG TARGET TO GO WITH IT ! Thursday, November 8, 2007 The number one requirement to be in Invensys management is that you know nothing about the business that Invensys is in. Your pay is based on your slickness level. Dress slick, talk slick, write slick memos, always use the latest techno-jargon but avoid details. If you are highly involved in the details of the business or product, you drop down the pay scale. Thursday, November 8, 2007 - email:rupert.coull@redburn.com Is anyone out there interested in coming to the aid of a UK equity analyst who is taking a look at Invensys, and is struggling to get to grips with the entire area of Process Systems (what it does, how it does it, how people get paid for it) and Invensys' competitive position in the market? Tuesday, November 6, 2007 A senior Rockwell Software exec is also apparently leaving to join the Wonderware "dream team" as well. I "wonder" what is up there? Tuesday, November 6, 2007 Brilliant post from Monday re APV and light bulbs. It would be really funny if it wasn't so close to the truth. Maybe you could expand a bit more in another post. Has to be more from such a rich vein of under utilised talent. You did forget about the VP of Sales afterall. Two light bulbs with every 1 homogeniser sold before end Nov? Monday, November 5, 2007 - APV USA - A New Beginning: APV and SPX are a great match. There will be issues, but SPX and WCB have proved that they can manage and profit with a plan. Without support, APV USA was lost; in any event. APV is not just an EU and Far East Entreprise. There are real assets here at home. Invensys set-up the APV-USA Division for a sale without real support. Let us hope that SPX has better Vision. Monday, November 5, 2007 I wonder how long it will take Sudipta to flatten out the organizational chart at Wonderware. It some situations they have 2 VP's reporting to another VP. Good luck Sudipta. Monday, November 5, 2007 Question: How many APV execs does it take to change a light bulb?
VP Sales: Once IT get the CRM working, we can identify our installed base and run a marketing campaign targeted at replacing all bulbs, blown or not. This will provide real added-value for all our customers. VP Operations: Now the teething troubles at our low cost Chinese bulb factory have been ironed out, deliveries have come down from 16 weeks to 4. Honest! If you don’t believe me I can show you case studies demonstrating deliveries - - erm, well, one example, at least. VP Supply Chain: Good news, an old friend of mine has a good supply of wax, available at only a slight premium over current market rates. To safeguard bulb production, I’ve signed him up to a 20 year deal. However, we still need to find a supplier for those stringy bits that burn down as the wax is used up. Thus, I’m submitting a manpower requisition for another 20 ‘Supply Chain Professionals’. VP Operations: Erm, bulbs are made from glass and wire… VP Supply Chain: Ah, ok. Clearly, we are having trouble sourcing people of the right calibre to work in supply chain. Consequently, I’m proposing we double our intake to 40 and raise the skill profile to ‘Supply Chain Consultants’. VP HR: Good plan. To further support our light bulb efforts, I’m hiring 10 ‘HR Talent Partners’. Their role will be to identify the brightest of bulbs and ensure that they remain switched on throughout their career. The ‘Partners’ will be specifically aligned to the needs of our new sweatsh…sorry, ‘state-of-the-art manufacturing facilities’ in China and Eastern Europe. The ‘Partners’ will be based at our London Gatwick HQ. VP Engineering: I’m gonna fire the next person who mentions bulbs. They’re a load of crap! I followed all the instructions – compost, fertiliser, water – and still no light. Pah! Besides, who needs light bulbs when you’re as far up the President’s ass as I am.” Monday, November 5, 2007 - extract from Invensys press release: Sudipta Bhattacharya Appointed President of Wonderware Invensys today announced that Sudipta Bhattacharya was taking on a new role within the organization as president of the Wonderware business unit of Invensys. Sudipta just recently joined Invensys (August 2007) as chief software solutions officer. He came from SAP AG, where he was senior vice president of solutions management for SAP’s supply chain, manufacturing and product lifecycle management applications. Mike Bradley (former Wonderware head) became president of Wonderware in November 2002. Under his leadership, Wonderware has consistently achieved over four years of double-digit growth. Saturday, November 3, 2007 The changes at Wonderware represent some of the most exciting news in an otherwise very boring industry in a LONG time. I'm looking forward to seeing what that team is working on. Friday, November 2, 2007 Sudipta Bhattacharya is one of the best leaders and straight forward execs in the entire Software Industry. It's to Mike Bradley's credit that he recruited such a known and proven superstar. Friday, November 2, 2007 I joined APV in 1966 and left after 38 years as Vice President APV Group. I have met all the APV founders, these who participe to expansion and developpments, etc...Sir Richard Seligman, Sir Peter Seligman, Madron Seligman, Peter Benson, Fred Smith and others. I remenber the begining of the end when APV acquired Pasilac and the permanent and actual war between Danish domination and the rest of the world. Finally from this time APV was more looking for internal problems and reorganisations than customers. The end was with Siebe/Invensys, to make cash and pay for Baan acquisition, APV sold all ice cream business, Burnett, Gaulin death, etc...and finally Anhydro. What is APV today, a company as many in the world able to make CIP, UHT, yoghurt lines, etc... but more expensive, without innovation, and who will be reduce to sell centrifugal pumps and homogeneisers in the future. I will continue with my APV, when APV was Crawley and not the actual. But what mean in announcement the purchase and sale of APV France? Thursday, November 1, 2007 The news of the sale of APV and the inevitable trauma that will follow will come as a shock to many in a Company that is 2 years away from its centenary in 2010. APV was formed in London in 1910 as the Aluminium Plant and Vessel Co. For the first 80-90 years the company was a world leader in Process Engineering for the food industry. Under such enlightened CEOs as Peter Benson, (Sir) Peter Seligman, and Fred Smith, it gained a reputation as an innovative and inventive Group. The writer joined APV in 1969, finally retiring 36 years later after a career that was, to say the least, interesting. The trauma referred to will be the carving up of the various products which APV supply that already exist within SPX. We well remember:
Thursday, November 1, 2007 Hey, the last statement about the Wonderware guy from Dallas was a bit unfair. Mike Bradley personally recruited Sudipta Bhattacharya to Wonderware from SAP! Sudipta just happened to live in Dallas and has no connections to IPS or the EDS people from Dallas. Mike has also known Sudipta for several years. Sudipta was the guy that helped lead SAP into the manufacturing space. He is a very bright visionary leader that will lead Wonderware into the next generation. Wonderware is in the very good hands of Sudipta and the very strong leadership team in Lake Forest, CA. So speaking of the "Next Generation" ... if Mike Bradley was Captain Kirk, then Sudipta is Captain Jean Claude Picard ... and he will lead Wonderware into the Next Generation. Watch out competition, you are definitely not going to like this change! Thursday, November 1, 2007 Mike Bradley, President of Wonderware, is out. The new boss is a guy from Dallas. Mike made a short speech to the employees, but when asked "what will you be doing next?" he didn't know and said as much. Mike always seemed the kind of guy who had a plan for things, even for his retirement. This was an ejection, not something voluntary. It's a shame, though: Mike is a good guy and he kept the spirit of fun at Wonderware for all these years, which has been an important differentiator for the company. I don't see the new guy as "fun." Thursday, November 1, 2007 Word to the wise: SPX management need to hit the ground running with a clear direction and plan for the APV business. Clarity is needed on why and what parts of APV SPX will be retained and/or phased out, etc. Thursday, November 1, 2007 Interesting - A former Applicance Controls president is a president of one of SPX's divisions. Thursday, November 1, 2007 Ken Brown left Invensys IPS. Some things are inevitable but it is still sad when it really happens. Thursday, November 1, 2007 Ken Brown left Invensys this week. It's a shame he didn't get the CEO job permanently. He is now President of a manufacturing company - parent company in Florida. Invensys sold off APV too. Once again, this proves the old adage - the easiest way to make a small fortune is to start with a large one! Wednesday, October 31, 2007 Despite the likely financial penalty of being kicked out of a cherished, defined benefit pension scheme, the long term survivors at APV were relatively phlegmatic about being sold to SPX. After all, rumours of the sale had been circulating for several weeks. Then it transpired that the current executive had pledged to stay. The disappointment was papable - the silver lining had been torn away leaving a very dark cloud indeed. SPX's No. 1 prioty should be to eradicate APV's (openly derided) executive management. They have fashioned a company that struggles to deliver the most basic of components (e.g. centrifugal pumps). Furthermore, they have completely misjudged the projects business (still around 40% ot turn-over), labouring under the mistaken belief that APV possesses world-beating standardised technologies. In reality, APV's successes here continue to been founded on long-term individual relationships and 'unsexy' hygienic engineering know-how. (Both of which, incidentally, reside with the demoralised people deserting the organisation in droves). SPX need to move quickly before the whole edifice implodes! Wednesday, October 31, 2007 - Invensys press release: Invensys sells APV to SPX Corporation for £250 million Invensys plc announces that it has entered into an agreement to sell APV to SPX Corporation for a cash consideration of £250 million, subject to customary regulatory approvals. The disposal is being made on a “debt free/cash free” basis and completion is expected to take place by the end of December 2007. Tuesday, October 30, 2007 If not SPX then someone is. SPX would be a strategically good move for both companies. Reading the blog, it seems APV's star performer Lance VB's departure to IPS indicates that APV North America - APV's resurgent, but now undermanaged market sits into SPX's heartland. The timing of his departure speaks volumes about Ulf's desire to keep LVB in Invensys is well known, so APV must be on the block. APV's European base and relatively stronger China business will bolster SPX's Asian capability. Looks like a good deal for all. Just pity the middle management will be dealing with another leadership change - it will interesting to see who survives at APV given the blip of last year, yet continued failure to keep up with their competition in terms of market share, poor deliveries etc. Will SPX take control of these continued operational problems? Monday, October 29, 2007 Is SPX buying APV? Saturday, October 20, 2007 Invensys has let go its entire Foxboro-based marketing communications department, preparatory to moving to Dallas...sounds like Foxboro is being left high and dry. Just one person is left of Invensys' Marcomm unit, and he will be leaving after the first of the year. Saturday, October 20, 2007 Big re-organization in Invensys Systems including head cuts - anyone with insider stories? Are they really moving people from Fox to Dallas? Wednesday, October 17, 2007 In answer to the October 2 question about life in Rockford after Invensys, it's been a "good new/bad news" story. The good news is that the former IBS operation is no longer in an environment where we're living to refinance the debt. There's also a noticeable absence of the almost-daily e-mails about executive comings and goings. Also, the recent decision by TAC (the unit under which IBS was put) to move its systems products production from N. Andover to Rockford has meant additional manufacturing jobs in Rockford, at least temporarily. The bad news is that after all the Schneider rhetoric about buying IBS for its extensive peripheral product offering, it turns out that TAC doesn't really want these products and is happy with a limited offering of purchased products. Current plans are to outsource the piece parts production from the Rockford plant to the cheapest vendor. Long range plans are to discontinue thousands of part numbers, import actuators and valves designed and manufactured in Italy, and eventually move zone valve production to China. The Rockford plant will become an electronics manufacturing facility. Note: Also posted on Schneider weblog. Sunday, October 14, 2007 In the first quarter(FY 2007/2008)report, Ulf Henriksson made a statement about removing one layer of management from Controls and a reference to separating Global markets (paraphrase). Controls, Carol Stream (USA): the word is the CEO/Financial/Human Resources/Legal/Communications top positions have or will be eliminated by month end. Note Recent jobs ads for Invensys: VP Operation (13 plants and regional operations).VP Human Resources and Director of Sales Aftermarket. Friday, October 12, 2007 The next 12 months will be critical for Invensys. They are about to finish all their debts obligation. They have many critical decisions to make...some of which are already made - Control without a head - that should be obvious. Eurotherm needs to turnaround this year - this must be the last chance. Keep Rail and Wonderware I supposed....Now as for Fox/Tricon/Simsci - that is the tough decision to make - seems like they are serious about putting them all together from what I hear. Will they make it in the uphill fight against ABB, Yokogawa, Emerson and Honeywell? Any news how's Infusion doing? Anyone tried it? Friday, October 12, 2007 - re. ArchestrA/Wonderware: I do not understand what exactly is incredible on InTouch10 and Application Server. It is old stuff based on old technology combining some recently bought MES modules. They are not using newest technology like WPF (Windows Presentation Foundation)or WWF. It is just the combination of objects (Application Server) and graphics (Intouch). And Invensys used 8 years to launch it! If you want to see real cool stuff take a look to ICONICS Genesis64, ETM PVSSII or B&R Aprol. They are 5 years ahead! Thursday, October 11, 2007 (found in Archives dated December 20,2006) Unfortunately, it sounds like Controls is going to force customers to move to other suppliers and, in the end, they are going to be left with un-saleable assets. The Controls executives probably don't care, because they will have their bonus and will have moved on to other jobs with other companies. Only the hard working career employees at Robertshaw will be left to clean-up the mess as they turn off the lights.... Saturday, October 6, 2007 - Re: Invensys, Wonderware: Well, well - it seem as if all the critics were wrong after all. System Platform and the accompanying InTouch 10 makes for good vibrations throughout the industry. We (large steel) for one are moving from competitor to ArchestrA based applications. Good stuff, I think, even if considering the multitude of different applications, SCADA, MES, etc. New modules are great. Tuesday, October 2, 2007 Just curious if anyone working in Rockford has any feedback on being part of TAC/Schneider. I have to assume its better than how it was as part of Invensys. Wednesday, September 19, 2007 - from a real customer: Yesterday, I sat through the Wonderware 10.0 rollout and demo in Wisconsin. In a word – Incredible! What a positive departure Invensys Wonderware has made. But then all you user beta testers knew that a year ago! From what I can see, no other competing product comes close to this release. Can’t wait to migrate. Keep up the great work. Monday, September 17, 2007 - Referring to the messages that complain about the changes/reorg that are happening in IPS right now. Do we seriously think that IPS can survive by letting life can go on as it is? The EDS folks are taking a big gamble no doubt and they may not be very familiar with the control industry - but hey look where all the industry knowledge got us. Alright, alright enough cursing of Yurko... Someone from the outside, without fear, favor, history, needs to do some major surgery on IPS. That much is clear. PA and PC have very little time - we are late by at least 3 years coming out with a new Control systems and a new Safety system. InFusion if properly done can buy us some time. Let's hope PA and PC will get it right. Just do our part. If you think they are nuts, just leave. If you are not keen but have no where else to go - do your ethical minimum and keep quiet. Please stop all those "Foxboro knows best and no one else has a clue how to fix the problem." Friday, September 14, 2007 It is quite entertaining to read the back-and-forth regarding sales leadership at APV. However, the bottom line is that it doesn't matter who is leading sales, who you have in the field and what GTM strategy is employed, if your offering is lacking. APV has bottom-shelf pumps (can't compete with Waukesha, Fristam, Tri-clover and will never overcome the brand preference and installed base). Their homogenizers are no longer the best in the market (poor design, poor quality, poor performance, no process expertise, too much $$ - not your father's Gaulin). Their PHE are overpriced and have something like 100 week lead times! Their valves can't compete with TC or Sudmo and very rarely get considered in projects. Spare parts are ridiculously overpriced and can be provided by pirates (same quality, less money). Plate companies outperform them on price and service levels. The OEMs and system integrators who do all the specifying on new projects seldom even consider APV. But other than that, the GTM and leadership is spot on. Friday, September 14, 2007 It seems that author of Tues. 9/11 comments is just telling like it is - not sour grapes. I left the company right when the new leadership came on board (I knew I wouldn't want to work for that type of management) to pursue an opportunity. Now I couldn't be happier that I got out of APV when I did. I have stayed in touch with many of my former colleagues, some who have left and some who are still there. The opinion of those people are the same; the ones who have stayed tolerate the culture and questionable management styles, do their jobs and collect their pay checks. I just wanted to point out that the views of that particular person are shared by more than a few people that I've talked with. I think it's great that the new blood is excited and proud of their new APV. But in case you don't already know (I suspect that your customers have probably told you and your order book will confirm) the present APV is nothing compared to the one before the Siebe/Invensys acquisition (pre 1997). Invensys destroyed a truly great company. Your biggest challenge now is that APV no longer has the best product offerings or the best engineering and process expertise. I still serve many of the same customers that I did while with APV, and they tell me that APV is not a company they look to for solutions anymore. APV is just another vendor now. Friday, September 14, 2007 - Regarding APV North America: It is entertaining to read this blog about leadership at APV North America. Seems like the author of the Tuesday Sept 11 blog was an individual that did cut the grade at APV and now has sour-grapes. The reality is that APV North America has improved both the top and bottom lines over the past 24 months. One measurement that tells a story about a business is employee turn-over rates. APV NA has had less than 3% turn-over in the last 18 months. Seems to me that if the business is delivering results, and employees are not leaving - something must have been working right over there. As far as what LVB will do at IPS - you can almost bet money that people will be departing, he won't keep non-performing team members, and he won't tolerate people acting like victims. I have worked for the guy. He is a real pain, but he is fair, and has high expectations. Be part of the solution and you can have a lot of fun; be part of the problem and he will remove you. (PS - I was NOT one of his buddies) Friday, September 14, 2007 What will be Monday morning "announcement" throughout Controls Europe? Dark transactions on the way? Well not easy to be sure of this, anyway since the announcement of de-globalisation at Controls, it is interesting to observe that some of ‘thrown through the doors’ came back by the windows (e.g. have a look on HR). The useless matrix was translated into a useless cluster. Interesting to see that the famous Honeywell survivors will now experiment their ‘success’ at PLC level. IPS and others: The MBA (Master in Business Annihilation) will arrive soon in your locations. The Viking Circus is on the way. For sure, after having missed target in China and implemented a disaster in Slovakia, no doubt they will surprise you guys. So what could be the Monday teleconference stuff to Controls EMEA? We will make money through "services", not with products? No Kidding? Great deal! After having disgusted most of our customers with prices increases, designs issues, quality issues and so on, no doubt they will give us full confidence for "added-value services". The biggest hope is probably in the hands of the one in charge of the 'change management program'. Whoops, I forgot the Globally which is by the end of this sentence. What’s that? To remove unskilled friends by capable guys from the 'underground'? Or to find them another title so we can make New Things with Old Guys? The NTOG theory would be verified once more. Question to Ulf: Aren't you tired to have mainly clowns around you? What about hiring a circus orchestra? That would make a nice complement and would make teleconferences far less sad! Thursday, September 13, 2007 - comments on APV North America: It seems like a large amount of sour grapes. Not everything is perfect, but it is better than 7 years ago. Much of the dead weight is gone and needed to be put aside. A certain amount of turnover in a company is a good thing, inserts new blood and ideas, APV needed it badly. Everyone wants to blame the management, but maybe they need to look at themselves. Thursday, September 13, 2007 Invensys shifting attention towards services business; will keep controls division; Siemens rumor unlikely. Published: September 11 2007 - ft@mergermarket.com Invensys is shifting its attention to focus on its services business, a company source said. Last year, a source familiar with the company said Invensys was reviewing its controls division, which had revenues of EUR 1.2bn. At that time, Invensys was thinking of either abandoning production in Europe and moving it to low labour cost countries or selling parts of it if offers were presented. The source said that there were already some interested players, but that no decision had been made yet. Today, the source said, the division had shown an improvement and Invensys has reorganized it giving it a more simple structure. A sale of the division is unlikely at this stage. The company is shifting its focus towards the services sector in order to deliver more value-added innovative engineering solutions and services with the objective of giving our customers greater efficiency and success. Wednesday, September 12, 2007 - From a Controls employee: A three ring circus without a ringmaster. Who is in charge? What is going on? Is this Invensys communications at its best? Tuesday, September 11, 2007 Here's what the folks at IPS can expect from the new VP of Sales: Ulf's buddy will come in and tell you how the company can regain it's former glory, blow smoke up your backside - telling you how it is your company and your business and that you, the same people who have been working so hard and have all the expertise, etc. are the people that will turn things around. He'll pretend to listen to your opinions, concerns and thoughts regarding what has been done wrong. He will then select a few people who will bow to him and place them in roles where they will live to report internally focused numbers to him (he will require several daily calls at any hour of day or night to report hopeful figures). He will then drive out anyone who represents the "old Foxboro" regime, regardless of how much experience, expertise and market knowledge they have. He will replace long tenured employees, who have earned the salaries they command, with young, inexperienced minions (most of whom have worked for him in the past, are his friends or are related) with low salaries. IPS' offering will become a commodity - sold by route sales people who can offer no expertise or value. He will introduce an "Excellence Program" which is nothing more than what he steals from "7 Habits". There will be a culture of exclusion - if you don't make it in to his little circle you're done. The perception that this guy knows what he is doing and that his leadership turned around APV is laughable. Just watch what becomes of APV in the next year or two. APV is in for quite an experience. Monday, September 10, 2007 The IPS HQ move to Dallas, TX. strongly reminds me of the headquarters move to Herndon, VA of a few years ago. A small number of transient top executives move or threaten to move the headquarters, they rent some space, less then 10 people move. After the inevitable next change in leadership, the "new" headquarters is abandoned. My guess is less then 3 years as Dallas makes no sense for IPS on any level. Saturday, September 8, 2007 To think that Sir Lancelot Vandenbrook (Managing Director, APV Americas) will turn around IPS with his "sky rockets in flight, customer delight" model is a joke. The APV "turn around", is a farce - increased orders doesn't necessarily equal increased profits, and APV is still struggling. The changes at APV to an increase in APV sales force was not even Lance's idea. Adding a bunch of young, inexperienced sales people to IPS will not turn things around. Wednesday, September 5, 2007 The APV NA Sales Director who made the APV NA USA turn-around successful is being sent to Dallas to rework the IPS Sales Force. This is a move to apply successful models to a group that needs to be energized. This move seems to be very positive for IPS. Tuesday, September 4, 2007 Wonderware has also hired key talent from Rockwell Software recently, and is quietly building a very strong and experienced team. Monday, September 03, 2007 - from an Invensys employee: The current regime at Invensys was brought in from EDS, from outside the industry. It's the best "straight talk" I have heard in my 12 years here. I think they are doing the right thing, breaking down the old "Foxboro vs. them" barriers, and moving the center of power from Foxboro to Dallas - which is closer to the customer and of course, closer to the homes of the EDS executives. I think its a smart move. Sunday, September 2, 2007 - from ex-employee (and now a customer): So, let me get this straight. IPS is moving HQ to Dallas. I could almost, almost understand if they had moved HQ to Houston where there is arguably a strong IPS presence. But Dallas ??? Well, perhaps this is just being cynical, and perhaps there are objective and strategic reasons, such as this - Paulett Eberhart owns property in Plano, TX - near Dallas (Click link):
Paulett Eberhart, Property Information, Plano, TX.
In the meantime, competitors are forging ahead....wireless transmitters (Emerson, Honeywell), strategic acquisitions (Honeywell buying Enraf) You know the saddest part: The technology under the IPS umbrella is truly outstanding. I/A is one of the best DCS systems out there, miles ahead of competing products such as Experion & DeltaV (and believe me, I've worked with all of these). Other IPS products such as Tricon, ROMeo are all in a league of their own. And in the meantime, these management clowns are hell bent on grinding it to the floor. Sunday, September 2, 2007 The decision by Paulett Eberhart to relocate to Dallas just shows how irrelevant she and those who came before are to the core Foxboro operation. Foxboro soldiers on, while the megalomaniacs come and go. Sunday, September 2, 2007 Paulett Eberhart has announced the relocation of the IPS headoffice to Dallas, Texas - after "detailed analysis". I expect that the analysis is limited to the distance between her own house and a major city. This decision only indicate that she wants to reduce the costs in the current headoffice of IPS in Foxboro, since Ulf will never allow costs increase. This despite the statements that "Foxboro remains the centre for development and production". Strange statement while the actual production is partly already in China and Mexico, and the development is partly outsourced to India. It would show true leadership if management would communicate what they realy think. Saturday, September 1, 2007 Invensys has announced that Sudipta Bhattacharya has been appointed as the Invensys chief software solutions officer reporting to Mike Bradley Sr., president of Wonderware. Bhattacharya will be responsible for driving strategy and growing the Invensys and Wonderware software solutions business. Previously, Bhattacharya served as senior vice president of solutions management for supply chain, manufacturing and product lifecycle applications at SAP America, Inc. Friday, August 24, 2007 Seems like more than a couple of APV sales people are jumping ship and seeking greener pastures with the competition. Who could blame them - they continue to lose orders and are feeling the void of any process or product expertise. Management just continues the beatings. Who needs it. I guess some just want to know what it feels like to be paid a bonus that they've earned... Monday, August 20, 2007 Wonderware Appoints Rick Bullotta Vice President and Chief Technical Officer Wonderware today announced that industry veteran and innovator Rick Bullotta has been appointed vice president and chief technology officer of Wonderware. Bullotta will report to Mike Bradley Sr., president of Wonderware. Tuesday, August 14, 2007 - Re: APV - Center of Excellence: APV is opening a small office in Chicago to support the "Americas" business. Office will have approximately 20 employees (Marketing, Human Resources, some Finance, and Sales Team Memebers). The Buffalo business will remain. Saturday, August 11, 2007 - Re: APV-USA: Word on the street is that "Center of Excellence" is being relocated again; from upstate New York to the Windy City. This would be a reversal from 2004 when Chicago HQ was closed. It makes sense for an independent operation; but what about the engineers that are left? Does anyone have confirmation of the news? Wednesday, August 8, 2007 Look out below! Giving it all back - how low will it go before Ulf must sell something off. APV could be on the block - may as well get what you can for it now because performance is lagging. Monday, August 6, 2007 The recent stock price runup was apparently due to expectations of better financials than those just announced for Q1 and not the Siemens rumor. Process Systems profit was the weak spot. Nothing a good layoff can't fix. Friday, July 27, 2007 Did anyone notice what little information our new 401K statements give out. What date did the fund pay out the dividend? What date were our new shares bought? At what price? The Ameriprise statements were a lot more informatitive! Monday, July 23, 2007 APV - The new sales force seems to be doing well, but expectations from management are very high. Sales people need time, (and product) to get things going. As a customer, I hope they give the new people time,(and stock products). We have seen changes, and the new sales people will be tested before they gain our confidence. If Invensys "pulls the plug" on APV this time; our patience with this supplier will be severely strained. Wednesday, July 11, 2007 Chan Galbato resigned? Wishful thinking. Though that would be a happy day. Expect that he will leave soon enough as he is fast approaching 2 years and can not squeeze another profitable year out of this mess. He will claim victory and move on to his next job. Wednesday, July 11, 2007 I heard today that Chan Galbato resigned. Can this be confirmed? Monday, July 2, 2007 Invensys Completes Cimnet Acquisition on Schedule and Will Integrate Acquisition into Its Wonderware Business Unit Wonderware is Integrating Cimnet MES Technology, Using Invensys’ ArchestrA Industrial SOA, to Accelerate MES Software & Solutions across Invensys Units Invensys today announced that it has completed the acquisition of Cimnet, a Manufacturing Execution System ("MES") software company based in Pennsylvania, USA, and this acquisition is now being fully integrated into the Wonderware software business unit of Invensys. The acquisition has closed under the terms of the original agreement that was announced on May 3, 2007. Saturday, June 30, 2007 As a (soon to be) ex-Honeywell customer, I find the talk of Siemens buying Invensys of particular interest. In the past I have enjoyed a good level of support from Honeywell. But, Honeywell is now actively outsourcing much of it's development and support to low cost countries; support has (already) become slow and unreliable. If I can get back the same level of support (in the EU) by jumping to Siemens/Invensys I'll make that jump without a second thought. Tuesday, June 26, 2007 - from APV customer (United States): I will point out that the APV organization is doing a great job for my business. My local salesperson is at my site on a regular basis and is always keeping me informed of what is happening in the marketplace. The competitors to APV could learn some lessons from them. Based on what I see, it appears my salesperson is getting compensated, he has been with APV for 2 years now and seems happy to work in this organization. Bottom line: If you like what APV is doing you buy from them; if you don't like them, you will source from a competitor. Friday, June 22, 2007 - What Siemens would do with Invensys:
Friday, June 22, 2007 Any truth to the Siemens news of buying Invensys? What in the world would they do with them? Friday, June 22, 2007 - Back from the dead: BTR back in the Footsie? Don't laugh. Invensys, as the conglomerate became after it was shoved together with the similarly-ailing Siebe, is back from the brink of death to the brink of the FTSE 100. Its market value is now £3bn. There's not much there that's recognisable from the good old days of BTR - just Westinghouse, the one star within the disastrous 1991 acquisition of Hawker Siddeley. Shareholders who bought at the top have still lost nine-tenths of their money. Those who bought at the bottom - two years ago - have a fourfold return, showing once again that there is no substitute for good management. What a shame it came 15 years after it was needed. (Guardian 22-06-07) Wednesday, June 20, 2007 APV Sales Force: As a customer, I do not dismmiss the new APV sales people, they are "trying" and they may prove to be a proper addition. I do recall when APV had engineers or local "very experienced" people to call on us; but those days are past for most suppliers. Price, Performance and "above all" Timely Delivery; are the keys to the product selection process we employ. It would also not hurt APV to find a way to get involved in the small project business. At this point, the biggest issue for APV with us is "Timely Delivery". I do not understand their issues, but the sales people are the least of APV's equipment sales problem. I just could not get timely delivery of their pumps and valves to keep them involved for the last project. I hope their sales are picking-up like the previous email stated, maybe that is why delivery was an issue. All suppliers have issues, I think the new sales people need some time to help move improvements along. Tuesday, June 19, 2007 Here's what this morning's UK Telegraph had to say:
"The engineering and business services group was boosted by talk that it could be a target for Siemens at around 500p a share. Furthermore, Credit Suisse lifted its target price on Invensys from 330p to 390p following last month's results and an investor day last Friday. Evolution agreed that "a strong series of presentations by Invensys further enhanced our confidence" and argued: "The true potential of Invensys is still woefully misrepresented in the current share price." It lifted its target price by 30 to 430p. Shortly before the market closed, a director dealt in the stock, an indication that Invensys, up 7¾ to 382¾p, is not in bid talks." Sunday, June 17, 2007 Let's see, some new APV direct sales people come from Kinkos or Staples, while others only have experience in the label industry. APV customers find value in sales people who not only know the products and processes but are experts. The direct sales force is young and inexperienced - they don't know jack about the products they sell and even less about the processes of their customers. Striving to (or saying that you will) delight your customers is one thing, actually delighting them is quite another. Go ask the market place; start with Dean Foods and Heinz - two key customers who have recently signed agreements to have companies other than APV supply their equipment. The direct sales force is too green to know that they will not make their numbers because customers will buy from others on price, performance and expertise. You will either leave because you are making no money (APV doesn't pay their bonuses anyway) or you will be culled out because you don't hit your numbers. Friday, June 8, 2007 Regarding the comments about APV direct-sales organization being young inexperienced and not adding value. Whoever wrote this has no clue who these individuals are, and is definitely not a customer to any of these individuals. People don't generate significant double digit growth by not adding value. Go talk to the marketplace, customers are placing orders with APV because we meet our commitments. We do what we say we are going to do. Delighting Our Customers is what we do, our customers reward us with more business, that doesn't happen with inexperienced non-value-added salespeople. Wednesday, May 30, 2007 Invensys stock has more than doubled in the last year from 164p to 390p. The stock price has jumped on positive earnings news. It has been on the rise since mid March. Looking at the historical price data for this stock, I noticed that on March 23, 2007 there was a single day spike in trading volume of over 10 times the daily average. On that day over 100 million shares changed ownership at a price of 293p, that is over 300 million pounds. The market cap of ISYS.L was then about 2.34 billion Pounds. Thus about 12.5% of Invensys changed ownership that day alone. This was the highest single day volume by a lot in a long time. There are only a few options in my mind:
Tuesday, May 22, 2007 APV has indeed added many direct sales people. They are mostly young, unexperienced and low salaried spare parts order chasers. They have little or no experience or expertise in the products, processes, technologies or customers businesses. They are simply providing an APV presence with very little value add. Furthermore, they compete with their own sales channels and give away margin to get orders. The days of APV having the best people, product and process expertise are long gone. They can continue capturing the lucrative spares business for the existing installed base of equipment, if the direct flunkies can wrestle it from the pirates, who have been eating their lunch. However, without new equipment and project sales, the parts business will eventually dry up. Look for further positioning and window dressing before Invensys unloads APV. They couldn't get the right price a few years back when a deal was in the works with SPX. So people like their new leader were brought in to get the biz in shape for more lucrative sales. Thursday, May 3, 2007 Invensys/Wonderware adding to the stable instead of selling off. Sounds like they're in it for the long haul.
Invensys Agrees to Acquire CIMNET (Extract from Nasdaq website) Thursday, April 26, 2007 APV has added multiple direct sales channels to APV NA, spreading the idea of synergy to a potential bidder. Also, APV has avoided the "losing" Project Business and has focussed on the profitable parts and equipment business. Expansion of product sales has declined, due to lower project sales, but the component business has not yet felt the totality of the pain. APV has returned their email address from Invensys to APV. No investment in new products, but great focus on the profitable aspects of the business. The management has done a great job in positioning APV for the "unloading dock" of Invensys dept. Mission Acomplished - Invensys should unload another unit soon. Thursday, April 26, 2007 - 4/26/07 post on reason for share price inrease:
Extract from 04/26/2007 07:25:15 PM EDT - DAILY MAIL Thursday, April 26, 2007 The Invensys share price jumped 20p yesterday and was up a further 8.5p this morning - nearly 30p or 10% in less than two days? UK press thus far has only said "bid rumours" and "private equity interest". Saturday, April 14, 2007 Chalk and cheese, that's what it is. Guys talk it up at Foxboro and APV all you want, its the same globally, I left 18 months ago for another major DCS solution provider that wins work. The recipe is simple, there's a lot to be said for management support, something that I now get, a lot to be said about empowerment, something I now get, a lot to be said about pay rises and bonuses, something I now get, throw in camaraderie, regular bbq's and Friday arvo beer o'clock and you'll start to understand you are missing something in your life as an engineer and its passing you by. Wake up before its too late, so you can start enjoying what you do best. Saturday, April 7, 2007 I am a new employee to APV (Oct 05) and I am amazed at the negativity of this blog. I am happy I work at APV, we have a young team that wants to win and leadership that listens. We are accountable for our actions and our results. I work in North America and our business leader is very clear about expectations of the organization. Stop complaining and help solve our customers problems or find some other place to work. When I first arrived there were a number of employees that complained about all the changes. They have all left the organization in the last year and APV North America is a good place to be. We haven't heard what our final results are for the fiscal year, but we know it has been a record year for us. From what I can read on this blog, if you aren't happy at Invensys, maybe you should consider other employment alternatives. Friday, March 30, 2007 Having recently joined the company (Nov. 2005), I feel it is my duty to post on here in response to the previous log. I have enjoyed nothing but the best in benefits, mentoring, freedom to be creative, and opportunities. The company is undertaking a major movement to improve its on-boarding processes and even has a volunteer group that supports new hires. There is an air of excitement within the company. Maybe it's just me, but things seem to be looking up, way up. We are growing market share, we are hiring on a large scale, and we are releasing arguably the most exciting product to enter our industry in the last 20 years. Be positive! Be excited! If you are discouraged, take a look around and make sure it isn't your mindset holding you back, find someone who seems happy and ask them why. Foxboro is making a come-back and I have every intention of being here when our wave crests. Thursday, March 29, 2007 - regarding previous negative post: Yes. That's correct - this is just one exiting employee. A relatively recent employee, and one of four relatively recent employees in the past 6 months that have left M&I after a short stay. Believe what you want, but the retention time of new employees is poor. That speaks for itself. I understand that some have to convince themselves that its not because Foxboro is a bad place to work but rather, it must be that the "new" people that come in that can't adapt. OK, what ever keeps them going. The inevitable still looms. Wednesday, March 28, 2007 - Re. March 28 post on Foxboro: I'm surprised to hear that there is still a high level of negativity. My impression, based on a few people I still talk to at Foxboro, was that things were much better. Business was good and the management had become more humane. Perhaps this was just one exiting employee? Wednesday, March 28, 2007 I work for Foxboro and can relate to many of the weblogs I have read. There is negativity because this company is a wreck. I mean, let's face it - when the beast is going down, there is not alot of positive thoughts that will surface (no pun intended). I am happy to say that you can make a positive move though. I have. I am leaving Foxboro shortly, and am going to work for a prosperous company. My message is: when working at a company like Foxboro, you have choices. You can stay or you can leave. In spite of what many people at Foxboro believe, there is a better life beyond. I feel sorry for the people who have been here a long time and refuse to believe that... Wednesday, March 21, 2007 - re: Invensys Controls on a collision course. I read with some sense of amusement the blogs referencing Invensys Controls. If they only knew how right they are! Invensys Controls was formed by pushing Appliance and Climate Controls together at the end of 2004, following unsuccessful business disposal attempts. Each had problems which were common and of their own making. The formation was purely a cost play, expecting to capitalize on non-existent synergies. As anybody with any knowledge of business combinations will tell you, mergers are tricky, cultures are important, and political jockying is a poison pill (it is clearly apparant none of the leadership had sucessfully integrated acquired companies). Ulf, correctly sensing a lack of leadership in the group, brought in minions from Honeywell who surely could turn things around, (mainly because they had worked for Honeywell and or Allied Signal; funny how all outsiders are considered better than insiders, though Honeywell/Allied was a disaster and they are just recovering). However, these guys were extraordinarily political and, being hand picked by Ulf to lead the world, went about alienating just about everybody they could find. At this point there is practically nobody left that knows the business (warts and all) and the new leadership is simply painting by the numbers (and as noted by several writers simply waiting for the bonus payday to jump ship). Ulf's hand picked successor seldom shows up at the office, let alone at customers locations, or God forbid plants. Controls is at heart a manufacturer of OEM mechanical, electromechanical, and electronic controls. It is a shame to see such potential (speaking of the business, not the leadership) go down the drain, but that's where it going. The new manager's claim to fame will be that he has reached a level of stability (still 25% lower than when he was given the business) and surely he will speak highly of how he refocused the business to think solely of the customer. It is now likely that we will see a sad end for Controls. The only hope for the business is a sale. The customers are very uneasy - as they should be. The business hasn't reached the bottom yet; it's only treading water until the next wave. The good people who work in the business should be sainted for putting up with the incompetence, but they will likely pay the real price for the lack of leadership. It has taken many years and regimes to get to this point, but current leadership has only aggravated the situation. I am sad for the future, but I will stick it out. Who knows maybe I can capitalized on this disaster; maybe write a book similar to "barabarian as the gate", or I can call it "Idiots at the revolving door". Of course, I can only do that if I see the final chapter..... Wednesday, February 7, 2007 TAC have bought a dog in IBS (InvensysBuildingSystems). I have a long history with this company from the Robertshaw days (1986) right up to being sold like a cow to TAC (2007). I have watched this companies excellent engineering products they acquired from Robertshaw/BarberColeman be replaced with rubbish. The main reason we could not win any jobs is the I/A series controllers are so engineering resource hungry. Our customers hated them and the way it was integrated by Niagara. If we dont sell controls IBS doesn't make any money. The fundamental problem here is the products, no development whatsoever for years and they don't have their own front end. They dumped a lot of loyal Bobshaw and BC customers by discontinuing both product lines. These people used to spend MILLIONS of dollars with us. It all dried up in 2 years. On top of that the front end (Tridium Niagara) is now owned by Honeywell. So what did TAC buy? Some factories that make valves and actuators? I hope TAC have a plan to revitalize this part of the acquisition, unless they only bought IBS for their valves and actuators. More job losses to come?? Is this the last chapter or will these factories (and employees) be sold again?? Friday, January 26, 2007 Like many others at IPS, I am saddened to see the talented and respected KB dumped in favor of a bean counter from outside the industry. But I’m not surprised. This move is consistent with my perception that counting beans is all that really matters at Invensys. Perhaps Ms. Eberhart will polish the company (by rubbing out employees), but past experience suggests to me that a sale is doubtful. I think instead that we’re merely in for yet another round of fiscal smoke and mirrors. (sigh) Tuesday, January 24, 2007 Extract from JimPinto.com eNews No. 224, 24 January 2007: Invensys leadership changesSomeone on the weblog said of Invensys, "The more things change, the more they stay the same". CEO Ulf Henricksson has just appointed Paulett Eberhart CEO & President of Invensys Process Systems (IPS).Ken Brown, who had been in the position since the sudden exit of Mike Caliel about a half-year ago, was supposedly one of 3 internal candidates vying for the job and he was unaccountably bypassed. Foxboro loyalists are clearly disappointed, and are wondering what changes this new chief will bring. With a long background in EDS (computer services), Ms. Eberhart (52) has more of a financial background, with no experience whatsoever in the industrial automation and process controls business. Seems like yet another deja vu experience for fatigued Foxboro. After being left to manage a too-heavy debt-burden, Ulf has put Invensys on a somewhat reasonable financial footing again. My guess is that he is preparing for his own graceful exit by selling off Invensys for more than its current market value - still a mediocre GBP 2.4B ($4.7B), about 1:1 with annual revenue. Keeping Ken Brown in the role of President would have meant that the objective was to complete the hard-slog of returning to stability. Bringing in an outside bean-counter can only mean polishing the business to prepare for a sell-off. Another move, more sensible and long overdue, was the exit of Peter Tompkins as President of Eurotherm. He was replaced by Jeff Green who was VP of Manufacturing at Process Systems and previously with Flowserve Pumps. Eurotherm is still handled separately within the group, probably because it has only legacy temperature control widget products and is worth more as a divestiture. Whoever buys Invensys will be buying it for Foxboro (installed customer-base and market presence), Wonderware (Archestra), Triconex and other good parts of Process Systems. Any likely buyer will simply sell off Rail Systems, Eurotherm and other non-related business for whatever they can fetch. For an acquisition of this size, the only possible buyers are large, overlapping competitors: Siemens & Schneider (who need more process control); Honeywell (unlikely, because they're a direct competitor, and Process Systems is itself just a segment); Emerson (possible, though unlikely, because they're a direct competitor and don't need Foxboro); GE (unlikely, because Jeff Immelt is off buying other more juicy businesses); Yokogawa or Omron (unlikely, because the Japanese don't know how to accomplish acquisitions of this size). Who else? Your guess is as good as mine.
JimPinto.com eNews # 224 - 24 Jan. 2007
Walt Boyes' blog - Ulf torpedoes Ken Brown:
Sunday, January 7, 2007 Referring to an old weblog (Monday, April 24, 2006) on use of vulgar language: Remember these comments? The problem has been solved; there is now an automatic closer on the door into the office area, so the F-words don't get out. Yet in meeting after meeting, including meetings with mixed company, the F-words are still flying as fast and as furious as ever. The same person is still doing, it and HR is still blind and deaf to all this - they allow this to continue. Wednesday, December 20, 2006 Unfortunately, it sounds like Controls is going to force customers to move to other suppliers and, in the end, they are going to be left with un-saleable assets. The Controls executives probably don't care, because they will have their bonus and will have moved on to other jobs with other companies. Only the hard working career employees at Robertshaw will be left to clean-up the mess as they turn off the lights.... Tuesday, December 19, 2006 So if Invensys is going to exit the water heater business, who is the likely buyer? And if this speculation becomes reality, will Appliance be sold as well? Monday, December 18, 2006 The lastest blog regarding the Controls business makes me wonder "are the Appliance Controls customers next?". It has become painfully obvious that the leadership of Controls is only worried about one thing - how do I make my bonus and, at the same time, position for the next job (outside Invensys). Creating an Executive Floor at the Chicago HQ on which only certain employees have access to, management no longer visiting customers and understanding their business requirements, and the revolving door which now exists at the GM level highlights the concerns seen by customers. Now is not a good time to be sole sourced with the Controls group. Tuesday, December 12, 2006 Recent speculation has it that "Chan the Man" has decided to exit the water heating business and is now jaming it to long-term customers by instituting a 70% price increase with only one weeks notice. It should not surprise anyone that Controls is taking this action, especially when senior executives under the current leadership no longer visit customers and are only concerned about how the profit and loss statement looks. Going out in a blaze of glory has again become fashionable. Wednesday, November 22, 2006 Displeasure sitting through a Controls Group meeting? How sad that they never learn to recruit "leaders" who will give Managers and ultimately all good employees the respect they deserve for the efforts they put in. It's not just about take-home pay at the end of the month. You have staff who give 100% plus, so give them respect in return. I sat in a Invensys Controls Europe meeting some years ago, and watched a presentation by a staff member who struggled a bit with his English. But, HE WAS TRYING REAL HARD TO BE WORD PERFECT. I then witnessed the M.D. turn to this guy's Manager in view of the whole meeting and ask, "Um - is THIS GUY having English lessons or what?" How degrading and de-motivating to all those present do you think that was? Changing attitudes from above are needed in this organisation, where Bully-Boy tactics from Senior Managers have been the order of the day for for too long! Wednesday, November 15, 2006 I just had the displeasure of sitting through a couple of days of business reviews held with the Controls group. After watching this display, I have to wonder why anyone would choose to continue to work under the "leadership" provided by ICA President Chan Galbato. Leadership that relies on embarrassing and humilating the very people who have devoted time away from their families and hang tough trying to correct the mess Mr. Galbato's lack of focus and leadership has wrought. Watching this is a business school lesson on how not to provide leadership. All that was heard from Mr. Galbato was how it was the last guy's fault. A sorry excuse from a management team now in place for over a year. One has to wonder when exactly Mr. Galbato will step up. Friday, October 27, 2006 - Where did Haythornthwaite go? Extract from recent announcement: MasterCard Incorporated (NYSE: MA) today announced that Richard Haythornthwaite, a member of the MasterCard Board of Directors, has been elected as the non-executive chairman of its board, effective immediately. Mr. Haythornthwaite is a managing director of UK-based Star Capital Partners. Richard “Rick” Haythornthwaite, 49, is a managing director of Star Capital Partners, a private equity partnership focused on European capital-intensive sectors. From 2001 to 2005, he served as CEO and director for Invensys plc, and from 1997 to 2001 was with Blue Circle Industries plc, first as chief executive, Europe and Asia, and then as group chief executive. His prior positions include serving as a director of Premier Oil, president of BP Venezuela and general manager, Magnus Oil Field, BP Exploration. Rick is also a non-executive director of the main board of ICI plc. Mr. Haythornthwaite is chairman of the Almeida Theatre and chairman of the Corporate Advisory Group of the Tate Gallery. He is also a trustee of the UK National Museum of Science and Industry and a board member of the British Council. Wednesday, October 25, 2006 - Re: weblog Sept. 30: "employees that are changing this company": I wholly appreciate the contribution employees make to design, manufacturing, etc. But that is only a wish - Invensys cannot be changed by Employees. This this from one who tried for "the good of the company" but got penalized from above. In the past, many changes (sometimes atrocious) can be placed firmly at the feet of Senior Management. I for one never want to hear employees blamed for something that in many many cases left employees as the casualties, while the Decision Makers continued to thrive. Please know your facts before spouting such nonsense. Saturday, October 7, 2006 I have been watching this weblog for a few years now, not as an external investor, customer or competitor, but as a "simple" employee in a successful Invensys business unit (not Foxboro). I really appreciated Jim Pinto's log including his articles on August 15. And I hoped that all these whining guys would also read it and stop misusing this weblog as their wailing wall. But they continue to shovel their own grave (why should customers and investors trust in this company, if they only read shit?). Hey, my friends: If you are not happy with your situation, try to change it by personal and constructive contribution - one could be looking for a better company with better management, better conditions, better pay and less work. Why don't you? Don't want to loose pension entitlements? Here I agree with the log on Sept. 30: YOU may be part of the problem, too. So help to solve it. And believe me: I'm well aware of the fact, that Invensys is in no way untroubled by the "Peter Principle". But that's another story - not only at Foxboro! I'd prefer to read more valuable logs here in the future, leaving a more realistic (i.e. positive) mark of Invensys as a whole, and not only about Foxboro's "badly treated" folks. Tuesday, October 3, 2006 From what I see writen in the recent weblogs, I get the impression we can now be giddy about the prospects of Invensys moving into a new healthy future. Yes, there are some good people in place. But now, let's get rid of the attitude, "cheap is best". The customer should be the first and formost objective. This means give them the best service, the best instruments, the best software possible. Don't go with the idea that if something fails, just replace it. Make it right in the first place. All in the same place - not in Mexico, China, India, or where ever. Now listen carefully: CHEAP IS NOT THE BEST. CARE about being the best. Don't outsource because it is the current fad. Get rid of management that has no respect for their workers. Understand who manufactures the products, not some know it all dictator but your own good workers. Listen to your customers, and don't rest until they are happy. I hope I'm not just someone screaming, while everyone else knows better. Who is listening? Tuesday, October 3, 2006 I've got to laugh when I hear this stuff about being "part of the problem", and to "change the company instead of complain". These are probably from new people, or someone who has suddenly found something going right. Understandable, I suppose. Employees know - better than the management (Foxboro, at least) what to fix and how to do it. But they are completely powerless to do so. They'd love to change it, but are not allowed and, in fact, will be layoff-targets if they try to change anything. So their only outlet is to complain anonymously (this weblog is a channel) and hope that someone will listen and remove the REAL problems, which are the mid-level and upper management. Saturday, September 30, 2006 To all Invensys Employees who still have negative comments and thoughts about Invensys: You are adding zero value to the business and should consider that maybe you are the problem, not the solution. Stop blaming management and start taking accountability for your own attitudes. The employees that are changing this company are working too hard to listen to a bunch of complainers. Friday, September 29, 2006 I am a member of the IPS (Americas) customer service team and just finished a week-long meeting at one of our headquarters. I was rejuvenated, refreshed and acquired a new found respect for our leaders and the demands of their daily job performance. These folks not only have hectic days but they often work into the night so they can keep our customers happy. I also came to the realization that they DO CARE about the employees and highly value their input and CONSTRUCTIVE criticism. The thing I am now absolutely convinced of is that they not only put our customers needs above all things, but they are taking insightful action to keep them happy, secure and enormously productive and satisfied. I predict that in the next 3 years, Invensys will be a company to be envied, as well as emulated, with regards to our new business practices and processes. It's my personal opinion that IPS is well on it's way to becoming a "well oiled business machine"!!! The leaders have convinced me that they are not only sound business managers, but also that they are absolutely not going to accept either failure or sub-standard performance of our company business. I've kept track of this weblog for about the past 3 years and I'm now absolutely convinced that IPS is not going to disappear from the scene and will, most certainly, retain the lead as the world leader in our field and widen the gap between us and our competitors. To management: Thank you for all of your energy and confidence and rest assured that at least one of your former skeptical employees is now instilled with a new and expanding confidence level in our company. Sunday, September 17, 2006 I always read in this weblog ow all the comments about INVENSYS are negative. In most cases, deservedly so. The upper management has much to learn about business and how to treat customers and employees. But here in IPS (Foxboro is part) things seem to have changed. We no longer have cold, calculating, mercenary types in control. With Ken Brown as interim president, and Bob Jones taking over his former job, just maybe we have decent human beings in place. They both are very intelligent and seem to care about the people and doing business the right way. Now hopefully we may rid the company of the remaining arrogant fools. Monday, September 11, 2006 Sorry but I disagree, the negative comments are not only from Foxboro (Boston) employees. Although there may be none written in this weblog from Walsh Automation or Validation Technologies (Canada) there is nothing positive that came out of our merge with Invensys. I do agree that one by six stands for: SIX JOBS FOR ONE SMALL PAY! and if you are one of those that do have a good pay, well you are fired to lower the costs. Thursday, August 24, 2006 I don't want to spoil the positive tone lately on this forum : Invensys is doing better. Yes, that is probably true, but all automation vendors are doing better at the moment : it is just a consequence of the economic situation. Some are even in a situation that they can choose the projects they want to execute. Several of the operating companies have reduced their staffing so much in the past years, that they have to rely more and more on vendors, engineering companies. But these have also laid off people. So maybe the fact that the automation vendors have almost more projects than they can handle is not such a positive indication. Tuesday, August 22, 2006 - from Neil Dowsing - Investor: At last, some good solid positive feedback. As a small investor I have been following Invensy on an almost daily basis for 3 years now. Jim Pinto used an expression of 'took a lickin but kept on tickin'. Well I took a lickin at about the time that Invensys appeared to be on the rack. I liked the company and as an an act of faith I bought some shares with the only spare cash I had left...which wasnt much. I saw that a recovery of Invensys was symbolic of my own. I said this to Ulf Henrickson at the AGM. It helps to remember that executives are human beings too. They too have morale and take criticism personally. Henrickson said that he wanted Invensys to be a 'growth company' and said he was in it for the long haul,provided he felt he was getting results, that he was paid his worth, and that he was wanted. Thats fair enough! Employess - if you beleive in the company then buy their shares. My feeling based on what I learned at the AGM is that Spring 2008 will be a defining moment for the company when the last shackles of a destructive regime will be thrown off. Keep going all you 'good people' and make a few quid ( English), Bucks (American), out of your own efforts. Monday, August 21, 2006 The stock was making a nice up move when everyone was negative. Now even Jim Pinto sounds like Rebecca of Sunnybrook Farm. It's time to buy puts. Monday, August 21, 2006 - From an APV Employee: I'm an employee from APV North America, and I can honestly say that the leadership team in North America has turned around our organization. We are focused on the most important parts of the business - our customers! About two years ago we got another leader for APV North America, most employees felt he was just one more guy that didn't get it. I was wrong, he got it and he made all of us get it too. "Delight our Customers, and good things will happen" Good things are happening, and it is great to work for this organization. Saturday, August 19, 2006 - from APV employee: APV has many new products and processes. Some are selectively launched to clients who will purchase them (a small list) and some are sold to win contracts surprising the competition. The days of telling the competition what we are doing are thankfully over. Wednesday, August 16, 2006 - APV Update - From a customers perspective; APV has setted down and is very much trying to improve. Management is very active; and they try to address the needs of the customer. Also, the employees are trying to handle the customer's needs, at least in North America. However, the APV troops need a new product release or a new product. Their competitors arrive daily with a new DVD product releases or a new twist to a current issue. The APV effort is good but they need something new; either a process system development, or a new product; to bring to the table. That is a management or R&D issue. Investment in R&D is not only required, but it is an element of survival for APV. I wish them well. Tuesday, August 15, 2006 - Note from Jim Pinto: You know, I appear to have been pillorying Invensys for years, fueled by negative weblogs from people who seemed to have had no other outlet to complain. This review shows the positive side. There’s an old saying, "When the going gets tough, the tough get going." There are those who complain, and those who solve problems. I am happy to present this story of the Invensys culture that "took a lickin' but just kept on tickin' ". My latest article is published on Automation.com, August 2006, as part of their "Corporate Culture Series". Just click on the links below to read it:
Tuesday, August 15, 2006 The situation at Invensys seems to have improved, and the Automation side of the business seems to be in good health. However, we seem to be going into a slide in residential new build in the US, with potentially slowing demand in the appliance market. Can the Controls business really maintain or raise its profitability? Invensys seems to have been behind the curve in pushing raw-material prices through to end customers. Can they really do it now when the economy in the US is slowing? Thursday, August 10, 2006 - Re: Question on APV July 19th: Yes, APV is improving. It is still early days yet.APV Americas did grow business there with 40% last year. In fact you see growth in every region. APV Global now shows continous profit for over half a year. It is now all about building on this growth and work on consistency. The management team is new, with a real hands-on and make-it-happen attitude. Forget about the past and stop complaining. If you think there is room to improve, make it happen. With complaining and looking to the past you won't go anywhere. Maybe that should be a message to all the complainers on this weblog. Yes, I work with APV and we all had, and still have, our share of troubles. But at least we see that with all the hard work we've put in things are really changing. Tuesday, August 8, 2006 - RE: Neil Dowsing: What a sucker. Surely Ulf would talk wit ANY investor this way. Neil probably did not talk to Ulf about the management running day-to-day operations. Monday, August 7, 2006 - Re. Neil Dowsing's comments: The negative comments on this blog come primarily from Foxboro employees. Foxboro is a small part of Invensys so I wouldn't get overly concerned about this negativity. People in the Boston area tend to complain a lot anyway. Monday, August 7, 2006 Am I seeing right? Did ISYS go to 175p this morning?
One for ten share consolidation effective 7 August 2006 Following approval of shareholders at the AGM held on 3 August 2006, Invensys plc's Ordinary Shares have been consolidated on the basis of one new Ordinary Share of 10p each (“the New Shares”) for every ten existing ordinary shares of 1p each. Trading in the New Shares on the London Stock Exchange commenced on 7 August 2006. Sunday, August 6, 2006 - from Neil Dowsing, Investor: I went to the AGM last week and had a 30 minute 1-to-1 with Ulf Henrikson. He came across as some one who has his eye on the ball, is straight forward and capable. Orders and margins appear to be recovering although there are a lot of unprofitable plants that they do not have the money to close down (France and Germany). Debt has been reduced although the last bulk of it they are going to be encumbent with for another two years. The impression I have of a recovering company appears to be in very stark contrast to the ever present gloom and dispair on this weblog. Ok things were very bad up until 2004 but surely their are a few rays of light that at least someone on this weblog can pick up on. I am an investor and profit aside, I have a genuine wish to see this company make a full recovery. Monday, July 31, 2006 - from former employee and a current well wisher: Mike Caliel's exit make things differently difficult for Invensys. IPS loses its stability or the promise of it, over again. With no strong culture, IPS will have to change its flavour of business with a new incumbent head. Forget recovery; these changes make genuine well wishing employees insecure and also result in good people leaving the company. And at the same time, some new head will get in to make things even more difficult. I remember the Invensys which used to be a great place to work till few years back. Tuesday, July 25, 2006 Insiders say that Schneider's purchase of Invensys Building Systems will move most of the Love's Park (Rockford) IL jobs to Schneider's Tlaxcala, Mexico plant. Valve products will be sourced and machined in Italy due to the low raw material costs. Electronic systems manufacturing will be merged into Schneider's existing resource centers. Sunday, July 23, 2006 - Re: Invensys Consolidated Balance Sheet for year ending 31 March 2006: Good point. When I was at Invensys I noticed that they were selling the divisions that were making money. Although management claimed that it is not their core business, these divisions had a very good potential. For example Invensys sold Rexnord in 2002 for $800 million. In 2006 Rexnord was valued at 1.8billion. ( Including a 2005 acquisition of Falk Corporation valued at $295 million) This shows how poorely invensys is managed.The caculation you showed reinforces that Invensys will not survive for too long. In a way, it is better(for the employees) to be sold to other companies who know how to manage. I am sure Rexnord employees don't read this log anymore !!! I am finally an EX Invensys employee. Happy to be out. But sad I have good working friends still there loyal to the company while the management screwup things. Friday, July 21, 2006 You can map the demise of Foxboro/Siebe/Invensys to its current state when Mike Caliel walk through the door at Foxboro back in 1996. He brought with him a group of myrmidons and sycophants that were looking for personal enrichment over the welfare of the company. The lavish spending on “Management Review” Session and personal travel expenditures would have made many wondering what the prorities were at Invensys/Siebe/Foxboro. As the “previous” management team was run off Mike replaced them with BOMs (Buddies of Mike) from the industry. Some of these people still fester and infect the company producing “paradigm shifts” and other management nonsense. I firmly believe that there is not a well run company anywhere in the world that would take on the burden of Invensys at this time. The pieces are worth more than the whole. Wednesday, July 19, 2006 Can anyone comment on any changes they have heard about at APV? My understanding is that there is a new president and that the performance of the organization has improved significantly. Rumor on the street is APV in the United States grown more than 30% in the last twelve months, can anyone comment to what is happening with this business? Thursday, July 13, 2006 - Responding to the praise for Mike Caliel on his departure: Caliel was the ultimate "player". He was "teflon" when the "going was very sticky" in 2001 and 2002. He hid from the real tough choices and played the "Invensys game". He and positioned himself accordingly to avoid any difficult situation in future years. A guy like Caliel, who has thrown so many bodies "under the truck", does not deserve the respect of "good" person who wrote the paragraph (below weblog) in support. Foxboro and IPS need a real leader that faces the issues; Quality and Performance; not a "player" who "like water",(or a snake), finds the easy path. Tuesday, July 11, 2006 I have watched this board for about 4 years now and it amazes me that nothing seems to change. The same negativity is the one constant here. But I have noticed that no one wants to do anything about it, and if there is one thing a Corporation will do, it's to ignore you until you take action. Monday, July 10, 2006 - THE DAILY TELEGRAPH (UK): Takeover rumours were rife, with hopes of a bid for Invensys resurfacing. Dealers have previously speculated that it could be a target for Siemens, but according to yesterday's chatter, the transport and energy infrastructure company Alstom could be running its slide rule over the group. The speculation saw 143m Invensys shares change hands - more than double the usual daily average. Invensys ticked up a l to 19p. Sunday, July 9, 2006 - Foxboro pay procedures: I personally think the founders (the Bristols) would be revolted and sickened by the way these people do business. I'm not saying, by any means, that Foxboro is the lone villan. But, it's a sad state of affairs that the whole industry goes about things the same way. In the earlier days, we would strive to build the best instrument we could. They would be designed to last, to work as efficiently and accurately as humanly possible. There are still instruments working out in the field that are 50 and 60 years old! They are brought in every so offen to be calibrated, then sent back to work. But now, parts are outsourced (some not all)and are received back and some are found to be faulty. But they think this is ok. They work by numbers - the bottom line. I guess what I'm saying is that we should be striveing to build the best, using the most skilled workers, knowing we'll receive the best product. Now if an instrument comes back as faulty the mind set is to just send them another. Wouldn't it be easier just to send one that works in the first place? You know, like correct engineering problems, instead of putting a band-aid on it? Make sure that parts made outside are within tolerance when received. Maybe fire the supplier when we receive sub-standard parts regularly. Maybe fire managers that care more for cost than quality. I thought this was always the first and formost concern. I think we should build the best instruments and you can count on making the most on the bottom line. The problem is this greed. Foxboro, as the rest, are run now by bottom-feeders and controlled not to make the best instruments, but the cheapest. Saturday, July 8, 2006 - re. Foxboro pay procedures: I am not disputing anything you said. Unfortunately, this is nothing new at Foxboro or any other company in the Massachusetts area. All the companies are as bad, or worse. They all get together on a regular basis and establish pay scales. All companies try to find the lowest cost worker for any given job. Why do you think most engineering job ads specify, "4-5 years experience" or some other relatively low number? Do they ever specify more than 10 years? This, of course, is to hire people in the bottom end of the pay band. It is also defacto age discrimination; but that is another story. Saturday, July 8, 2006 Recently at Foxboro, the employees were treated to an information sharing session on the subject of wages and how they went about to set the parameters for the many wage bands. I can only speak for myself in that I came away with the feeling primarilythat human resources has a very cold blooded view of the people who make the company the profits they need. But I sat there and I realised that they see us as a liability and a very heavy cost. I have heard comments by different company "toadies" talk about the work force as "fungible ants". For near 100 years, this company has valued it's work force for it's talent and dedication to quality. They (human resources) talked in this session about where you stood in the wage bands, compared to what the market was paying. There was no talk of how good or bad a worker was, no talk of skill or lack of it. The talk was simply about where you were according to to the market, and how you could be a very good and dedicated worker. Nothing else. They also said that team work didn't enter into the determination on receiving a raise. The term pay-for-performance (which is what they like to think what they are doing) does not enter into it at all. If this company could manufacture their products in a country that employed slave labor, they would do that. Sad as it sounds, right down the line from manager to president, max profits is what counts; not a company with a solid base, but one with no honor or conscience. This may sound extreme, but I came away thinking - MAYBE these cold, calculating individuals should be fired, and maybe people who are less mercenary put into place. After all, we make the products that make the money. Maybe we deserve to be given the dignity we are entitled to. I'm sorry to see that the world has become a very cold, heartless place. But most of all, I hate to see the company that has employed me for more then twenty-five years reduced to a bunch of inhuman and disloyal individuals. Thursday, July 6, 2006 - "American Printer": Ink blending and dispensing equipment supplier Rexson (Hickory, NC) has a new sister company in the food processing industry. The company's owners have acquired APV Baker Ltd. from Invensys. Britain-based APV Baker will revert to its former name — Baker Perkins Ltd., an international forerunner in the field of food industry capital goods. Rexson's current managing director, Jim Noakes, will serve as director of international operations at Baker Perkins. The current Rexson management team will report to John Cowx, who continues as chairman of Rexson Systems Ltd. Wednesday, July 5, 2006 - re. Adjusted equity: If the intanigible assets are largely "goodwill" you are correct in disregarding them but is the book value really negative? Tuesday, July 4, 2006 - Invensys Consolidated Balance Sheet for year ending 31 March 2006: As the break-up continues, it is intesting to compare the "adjusted" net equity at the end of each fiscal year. I use the term "adjusted" to mean what reamains after removing the "intangible assets". When a large, complex company such as this has been mis-managed for so long, the closet called "intangible assets" can hold many skeletons and cannot safely be considered an asset in its entirety.
2003: -663(initally) -1670 (re-stated) 2004: -782 2005: -869 2006: -896 Monday, July 3, 2006 Comments: Word is that Mike Bradley from the Wonderware unit is the likely replacement for Caliel. Any takers? Wednesday, June 28, 2006 - re. Mike Caliel: The simple and most likely explanation is that Mike Caliel was sick of the aggravation and wants a change and the opportunity to call his own shots. Wednesday, June 28, 2006 The departure of Caliel is very interesting. He was definitely a 'long term' guy. He tolerated the outrageous behaviour of Leo Quinn so it is hard to imagine he would be leaving now due to any internal personality clash. His departure could of course indicate that Invensys (IPS) is about to be swallowed by a large suitor which would eliminate his position. The other reason could be IPS is really going down the pan because Integrated Electrical Services are certainly not a stable ship for him to jump onto. Time will tell. Tuesday, June 27, 2006 - Letter to Invensys employees from Ulf:
Dear Colleagues Mike Caliel, Business President of IPS, will be leaving the Group on 7 July 2006 to take up an appointment as CEO of Integrated Electrical Services, Inc., the publicly listed IESC. I would like to thank Mike for his tremendous contribution to Invensys during the past 13 years and in particular for his success in leading IPS since 2003. He has been responsible for executing the enormous turnaround at IPS during the past three years and has seen it regain its rightful position as a leader in the process automation industry. I know that he will be missed by all those who have worked with him but I am delighted for him that he has accepted such an important role. I have asked Ken Brown, current VP/GM of Foxboro M&I to take over immediately as acting Business President of IPS. We will be conducting an extensive external and internal search for Mike's successor. Please join me in wishing Mike every success in the future. Ulf Henriksson Tuesday, June 27, 2006 Mike Caliel is leaving for a CEO position with Integrated Electrical Services, a public traded company that recently emerged from chapter 11 protection. That must tell us something about either IESC, Invensys, or Mike Caliel. I personally think Mike Caliel was one of the better things that happened to Invensys IPS. I am worried that he knows more then we do about the real problems Invensys is facing. I heard him say that he was "in for the long haul" and that was not that long ago. It shows you - the higher up the tree, the shorter the long-term memory gets. Maybe it simply did not click between Ulf and Mike. That would be too bad though because egos have destroyed bigger and better companies. Monday, June 12, 2006 - Yahoo UK Business News: Invensys (LSE: ISYS.L - news) (ISYS) Director name: Mr Ulf Henriksson Amount sold: 820,000 @ 22.00p Value: £180,400 Wednesday, June 7, 2006 - from a former employee: So Invensys has finally sold the Building Systems piece of their business. I worked for Barber-Colman, Siebe, and then Invensys for 20 years in a large field office. We had a majority market share for controls and automation systems and lots of dedicated, talented people. I knew I would eventually have to leave when I watched a video of Allen Yurko saying his intent was to "exploit the existing customer base." I know there are semantic differences between U.S. and the U.K. talk, but "exploit" still means "exploit". That was a strange foreboding, because at the time we had been doing very well for years. Yurko began a culture of treating the very best customers in the very worst way. Loyalty from the customer was reciprocated with greed. The Universe has a way of repaying greed, I believe, and it's called Never Enough. That problem soon became apparent in every department and in every facet of business. The field offices were left high and dry with disingenuous promises made by corporate managers in Sales and most often in Engineering. The people who suffered with the results were the Customers. I left Invensys just before the unrelenting debt service and poor management forced the sale of the field offices to Reps. By that time, Invensys was in such a poor negotiating position that the contracts they made were equally poor. Some Invensys Reps now sell Trane automation and other systems, quite unheard of before. I'm sure that's attributed by Invensys to compatibility of systems, but it's really just a reflection of a poor market position. If they could have nailed down those contracts, they would have; but they simply had a poor negotiating position. I am very glad that I saw that Yurko video. I literally had years to plan my exit. But still, the process was excruciating. I left in the wake of many. I probably should have waited for the severence package the field people received, but it just wasn't worth it. Invensys sucked the life out of a good company. I wish Schneider well. Thursday, May 25, 2006 - Message from Ulf Henriksson to Invensys employees: Financing for the future
Today has been an eventful day for Invensys, with far-reaching consequences. Today we made two major announcements
First, we announced our preliminary results for the year ending 31 March 2006. Generally they show positive progress on a number of fronts. Orders for continuing operations were up 10% for the quarter over the fourth quarter of last year at constant exchange rates (CER), and up 5% for the year at £2,637m (2005: £2,438). Revenue is up 5% on the previous year’s Q4 at CER, also, and revenue up 1% at CER. Revenue grew for Process Systems, Rail Systems and APV, but revenue at Controls and Eurotherm fell in line with reductions in order intake.
Operating cash flow for the year before legacy liability payments was an inflow of £228 million, against £188 million last year. Free cash inflow (before legacy liability payments) was £100 million, a considerable improvement on last year’s £39 million. Operating profit before exceptional items was up 16% at £191 million (2005: £165), and operating profit at CER was up £19 million, resulting in a margin improvement for the year from 7.0% in 2005 to 7.8%, as improved performance at Process Systems and steady performance in Rail Systems was balanced by anticipated weaker performance in Controls and a break-even at APV. The higher operating profit helped to contribute to a profit for the year of £22 million, a considerable improvement on last year’s £106 million loss.
We have also announced today the sale of our Invensys Building Systems, a part of Controls formerly known as ABS, to Schneider Electric SA for around £157 million.
There is much encouraging information in the performances of our businesses, and this allows us to take another significant step in the management of our debts and the creation of the future of Invensys.
This forms the basis of our second announcement: that we will be recommending that our shareholders agree to a refinancing, involving a rights issue and new senior credit facilities. This will be put to the shareholders at an extraordinary general meeting on June 14.
In 2004 we undertook a refinancing comprising a share placing, the issue of bonds expiring in 2011 and the creation of new loan facilities expiring in 2009. This plan gave us time and the capital to manage the businesses over the longer term. It also gave us flexibility, by removing or deferring the immediate need to take action such as selling businesses, and facilitated the ability to sell businesses from a position of greater strength. By removing uncertainty about the future of Invensys, the 2004 refinancing has given customers improved confidence to make us a partner in their plans. It gave us a chance to manage our longer-term legacy liabilities and pension obligations over the last two years. For example, liabilities have substantially been reduced and the recent agreement with the manager of our main UK pension fund has increased clarity and certainty for Invensys and the fund’s members also.
We have succeeded in improving our operational performance, developing employees and recruiting more talented people. We have cut corporate costs and simplified our business structures, while investing in the development of new and exciting offerings like InFusion, the world’s first enterprise control system.
However, the 2004 refinancing was agreed at a time when Invensys clearly faced significant difficulties, and this was reflected in the cost of the debt and the burdensome nature of the restrictions placed on us. We find ourselves now able to refinance again, but from a position of comparative strength and on better terms.
The refinancing now planned will raise approximately £340 million from our shareholders through a rights issue. We will replace the 2004 credit facilities with cheaper and more flexible senior credit facilities from 6 blue chip banks, an important milestone for use in building long-term banking relationship for the future. The use of proceeds of the 2006 refinancing will be to repay a proportion of the Group’s high yield bonds (its most expensive debt) and 144A notes. This refinancing will improve our earnings, with cash interest savings of £45 million per year, and will also enable us to run own affairs more efficiently. We are becoming more like a normal company where we can now use our creativity to seek different solutions to grow and build on what we have done in the last 2 years.
June 14 is a key date in the history of Invensys. I believe that our shareholders will agree with the Board’s recommendation that this plan be accepted. Until then, as your Chief Executive, I would like to thank you for making this a possibility. Your work has given us the financial results that have made this refinancing a credible move, and the benefits it realises, in cost savings and efficiencies, will benefit your businesses and, ultimately, you.
This is a crucial moment for Invensys, and one with the potential to begin a new stage in our journey. As we move towards this moment, I ask you to carry on doing the good work that got us here, with the encouragement and gratitude of myself and my management team.
Ulf Henriksson Thursday, May 25, 2006 Invensys, on Thursday reported higher operating profits for the full year and announced plans for a major refinancing. The company said it planned to raise £341m through a rights issue, and had arranged new banking facilities of £700m. Invensys said the move, which comes two years after its last refinancing, reflected the “considerable progress” it had made both operationally and financially during the past two years. Invensys, which has been cutting costs and making disposals, earlier this week agreed to sell its building systems unit to France’s Schneider Electric for £157m. Operating margins on continuing operations improved to 7.8 per cent in the year to March 31, up from 7 per cent the previous year. Operating profit before exceptionals rose 11 per cent to £191m at constant exchange rates. Thursday, May 25, 2006 Standard & Poor's Ratings Services said it revised its outlook on Invensys PLC to positive from stable, reflecting the group's continued improving financial performance and following the announcement of a 341 mln stg equity rights issue. S&P also affirmed its B+ corporate credit and B- senior unsecured debt ratings on the group. S&P's credit analyst Jarrad Oberhardt said, 'Given the momentum of Invensys' recent performance, upgrade potential could be realized in the near term provided financial metrics progressively improve'. He added that 'the proposed rights issue represents a significant step by Invensys toward repairing its balance sheet.' Thursday, May 25, 2006 Invensys saw operating profit rise 11% as it announced a new rights issue to raise £341m. Operating profit rose 11% to £191m from £165m allowing the group to narrow pre-tax losses substantially, from £160m to £26m. Revenue rose 1% to £2.45bn. The group also said that it expected a new rights issue to raise around £341m. Overall prospects for the group's major markets remain encouraging, said the group. Global demand for process automation remains strong, while spending on rail infrastructure also expected to remain bullish. Wednesday, May 24, 2006 - Invensys Building Systems acquired by Schneider Group: Schneider Electric has signed an agreement for TAC to acquire Invensys Building Systems, a division of Invensys. TAC will be combining forces with Invensys Building Systems to establish a new, formidable presence in the market. (See TAC website). Friday, May 12, 2006 Responding to "Does any one remember one by six?" The answer is YES, every ONE of the rank & file at Foxboro is doing SIX jobs for only ONE small pay. Quite a few of our Foxboro middle management are going on another junket to California. At Foxboro, more & more is expected of the people in the trenchs in the way of saving money. The results are that management gets to take more junkets; we don't even get a "Thank You". As scary as a Siemens buy-out might be, it might improve the lot for most of the people, except the bloated management structure who are accustomed to spending money. Friday, May 12, 2006 - Comments on 2005 Balance Sheet: On the Ivensys corporate website, I was looking at the 2005 financial balance sheet. I am a very skeptical investor, so I discount the "intangible assets" as being worth nothing. Re-calculating with this assumption, the net assets, including the pension liability, come to -795. This is essentially the same as the 2004 value of -782. It looks like they reduced the "intangible assets" by about 200 at the expense of the "net assets including pension liability". Recent gains in the share price would appear to be more the result of speculation on the sale of assets (to Siemens), rather than significant improvements in the long-term viability of this company. Friday, May 12, 2006 Forgive me, but does anyone remember about "one by six"? Thursday, May 11, 2006 Invensys added 1p to 24.5p in heavy trading on talk that the company was poised to receive a bid at 36p a share from Siemens. With the pension stuff out of the way, what's to stop this? Could anyone REALLY benefit from Siemens oversight? Really? We're talking Siemens here - there's like 12 people in the world that can program an S7.... Monday, May 8, 2006 Here we go again at Invensys controls. With the addition of major ego Chan "Gal-blabo" we are returning to the days of top heavy management. Chan has publically stated he wants to build an executive team large enough to warrant an executive floor on the recently designated Carol Stream HQ. All these VP come with the corresponding large dollar paychecks. Further indication that 2006 will see another repeat of business losses likely followed by the traditional cutting of workers. Deja Vu all over again... Sunday, May 7, 2006 - On InFusion: To the fresh grad new employee - InFusion is supposed to be the product suite but Archestra is the technological foundation (adpated from WW). Archestra is NOT a product. Well at least that what I think. I have seen some of the InFusion demo and also went for some of the talks...I honestly think that they are on to something. It is more than just glueing WW over IA. There are some neat objects and modules that have been built into the WW App to make it meaningful for IA. The trick now is how to deliver it, package it, communicate it to a market that no longer sees Invensys as a serious player. I think we all agree that the communications for the past few years have been really poor. I am confused with APM, IA, Archestra, InFusion, ECS.... They need to stay with one message, one direction. Friday, May 5, 2006 - re: Vulgar language and Stalinist management at Foxboro: One would get the impression from reading this blog that life at Foxboro resembles an episode of the Sopranos set in Deadwood. It obviously is not that bad or they wouldn't be launching breakthrough products like InFusion. The management must be doing something right. Friday, May 5, 2006 - Re: Anti-social behavior within Foxboro division: Foxboro is not unique in this regard. Such behavior seems to spring from a combination of frustration, fatigue, and personal habits. Rude language is only one example, and it's a rare individual who hasn't used one of the four-letter Anglo-Saxon words, or at least thought it. I think the root of the problem lies in the rapid increase of the number of "managers". They seem to be equipped with "management" techniques but, unfortunately, many are seriously lacking basic leadership qualities. Leaders evolve and earn the respect that makes them natural bridges across the levels of an organization. These bad "Managers" only look after the "upper" side of their position. As such, they get little empathy and support from those beneath them. That extra team contribution that often makes the difference can be lost. Leadership is what it takes to build teams. Mutual respect is earned by action. It enables us to understand and accept one another's less-than-perfect behavior as we work towards a common goal. Leaders understand this and built it within their organizations. I make no excuse for bad behavior, but only seek to explain it. My point is that many of them are out of their depth and under a lot of pressure. They're more to be pitied than condemned. They will be among the first wave of casualties. The responsibility lies above them, with those who shaped the policies that hired and continue to use these individuals to further their own career ambitions. Friday, May 5, 2006 - Vulgar language at Foxboro: This is nothing new. Please, let's step into the real world. The core problem is the attitude of the existing management. Some (not all) are jus plain bullies. They respect only power, and have the Charles Colson philoshophy (you know what he said about hearts and minds). We even have some managers that put Stalin to shame. When management understand that everyone is part of the team, then maybe we might make some headway. If we are to progress as a viable company, we must purge these uncontrolable, uncouth people from the company. It means getting people in control that are willing to be responsible for their conduct and their performance; accepting blame when wrong, and going by a decent code of conduct. Does anyone have the courage to fire someone openly? I think there is a vast gulf between management and the employees, and this may not be bridged until another company buys this company. Then we will see some of these bullies fired. Tuesday, May 2, 2006 I'm a graduate who has been with Invensys only a few months (God knows how I found this blog). To me it's obvious that Archestra and Infusion are software products, not just bandaid solutions to the Foxboro system. Friday, April 28, 2006 - Re :- Foxboro System: The Foxboro system has seen marketing concept name changes from I/A to Archestra, Godzilla(???) and to now Infusion, within short period of time of the last few years. From this, I perceivedthat Foxboro has never been clear itself on what it wants to do. If you have no clarity yourself internally, let alone being able to communicate and sell these ideas clearly externally to its customers and to the market. Foxboro's main competitors (Emerson, Yokogawa, even Honeywell) has been consistent with its naming concept. This takes time, effort, R&D resources etc... which boils down to financial resources. I don't think Invensys has the financial resources and means to afford to do what it wants to do for the Foxboro systems development and its marcom activities. I believe there will only be more sporadic and "band-aid" types, with no solid and well thought out plans. Competitions does not wait for you. That is why the Foxboro system is now being subjected to competition, and will find itself being technically late in field experiences in important enabling basic technologies like Foundation Fieldbus, AMS (Asset Management System) etc Unless of course, as stated in an earlier weblog, "to swell up your bookings even if it does not make fiscal sense", the path is to look for short term means is "to dip prices to win orders" to make Invensys financials looks good for the short term. Those end-users who buy into this could end up being not satisfied with promised features not fully available or functioning properly or need constant "Quick Fixes". This is Foxboro term for I/A software patches, where each site can have different software patches for same system software releases version. A maintenance nightmare. My take is that in life, what you pay, is what you will get. Looking at the Foxboro systems reference list closely, so far Foxboro systems have few and far between new plant orders from repeat customers.
Friday, April 28, 2006 - re: Triconex: Triconex will see an increased in competition from Emerson, Yokogawa, Honeywell and even MTL (the company that started out making saftey barriers, jumping onto the bandwagon) have recently announced new safety systems. There will still be a demand TMR systems but you could have a scenerio of their market been slowly eroded from strong competitors like Emerson and Yokogawa. It has been perceived that Invensys has milking the profit out from Triconex. I guess the somewhat biggest short term gainer was no dobut Invensys. Foxboro, has also tried to ride on the "coat-tail" of Triconex, with some small success. My opinion and percption in the last few years, Invensys has been somewhat been "impeding" Triconex in slower product develpoment and releases. From the already somwhat crowded safety system market, this could hurt Triconex in the longer run. With increased competition in the safety system market, release of IEC61511, depleting oil and gas resources coupled with soaring energy prices, one form of alternative energy is still nuclear energy, is an area to move into. Traditional strong competitors of Triconex like HIMA, ICS and newer competitors Emerson have not moved into the nuclear industry yet. The Tricon is nuclear certified. This is one area of diversification that Triconex is moving into, from the already crowded safety systems market. The nuclear industry at this moment, is not in a "fast lane" moving industry as compared to chemical, oil and gas. It is one for the future that Triconex is rightly gambling on (besides the railway industry) Foxboro is on the "coat-tail" again to try gain some susccess and leverage. Purely Foxboro system being thrown into competition, with Emerson, Yokogawa and Honeywell will see the Foxboro system, as of now, not being able to hold on its own, most of the time. Thursday, April 27, 2006 - re. Triconex: This isn't an answer to your question but Triconex is a company that should do well, and would do well, if it weren't coupled to Invensys Foxboro. Its product stands alone as an additional and independent system to shut down the process when all else fails. This is as it should be. Force fitting it into Foxboro's family of products is antisynergetic (if there is such a word). Its association with Foxboro probably helps Foxboro but this is a small plus compared to a big minus for Invensys as a whole. Wednesday, April 26, 2006 How about Invensys Triconex? How do they fare these days as an Invensys business? Triconex supplies specialized (triple mode redundant)PLC systems for safety related and critical control applications. Currently, Invensys (basically, Triconex plus Foxboro) seem to be making a big push in the nuclear plant I&CS upgrade/retrofit businesss. Monday, April 24, 2006 A trip out the door for vulgar language in mixed company? At Foxboro this is a weekly occurrence and many times more than once per week. I have even seen and heard this happen when reps from H.R. (and better than 90% of the time the H.R. rep. is a female) were in the room, although they soon excused themselves and left trying to deny their very existence in the room when these things happened. When H.R.is not in the room "F" this and "F" that are very common in daily meetings and the same individual is usually the one who is doing it. H.R. looks the other way and allows it to continue on a regular basis. A trip out the door for the individual, but H.R. is just as much to blame for allowing it to happen. They (H.R.) should be aware of the consequences. To complain to H.R. about the language is like signing your own resignation or at least putting yourself in line for even more abuse. And people wonder why Foxboro IA is having problems, they should open their eyes and ears and look around. Monday, April 24, 2006 - re. Vulgar language in mixed company This is a little disturbing. In two companies that I worked for this was a guaranteed trip out the door without even getting to clean out your desk if one of the mixed company filed a complaint. Friday, April 21, 2006 - Re. Foxboro shipping used equipment: I witnessed a situation where an engineer was forced to surrender his 2-week old desktop PC, and it was reformatted and boxed up, and shipped to the customer as a new I/A Workstation. When $10,000 plus bonuses are involved in meeting or exceeding end-of-quarter shipment targets, these men have no compunction about violating the law. They have also used extremely vulgar language in mixed company in staff meetings with no fear of retribution. Professionals they are NOT. Friday, April 21, 2006 Invensys is swelling up their bookings even if it does not make fiscal sense. Does it indicate something? They have been going after business in Europe & Asia by dipping prices to win orders. Any hint what's going on with Invensys ? Thursday, April 20, 2006 - Comments: On InFusion: This industry will always be more thrilled when they see an actual piece of new hardware/card/instrument during a launch. I suppose it will always be a challenge to make a integration software/app environment/historian product launch looks credible. Demo is key - which could have been better. This InFusion first release looks to be a road towards full/seamless integration of Wonderware upper level goodies into I/A. Plus some useful toolset that will make this intergration meaningful to users. There seems to be some real products (more than just an architecture or concept thing) BUT - we need to see some good demo... But I must say that while the thought is good, this recovery path is going to be long. The challenge is for them to know how to sell these and whom to sell these to... Tuesday, April 18, 2006 - Re. Foxboro shipping used equipment. I am no apologist for Foxboro but there must be an explanation. Doing this without making the customer aware that the equipment is used or "refurbished" would be against the law, at least in the USA. I worked for a large computer company that used to do this but it was made clear to the customers that the equipment was returned from the field and refurbished to meet new equipment standards. Tuesday, April 18, 2006 - InFusion : nothing new ? I read the announcement of InFusion, downloaded a brochure from the Invensys website, read this and must conclude, that this is nothing new. Invensys announces an integration platform, just like the other DCS vendors have done (Honeywell, Yokogawa are the ones I know. Probably others have done the same). There is nothing really new on the hardware level. The new stuff is software, applications. If you compare with Honeywell: the Experion systems also claims to do the same as InFusion. The difference is that Experion is based on a new control system(C300) (of course also integrating the existing hardware (TPS, TDC3000, ...)) This announcement by Invensys looks to be just a marketing move? Sunday, April 16, 2006 Shipment after shipment of old or previously used Foxboro material is finding its way back to Foxboro and many pieces are being shipped out as new. Another way Foxboro customers are being duped; when brought to the attention of management the basic response is, "Do what your are told and don't worry about it, that's my problem." The Nuremburg defense, "I was just following orders". It might be that upper management doesn't know about this, more the pity, living in their hallowed halls spending money like drunken sailors while the rank and file struggle to get the necessary material and equipment to function. Friday, April 14, 2006 INFUSION - Can anyone explain in simple terms what this is and what is new? Thursday, April 13, 2006 - News Article, April 12,2006 Invensys introduces world’s first “enterprise control system” New “InFusion” offering combines Invensys’ industrial-strength automation technology with advanced information technology to create a unified real-time control, information, and application environment across virtually all plant and enterprise systems. Read several news and media accounts. Wednesday, April 12, 2006 I left Invensys two and a half years ago. As an Invensys employee, Sales Engineer, for 30 years, I lost EVERY account because of nonperformance. All my customers knew the problem wasn't local. One unfortunate customer had four different Invensys automation systems and none talked to each other. The "integration" was always "being worked on". I finally had enough and left. I went to work for a competitor and two years later I have all my customers back buying product and systems from me and the company I represent. Through all this "mess", I only lost one good customer and we are still friends and I see him regularly. He runs a plant and, lets face it, we parted work friendship when higher executives wouldn't return his calls. So, there is life after Invensys even for a used up sales engineer over the age of sixty! Wednesday, April 12, 2006 Not sure how Invensys buys product from sister Companies would result in dissatisfied Customers. This is a smoke screen. Tuesday, April 11, 2006 As an Invensys shareholder and a former employee, I am mucho interested in what happens to Invensys. Based on my personal experience within Invensys (I left in 2004) a couple of things strike me:
Sunday, April 9, 2006 Expect to see something on that Godzilla stuff albeit with a different name this week. Sunday, April 9, 2006 Not to defend Invensys here, but the previous comment about "marketing hype" is kind of funny. Try to find a company that doesn't use marketing to hype-up newly released products and offerings. Sunday, April 9, 2006 With the new name "Godzilla", it sounds like the powers that be are getting ready to split Foxboro away from Wonderware. "Archestra" is a Wonderware concept that Foxboro was never really a part of. Saturday, April 8, 2006 The previous blog on Godzilla raises an issue concerning clarity in what this company is actually selling. If you go to the web page for Foxboro and try to find detailed information about a "system" (e.g., I/A, Archestra or whatever today's name is) hardware product ... for example an I/O module enclosure with power supplies... you can't do it or at least I can't. You get lost in an endless loop of "solutions" oriented marketing hype. On the other hand, the field instruments (e.g., pressure transmitters) are clearly described and full technical documentation is available. Friday, April 7, 2006 Yesterday, I have received a copy of Godzilla white paper, Godzilla is the new name for the old product "Archestra" really there is no deference between the two products. I think it is a marketing game, they nwant to introduce the IPS to the market with such new Name "Godzilla". Thursday, April 6, 2006 Invensys stock up 1.0p again today (4/6/06) to 25p on 90M shares. People are betting big money that something is going on. Is Siemens buying the whole thing? Just a piece? Or is it some other good news not yet announced? Monday, April 3, 2006 APV announced a new President today - Brian McCluskie. Good to see he has moved fast and removed the Project Management and Engineering Directors who did nothing positive in their time at the helm of their respective fields. Onwards and upwards!!! Thursday, March 30, 2006 The Siemens rumor apparently has legs, the stock is still going up on high volume: Yahoo-UK Biz News: Mid-cap shares were similarly abuzz with bid speculation, with engineering firm Invensys up 6.7 per cent, or 1.5p, to 23.75p on talk that German industrial conglomerate Siemens might be interested. Dealers said Invensys's new pension funding plan, announced on Wednesday, could make the company more attractive to a potential bidder. Sunday, March 26, 2006 - (UK Independent) More on Siemens thing: The merger in 1999 between the blue-chip engineers BTR and Siebe that formed Invensys has been little short of a disaster. Even talk of a bid from the German giant Siemens, using the proceeds from its sale of stock in its one-time subsidiary Infineon, did little to boost Invensys, even though 176 million shares changing hands. Most traders pointed the finger at hedge funds buying the stock. Invensys gained 1.25p to 21.25p. Saturday, March 25, 2006 - regarding Siemens "planning a bid": YOU cannot be serious! Surely this is a case of wishful thinking - Invensys jumps on revived rumours of a bid approach from Siemens. This probably emanated from hedge funds across the Pond. Say no more. Invensys has a burgeoning pension deficit of GBP600m - which should put off ANY prospective bidder. The company announced in February that losses for the nine months to the end-December had narrowed to GBP32m, from GBP155m, but the performance of APV, its pump and valve manufacturer, had been disappointing. Cash flow could become positive next year but recovery is a way off. "Value investors" sits on shares at 19p and would love a bidder to knock on the door. They will have a long wait. Friday, March 24, 2006 - Evening Standard (London): German conglomerate Siemens could be planning a bid for Invensys after it was said to have bought a large stake in the UK engineering group. Dealers noted heavy volumes for Invensys, which rose 1p or 5 percent to 21p, with 160 million shares changing hands. Wednesday, March 8, 2006 Looking at the Quarter 3 results for APV it is pretty clear why the APV president was put aside. One of the comments stated that they have some warranty issues on old projects. This seems to be a recurring issue every year. The overall operational performance of APV did not improve during the last years. I understood they have a temporary president at the moment. Not sure that this is any different with the previous presidents as they only stayed for a very short time anyway. Monday, February 27, 2006 "Hopeful notes and optimistic signs" - It took many years to put Invensys in the financial shape it is in - How about giving Ulf more than two quarters to fix it. Pinto Note: Read my JimPinto.com eNews analysis (link below) Monday, February 27, 2006 - extract from JimPinto.com eNews: Since his arrival, Ulf has remained on message: build a strong team, deliver improved products to customers, remove business inefficiencies. It remains to be seen whether or not his new management team can produce the results which Invensys needs to stay independent. The end of this fiscal year (31 March 2006) will be a key benchmark of progress. Unless Ulf can pull something special out of the hat, it's likely that there will still only be "hopeful notes" and "optimistic signs". Sunday, February 26, 2006 Article in Managing Automation magazine on Invensys' 3rd quarter results is pleasantly balanced. Monday, February 13, 2006 - from ex-Foxboro employee: This all sounds so familiar. I recall that a VP (himself a short-timer) laid off 60 employees on a Friday afternoon, with no apparent connection to workload, activity or necessity (just a payroll reduction). Then the following Monday he announced that we were 'sharpening our focus' (once again - nothing left to that pencil stub), and that we would "build a world-class development organization based on valuing people". He invited comments afterward and I asked him to reconcile how he could suddenly value people after so carelessly discarding others who were desperately needed. His response was that there would be periodic reductions of the bottom 10% performers. I reminded him that these people were not "the bottom" and he had no other explanations. Not long after that, he was himself 'made redundant', as the British so coldly put it. I decided the situation was unsalvageable and was one of the lucky ones who left on my own and built a better and more fulfilling career. Thursday, February 9, 2006 - from a Eurotherm employee: Just before Christmas Peter Tompkins President, Eurotherm Group made this announcement.
Many of you will be aware that the Eurotherm management team from around the world met last week to discuss the business strategy for the coming years. This year the importance of the strategy meeting was clear. Put simply, our customers and markets are changing, and Eurotherm will have to transform its business to meet the demands of this new environment. We agreed on a vision for the company - a common understanding of our preferred future: Eurotherm will be the leading supplier of automation solutions and services in our chosen markets, harnessing the passion that people feel for Eurotherm. We will constantly search for competitive advantage and innovation to create value for our employees, customers and shareholders Our strategy for achieving this vision can be summarised in the four points below: Thursday, February 9, 2006 Does anybody know whats happening in APV since the departure of the President? Who's running the show now and what happened that he was pushed to the side?
Saturday, January 14, 2006 - (news item) Hundreds of workers have been told their jobs are under threat at Worthing-based Eurotherm. The company has started a three-month consultation with staff to discuss relocating much of its manufacturing operation to eastern Europe. Company spokesman Steve Devany said: "The cost pressures here are too great. We have no option but to do this. A lot of our competition has already moved to eastern Europe or Asia, where costs are much cheaper, and we have to be able to be price competitive. "Unfortunately, this situation is an unsettling one for our staff but we are trying to be as professional and sympathetic as we can." Friday, December 2, 2005
Managing at a Turning Point - Interview with Invensys CEO Ulf Henriksson
Invensys' new CEO Ulf Henriksson has taken the helm at a pivotal time for the process management firm. As the company regains its financial footing, Henriksson is focused on growing Invensys' technology, investing in its workforce, and making efficiency a hallmark of all its business units. Henriksson joined Invensys plc as Chief Operating Officer in May 2004 and was appointed Chief Executive in July 2005. Managing Automation's editors caught up with him to discuss the importance of honoring commitments, Invensys' burgeoning industry alliances, and the company's ongoing plan for revitalization. Excellent & informative Q&A Monday, November 28, 2005 Extract from Annual Report & Accounts 2005, from Controls Division statement by John Duerden - "whilst the process of merger integration has progressed well with some 300 indirect & overhead positions being eliminated" etc. I suppose this tells all us employees how we are regarded, if disposing of employees is seen as such a positive ! Tuesday, November 15, 2005 - GMT [Dow Jones]: Smith Barney upgrades Invensys to buy from hold, lifts price target to 18p from 15p. Says the move follows results showing rail performance was ahead of expectations "and more importantly orders continue to improve." Also notes that the controls business is better, and highlights stability in that business. Says the process continues to pick up momentum in both orders and margins. Shares closed at 15.25p. Sunday, November 13, 2005 - LONDON (SHARECAST) Invensys posted solid interim results and reported an increase in orders, writes the Sunday Telegraph. Ulf Henriksson, the new chief executive, said the company expects to meet full-year expectations and, based on last week's results, the outlook for Invensys has definitely improved. Nevertheless, Invensys is not out of the woods yet - with net debt still close to £700m and a pension deficit of more than £600m, its balance sheet remains weak. The company still has a long way to go but based on last week's results, the improvements in performance look sustainable. At this level, the shares are a risky buy. Thursday, November 10, 2005 - LONDON (Reuters - extracts): Invensys H1 operating profit up 21% Today, Invensys finished up 13.5% after reporting higher operating profits due to stronger rail orders and demand from the oil and gas industries for its products. Invensys said on Thursday first-half operating profit rose 21% on higher orders for its products and cost cuts. Operating profit from continuing businesses was £80 million for the six months to end-September compared to £66 million a year ago. Tuesday, November 8, 2005 - from Neil Dowsing: I can usually tell when an American (as opposed to an Englishman) is complaining. Most of the complaints in the weblog sound's US based, but then I wouldn't know the differance of a South African or Australian with a gripe. Many times I have wanted to bail out of this firm as I saw the shares on their gradual decline. However there is something in me that says that I should stick it out. What I want is an unbiased, accurate appraisal of Invensys across all the different businesses in its portfolio. Brandes (San Diego Investment Firm) is still one of the largest shareholder. I bet they know what is going on. So if one of you Brandes people clocks this note, here's my email address: [neildowsing@hotmail.com] - please, no hoaxers! One thing and I will say. I simply don't know about luxury management trips to China. In principle I couldn't care less what the expense bill comes in at, providing the order book offsets it significantly. But if Invensys is as lost and cancerous as some of you guys say it is, then I would imagine that in the todays ruthlessly competitive environment, I doubt the firm would have lasted as long as it has. All power to your elbow to those who never say die. As long as some of you are still out there, I'm not for bailing out just yet. Saturday, November 5, 2005 Sometimes I confuse this Invensys weblog with a physic hotline. We have some who perceive the postings come from "mostly Invensys Foxboro employees", and then some "major oil company" employees making posts regarding Invensys' strategy. Next, I expect to see a post saying "it will rain on the Foxboro plant." Unfortunately, some employees have chosen this venue to put down their company publicly. And yes, some competitors share their opinions on Invensys. Move along. I for one feel that Invensys is doing well to support their large legacy installed base, while still remaining innovative in the marketplace. It was clear to me at the recent ISA Expo in Chicago that Invensys (at least IPS) still has their act together and is following-through with their on-going 1x6 initiative. Friday, November 4, 2005 - I am Invensys (mainly Foxboro and Triconex) user: My company (major oil company) had a general meeting with Invensys some months ago. We discussed the roadmap, future of older systems, etc. Some remarks made by Invensys people struck me :
Thursday, November 3, 2005 - Response to the Nov. 3 question - is this weblog just a voiceferous minority? Invensys is not turning a profit, in spite of the fact that the work force has been cut beyond the bare bones boundry. There are only 25% of the people remaining; and yet management expects more work than was being done by a full work force. Policy procedures, documentation, training manuals have all gone by the wayside. Everyone is working beyond what should be reasonably expected from hard working people. There is no direction, no documentation. There is no one and no time to address these problems. Invensys is not turning a profit because upper and middle management is sucking the life blood out of the company. Nothing is too good for them; but let the rank and file ask for some simple basic necessities and we are told to make do with what we have. If management feels they should go on a trip to China, they simply gather up the old gang and fly off for a good time, leaving the rest of us to try to get productin out the door. How much do they spend? Well that is top secret. Unless we can prove that our request for new equipment is for a safety reason, you can forget about it because you will not get it. Where are the priorities? Invensys is sinking and Invensys management is lining its pockets and holding everyone elses head under water. And you wonder why your stock is not going up? Wake up and smell the coffee. Thursday, November 3, 2005 - Re. shareholder questions: Don't take the posts on this blog too seriously. Most of the posts are from employees of just one Invensys company - Foxboro. This company does have its problems. But it is not typical of the other companies, and certainly is not the largest. Invensys could survive and prosper without it. Thursday, November 3, 2005 I am also a shareholder, and I am hoping that the figures due at the end of the month consolidate on the previous quarter that demonstrated some room for cautious optimism. I do not know what range of operations has going in China, but a comment in the previous release on August 25th commented that Invensys China operatios were going well founded on the rapid growth in powerstations. I would be grateful for any clarification. In addition, as an investor, I cannot fail to take note of the morose correspondance that populates so much space on this weblog. I plan to attend the next AGM and bring this subject up. It's not good, or is it just the work of a vociferous minority? Sunday, October 30, 2005 - What is wrong with Invensys in China? I am a shareholder of Invensys. I am puzzled with their performance in the market. Last week I had a business trip to China and had conversation with my friends about Invensys. Invensys is just a minor player in China market, especially the ABS business unit. It sounds like the management does not really care the sales and market share there. After ABS EU was sold out in June, I guess ABS NA and ABS Asia are looking for new owners too. Am I right? Saturday, October 29, 2005 - The UK Daily Telegraph
By Josephine Moulds
Picture the scene. You are the outgoing chief executive of a once-proud engineering giant that has seen shareholder value all but destroyed under your management. It's the AGM and you're expected to speak.
Do you a) Feign laryngitis, b) Appear at the podium in sackcloth and ashes begging for forgiveness or c) March up to the podium to the thunderous power of Tchaikovsky's 1812 Overture?
On July 25 2001, Allen Yurko chose c).
Intentionally ironic or not, the choice of a piece composed to commemorate Napoleon's humiliating retreat from Moscow was apt. Investors in Yurko's Invensys had taken a beating.
Yurko created Invensys in late 1998 when, as chief executive of engineering group Siebe, he orchestrated an £8billion merger with conglomerate BTR. He had already made several acquisitions, offsetting costs by eliminating jobs and selling off non-core businesses. One such purchase was Eurotherm Drives, of which more later.
By the time Yurko announced his decision to quit in July 2001, Invensys shares languished at 70p, compared with a peak of 400p in the shares of Siebe shortly before the merger with BTR. Today, Invensys shares bump along at 13p.
Many blamed this ear-popping descent on Yurko's acquisition fever in the 1990s, citing the disastrous purchase of struggling Dutch software Baan for $709m as evidence in chief. Invensys resold the company to a private equity group three years later for $135m.
So what's the abrasive American up to these days? Following an increasingly well worn path for former corporate giants... private equity.
Yurko is a partner with Compass Partners. And so back to Eurotherm (now SSD Drives). Compass Partners bought it in 2002 from Invensys for an undisclosed fee and sold it on to electromechanics group Parker Hannifin in August 2005.
In publicity terms, Yurko moves in very different circles now. The tight-lipped world of private equity is light years away from planet FTSE, where Yurko's every move was analysed by the media. Compass Partners even refuses to confirm when Yurko joined the company. Perhaps it needs a decent PR to explain that there's a fine line between privacy and paranoia.
Yurko himself is happy to confirm that he joined at the start of 2002. But, beyond that, he wishes to say little - suggesting his move into private equity was motivated by a keen desire to stay out of the press. The Yurko of old was never shy of speaking out. On leaving Invensys, he told the Telegraph: "If there is any blame, it has got to be me. I do not expect sympathy... I am a big boy. What was my mistake? Clearly it was believing things were going to get better way too soon, but that was my guidance... the uptick did not come. I called the shot and I have to take the flak."
Honest, yes. But his popularity among current and former employees of the firm has not recovered. He is still known as "Allen Yucky Yurko" on a weblog workers use to vent their spleen. No wonder the relative anonymity - and rewards - of a life in private equity seem so attractive to Yurko.
One question remains, however. If Napoleon's retreat from Moscow symbolises Yurko's misfortunes with Invensys, is he yet to meet his Waterloo?
Sunday, October 9, 2005 The previous story regarding Foxboro SCADA Software and the Invensys management style struck a nerve. As an ex-Invensys employee I must admit that while working for Invensys, I hoped that the "let my division go" approach would eventually become reality. I was wrong. When my division was finally "let go", we decided to take a stand. After years of standing by, my Ex-Invensys friends and I started our own business. We were force to compete with Invensys, and others, at various levels. Rather than let "good hard working friends" end their careers or go to the competition, we have grown together and will continue to grow our business. This past year, our businees has been "up and down", but not one of us has earned a penny less than we had previously. Bottom Line: Invensys is not the problem, they are trying to solve their business needs. You must take the same approach and address your personal and professional requirements. Good Luck and get busy! Saturday, October 8, 2005 - from Foxboro SCADA, Rome, Italy :
Thursday, October 6, 2005 - Invensys and Censorship: Inmvensys still seems to be inclined to throw gas on the fire rather than treat the employees better. Not to worry, with the hundreds of anonymous servers that act as proxies, the employees will still be able to get access to JimPinto.com. Tuesday, October 4, 2005 The JimPinto.com website has been blocked for viewing for all Invensys India employees. Management should have better ideas than this. Advice to the Invensys India management: Improve your performance and you will see all the positive feelings reflected everywhere, including on this website. Sunday, October 2, 2005 Knowing and understanding the applications is great, and it increases productivity and quality. But a software engineer has nothing to do with cable specifications and cable trench digging methodologies. But, these are local problems and should not be generalized. The person who replied to the initial question has demonstrated the same arrogant attitude, conveying the clear message that Invensys is not the place for software experts. But please recognize that these may be local problems. People who post these weblogs should not generalize. This can create damage to the other Invensys locations where these practices are not common. Sunday, October 2, 2005 - re the weblog criticizing the Software Engineer in India: Dilbert was Right. It seems pretty obvious that the problem was the boss. There are benefits to software developers to hear about software development business practices and appliations. However, to be forced to repeatedly hear ramblings about construction and cable specifications? It seems to me that the boss was in the wrong job. Sunday, October 2, 2005 - to Foxboro mangement: OK, show us some courage and say something positive about what you have done. In other words "DEFEND YOURSELF". Stand up and be proud of what you have done and are doing. Please have some selfrespect! Be the leaders that you are supposed to be. If you cannot speak up, that's why no one at Foxboro follows you. Friday, September 30, 2005 Cable & wiring standards have an impact on Software development? If that is what you are saying, then it's easy to understand why Invensys is in serious trouble. Friday, September 30, 2005 - RE: "It was a pain for the bright software engineers to listen about cable specifications and lazy contractors." If that is honestly how they felt, maybe it's better that they left. If they did not want to listen about conventional wiring practices and how real-world applications apply, maybe they should find another line of work. There are international standards for a reason, and creating products and software that do not follow those standards in essence create useless products that are too costly to convert new customers over to. Wednesday, September 28, 2005 - Ex-invensys employee, in response to "Meeting with bosses": I was employed with the biggest software development division of Invensys outside the US, in Hyderabad, India. My ex-boss (heading a team of Software Developers and QA guys) was from the EPC (Engineering, Procurement and Construction) background. It was a pain for the bright software engineers to listen about cable specifications and lazy contractors. The manufacturing background or so-called "domain" guys were a "real-hit" in Software organization. We could relate directly to "Dilbert" kind of situations in the office! Most of the bright guys have left to explore better opportunities elsewhere. Pity from Invensys point of view, how the talent goes down the drain... Monday, September 26, 2005 - re Steve Hassell, IBM Post: The first Invensys turn-over of IT to IBM failed, period. I was with Invensys at the time. IBM's sales strategy was and is, to start at the top, get the contract from the top and threaten anyone who identifies problems. Unfortunately, the Invensys senior management who selected IBM did not leave when IBM was asked to leave. While, outsourcing to IBM seems to be favored by senior IT people and other officers, it is rarely favored by the actual workers who use PCs. Good for IBM and its management supporters, bad for regular workers; sounds like Invensys. Sunday, September 25, 2005 Yes, many excellent people did leave. But there are many left who are very close to retirement, and it is too late in life to start over again. It is these quality people who are keeping Invensys afloat, in particular Foxboro operations. When they leave (and they will) all of Invensys will be in trouble. The new younger employees are using Invensys as a stepping stone and moving on to bigger and better companies. Sunday, September 25, 2005 - To the individual who thinks that all those who complain should leave: I was a solid performer. Great reviews, delivered key pieces of business, was promoted, even volunteered to take on extra duties in other departments to assist. I really tried to adapt to the culture; but then I have found new opportunites that are better for me, my family and customers. Don't fool yourself about the "virtues" of Invensys. They don't care about their employees, and barely care about their customers. All they do is give the latest lip service of the day. Go look at the latest titles in the business section of any bookstore and you wil see the leadership of Invensys - "Get off the bus"; "Are you good or are you great?", "Soar with Eagles", etc. The bottom line is that the leadership people are in way over their heads. There is some hope now that some of the key culprits have left. Now they just need to purge more of the cancer that is killing the patient. Sunday, September 25, 2005 Yes, indeed. Many high performance people took the first option (quit) and Invensys lost some of its best people. They are now with competitors. Saturday, September 24, 2005 - edited from a weblog that evidently came from the same person who thinks some people are simply complainers: If you feel so strongly negative about Invensys, why bitch and complain? Either leave, or pick up your performance so that you might be given the chance to take on a leadership role. Friday, September 23, 2005 - from Steve Hassell:
A minor correction to the September 22 post: Thursday, September 22, 2005 Iggy Javellana, will take on the role of co-ordinating our information technology activities across all business groups at Invensys. Iggy joined the Group from Honeywell where he was VP, IT Infrastructure. Under Steve Hassell IT gotten outsourced to Big Blue, and then after a lot of pain got insourced again. Guess what - Honeywell IT infrastructure is outsourced too. Hold on tight - we could be going back2blue. Thursday, September 22, 2005 I AM surprised that any lower level people at Invensys got ANY software. I used to have to install my own private software in order to get any work done, and management certainly had the best of everything. Thursday, September 22, 2005 The weblog on Sunday, September 11, 2005 said, "Mangement at Foxboro IS the problem, the rest of us ARE the solution. We get the orders out and make the money, while mangement wastes the money." This statement is so true it is frightening. Management can find the money to go on "junkets" classified as business to places like Europe, China and Mexico; often regaling the troops with stories of wild nights and lots of drinking yet they can't find enough money to keep our computer systems running efficiently. There is no money to upgrade equipment nor to maintain adequate licenses so workers are not 'bumped off' the system every 15 minutes. Try to get prouction out the door when you have to sign up your system 15 - 20 times per day because there are not enough licenses available. Managers often get the newest and best equipment while the rest of us work with outdated hardware and software. Management is the problem. Wednesday, September 21, 2005 Now, we have to go for meetings with our NEW boss every week to discuse all projects and any new ideas. The meeting can go on and on for more than 6 Hours, and almost all PM's and Service Managers are involved. Our boss comes from a popcorn company in US, and at every meeting he has to speek about his ex-company more than an hour, and then after that the meeting starts. Tuesday, September 20, 2005 I think my former boss posted the "chuckle about disgruntled complainers". I know that guy. I know, I got tired of getting good performance reviews and a 0% increase as a reward. I got tired of working long hours for nothing in the end. I got tired of the sheer egomania of the brass. I got tired of falling behind a little more each year as I continued to earn the exact salary I was hired at. I was wrong. I should have waited for Invensys to turn the corner. Tuesday, September 20, 2005 - re: "Chuckles" at Comments: It's interesting that some management fans find this weblog funny. Most would find the "chuckles" comment somewhat weird. There was nothing funny about the way Rick, his management picks and consultant friends destroyed the shareholder value of a once great company. We find that sad, not funny. It's interesting too that these "chuckles" people only criticize the complainers. They don't insert positive comments to support managements efforts and ideas. I've never read any of THOSE weblogs here. I wonder why.... Sunday, September 18, 2005 I often visit this site to chuckle at the comments which seem to come primarily from disgruntled people. If this group worked as diligently as it complained, Invensys would have turned the corner by now. Friday, September 16, 2005 The announcement today of Chan Galbato to run the Process controls division of Invensys is right on track to continue the continuing saga of Invensys. Chan was CEO of Home Depot, Ceo of Armstrong Flooring Division, and several other notable titles. However I see not one word of any Instrumentation experience. Wednesday, September 14, 2005 - Re Small Shareholder Comments: I agree that Invensys needs to do something about refocusing away from Deutche Bank. One of the big problems in the past is that Rick, his execs and the Invensys board, forgot that they work for the shareholders, not Deutche Bank. As a result, shareholder value went in the toilet, while the banks were made happy. Regarding Ulf, so far he hasn't done much about turning Invensys around and hasn't produced a plan that anyone has any confidence in. So far, he's not much better that Rick. Wednesday, September 14, 2005 I am a small Invensys shareholder. Other than that, I have no other involvement with the firm but have been following it closely. I have developed quite a passion for this wounded company. It seems to me that Rick haythornwaite was not always held in the highest regard, but remarkably little has been said on Ulf (Hands-on) Henriksson. I however get the feeling that he might be your man. I think the road to true recovery is based on getting Deutche Bank of your back (pay off debt). Invensys is close to no longer haemorrhaging cash which an important milestone. I want to see the company pick itself up and go on to good things and remain intact. I am dismayed at the negativity that I often see on these pages. I think you have a good man in Ulf Henriksson, but his hand may be forced from time to time in a competitive environment. Stay with it, I think the worst is probably over. Sunday, September 11, 2005 - from a concerned engineer: The problem is not only at Invensys, it is everywhere. A lot of Companies are under control of bean counters who have NO involvement with the business, NO feeling about the products. They're involved ONLY with the finances and the stock price. What Invensys needs are real entrepreneurs, not just "straw men" from banks and shareholders. We need people with balls and brains, with their hearts in the right place, to care of the business and the good people who have been working there for years. Sunday, September 11, 2005 Mangement at Foxboro IS the problem, the rest of us ARE the solution. We get the orders out and make the money, while mangement wastes the money. You're right, I have never seen any positive response from management to try to defend themselves. I guess when you have done nothing positive, you have nothing to say. Sunday, September 11, 2005 Invensys management doesn't want to know what the problems are or how to fix them. Discovering and rectifying problems is not what a good employee does, a good employee ignores the problem so as not to attract attention to himself or his superiors. Many of these problems are due to lack of good (even standard) business practice, customer focus, and lack of resources. If it doesn't fit with todays "party line", it's out, and so are you. Invensys management doesn't want to improve; they want to be told that todays programme is perfect. Friday, September 09, 2005 (edited) The comment regarding facing termination if you bring a concern or problem to management are total nonsense. Some people relish bitching about a problem rather than trying to address it. Too many people who show up to work and act as if they are doing the business a favor, rather than work to improve it. It's easier to point the finger at "management". The old saying rings true: "Either your part of the problem or part of the solution." Thursday, September 8, 2005 This weblog seems to enourage people to post put continue to post mindless trolls personal attacks. My previous weblog: "Why on earth would you use this weblog forum to communicate to Invensys management about something like disaster recovery? Pick up the phone! Write an e-mail to them!" was someones personal thoughts directed directly at another post on what the company should do to help gain business. It had nothing to do with the business in any way. I thought this weblog was for information about the company not a place to slam those who voice their thoughts of the company, policies, and direction of the sales force. Personal attacks should not be posted.
Evidently, this weblog is used primarily by people who feel they have no other way to communicate. I have invited positive posts, and personally requested managers to post positive responses - many, many times. Please note: I receive several purely negative posts, and personal attacks (by name). They are NOT published. Wednesday, September 7, 2005 - response to "pick up the phone, or email management" : From personal experience, and the perception of a lot of others at Invensys, a direct approach to management usually leads to termination or constructive discharge. Wednesday, September 7, 2005 Why on earth would you use this weblog forum to communicate to Invensys management about something like disaster recovery? Pick up the phone! Write an e-mail to them! Sunday, September 4, 2005 at Foxboro has its problems but I hope this is one time management allows people to do their job properly; I am talking about Hurricane Katrina restoration. Some Foxboro offices down south were decimated and facilities including petro-chemical, water, sewer, gas and pumping stations that rely on Foxboro equipment need to be rebuilt rapidly. This should not be a time for inappropriate shortcuts and poor inspections. These facilities are vital to restoration and to helping to lower the cost of energy including oil, gasoline and natural gas. This effort will help to remove an ubeliveable burden from the entire country. This is one time above all others that management should allow people to do their job properly, to build correctly and test appropriately. As tragic as the situation is in the Southern United States this is one time that Foxboro has the opportunity shine by doing things right and helping in the restoration process. I hope all of Invensys management and personnel get to read this and understand that they are playing a vital role in assisting in this monumental restoration task. Tuesday, August 30, 2005 - RE: Rick from a former Invensys Exec.: Anyone who thinks Rick "saved" Invensys was truly out of the loop. Rick inherited a tough situation and made it far worse. He spent well north of $100 Million on worthless consultants and executive friends (including some from Enron) at a time he should have been saving money, fixing BAAN and learning about the business he was running from the managers and employees working at Invensys. Instead he trashed some of the positive things Al Yurko had put in place to try to recover from the Baan fiasco (which was pushed on him by the banks and some B2B crazed senior managers) and spent money on huge expensive managment conferences in Florida and elsewhere. Rick was a poster boy for the type of manager or politican that comes in, confirms that EVERYTHING done in the past was wrong, and that a good manager needs not to understand his business if he just follows good MBA principles. (Apparently he missed the class that said if you have large debts, you need to conserve cash and not spend wildly) Invensys 2001-2003 was the clearest case of tossing the baby out with the bath water I've ever seen. Sadly, if he had just battened down the hatches and conserved funds, Invensys likely could have survived nearly intact or at least fetched higher prices in the sell-off. Monday, August 29, 2005 - re Criticism of those who criticize Rick Haythorthwaite: The writer seems to be in Oz, with the Tin man. Rick Haythorthwaite was brought in to turn Invensys around. But he didn't; and even worse, Invensys market value became significantly less than with Yurko. Haythornthwaite was paid very well and given free rein. He didn't rebuild Invensys, but sold most of it at fire-sale prices - anybody could have done that. Sunday, August 28, 2005 - response to those who wrote negatively about Rick Haythornthwaite: It might be noticed that Invensys was in many kinds of trouble long before Rick took the reins. Just read Jim Pinto's article, or the summary of it at the top of this log. I believe Rick's actions have kept Invensys from totally crashing. Many managers have such short memories when they talk about him destroying the company - as if Allen Yurko was a mirage. As for the declaration "Ask Rick emails were routed to managers for reply... what a charade" - that emails to other management often were ignored! As an employee asking a question, would you rather have an answer, or no answer? Did you as a manager feel that the questions that you answered did not really deserve a good answer? Was the "charade" that middle management did not really consider the employee questions and the feedback mechanism to be important? A comment about those communications pieces... Mixed with the positive PR-type statements he made to the troops (you gotta let him do some of that) were the most forthright statements about the problematic areas that I ever heard/read any Invensys management make, partly because other management usually made no statements at all to the troops. Please, if any Invensys management still reads this log, know what a valuable resource you have in your employees. Respect them. They can really be part of the solution. Saturday, August 27, 2005 - from a former Invensys manager: Rick Haythornewaite's "Ask Rick" emails were routed to managers for reply. I know because I answered some of them for him. He didn't even see the email comments or replies. What a charade! Saturday, August 27, 2005 - To Tim Fredericks [tgf@tm.net.my] asking about Terminal Automation System in Reliance. To date there are around 20-30 installations of TAS in India, including at major Indian Oil companies such as BPCL. In fact in one of these govt. owned sites, a competitor was unable to deliver a terminal automation system and the project was awarded to Invensys who successfully installed it. If you are genuinely interested in hearing more about TAS, please feel free to contact Invensys India at: http://www.buyautomation.com/OfficeLocator/Office.aspx?OfficeId=255 Friday, August 26, 2005 - re former employee bothered by criticism of Haythornwaite: Why the negative comments of Haythornwaite? Well, let's see; how about his destroying the market value of the company? Or, how about the real fear by employees and managers that if they were perceived as not seeing things Haythornthwaite's way, they would be off the "team"? Or, how about about the numerous strategic blunders by him and his management friends? Or, how about his frequently missing quarterly coprorate financial targets? Or, how about his style of hiring his friends and consultants who didn't perform and produced terrible strategies? Or, how about his communication pieces which tened to be PR and BS? Or, how about simply for screwing up the company? Haythornthwaite and his friends were paid very well, given free rein, and simply didn't produce. They should have left years ago. Good riddance! Friday, August 26, 2005 - Tim Fredericks [tgf@tm.net.my] wrote: I would like to have some feedback on the Foxboro (Invensys) Terminal Automation System used by Reliance Oil in India. Why is only used by Reliance India? Why have other Indian oil companies not used them? Why is Foxboro going into this area, an area that is not it's traditional area of expertise? Thursday, August 25, 2005 - former employee of Invensys/Foxboro: I've been bothered by the various negative representations and remembrances of Rick Haythornthwaite. Obviously others saw it differently. But from my perspective (and I only saw the Foxboro realm), Rick took over a situation of immense debt caused by many unwise purchases and the mismanagement of them. He arrived in a company, which had a total lack of communication between upper and lower levels. Data flowed up in the management structure but not ideas; not much at all flowed down. There was middle-management inertia. Rick introduced some real communication avenues from top to bottom, and bottom to top, something not seen since we were managed by the Bristols. I felt that he respected the employees ... that we were more than cells in a spreadsheet. Rick actually held a number of meetings where he solicited input and listened to ideas from the front-line troops and dialogued about solutions to issues. He established weekly reports to the employees, attempting to shine some light into the darkness. He provided an "Ask Rick" email address where questions were promptly answered. This was all new stuff, an attitude not seen for years. From what I understand today, the effort regarding debt-reduction is paying off and there is hope. It will take awhile to shake the burden created by the doings of Lord Marshall and Allen Yurko, but it seems to be happening. Hopefully Rick's replacement, Ulf Henriksson, and IPS President Mike Caliel, who came up through the earlier years with that respect for employees, will be able to continue these positive directions and attitudes. Invensys/Foxboro still has a tremendous resource in the employees that remain. May they be more and more involved in a successful recovery for Invensys.
Tuesday, August 23, 2005 - Electronics plant to lose 90 jobs Invensys is shutting its factory in Bodmin and moving production to its site in Plymouth, Devon. The plant in Dunmere Road, which makes switches and thermostats, has been in the town since the 1960s. Staff got the news after a 30-day consultation period. The plant is to close by March, with the loss of 77 full-time and 10 part-time posts. It is believed some workers have been offered jobs at the company's site in Plymouth. Friday, August 19, 2005 - from a July 2005 Invensys Stock Buyer: No mention in this weblog of the Brandes Investment in Invensys (19%). Brandes have kept buying and are long term Value Investors, this must be a good indication for the future of Invensys. If you look at the long term debt profile, it is obvious that reducing this mountain must be the number one priority. I am sure the company will be around for the long term and will be able to refinance competitively come 2009. Monday, August 15, 2005 - From a former Invensys Executive: Great news - Rick Haythonthwaite's new job: he will be on UK Government committee to look at regulatory impediments to British Industry. This is appropriate, as he was a great impediment to British industry during his stay at Invensys. Thursday, August 11, 2005 With respect to previous commentary about generating cash for the banks, here's another angle that's food for thought. Deutsche Bank has very tight relationships and does a huge amount of business with Siemens. Any surprise that they are currently extracting the maximum without any regard to diminishing future prospects? That would be one less competitor and more market share and customers for the German group. Speculation? Maybe. They're certainly not doing anything to grow their investment, but rather milking it and bleeding it dry while they can. Sounds a bit like the strategy of most of the management - ever noticed how the workforce is "restructured" (made redundant) to cut costs, but the expensive management stays? Perhaps the banks keep them on as they have a common strategy. Sunday, August 7, 2005 - from an ex-employee: While Ulf and Company (and Slick Rick's regime, for that matter) may indeed show little interest in developing their existing businesses, I fail to understand why their methodology is so difficult to comprehend for so many folks. The simple fact of the matter is that they've been hired to manage/operate the Company not for the benefits of the stockholders, customers, and employeers.....but for the BANKS alone. Of course, while it can be persuasively argued that such a plan does nothing but assure the ultimate destruction of everything the Company has created over the years, one must recognize that Deutsche Bank couldn't care less about Invensys' business future in a macro sense. It cares ONLY that Invensys consistently and regularly makes its contribution toward the debt reduction plan. What happens once the debt is theoretically re-paid is completely irrelevant. Regrettably, none of that had ANYTHING to do with the goal of building (or re-building) a better Company. Friday, August 05, 2005 - re: The Eurotherm debate: The renewed debate on Eurotherm prompts me to contribute. I endorse the view that the company is suffering an antiquated management which is living in the past, savouring the present, day upon day and quite unmindful of the future. Tompkins (to be quite blunt) is taking Eurotherm to the grave. Invensys doesnt know it, being too usy with more critical problems and are quite happy collecting cash that Eurotherm generates which is only in the mid term. The fact that Eurotherm still generates cash is a tribute to its founders and original management (prior to the Invensys acquisition) for two reasons: 1/ They built a stellar brand that still holds value in some niche markets; and 2/ Because its independent country structure makes it very difficult for an incompetent management at the center to do much damage in the medium term. But thats where the good news ends. Eurotherm needs to reinvent itself quickly, launch new products, hire good people, create new marketing initiatives - all of which should be driven by the management at the center. The current central team headed by Tompkins is in no way competent to do this. And what's worse is that Invensys is unable to recognize this fact. You can therefore start expecting to see a rapid financial decline which has already started affecting the top line of in the US and European markets. It won't be too long before the bottom line is also affected. Talk to some senior country managers in confidence and you will find out why they are frustrated and won't quit and move on. It's the pension scheme that that holds them back; when an employee has spent 15-20 years the pension scheme makes it very difficult for someone to leave without leaving money on the table. So they remain stuck to Eurotherm and become a frustrated lot. Invensys may only realise these deep rooted problems when the cash stops coming. Perhaps the Invensys CEO should spend more time talking to the country managers, find out what the competition is doing and what Eurotherm is not in the market place. Or else, sell Eurotherm when it is still profitable to someone who can turn it around. Friday, August 5, 2005 Another 204 jobs have left the USA bound for Mexico. Invensys is closing the Appliance Control plant in North Manchester, IN, USA by Dec. 1, 2005 Tuesday, August 02, 2005 - from an ex-Invensys manager: I was employed by Siebe just prior to the creation of Invensys and met Alan Yurko a number of times. He did not impress me as someone suitable to run such a diversified group. Unfortunately, he also employed personnel after his own bullying style who were great at treating people like crap and telling the world how good they were. They were also very good at creating small business from large ones. They did not like being told they were wrong or looking at things from an alternative point of view. Theirs was the only way. It sure worked! I was forced to resign after my proposals were interpreted as "arguing with the President". Looks like they continued their great work and the whole organisation is now demoralized and broke. Tuesday, August 2, 2005 - Why sell Eurotherm? The reason is simple - Eurotherm is worth more by selling it. Invensys still needs cash and the division is stumbling along. Current senior management has not been able to significantly improve things or itself. This is one time I would agree with London, get rid of it - you can't run it well. Saturday, July 30, 2005 - from Eurotherm UK Employee: Why would Invensys want to sell Eurotherm? Eurotherm consistently returns a profit and pushes cash into Invensys due to the nature of its business. There is little reason for Invensys to bother with Eurotherm when its simply not needed. As we've seen from elsewhere we should be grateful for the hands-off approach to our company. We've been able to take risks and continue investment into R&D, enhancing existing products and developing new products to take advantage of expanding markets in Asia and beyond. And no, I'm not a member of the management team, but just an ordinary employee confident of his future with the company. Lets hear it from the rest of Eurotherm and defend our company (and the management) from those who can only talk things down. Friday, July 29, 2005 - From a Eurotherm Employee: The comment about Eurotherm having "antiquated and ineffective management" is simply proof-positive that paper doesn’t resist ink. Sure, if people want to believe something badly enough I suppose they will. Nonetheless, the truth of the matter is that Eurotherm has an excellent management team. I think it is more probable that the person who penned that remark is either a competitor of Eurotherm or a disgruntled employee. Tuesday, July 26, 2005 - from Eurotherm employee: The latest JimPinto.com eNews mentions the sale of Lambda - which prompts the question. Is Eurotherm next ? Eurotherm was once intended to be merged with the larger process solutions division which includes Foxboro. But it has been left separate and currently stands as the smallest, separate Invensys division for which there seems to be no strategic reason except that it could be for sale. Besides, Invensys has little time for Eurotherm, given the other larger under-performing businesses and the huge debt servicing burden. In the meantime, Eurotherm continues to decline with antiquated and ineffective management. Who will buy it? Monday, July 25, 2005 - Extract from JimPinto.com eNews
The Invensys sagaInvensys seems to be chugging along with Ulf Hands-on Henriksson in charge. The latest news is that Lambda (power supplies, part of old UniTech) was sold off to TDK of Japan for $235m (£134m). On Friday of last week, Invensys shares were languishing at 13.5p, with market cap at £754 million.The ailing Invensys is now in the hands of Ulf Henriksson. He's more hands-on, and hopefully has a better chance of turning things around. Any upswing will fetch a better price from buyers, now sitting on the sidelines. Siemens, Emerson, Schneider, GE – there are very few farmers large enough to handle a pig of this size. All this Invensys stuff happened in the last 5 years, and yet few people know the whole story. You can read the complete Invensys saga on AIN, Australia-based Automation Industry News.
Sunday, July 24, 2005 - from Invensys employee: I have worked in Controls, and joined the company prior to the "GE" management wave. I agree that the processes that came in were long and rigorous, and at times people where held up to public humiliation. I don't condone that behavior but I would be remiss if I did not also say that Controls pre-GE was a more efficient effective organization than the one that exists today. What has changed is the migration out of several in the sales force - people who thought punching a clock was acceptable in return for six figure paychecks. Some remain but are becoming more extinct. Accountability is the single biggist difference between then and now in sales, I would agree with those who say the result could have been achieved with a better approach. But the result has been achived none the less. It is Operations that is burning this business. Friday, July 22, 2005 Two years ago Foxboro hired some very talented Coriolis salesmen in an effort to penetrate a market dominated by Micro Motion. With only two viable competitors in the US (Micro Motion and E&H) Foxboro's chances looked more than reasonable to beat Micro Motion at their own game, differentation. Foxboro gained incredible results in one concentrated, geographical area in the U.S. - hint: Where the "Eagles" fly. Most all of those accounts (probably over twenty) that were won over in a single year have slowly trickled back to their original owners. Someone should purchase that technology. Oh yea, the other huge area of success was international. Who is minding that business now? Thursday, July 14, 2005 - from an Invensys Customer: I have been responsible for our Invensys account for a few years. The one thing that strikes me reading through this blog is that I was dealing with professional salesmen as they were delivering answers to my question in what seem to be a challenging environment! I have seen significant improvement from Invensys in the last 2-3 years. That's both in quality, pricing, delivery, innovation and technical support. All of those are "day-to-day" activities managed by people. Invensys still employs very professional & knowledgeable staff. No question there. The problem is with the strategic planning. I have spoken a few times to Invensys' senior management about the direction they were taking. I asked legitimate questions that they could not answer: "What does the new structure bring to me as your customer?" Nobody could even tell me what it would bring to Invensys! I had the impression of dealing with a company that is aiming at a moving target that they can't locate. Why would I plan to work with Invensys for the future of my company if my potential partner does not have a clue where it is heading? It is one thing to lose support from the shareholders. But losing faith from your customers in addition to that puts the company in a very difficult situation. Tuesday, July 12, 2005 - from a former employee: When I was employed at Invensys I read this weblog frequently. It is amazing how little things have changed. The upper level management is still clueless and the people just below are still despotic. An example: A sales VP requires that his very large group spend hours reviewing sales data on a monthly basis, to then produce a meaningless forecast. His subordinates are frightened of him and have no intention of confronting his idiocy. They plod on as as mindless zombies hoping that "one day soon" the Invensys scythe takes him out. If it weren't so sad it would make a great cartoon. This is only one small example of "the problem" at Invensys. What kind of leadership allows this? The comic actor Joe Pesci comes to mind......
C'mon Invensys managers and motivated employees - where's your POSITIVE input?? Thursday, July 7, 2005 I have worked for Invensys Climate Controls for the past 5 years. It seems like a lifetime as we have been in a constant state of reorganization. The latest kick is the constant reporting to London to convince them that we really are going to turn this around. Here is a hint: You can't cut so many people so often that you have no one left to turn it around. And you can't stop people from doing their jobs, so that we can compile yet another review of the same data we supplied last week for management to take to convince London all will be well. I like this company; but it has reached a point where survival is unlikely in its current format. Friday, June 24, 2005 Viewing the past five years of Invensys share prices on a logarithmic scale shows a very steady 50% per year loss of value as it fell from 300p to 10p. There were only a couple of opportunities for investors to profit from sharp drops followed by a return to the relentless downward trend. There was one positive trend at the end of 2004 but it has passed and we are back "on target" near 10p. Looking at the consolidated balance sheet in the 2005 annual report, and deducting the "Intangible Assets - goodwill", I get a net shareholder asset of -792, very similar to the 2004 number (-782). It's like watching the Titanic and the iceberg on a radar screen. Thursday, June 23, 2005 As an ex Invensys employee, having just read the year end report, I can't help feeling that the city investors will be expecting the group to be sliced up and sold off. I would think the group is as low as it can get so should be on the up but how patient will the money men be, two years, three years? I don't think so. Other groups like Seimens keeping an eye on the Rail Group, etc. must be tempted to make plans soon for some easy acquisitions, always kick the competitor when they are down! Wednesday, June 22, 2005 - re: what happens in Vegas stays in Vegas: Over the last several years, Invensys has been a high roller and spender in Las Vegas; the money spent on entertainment (or what ever they called it) was impressive. Gatherings in Vegas included conventions and special events. Wednesday, June 22, 2005 - responding to the previous weblog about Allen Yurko: While I have no brief for Yurko - his deficiencies have been rehearsed thoroughly over the years on this weblog. In my opinion, you also should study the state of BTR at the time of the "merger". Despite a major programme of divestments, BTR remained a sprawling mess of unrelated businesses. It was clear that the top management team, led by Ian Strachan, had no idea what to do next. The era of accounting-driven 1980s-style conglomerates was well and truly over. Yurko and "Lord" Marshall must have seemed like saviours - at least to the BTR top management and the shareholders. Tuesday, June 21, 2005 As an Invensys employess since the BTR days, in my opinion, there is only one reason for the demise of Invensysn - Allen Yurko. His bully-boy "I will not be contradicted" attitude runied Invensys from the start. Sunday, June 19, 2005 - Las Vegas: There was a meeting of sorts in Vegas about two weeks ago. It was for a small part of Invensys that represents about 5% of the overall sales of Climate North America. If Invensys goes out of business it won't be because of this meeting. It will be because of the leadership void that the company is currently suffering from. Sunday, June 19, 2005 As a former Invensys employee, I only stop by here on occasion to rubber-neck at the train wreck of Invensys. It's good that someone posted the overall stock trend, which says it all. It's just my opinion, but this can't last too much longer. I know some of the people who are still there, and they don't care about the customer. Many managers are just hopeful about sliding into retirement, with an underfunded pension. Many seem only to care about this week's paycheck and their their severance pay. They live this out week to week. Big concerns over the direction of Invensys and its upgrade policies are driving more and more customers away. If the Las Vegas meetings are true (someone please confirm), then it may just be a last ditch pep-rally. Thursday, June 16, 2005 - From UK Daily Telegraph (extracts):
Rick Haythornwaite, the chief executive who is due to retire next month, received a total package of £1.45m against £989,000 last year. Ulf Henriksson, the new chief executive designate, received a total of £2.18m. A company spokesman said the executive bonuses were based on free cashflow, because the business had been so indebted and this needed to be rectified. The company also said Mr Henriksson's pay was partly due to the fact that he would have been entitled to large amounts of money, had he stayed at his previous employers. Rick Haythornthwaite is best known in the City for his tongue-twisting name and for squeezing a decent price out of the French when Lafarge bought Blue Circle cement. This solid foundation carried him into the wreck of the Invensys, amid hopes that he could work his magic there. Alas, it was not to be, and as hope turned to despair, the value of the company which was once in the top 10 of the FTSE 100 has shrivelled to the point where it's near the bottom of the FTSE 250. Now Mr Haythornthwaite is quitting, beaten by its intractable problems, but from the scale of his rewards last year, you'd think he was leaving in triumph. In 2003 the three top executives at the group shared a useful £1.7m, but last year that leapt to £4.7m. This includes a rather exuberant golden hello for Ulf Henriksson, who had to be lured from America, as well as bonuses to Mr Haythornthwaite. Another year of losses hardly sounds like a justification for a bumper payout, but apparently the directors are rewarded on the basis of the free cash flow rather than share price. The official line is that, without these three geniuses to oversee the refinancing, Invensys would have been Disinvensysed by now. As it is, the business is just continuing downhill. We shall have to wait to see whether Mr H gets a going-away present when he leaves next month, but after this his record is not so much Blue Circle as Black Mark. Thursday, June 16, 2005 - Re: Mike Turnbulls Comments: Mike had a good experience and there are good people and good products left at Invensys, but largely without the resources to continue development at the level of its now much larger competitors. But to get to the point, Invensys has only about 25% of the employees it had merely 3-4 years ago. Does Mike really believe 75% of the group were slackers? I wound up working, after 15 years at the company, for a manager who had no idea what I did, no interest in my past accomplishments, no real knowledge of my specialty and no interest in learning about it. In typical fashion that manager relied on outside consultants who never bothered to interview employees to learn about the job or its value. This had a predictable, result for a high time, higher compensated, experienced employee. Wednesday, June 15, 2005 - Re Michael Turnbull's comments (previous weblog): Turnbull may not have realized that a lot of good people were fired from Invensys. Rather than speculate why they were and he wasn't, Turnbull might reserve his wrath for Rick, Rick's picks for managers and Rick's consultant friends. These were the folks who destroyed shareholder value and drove away customers. For those who want to read great things about Invensys and don't mind the bias, then they should go to the Invensys website. Otherwise should talk to stock analysts, or just read the financial and business press for concerned comments. Tuesday, June 14, 2005 - from Michael Turnbull [M_Turnbull@bigpond.com]: I'm an ex Invensys employee, and left because of natural career advancement after 11 years of rewarding service. Unlike most contributors to this site I wasn't "fired", nor came close to being "laid off" - probably because I could preform. I'm ashamed at the content of these weblogs. Most comments are terse and inwardly focussed. Surely there can be some positive commentary? What about the product range? IA and Triconex are all excellent launching products to solutions. No other automation vendor has such a diverse range of gear including M&I, DCS, ESD, Plant Information Systems and APC. I suspect too much choice for sales staff and not enough expertise to sell it! Instead of moaning about senior management and the state of the organization's share price, what's wrong with getting out to the customer base and servicing it properly and selling solutions? I'm an end user now and not only is this an expectation of Invensys management, it is also a normal customer expectation..... For all of those Invensys staff complaining like old bags of swamp gas, try visiting a client and selling/servicing something - it's much easier than writing a weblog here... Sunday, June 12, 2005 - To the "sour grapes" comment:
Invensys used to be a great place to work. However, as things started looking grim, it became a game of "every man for himself". Ex-employee or not, Invensys or any other company, I personally would rather wear a paper hat and ask "would you like fries with that?". Good luck to those who remain. Sunday, June 12, 2005 - commenting on previous weblog, ex-employee-sour-grapes: I think the point here is that a company with such poor stock performance should be more interested in getting employees working, rather than days off and expensive meetings. As a shareholder, I thoroughly agree. Sunday, June 12, 2005 These ex-employees seem to think they know what is going on today. Las Vegas trips, etc. - sounds like a juicy story but as usual, it lacks any details or facts and comes off as typical fired employee sour grapes. Friday, June 10, 2005 - from an ex-employee. Is Invensys headed towards being a penny stock?
"Generally any share with a share price below 50p can be thought of as a penny share. Interestingly, there are almost 70 companies with market values in excess of £50m whose share prices are below 50p. These include Invensys (LSE: ISYS) that is valued at £640m". At 10p a share, and with customes jumping off that sinking ship, I would think Invensys would keep the staff working and spend money on improving the business. Maybe they are hoping to hit a company saving jackpot on the slots or blackjack tables. Sounds like a "good bye" party to me. Wednesday, June 8, 2005 Any thoughts on Invensys's divestiture of Satchwell to Schneider Electric? My take is that it was a good idea from the perspective of Invensys - merging of the Satchwell and I/A series lines failed miserably years ago. With no standardization in sight, it was better for Invensys to divest. Wednesday, June 8, 2005 - Another Invensys employee's view of Mike Caliel: It's nice to finally see a more "fair and balanced" assessment of Mike C. Some people here seem to think he is the second coming. It simply shows how desperation can lead the lost to follow just about anyone! He is the very definition of a political animal, and fits well in the shark tank known as Invensys. Tuesday, June 7, 2005 - more in support of Leo Quinn: Leo has charisma and energy. How could he ever fit into the stodgy New England style? Foxboro is a group with a loser's and complainer's attitude. A CEO and Leader should bring out the best in people. Foxboro should have embraced this but they were just too old. Go Leo! I worked for him, he motivated me. Tuesday, June 7, 2005 - Regarding Leo Quinn and Mike Caliel:
Caleil wears nice suits. Quinn works hard for stakeholders. Monday, June 6, 2005 - In response to the last weblog regarding Leo Quinn: I was fortunate enough to work directly with Leo Quinn at Honeywell and I found his leadership style both invigorating and refreshing, albeit challenging at times. I for one wish him all the best at De La Rue - Sometimes even senior leaders can't flourish when those above won't allow. As we all know, there's always 2 sides to any story. But kudos to Leo Quinn - he has clearly delivered to both De La Rue and their shareholders; as they say, actions (or in De La Rue's case - dividends) speak louder than words! Monday, June 06, 2005 - Invensys employee comments on UK Times Leo Quinn interview: The Mighty? Quinn? Leo Quinn is getting good press in the UK - if he is really as good at fixing companies, he should have stayed at Invensys and finished the job. It looks like he is still has the same old story lines, and people are still buying them! The Quinn formulae: Improve cash flow (stop paying suppliers), cut basic operating costs, fire the middle management (with industry skills), hire previously known collaborators (with no industry knowledge)and talk yourself up to anyone who will listen. "Uncommonly good with staff" - that is not what the Honeywell people I've met have said? "Likeable"? Who did they talk to at Invensys? Well, I guess he gave them the references and I am not sure the likes of Mike Caliel would say what he really thought, if asked. Best of luck to De La Rue. Monday, June 06, 2005 - UK Times Online (extracts): The Andrew Davidson Interview: Why mighty Quinn really is quids in
De La Rue is the world’s largest commercial security printer and papermaker. Quinn arrived 14 months ago to sort out the company after three profit warnings. A spate of acquisitions, designed to find new growth areas outside its mature core business, had torpedoed its financial performance. London-born Quinn, who cut his management teeth at the American multinational Honeywell, has since set about reinvigorating the famous old money-printer. Two weeks ago Quinn surprised the City with his first set of results: profits up 13% to £66m, and a promise to return £70m to shareholders. Lean and lanky, with the permanently upbeat demeanour of a motivational speaker, Quinn, 48, is good at accentuating the positive. He has imposed schemes for sales improvement and coaxing input from his frontline staff — ideas he picked up during his 16-year stint at Honeywell, where he rose to become president of its Enterprise Solutions division. He imposed similar processes at Invensys, where former colleagues remember him as a likeable, cash-obsessed workaholic, whose e-mails were often time-marked 4am. He also flew economy everywhere, developing terrible back pain in his drive to save cash. Friday, May 27, 2005 - from a long-time Foxboro I/A system user It should be noticed that the letter written by the departing CEO of Invensys (shown on this weblog) did not contain the word CUSTOMER - not even once! Tuesday, May 24, 2005 - Stockholders the losers? Certainly they will lose; but they will survive. What about the tens of thousands of good, hardworking people who were thrown out into the street? And meanwhile, the people who caused the problems through their gross mismanagement still have nice high paying jobs today. I used to work for Invensys in California, at a division that had a wonderful product and group of employees. Many of them left not only because of the management, but also because of the daily beratings received for not meeting schedules that someone up above decided was resonable. Meanwhile, to add insult to injury, does Rick Haythornthwaite get a "golden handshake" too? Tuesday, May 24, 2005 - from today's London Times Online: Invensys hits year low after downgrade
At last week's post-results conference call with Adrian Hennah, Invensys's finance director, Lehman Brothers was unsettled to learn that the company expects no improvement in working capital this year. Monday, May 23, 2005 - re comments by Former Executive: I agree. Between the Boston consultants (Parthenon) all the ex-Enron folks with the Enron attitude, Florida conferences, lavish spending with little results, Rick's picks for execs and strategic blunders, it's no wonder that Rick failed. But the real losers are the shareholders, with dramatic losses in shareholder value. Monday, May 23, 2005 - from Former Invensys Executive: I read with interest Rick's departing message. What remains unstated is Rick's wild over-expenditure during his first year. The vast $$ employment of consultants in London and Boston, the expensive Florida conferences, the rejection of all prior initiatives, etc. The hiring of "talent" from Enron and other refuges. These substantial expenditures avoided utilizing the talented professionals he inherited (or learning about the businesses) and managed to take a bad financial situation and make it a disaster. While Yurko had left a bad situation, Rick made it substantially worse. Hopefully enough taleted individuals have survived Rick, so that a company I still care about can recover to a leadership position. While I don't think Rick is a bad person, he clearly was in way over his head, and made some very bad and incompetent choices. Monday, May 23, 2005 - from Foxboro employee in Hyderabad, India commenting on "top-down" management: I have been an Foxboro employee at IDC in Hyderabad, India, for a period of almost a couple of years. During this time I have, grudgingly, come to realize that what this Invensys weblog has been reporting about the organization is true. I have witnessed the entire gamut of inept senior management, bungled projects, irate employees and insensitive HR. It seems that the "management" here seems synonymous with creating disasters and then making matters worse through bungled correction methods. We have some great software developers who have their work cut off due to "out-of-the box" Project Management from the managers in Hyderabad and FoxMass. Foxboro division of Invensys IDC is a mockery of deadlines, projects which have to be completed in couple of months have taken all together years to complete and that too in an abysmal manner. Sunday, May 22, 2005 Looking back all the way up to March of this year, the constant underlying comment is poor management. Yes, Mike Caliel might be the saving grace, but not until he sidetracks or eliminates many of the current Foxboro upper and middle management; or finds some way to eliminate the good old boys network. Many of these middle managers are still conducting lengthy, non productive, meetings and using these forums as a soap box to berate and humiliate their employees. There is too much work to be done to waste time in this manner. Mike, we need you. Sunday, May 22, 2005 - from a long-term Foxboro division employee: I would like to caution that the future is far from certain. The continuing changes of Invensys upper management may bring improvements, but they probably will not happen over night. Our present condition is the result of several years of a "top-down" management style that implanted successive layers, each dedicated to supporting their superior's career ambitions. "Managers" flourished, but development of "leaders" was neglected, at great cost to our internal morale and our reputation in the employment marketplace. To succeed in the long term, we need to build both management and leadership within our organization. The challenge is to restore our balance and regain those strengths that enable us to offer rewarding careers to the people who can meet our customers' needs. These changes must come down from the top, along the same paths that were used by the previous regime. There will be obstacles and it will take time and cause turmoil. We may have turned a corner, but the road ahead is not straight and smooth. We are still in the (re)contruction zone, with bumps and perhaps some nasty surprises. Friday, May 20, 2005 - To the Invensys senior manager who reviewed Rick Haythornthwaite: With all due respect, but this illustrates exactly what is wrong with Invensys. You are, and have been, its leadership. How can you write a log like this, as a so-called "Senior Manager" and not take any responsibility? This smells like the "Ich habe es nicht gewusst" defense. Friday, May 20, 2005 - An Invensys senior manager reviews Rick Haythornthwaite: I have been a member of the Invensys senior management team for a couple of years and I would like to add some observations on the management dynamics at Invensys to this weblog. It comes across quite clearly when I read the comments on this site how “management” are to blame for all the problems at Invensys. I think though that the managers at all levels at Invensys are as confused and frustrated as everyone else. The Company has great people, great products - but absolutely no leadership whatsoever. Invensys has had little or no strategic direction, and what direction there has been has twisted, turned and been driven by whatever the agenda for that week was. The structure and governance of the Company has never had continuity, as regular meetings have no agendas, weekly calls are just... well a ramble through the issues, with no ideas on solution. The only senior managers who stay are those who can play the game of nodding when the time is right and then doing nothing - because doing nothing is safe. This leads to the reason why we have lost so many good people, because the guys and girls who want to see the Company succeed have become caught up in the swirling ambiguity that drives the Company, and have tried to help or sort it out. And they have become casualties or have left. So why is Invensys in this state? Quite frankly its all down to Rick Haythornthwaite. There is no doubt he is a very smart guy - articulate, statesmanlike, and he does step up to lead. Unfortunately he is all over the place. In essence my observations of Rick are that he is a very accomplished actor. Every meeting, video or presentation is a performance that Rick gives. He is not at all interested in the operations. In fact that’s unfair - he actually cannot get to grips with the operations so he delegates this responsibility, but then cannot provide a stable context within which the businesses can move forward. So he moves from act to act, scene to scene - but with no script. Rick is now moving on, and I'm sure he will get a highly paid role but Invensys was a step too far for Rick. The job was too big, the challenges too great and he has not demonstrated that his tenure at Invensys has been a success, with the share price languishing, no P&L success, and a story of meeting market expectations that are always benchmarked at the bottom of the range. So please try and put yourself in role of the “management”, they are not all evil schemers, some are bad…..many are good, they are all having to operate and survive in a chaotic environment for a Company that many, me included, still believe can be a success. In many ways we are all in the same boat. Friday, May 20, 2005 - "Official Message" from Rick Haythornthwaite to all Invensys employees:
This will be my last Group Direct. As you will know by now, the AGM in July this year also marks the end of my time as your Chief Executive. Although I will be helping to ensure a smooth transition, responsibility for operational management and performance will be passing immediately to Ulf. When I became CEO of Invensys in October 2001, and as I looked more deeply into the company, I realised that deep-rooted issues within the tangle of businesses were making it almost impossible for the dedicated people employed by Invensys to make any headway towards recovery. Some of those talented and hard-working people are no longer at Invensys. Some have left to seek success elsewhere, with my best wishes. Others have moved with their businesses to buyers we felt would give them a better chance of success. To my deep regret, we have had to lose valuable people over the years as a matter of pure survival. Sometimes, we had to do what was necessary at that moment to survive. However, in the face of all this, we did survive. And, in doing so, we kept our promises and did our duty to tens of thousands of employees, hundreds of thousands of pension fund members, and more broadly to our shareholders and our creditors. In the process, we have also created a far tighter and more manageable group, made up of businesses with good teams in place and the potential to contribute to the long-term success of the Group. I came to an Invensys that had no way to generate cash except slashing and burning, squeezing suppliers and starving necessary investment. I am leaving a Group that applies good operational management to establish high levels of cash conversion. Of course, there is much still to do. The turnaround that has begun must be maintained, nurtured and grown. Our legacy liabilities must continue to be controlled and managed to a close. Over the next four years, Invensys must ensure that it is in a position to deal with its remaining debts from a position of strength. Lower liabilities and interest payments, coupled with improving performance, will make Invensys better able to deliver value to shareholders, invest in people and technology and continue its upward progress. Each business has its own issues to be addressed and opportunities to be taken to contribute to this broader model of success. The next stage of the story of Invensys is an operational one, where the businesses, increasingly free from the distraction of financial speculation, must continue to focus relentlessly on taking necessary steps to improve performance and control expenditure. I cannot think of a better Chief Executive to take the Group along this path than Ulf Henriksson. When we worked hard to bring him here from Eaton, it was because of his operational ability. This, coupled with his enthusiasm, his energy and his rigorous dedication to improving the way Invensys and its businesses work, has made him an increasingly compelling choice to succeed me. The timing of my own departure has been determined not by the offer of another role elsewhere, but the best interests of the Group. The time is right for a handover. For my part, I will only now start to consider what my next move will be. I wish Ulf every success in building Invensys, as I do each of you. My time at Invensys, invariably challenging, often frustrating but always instructive, has been defined by your ability to endure difficult times and to show ingenuity, tenacity and dedication as we have, slowly and with great effort, brought Invensys under control from what might have seemed an impossible position. So, I would like to thank you for your work at Invensys, not just for the last quarter or the last year but for as long as you and I have worked together. You have all played a part in this recovery, and I do not think Ulf could ask for a better work force to make his plans for Invensys reality. Rick Haythornthwaite Thursday, May 19, 2005 The changes that will occur "post-Rick" will send shock waves through Invensys and will be driven by rational cost cutting combined with pent-up political disagreements. Fat organizations, even those generating big-time cash (Lake Forest?) will feel the sting. Change is in the wind. Mike Caliel will lead it. Thursday, May 19, 2005 - UK Financial Times: Invensys losses widen as chief executive departs
Thursday, May 19, 2005 - Haythornthwaite exits: It's official. Rick H. has announced his intent to formally hand over control over to Ulf at the next AGM. Interestingly enough, the stock price ticked upwards..... (Thursday close: 12.25p) Thursday, May 19, 2005 - more on Mike Caliel: As a former Foxboro employee who left of my own free will, I too agree that Mike Caliel is the only real leader left. He is a class act and could go almost anywhere in the Industry, but he has chosen to stay. Anyone can "lead" a successful group with unchallenged momentum that was built by someone else (read Emerson). However, the sign of a real leader is someone who can lead through the downward drag from the "Invensys" of the past few years. Hats off to Caliel. You are lucky he has held so tough and steered through the storm. Wednesday, May 18, 2005 The Invensys "brain drain" started about 7-8 years ago and has continued steadily since then. Those who were capable of finding employment elsewhere have done so, and those who couldn't stayed put. Many who had left Invensys over the years returned in the golden years. The innovation level is almost zero at these days, and the "excitement level" is less than that. Anyone that says otherwise isn't here. Wednesday, May 18, 2005 - Ref "The best thing Invensys could and should do is to hire smart people": Well, there WERE smart people worldwide in Invensys, thousands of them. But they all got dumped by "smarter" people in Upper Management. And I don't think they'll give Invensys a second glance ever again (apart from those who had stock, and are watching their share value in a downward spiral). Tuesday, May 17, 2005 - Regarding the 15 May post by the long-term employee: You are absolutely correct. Upper management at Invensys has consisted of people with an intimate knowledge of mergers & acquisitions and accounting, but little of anything, else. A company responsible for the livelihoods of thousands seems to have been run by accountants and wheeler-dealers who have no clue how to add value or get a product out the door, and who are suckers for every "one-size-fits-all" scheme that comes along. The best thing Invensys could and should do is to hire smart people who can actually produce goods and services, then get out of the way and let them do their jobs. Tuesday, May 17, 2005 Congratulations to Mike Caleil and his much needed morale-boosting day off. However, becoming an ex-Foxboro employee, and after giving 20+ years of service to the company, I find it difficult to share your enthusiasm. Especially realizing that the elimination of my position became part of the "successful year". 50+ and looking for a new career. Thanks for the memories. Tuesday, May 17, 2005 - regarding the notice from Mike Caleil: Totally agree. Mike is doing an A+ job in my book. Nice to have a leader who recognizes that the people are the business. Sunday, May 15, 2005 - from a long-term employee: I've been wanting to comment on Invensys for a long time now. Please allow me to vent some of my more pungent memories - I need to go back to when Siebe purchased Robertshaw Controls and everything hit the fan. Year after year, we all wondered where all the D-Heads came from that the new owners continually hired. All of us were astonished about of how these fools got past Personnel - uh, the Department was elevated to 'Human Resources' according to the new Siebe sophisication. The newly acquired performers had no knowledge of anything that pertained to our industry. A guy named Bill came out of the sky to become the Head of the Engineering Department. He wanted all the engineers to put their Approve Drawing Changes in a filing cabinet next to their desks, each drawer with the individual's name on it. He didn't know that they needed to go to the vault and have the new revision indicated so that everyone would be included in the changes. Try as we may, he just couldn't get the concept that the operators on the line, apart from anyone else, would be aware of these changes. Good old Bill wanted to stop producing blue prints of sub-assemblies. It took the previous Head of Engineering (now relieved of his position) to give him a handful of parts and wait for him to assemble them. Bill was stupified! He said he couldn't assemble them because he had no instructions to follow! This was our man flint, now the Head of the Engineering Department. We, had two Shop Plant Managers that came in from the dark - evidently they had been there for some time. The first was Ozie - he wanted to know why we bought mulitible drills that were the same size. This over-paid recruit didn't know that drills came in machine, aircraft, stub and taper lengths, and didn't know the difference. He didn't know what a heli-coil insert or heli-coil tap was used for or why. The next one hired (Ozie got canned, something about a $5000.00 check with his name on it) was Gomez. This clean freak was an ordeal to say the least. He thought the plastic aprons hanging on the machinery at the end of the shift looked 'MESSY'. So, he collected all of them after the shift (at least thirty) and threw them away! Next morning he told them all to put them in their lockers or they would get thrown away again. Anybody knows that too much coolant remains on that plastic to run all over the other contents of someone's locker? Gomez didn't how the material was stored in the Tool & Die Department. All the 10 and 12 foot steel, brass, copper, stentor that was all marked with identification looked messy stored on a rotating tee-pee style storage. He insisted that we should get rid of all that, and whenever the tool and die people needed any, they should order it, in the 2" and 3" lengths, whatever was needed at the time. Well, so much said for the cost savings of buying 2" to 3" at a time. Obviously, it would have been stupid to consider the down time of the machine. The death spiral began long before Foxboro was acquired - they just caught up in it before the world knew of the bliss of yucky Yurko. Maybe I'll come back here and let you in on some of the scoop of 'one of the many' General Managers the we were to endure. Something about his having to move, swimming, hotdogs, hamburgers, union picnic. Even posted a bull-i-tin for help...... Sunday, May 15, 2005 - regarding the notice sent from Mike Caleil to his organization: Too bad Caleil isn't running Invensys instead of Rick or Ulf the Hatchet. We wouldn't expect Ulf or Rick to do something people oriented like what Caleil is doing. Thursday, May 12, 2005 On May 9, 2005, Invensys had a spike in volume along with an up tick in stock price. One of the local papers reported the increase in volume along with a comment about a bid from Honeywell. This comment was also report by Forbes.com. Also, an Invensys Manager stated the Building Group was becoming a stand alone Company. Any comments or feedback from Invensys weblog? Thursday, May 12, 2005 - Notice just sent out from Mike Caleil to his organization: We have just completed an important and successful year. In recognition of the outstanding professionalism, dedication and accomplishment of all of the people of IPS, Monday 23 May is a Worldwide IPS Day Off! Enjoy the day off to relax and get re-energized. We have more to do! On behalf of the IPS Management Team: Thank you for a great year! Tuesday, May 3, 2005 C'mon, if we don't post comments here, how are we to know what's going on at Invensys? Negative or not, this weblog gives Invensys people some idea about what to look for. It seems to be common knowledge about the Ranco Japan facility closing but yet no announcements have been made inside the company. Does anyone have any information about this such as where the products Japan built or still builds are going or if they are being phased out of production? Wednesday, April 27, 2005 There was a interesting article in the local paper. APV North America part of Invensys has applied for a $300,000.00 loan from the county. These would be used for consolidation. The entire APV project will be a $3 million investment at Lake Mills WI. This would create 25 new position with a average of $15.00 per hour. The consolidation will bring work currently done in North Carolina. This will give Lake Mills some where about 100 people. Lake Mills at one time had close to 1450 people. But just a lot of poor management. Just a lot of mismanagement by Invensys. Wednesday, April 20, 2005 The ABS (Advanced Building Systems) group is to be sold and so the rumour mill is running again. The potential buyer (news on this seems to indicate one possibility) is going through the process of "Due Diligence". Only months ago ABS was removed from the "Development" sales lot and restructured. This is one of the problems with the group constant restructuring and strategy changes that can only have cost millions and acheived very little. It seems that if the higher management had an objective long enough to explain to the staff something would be gained. At one point the policy was to return to core business and trim of the excess, well originally core business was controls and that was part of the sell off. Goodbye Rick, and thanks for the memories. Hope this will mean there won't be the constant change of the past few years. Wednesday, April 6, 2005 Rick Haythornthwaite is leaving - finally. According to the Financial Times, Rick will announce he's leaving by the end of the year. Too bad he is leaving the shareholders with a market value considerably less than what it was before before he came. Latest Invensys stock price 15.75p, market-cap GBP 882M. All those brash promises have come to nought... Ulf Henriksson is expected to replace Haythornwaite. Sunday, March 6, 2005 - re: comments on the March 4 posting on "Good Old Boys": While politics rather than competence pervades many companies, I can attest that there are pockets within Invensys where this modus operandi seems to dominate at the management level, i.e. the use of political "connections" to promote your career. I have seen situations at Invensys where a manager spends most of his time during the day working the politics and ingratiating himself to his boss rather than spending time with his subordinates to facilitate them in meeting their goals. These managers usually spend much of their day in overly long meetings with peers and/or bosses - their goal is not so much to coordinate specific inter-group technical/management issues, but rather to work the politics under the cover of such topics as "communications" or "process". Managers such as these manage his/her own subordinates, not through their own technical guidance or management efficacy (they don't have any), but rather by manipulating, criticizing and creating fear within their own subordinates in group or in one-on-one meetings, in the name of "improving the team". An occasional firing of a subordinate under some guise is always useful to promote this cause. A good description of such a manager would be "serial bully". But somehow, they always think of themselves as a "people person". But the one thing can always be counted on is that these managers are quick to rely on their political connections to save their skins when things go badly. Invensys has more than its fair share of these types. Sadly, it's become part of the culture. Friday, March 4, 2005 - re Jim Pinto's Note to Invensys Management: Sorry to see that Jim seems to bowing to pressure from Invensys to curtail or censor weblogs critical of Invensys. This is unfortunate since this weblog board has been an important source of critical information on Invensys; information that Invensys doesn't seem to want to be available to Invensys investors. Jim Pinto statement:
This weblog generates 1,000 visits per day. Hey! If somebody called to put pressure, at least I'd know they were listening...... :) Jim Pinto Note to Invensys management:
Friday, March 4, 2005 - Welcome to the new employee: I too was a new employee only a few years ago, after having spent many years in another industry. After only a few months I realized that most of the Invensys personnel I was working with were hard working, dedicated people. The real problem with Invensys is the management "Good Old Boys" network. A basically incompetent individual has friends higher up in the organization and they help to promote him to his full level of incompetance (the Peter Principle). As long as there were enough qualified personnel below doing the work things were running fairly well. Once the layoffs (Z9's) started and a lot of talent was lost, the quality of work diminished because there were not enough people, talented or otherwise, to keep things going smoothly. The work force has been cut to the bone and beyond, and in an attempt to "make the numbers", management wants more cuts and much more work from the few workers left on the job. Management's "One X Six" theory really means one person doing the work of six. Until management is changed, both at the top and at the grass roots level, the organization will continue on a slow but steady death spiral. Thursday, March 3, 2005 - to that "new employee": Please write back to this weblog in a year. It will be interesting to see how long it takes for you to become illuminated. Regarding long-time employees grumbling, you evidently don't realize that they are NOT quitters, and they simply want to change the company for the better. Your "love it or leave it" attitude is that of a quitter. The good people here are determined to stick it out until it gets better. These are highly employable people who love those with whom they work, and the work that they do. That's why they don't leave. It sounds like you've been listening a little too much to the "you're either with us or against us" crowd. Tuesday, March 01, 2005 - from a "New" APV Employee: It's my understanding that the new management in APV Americas has pulled together a core group of employees to help develop a plan to fix many of the issues. Is it possible that the "Happy APV Employee" has taken a wait-and-see approach, and wants to monday-morning quarterback the decisions? As a new employee, I'm excited about the changes within APV. It appears that we are getting focused on the products and services that we can deliver consistently to our customers. Since arriving to APV in the last year, I have witnessed a lot of long time employees complaining about the business. You'd think they would leave. But then you realize they are probably not employable anywhere else. My advice to the "Happy APV Employee" is to get off your horse, roll up your sleeves and get involved. It's pretty easy to sit back and complain from the cheap seats. Sunday, February 27, 2005 - from "a happy APV employee": Hooray. The latest reorganization leave us so thin on the ground in America that the new management is almost invisible. Sales meetings in small locations, small teleconferences with many absent, video conferences that are cancelled because IT isn't in that day are all good signs for the future. The last round of management have new jobs and new locations.Even R&D is a European passtime the products of which will only be exported to us at a considerable premium. We are now masters and mistresses of our own future and can expect no outside help. The future is truly ours, we only have to avoid overachieving to be left alone to give our customers some TLC. Tuesday, February 22, 2005 - re. S Vijayakumar's recent posting: Mr. Vijayakumar ignores a few key points:
Monday, February 21, 2005 - re posting from S Vijayakumar: This person suggests that this weblog we should post only positive comments, and not post anything about Invensys's problems.
Tuesday, February 15, 2005 - from S Vijayakumar: Recently Jim Pinto has said (with due respect to his honesty) that he is not paid by Emerson (or anyone else) for his views. But, it seems that he is biased in his comments about Emerson and Invensys cultures, perhaps fueled by the outbursts and negativity in these weblogs. No company which broadcasts its problems to the outside world will command respect. I request Invensys collegues to be restrained in writing. Thursday, February 10, 2005 - From Mike Caliel: Recently, I was made aware of just that type of false information in the form of a rumor being circulated that I am leaving Invensys Process Systems. Let me state very clearly that I have no plans to leave the company. Thursday, February 10, 2005 - APV Reorganization Good or Bad ? Recently APV management announced another reorganization. So called new organization is nothing but the original organization that was there when APV was stand-alone. When Siebie took over APV, it was reorganized to function as a regionalized organization. Several “Global” positions were eliminated and replaced by regional heads. Now, realizing that idea did not work, Haluk Durdogan and his team are going back to the Global organization. So what happened to the ex-regional heads? Few are gone. Some got higher titles like VP. Some are given interesting new management positions. Anyone with some management background will wonder why these new positions for? Some really questionable new titles are: (1) Executive management and marketing (with loads of blah blah blah responsibilities) (2) Business development management (Yes we need these guys but not the project engineers and sales!!) (3) New management for acquisitions and divestiture (with blah blah responsibilities who will divestiture what?) (4) P5 Management (no clue) It is surprising that the Invensys management/share holders/bankers don’t see that APV is really top heavy. Rationale given by the new regional manager (of course he is under a global manager) for recent layoffs that the project sales in North America is slow and he wanted to cut down the overhead by laying off project sales group. In reality North America project sales is slow because all the project sales knowledge is lost by APV past 3 years, and gained by competition who is joyfully hiring these very knowledgeable sales persons and engineers. Sooner APV will find that it is so top heavy it will not stand by itself. At that point all management who made these decisions will be long gone to begin the demise of another company. Hardworking employees (including several excellent leaders with long track record) will be left in the dark and wonder what the future holds. Appropriate quote:
-- Petronius Arbiter 210 B.C. Saturday, February 5, 2005 - APV North America Update: First, the input to this weblog has been "quiet" because no one knows the true status of operations. The 100 day plan was deemed a success (by Pres. Haluk). All "others" wonder what the heck the real deal was? New Marketing and Sales management "heads" were installed on December. In January, the VP of the new service division was released. This friday, the "sales and applications" force was cut in half. Key "experienced engineering application personnel" were released. The hopes for a real "turn-around" within the projects division have dimmed. The "Products" division is still strong, but they need resources to place their components into the projects. Senior management "turnover" has customers confused and concerned. Maybe someone else has more to "contribute". APV can still be a good company and resource for the industry. We just do not understand the "vision". Friday, February 4, 2005 - from an Invensys employee: If Mike Caliel is not leaving, then let's hear it from Mike Caliel. Thursday, February 03, 2005 - Direct from Invensys UK PR person: "I can confirm that the information in the JimPinto.com weblog relating to Mike Caliel joining Yokogawa is completely without foundation. Mike Caliel is not leaving Invensys." Wednesday, February 2, 2005 Strong industry sources say that Caliel is going to Yokogawa of his own free will. He did a great service to Foxboro and we were lucky to have him as long as we did. Ginnie Burnell is another in a long line of has-beens to surface at Invensys. Tuesday, February 01, 2005 UK insiders picked up the news that Mike Caliel, Foxboro President, might be about to take his leave from Invensys. Hmmm... does this have to do with the arrival of Ginnie Burnell from Honeywell? Monday, January 31, 2005 What is happening here? One Invensys weblog entry since last year? Did everybody get laid off? Did Invensys go bankrupt? The share price went through the roof and nobody weblogged? They are ONE and it is 2006 and I was asleep for over a year? Please tell me - the suspense is killing me, I can’t take it anymore..... Monday, January 24, 2005 - From the UK Financial Times today: Invensys jumped 13.2 per cent in heavy trading volumes to 19.25p on relief over its statement that its third-quarter results would be in line with expectations. The debt-laden engineering group also announced it would be refinancing some of its short-term borrowings, giving it more breathing space to turn its business round. Thursday, December 30, 2004 - Responding to the ex-employee who was laid off right before his 50th birthday (Dec 28th weblog): I don't know the details of your situation, but at first glance, it sounds like you may have experienced age discrimination at the hands of Invensys. You are NOT the only Invensys ex-employee who has found himself/herself in this situation. If you signed the legal waiver when you were laid off, to get the additional severance, there is nothing you can do about it now. I would advise older employees (over 40) who are laid off NOT to immediately sign the waiver, until consulting with an employment attorney, particularly if some of the following signs are present:
Tuesday, December 28, 2004 After working for Invensys for 18 years, I was laid off three months before my 50th birthday. Apparently Invensys didn't want to continue accommodating my disability, as they had done for all of the years I worked there. They proceeded to hire a couple of junior people at low salaries who didn't work out. And now, the company is advertising a position for the exact skills I possess. Saturday, December 25, 2004 At our little Invensys owned company, we each got $50 gift certificates to a chain grocery store! Cost the company about $3,000. Better than nothing, but strange... Friday, December 24, 2004 - from Invensys (North Manchester): Well, here it is another Christmas. While bosses and upper management get bonuses, we get nothing. Not even the $ 10.00 we use to get a few years ago. I'd like to see other weblogs here, from other (hourly employees) from other Invensys plants, regarding what you get at Christmas time. Are all Invensys companies like this one? Thursday, December 16, 2004- Re: Foxboro Customer Satisfaction Center call center: It was run as a profit center, at least while I was in field service. Logically then some cuts would be required from time-to-time. I'll never forget calling for technical support concerning a new user interface for the WP51 workstation. It was explained to me that no help was available. There was none available because when this software product was released, TAC (Technical Assistamce Center) recieved no funds to support it! Try explaining that to a customer. Wednesday, December 15, 2004 - From a long time Foxboro employee. Re: layoffs at Foxboro: December 9, 2004 was another sad day at the Foxboro Customer Satisfaction Center call center. Five employees were given layoff notices (Foxboro’s Z9 package) and escorted out the door because the center did not meet its financial numbers. These were good long time employees including former Employee-of-the-Month award winners. Any poor performers at Foxboro were let go a long, long time ago. The Customer Satisfaction Center now has semi-annual layoffs since the latest management change in 2000. Before that, under a manager who has since retired, the Customer Satisfaction Center never laid anybody off. Staff was slowly increasing until 2000. It was one of the few Foxboro divisions that were profitable. Just weeks ago the current management told everyone the center was "on track." Engineers in India are now being trained on new products and in the future will all service calls be routed to India? Will this be the end of the Customer Satisfaction Center in Foxboro, Massachusetts? Is this was management means when they state, "We are on track" ? Tuesday, December 07, 2004 - from a senior Invensys marketing guru: Many people who work at Invensys are probably not aware of the momentum and sustained customer excitement of several of our offerings. Key customers are changing their assessment from extremes such as 'Invensys doesn't get it' to 'Invensys is the only supplier who gets it'. This takes time to become pervasive - partly because customers as a whole are changing what they need. The automation business is moving out of a building block phase into an integrated offering phase - but the new phase has a greater impact on how customer workers need to do their jobs. Many customers and suppliers foresaw this change since the early 1990's - several enablers have evolved to make this a main part of the business. Friday, December 3, 2004 - Response to APV Tonnawanda employee, entry of Nov 22: On this day, (day 90 of the previously announced APV "100 day plan") the recently submitted poem, "Twas the Night before Christmas" says it all. While President Haluk is busy preparing his lists, all we can do is enjoy the Holidays and take as much of remaining vacation time as possible - as vacation time "carry-over" is no longer an option. (This is due to too much "vacation time", being paid out at "lay-off time"). As the 100 day plan is about to unfold there are three options for moving forward:
Monday, November 29, 2004 - Christmas poem - by a 20-year Invensys employee: 'Twas the Night Before Christmas
'Twas the night before Christmas, when all through the house
Not knowing that unemployment was directly ahead; My stock now was worthless and my pension was crap, So we all settled down for a long winter's nap, I sprang from the bed to see what was the matter. Away to my PDA, I flew like a flash, To see where Rick went, with all of my cash.
that job security, sniffle, how low could it go? When, what to my wondering eyes should appear, But a miniature sleigh, and eighty VP reindeer, I knew in a moment it must be St. Rick. More rapid than dot coms, so suddenly they came, And he whistled, and shouted, and called each by name;
Don’t fire the accountants, our books they are fixen! And then tell The City, those profits were small! Now dash away! dash away! dash away all!" And all of us workers could only ask why, So up to the Town Hall, the promises flew, With the sleigh full of gifts, and St. Rick too.
The prancing and pawing of each little goof. As I hugged my children, and was turning around, Down the chimney St. Rick came with hardly a sound. And his clothes were all tarnished with cash and with loot; The snow on his cheeks was starting to melt, As he grabbed hold of his shiny six sigma black belt.
Since he left in a hurry from Carlisle Place! And he carried a box with a golden parachute bow, Filled with the cash that was for the VPs who we know; That’s where Invensys will finally retreat; He had a strange face and a little round belly, That shook, when he laughed like a bowlful of jelly.
And I laughed when I saw him, in spite of mysülf; A wink of his eye and a twist of his head, And I knew that our company soon would be dead; And passed out the pink slips; just like a big jerk, And smiling and grinning while thumbing his nose, And giving a nod, up the chimney he rose;
”Listen to me and we’ll turn Invensys about”. Then I heard him exclaim, as he drove out of sight, "MERRY INVENSYS TO ALL, AND ENJOY YOUR NEXT FLIGHT!" Monday, November 29, 2004 - Invensys or Foxboro culture? I worked at one of Invensys California operations beginning after the first year of the change. During much of my time there (18 months) things seemed to work good. It was during the last 6 months or so that things became terrible. We ended up with a director who had a management style that is best described as an Intellectual Dictatorship. Some of the best talent has since left and projects that were due for completion a year ago are still far from finished. It wasn't Foxboro that drove, so much as it was driven by the poor choices in leadership made from the top. Foxboro is just another casualty. Friday, November 26, 2004 It is amusing that someone would say that Foxboro manangement has some how infected Invensys! I have been there from day one when Foxboro was bought by Siebe. From that dark day to now, it is like we have been infested by the worst virus that ever existed. There has been no strategy, no leadership, no inspired plan where we could have been on the road to prosperity. The new management thinks that cutting employees, and the one time savings of their salaries, is making a profit. They still have no clue that, if you please the customers they might buy more. They have no clue that there is a price to pay for success. That price is listen to customers and employees. The current management, from top to bottom, does not understand that arrogance, tunnel vision and promoted incompetence are causing the problems. The problem is not what Foxboro has done to Invensys. The problem is what Ivensys has done to the once proud leader Foxboro. It is indeed amazing what Yurko and his successors have done. Monday, November 22, 2004 - Extracts from JimPinto.com eNews: Apparently, I was premature when I reported (eNews 8 November 2004) that Rick Haythornthwaite had already stepped down from his CEO position at Invensys and handed the reins over to Ulf Henriksson. The London Sunday Times issued a confusing story that led to my conclusion. It was apparently wrong. Rick Haythornthwaite has not stepped down as CEO - yet. Instead, "boardroom sources" suggested that "there was a clear understanding that Haythornthwaite would stand down once the company was seen to have overcome the worst of its problems." Now, since the problems appear to be worsening, how long will Haythornthwaite wait? And when will Ulf push to take the helm? 
Invensys - Haythornthwaite waits
Monday, November 22, 2004 - from employee at APV - Tonawanda: The author of the comment dated November 5 on APV Tonawanda is 100% accurate. We also go day to day, knowing everything or anyone can change in a moment's notice. Our question is, with the present situation, will the new office, the "Centre of Excellence" be built? Will I be there? Many of my coworkers share my feelings. Friday, November 19, 2004 - from ex-Foxboro employee: During my 8-years at Foxboro, I do not recall a manager having ever been fired for performance. Whenever a manager was not working out, they were simply transferred to another region or to another management position. They then of course damaged yet more of the business through inept, selfish behavior. It was very exceptional to hear of a promotion into management. Foxboro has an old style approach to business. They were (are?) a top-down organization. "No good ideas flow up through the ranks" seemed to be the unspoken motto. From reading this Weblog, it's as though management from Foxboro has somehow infected the greater Invensys... Tuesday, November 16, 2004 I have been an Invensys employee at IDC in Hyderabad, India, for a period of almost a year. During this time I have, grudgingly, come to realize that what this Invensys weblog has been reporting about the organization is true. I have witnessed the entire gamut of inept senior management, bungled projects, irate employees and insensitive HR. It seems that the "management" here seems synonymous with creating disasters and then making matters worse through bungled correction methods. I have always believed that the true ethics and values of an organization are reflected through the treatment of their employees. Invensys IDC falls abysmally short. Monday, November 15, 2004 - Last news from Invensys Appliance, Thyez in France: Since this morning 4:00 AM, 95% of employees are striking. They decided also to make a tough blockade of this site in order to avoid the few still wanting to work to accede their office (around 20 guys from R&D and other depts). Site Manager and Depts Mgrs were not allowed to enter the site. Some of them were required to go and work at European H.Q. Unfortunately, strikers heard that and decided to shutdown the local servers so no way for them to open their data or their emails. Most of medias, local and national received by fax a file containing the restructuring Plan of this site, which is a closure planned by mid 2006. TV and newspapers journalists already came today for media coverage which will grow in forthcoming days. Now something which is relevant about Invensys management behaviour: the first reaction this morning, from local management, was to request to the company in charge of internal restaurant to waste all prepared food into bins! This scandalous waste was photographed by journalists. They all mentioned this to be a real shame - relevant about Management's poor conduct. Employees are really motivated and most of customers should see their production lines stopped within next days, 2 to 3 max. Many scenarios are possible. Most optimistic one: Invensys will give a suitable redundancy package in line with employees expectations. But the company is more keen to providie this for arriving or leaving top Managers. Less optimistic scenario: This site will go to into bankruptc, killing the $ 200M business. If this is Management choice, let them do it. Nobody will gain anything. Monday, November 8, 2004 - Extracts from JimPinto.com eNews: The Sunday Times reported that Invensys CEO Rick Haythornthwaite was stepping down, to give the reins to the newly hired hired-gun, COO Ulf Henriksson. Invensys employees on a broad front have reported that Ulf has visited, looked and listened, and is now making strong, corrective moves. The problem is that these new moves come after too many other changes which have resulted in a seemingly endless game of musical chairs.
Invensys - Ulf is CEO, Haythornthwaite waits
Monday, November 8, 2004 I was among the many who felt that the new GE team should be given a chance to try to bring the business back. But here we are, a year plus later, and other than poor attempts at intimidation on gap calls, and spiraling quality, it is time to call it like it is. The GE team has failed to turn this around. They have brought in more paperwork and more process, but at the end of the day all the paperwork and process is not a substitute for time in the field and quality products. The sad part of this despite all this failure and another reshuffling of the parts, the GE team remains and we are looking at another extended run of failure both in management and quality. What little talent remains will likely be heading for the door in the coming weeks and months ahead. What a shame..... Sunday, November 7, 2004 Yes, there are 11 VPs and MDs reporting to the new head of Invensys Appliance and Climate Controls. The "new" organizational structure is a matrix organization, straight out of the GE playbook. How original! Yawn... For all the talk about commitment and accountability coming from the top, this new structure will not hold anyone responsible. Who's in charge? It must be the MD. Or was it the VP? This is nothing new for Invensys. A case in point is the $50 million TS-11 and 7000 series valve debacle. Have the people at the top of the organization, those responsible, taken the fall for this fiasco? For all the brash talk, they have no idea what accountability really means. It isn't the organization, it's the attitude! Do past relationships mean more than current performance? Saturday, November 6, 2004 - Invensys appliance Controls - Manchester, IN: The exit strategy for Invensys Climate Contros? The movement of most of the workload at the North Manchester plant is continuing. The motors are starting to come in from China and that means the North Manchester plant will no longer produce them. The exit of many presses to Mexico translates to no new work and exit of more product line to Mexico. Employees are being told that the New Gen timer is our future. Is the market large enough to support our plant? Rumors of stockpiling for a December lay-off are rampant. Layoffs are now weekly. What next? Is the plant going to close? What is the impact of joining with Climate Controls? This plant is in TROUBLE. Friday, November 5, 2004 A recent weblog comment that APV is experiencing continued Invensys mis-management in regard to restructuring is correct. However, it understates how bad the situation really has become. I could not "make-up" or mis-represent the complete mis-management of APV within North America over the past 6 months. Here are the facts:
APV's customers and distributor network just watch and shake their collective heads. Customers and distributors are used to meeting a new "head of management" for APV NA every 12-18 months, sometimes it changes every 9 months, (RE: McCabe). The continued mis-management is eroding customer confidence in APV products, let alone the confidence required to purchase an engineered system. If shareholders are looking for improvement from the APV, they may see short term restructuring profits, but sustained improvement is a long way off. While tough decisions need to be made to address a company's performance, management needs to have a plan. APV employees work hard. They want a sustained plan with some stability. Wednesday, November 3, 2004 - RE: Today's announcement about the merger of Appliance and Climate Controls: The announcement showed 11 VP's and MD's reporting to the new head. The new management structure that will report into those 11 new VP's and MD's will be announced in the coming days/weeks. Doesn't the new structure look, once again, massively top heavy?. Based on the 1 to 10 rule, how large should the Invensys employee base be to accomodate all the top brass of Appliance/Climate? My estimate is about 110,000. Sunday, October 31, 2004 Lets hope it's just a Halloween scare. A Haythornthwaite replaced by an Ulf.... what kind of Trick-or-Treat is that ?? Sunday, October 31, 2004: Invensys CEO Haythornthwaite to quit Rick Haythornthwaite, the chief executive of Invensys PLC, is set to step down and be replaced by chief operating officer Ulf Henriksson, the Sunday Times reported, citing boardroom sources. The company yesterday insisted that there were no plans for Haythornthwaite to depart, but the sources said there was a clear understanding that he would stand down once the company was seen to have overcome the worst of its problems,the newspaper reported. A spokeswoman for Invensys said that Haythornthwaite will only leave the company when it has turned the corner: "And that job is not yet done." "I think there is a feeling that a different personality might be required in the future," the unnamed boardroom source was quoted as saying. "This has become quite a different company to the one Haythornthwaite took over." But there was no clear indication of when Haythornthwaite would leave. The Invensys spokeswoman said Ulf Henriksson was an obvious successor to Haythornthwaite, but added that "the Board will look at it in the round when that time comes." Tuesday, October 19, 2004 - from a long-term Invensys employee: Invensys employees stay not just because of the pay check, but because they have given a great deal of their lives to the company and do not want to walk away because of (temporary?) bad leadership. Many of these people believe that a removal of the head(s) will benefit the body of the company. Certainly this course of action would achieve a very significant cost reduction (Ulf watch out!). APV has had a new 100 day re-organisation (introduced under yet another new leader) which is about halfway through. Leadership by fear continues to pervade the organisation, with people getting fired based on observations on teleconferences! The new leadership is apparently extremely proud of the significant cost savings achieved in the last month by stopping all travel and purchasing. How much longer will Rick & Ulf put people in charge that only know how to cut costs and through such basic methods? Cutting is easy - building is hard. Leo Quinn, a previous leader, revelled in this behaviour, applauding suggestions such as reducing toilet cleaning frequency and removing tubes from lights. He didn't stay around long enough to(not)see(and smell) the consequence of such actions. It is clear that Invensys continues to stumble on under constantly changing leadership, people who are motivated by short term personal gain. The mis-guided behaviour continues, and it will not stop until the company is acquired by a strong company that will introduce stability and put in place leadership that understands the business - not just cost cutting. Will someone please buy this company and pull it out of its misery! Monday, October 18, 2004 - RE: Invensys vendor payments: I run a small business that has been selling to an Invensys division since before Invensys came along. When the payment schedule started getting too far out, I simply increased my prices. A couple of years ago they got out to 120 days, right before the end of the fiscal half. I had to put them on COD through this period, but they finally got back to 45-60 days. I try to make sure that I always have an unshipped order that I can hold back until payment for previous shipments is received; it gives me a bit of leverage. I imagine that there is some purchasing manager congratulating himself on all the money he is saving the company by delaying payment. If they only knew! Friday, October 15, 2004 - from Bob Lincoln - former Foxboro employee: Re: Previous weblog: "I get my salary on time. Did you? If you are not happy, I suggest you to find a job that you are happy with and leave NOW." This was probably written by a manager, and represents the worst of corporate America. This callous and ignorant attitude of believing that only the paycheck matters to the employee, to the exclusion of job satisfaction, personal pride, competitive spirit and cameraderie, is very revealing of the true motivation behind upper management. As long as the paycheck is the only motivation for management, they will never understand, appreciate or properly motivate employees, and the company will never succeed. Management by fear and intimidation never works. It drives away employees who are not intimidated, and makes those who are, less productive. People who are unhappy should not be bullied into leaving. They should be encouraged to participate in change to create a happy work environment. Thursday, October 14, 2004 - Norman Harvey [harveyn@sbcglobal.net] wrote - Pension benefits vs. 401K: Invensys is just reducing the future dollars required for the defined pension benefits by excluding new hires going forward (they will have only the 401K for retirement plus SS). If a current employee opts-out, then his pension dollars stop growing and again reduces Invensys contribution to the pension fund. The employee who opts-out should undestand that his payout from the plan will be reduced considerably. Those that opt-out, and new employees, should consider the 2% plus 6% feature to build a strong 401K. Thursday, October 14, 2004 - responding to the previous weblog about Invensys pensions: There is no impact on pensions for those already retired or for existing employees unless existing employees choose to take the option being offered. It is a propective change for new hires starting next calender year. Should Invensys not be able to honor its pension committments through something like a bankruptcy, your pension benefits are protected by the Pension Benefit Guarantee Corporation. I do not believe that the Company can change your actual benefit payment after you have retired. They could however change other retirement benefits, if applicable, such as Medical coverage. Thursday, October 14, 2004 - from a former 26-year Foxboro employee: Can anyone explain the pension situation as regards US employees? Is the US pension plan protected by law? How will the "OPT-OUT" program mentioned in the previous weblog affect my pension? Thursday, October 14, 2004 There is one FACT that every Invensys employees should remember. I get my salary on time. Did you? If you are not happy, I suggest you to find a job that you are happy with and leave NOW. Wednesday, October 13, 2004 Invensys just stop eligibility for pension plan benefits of all new hires hired after December 2004 in the US. They also provide an "Opt-Out" option for all employees that are currently enrolled in to the pension plan in the US. If you "Opt-Out" you get your current benefits frozen, whatever that means, and you can get a 100% match on your first 2% of 401K contribution PLUS a 50% match of the next 6% of 401K contributions. The memo that is distributed has the title: "It’s your Choice" There is a little ‘funny’ logo at the bottom of the page of an open ‘opt-out’ window with money flying out of it. I wonder whose money it is..... Wednesday, October 13, 2004 Sounds to me like the Invensys supplier and the Invensys employee agreeing with him are possibly some Invensys Management person in disguise. Employees might enjoy the company they work for more if there was responsible management decisions being made and they would quit jerking the chains of the employees with bad management across the board.
Wednesday, October 13, 2004 It is laughable to claim that Invensys pays "on time". They have had a stated policy for years of paying 49 days after the billing date; but those who work in Purchasing or Accounts Payable know the truth - it's usually 60 to 110 days. This dishonorable business practice has resulted in a loss of technical support for engineers from the companies who have been stiffed. Also, engineers have routinely been called and asked for Accounts Payable by suppliers, because that department uses answering machines and ducks all calls. It is a well-known, documented fact that in March and September every year, Invensys refuses to pay any bills unless a vital service or supply will be cut off. I was personally told by someone in Purchasing that they had $1M in invoices, but only $200K allowed to pay bills. I witnessed one vendor who had been stiffed, sending the same defective material into Incoming Inspection 3 weeks in a row (we had marked it so we knew it was the same part). The average employee is not only powerless to change this idiocy, they are punished in various subtle ways for offering constructive criticism when they see how the policy hurts all aspects of the company. So, many have left and continue to do so. I did. But we still lament the damage done, and know it could be turned around, but only at the top, where only ignorance and greed reign. Tuesday, October 12, 2004 Heed the Invensys third party supplier's words! As an employee of Invensys in a business unit that has been on and off the sale block for TWO years, I agree fully with this person. If you don't like what is going on, then leave. Stop being negative about your employer. Get on with your job and feel better in yourself that you have done, and are continuing to do, everything you can to make a difference. Tuesday, October 12, 2004 - from a third-party Invensys supplier: As a reviewer of this weblog, I cannot believe the sheer negativity of some of the web logs. We have completed some work for Invensys in the past and we have recently started another project for them. They have some really innovative solutions in the pipeline and are making considerable investments, also they pay on time! Move on, get another job if you are not behind the company. I thought this is what freedom and liberty is about... Thursday, October 7, 2004 - Financial Time, 6 Oct 2004 (extract): Shares in Invensys rose 12% as investors welcomed signs that its recovery plan was still on track and shrugged off news of a product recall that could cost the engineering group up to £30m. The charges will be taken as operational exceptional items over several years. Invensys is recalling about 123,500 of its TS-11 valves, which regulate the flow of gas in commercial cooking appliances, after 12 reported incidents of failure. It has also placed its 7000 Series range of valves under review following one reported failure. If part of the 7000 Series is recalled, this could cost Invensys another £5m to £20m on top of the estimated £10m cost of the TS-11 recall. Wednesday, October 6, 2004 What is the story on valve recalls? Yesterday (10/5/04) the cost was going to be 10M pounds. Today it is up to 30M. Rick H. says "Customer safety is our number one priority." I don't think he knows what is going on in the divisions. There are no longer any product safety engineers in many divisions of the company. Tuesday, October 5, 2004 - 5 Oct 04 Financial Times: Invensys added 12.2 per cent to 13¾p without the help of regular speculation that Siemens was poised to bid for the engineering company. Instead, investors' nerves were steadied by a trading update which was in line with expectations. Tuesday, October 5, 2004
Rick Haythornthwaite's response: "I'm all for it." Tuesday, October 5, 2004 - from an employee who was let go from Invensys Climate North Americaa (Ranco) on Thursday September 30th, 2004: I will miss my fellow associates, but will not miss the upper and current management. Good luck to the remaining associates of the Invensys group led by Slick Rick. Don't be surprised if you don't hear the words China in the future, like we did at Plain City. Monday, October 4, 2004 - Ranco closes: Some were sad, others angry. Many voiced their frustration about losing their jobs. More than 40 employees of Invensys Climate Controls Americas’ plant in Plain City, formerly Ranco North America, gathered in the parking lot of the Cornerstone Church on Thursday, Sept. 30, at noon, across U.S. Route 42 from their former job site. For many, it was their last day of work. Quite a few wore T-shirts proclaiming "100 percent American, 100 percent unemployed" and several carried signs protesting the outsourcing of their jobs. Saturday, October 2, 2004 - re: Revolt: It is too late for a revolt. Like frogs in the proverbial pot of boiling water you waited far too long. The same drawbacks that prevent a sale (like the defunct pension fund) would kill any chance at success. There might still be a few good people at the company, but most (the non-frogs) have already left. Now Invensys has only the frogs and the more recent "vulture" new hires.
This is a pessimist, defeatist view. It's NEVER too late to DO something. Friday, October 1, 2004 - Re: Sale of Invensys: The deal to sell IBS may have been scuttled due to the fact that IBS is under Invensys Climate Controls (ICC). As many problems that IBS has historically had, they still generate much more revenue than ICC. Without IBS, Invensys Climate Controls would be reduced to the light commerical/residential market, where the competition is fiercer and the profit margins are limited. I wouldn't ne surprised if ICC heads managed to scuttle this deal. One more way that Invensys inside politics have managed to scrap the value of this company. Friday, October 1, 2004 - re. revolting: Overheard at Invensys HQ this afternoon:
Rick: "Yes, they certainly are." Friday, October 1, 2004 - re: Revolt : There's precedent for such a "revolt", as the previous weblog describes it. Look at Peoplesoft forcing Craig Conway out today. The board needs to send Rick H. on his way immediately. Friday, October 1, 2004 - To the employee distressed over Invensys "bashing": No one disputes that Invensys has countless talented and devoted employees and good products. The problem, however, is incompetent executive management. A shareholder revolt and employee revolt is essential if you want to save the company. And don't wait too much longer. Tuesday, September 28, 2004 Dresdner Bank slashes stock price target (Extract - Reuter's) Investment bank Dresdner Kleinwort Wasserstein cut its price target on Invensys to 5p per share from 12p on Tuesday. By 1137 GMT Invensys shares were down 11.5% at 11-1/2 pence, the weakest UK mid-cap stock. Dealers said it was knocked by Dresdner's price cut. The bank kept its "reduce" target on Invensys shares following first-quarter results last month, and said it had cut its earnings forecasts for the company as it moved "away from the idea of a major earnings recovery". It cut its 2005/06 earnings pre share forecast to 0.2 pence from 0.6p. Dresdner analysts said in a research note: "We continue to believe that there will be no bid for the company given the ongoing operating problems and the pension poison pill. We believe that going forward the stock is likely to trade in a range between 0-15p, given its extreme volatility and we continue to advise caution." Monday, September 27, 2004
JimPinto.com - eNews commentary
The Invensys endgame approaches - Siemens acquisition
Monday, September 27, 2004 It is unfortunate that business is so bad every where. Like all companys, Invensys is trying very hard to make it. We have excellent products and there is heavy competition everywhere. It does not help, when people keep trying to bury us. It hurts the market for Invensys when people only look at the negative sides of a business. We have some great employees and they take a lot of pride in the products they build. We have lost some people through attrition, and others just because every one is always looking out for themselves. It's too bad for the good, regular workers. Friday, September 24, 2004 - Invensys takeover rumors are now in the press.
Daily Mail, Knight Ridder/Tribune Business News
Takeover talk pushed shares in the controls and automation group up 1/2p, or 4 percent, to 13 1/4p. But it is not just the speculators who have piled into this one. It is the second day in a row that traded volume surpassed 100m. Dealers with their ears close to the ground reckon the US value investor Brandes is behind a series of programmed trades put through the market by bankers at Credit Suisse First Boston. Rumour has it that the US fund manager will take its holding from 18 percent to 29.9 percent in a bid to bring the average cost of its stake down to around 35p a share.
Friday, September 24, 2004 - Sale of Invensys: To continuously bring BMS up for sale just makes IBS look like they don't really want BMS, they are just haggling for a better price. What I wish is that IBS Americas, IBS Europe and IBS Asia would be spun off into independent companies, let them sink or swim on their own. Invensys clearly doesn't know how to fit BMS into their business plan. Editor's note: Confusion exsists with these initials - IBS, BMS etc. Please clarify. Thursday, September 23, 2004 An acquisition by Siemens or Schneider electric would not necessarily be the best thing for Invensys Building Ssystems (IBS) employees. Despite having R&D money to spend would it make sense to invest in the Invensys product lines when both companies have strong, well recognised brands in Apogee and Andover/TAC, respectively. An acquisition by any of these companies would spell nothing more than a decommissioning of the Invensys product lines, and redistribution of resources from IBS to make the incumbent line more profitable. Unless either company has a sever shortage of manufacturing capacity or unexploited markets (both are international corporations and have been for a looooong time), the only results you can surely expect in that scenario are additional layoffs. The moral of the story: There are only two ways that IBS will survive:
Thursday, September 23, 2004 Neil Hume, UK Guardian (extract) There was also a buzz around Invensys, the highly indebted industrial controls and automation group. Its shares may have ended 0.5p lower at 13.25 but trading volumes reached an above-average 135m shares. Market gossips believe the company has received a very preliminary takeover approach from Siemens, the German industrial conglomerate. Siemens is already known to have cast an eye over Invensys's cash-generative rail systems business, which makes software for signals and other parts of Invensys's process controls operations. Any deal, however, will hinge on whether it is prepared to take on Invensys's debts and pension fund deficit. Wednesday, September 22, 2004 - Here's the official announcement that was just released: September 22, 2004 Dear Invensys Climate Controls Colleague: You will be pleased to hear that, following a detailed strategic review of the potential for the BMS business to develop, the Board has accepted our recommendation that BMS continue to be developed as part of the retained Group going forward. Moving forward with BMS as part of the Climate organization recognizes both its current performance as well as its potential. As part of the ongoing strategic planning process, we will look at opportunities to further realize gains from the synergies of BMS and our other businesses. We are deeply involved in building on the strength of the entire organization, making it an exciting place to work and a competitive challenger in the global marketplace, and BMS will be an integral part of this positive future.
Best regards, Wednesday, September 22, 2004 Here we go again? The sale of Invensys Building Systems was going to happen? This is the second time in the last year that the sale was supposed to happen. We were even informed through a conference call that the sale was most likely going to happen. If it was not going to happen, then why bring it up? Does this tell you how upper management is thinking? You know the sale issue will come up again. This is a very big concern! We thought we were going to be purchased by a company that has some money to spend for R&D! Tuesday, September 21, 2004 - To the September 2, 2004 Blogger - Re Building Systems Group: So much for your "hot tip" that the deal has already been done with Schneider. Maybe you should get on with your job rather than spreading misleading information. You are obviously not in the picture. Tuesday, September 21, 2004 - from an investor and observer: Invensys Financial Status:
Tuesday, September 21, 2004 Black Tuesday! Today we hear that Invensys Building Systems is not being sold. It seems Invensys decided that if one or more reputable companies were interested in this group that they should jack up the price - too bad. All of the speculation about Schneider and before them Seimens (and others too)was just a pipedream for those of us who long to be out from under the Invensys umbrella and the Climate Controls thumb. Our days are certainly numbered now, and counting down. Tuesday, September 14, 2004 There is more restructuring going on in APV. The latest justification is that they want to bring "flat" management. (we have all heard this before!) So, the group president has been replaced by a friend of Ulf (the current COO of Invensys AKA replacement for Rick H). This new group president is going on with more reorganization, and has come up with a 100 day organization! Who would do this to a company unless at the end of 100th day the company will be up for sale? Where is long term planning? Like other companies in Invensys, APV has been affected by CRS - Continuous Restructuring Syndrome. Every group president uses APV as a pilot plant to test their "new plan", not realizing this plan was tried by one of his predecessors and failed. Unfortunately, the only ones affected are the employees and their families. Tuesday, September 14, 2004 - to the comment on bankruptcy: You forget that it is actually the banks that are running Invensys, and Rick H. just does their bidding. The banks would lose way too much money if Invensys did a bankruptcy. They want the pieces of the company sold off, using that money to pay down the debt. Once the amount of the debt is low enough, then bankruptcy will be declared. In the US we have Chapter 11 bankruptcy, which just allows for the restructuring of debt. Does the UK have something similar? Monday, September 13, 2004 If I were running Invensys I would be thinking seriously about declaring bankruptcy. It would wipe out stockholder equity but that has already been 95% wiped out. More importantly, it would take the pressure off and allow time to resuscitate or sell off the remaining companies and save as many jobs as possible. Wednesday, September 8, 2004 - Merrill cuts Invensys, says needs more funds:
(Extract - Reuters News & Financial Times) The engineering conglomerate's main problem is its massive debt burden, according to the US broker. Merrill estimates that total group debt stands at pounds 1bn, and it fears that Invensys is unlikely to generate sufficient cash to pay this down for a long while. "Ultimately, we believe that Invensys needs a further substantial injection of equity, at least pounds 500m, to help stabilise its financial performance," said the broker as it hinted that the company might otherwise require a debt-for-equity swap. Such a move would wipe out a sizeable chunk of shareholder value and would be very bad news for the likes of Brandes, the US fund manager, which has steadily built up a 17 per cent holding. Given its distressed state, Invensys has been tipped on many occasions as a takeover target. However, Merrill believes such a scenario is unlikely to ever happen given the group's conglomerate structure and pension fund liabilities, which will be viewed as a "poison pill" by any buyer. Thursday, September 2, 2004 - Re: Sale of Building Management Systems to Schneider: I received information from France that the deal is already done. If this is true, then Schneider needs it only for the clients of the BMS division, and will sell the remaining companies again after 2 or 3 years. I hope that this is totally wrong, and that it stays like it is. The BMS Division has good products and employees, and it will be a great loss for Invensys to sell this segment off. Monday, August 30, 2004 I subscribe to a notion that Unions are merely a symptom of poor management. If the management were any good, there would be no need for collective barganing in the first place. That said, notice the Union talk going on in Invensys. It merely confirms that this organization is doomed. Frankly, as a customer, I'm worried. Talent is hard to attract. Once the talent that we used to know is driven away, it will take a very long time for the stench of a dying organsation to dissapate and attract new talent once again. I have little faith that the service and innovations we used to know will be possible to reconstitute after the parent company is broken up. The only thing keeping me as a customer is that the market itself is quite moribund. It seems that the innovation and support we used to know is lacking almost everywhere. Wonderware used to have that spark. Now, it's just another company. If and when another creative upstart comes along, I'm history. Monday, August 30, 2004 I heard that the entire Building Management Systems Division has been sold to Schneider; official announcement in a few days. If this is true, good luck to the ones who will try to manage all these companies as a unit: Barber Colman, Satchwell, TAC , Andover , CSI in USA , Atmostech in Finland, Controlli in Italy, Messner in Germany. Seemingly the CEO's deciding this kind of absurdity never learn from experience. In this case, Invensys itself is a clear proof that these bunches of separate compamies simply cannot work. The only truth, a sad one for the rank and file employees and middle managers, is that these people do not know the definition of stupidity. They repeat again and again the same thing, hoping that final result will be different. Probably with their oversized egos they think they know better. Thursday, August 26, 2004 - Invensys profit beats expectations
LONDON (Reuters)- extract Underlying operating profit for the retained businesses was 16 million pounds in the three months to June 30, off 5.9 percent from the year-ago quarter. Analysts on average had expected the firm to post a profit of 15 million pounds. Wednesday, August 25, 2004 - from an ex-employee: Well it's been several months since I left Invensys and I now work for a competitor. I wish I had left earlier. I stayed long enough to watch my customer base erode. I stayed as long as I did out of loyality to my customers since I was the one that sold them the "solutions" they purchased. I begged and begged for Invensys to complete the contracts. Software revisions never showed up and delivery dates pushed from weeks to months. Finally upper management wouldn't answer my calls or return my e-mails. My ex-customers like me because they know I did everything in my power to turn the Invensys battleship around. I failed. Now I am happy and my old customers are starting to buy from me again. They love the local organizations but hate Invensys. So, there is life after Invensys. Join me. Wednesday, August 25, 2004 - more on on Rick Haythornthwaite: I'm not defending Rick H., but the seeds of Invensys' demise were planted before he took over. Yes, things are worse now but Invensys was poised to crash when he arrived. I can't argue that someone else couldn't have done a better job. Maybe a stronger, more hands on CEO would have flushed out and fired all the BS artists earlier in the game. I think Rick H. is too nice a guy and that he doesn't have the mean streak needed to identify and eliminate the losers. The job really demands a George Patton or Vito Corleone personality. Is that Ulf? Wednesday, August 25, 2004 - re: Give Rick H a break: No, Rick Haythornthwaite, his picks and his consultant friends deserve to be fired, not given a break. Yes, he accepted a mess. But then he proceeded to make it worse:
Tuesday, August 24, 2004 I too have been reading this website since my departure from Foxboro-Mass. I see quite a bit of venom being spewed at Rick Haythornthwaite. The bottom line: he was given a mess of a company to try to straighten out. He did the best he could given the complexity of what his predecessor dumped in his lap and a weak economy. Cut the guy a break! Kerry will have the same problem when he inherits the Iraqi situation. Tuesday, August 24, 2004 There are two great forces that influence any company: Customers and Shareholders. Customers vote with their orders, and Shareholders with their stocks. Ultimately, these are the voices that Management hears. Speak to them constructively here. they ARE listening. Saturday, August 21, 2004 - from Steve Stone [SteveRStone1@aol.com]: I have been reading this website since my departure from Foxboro-Mass. My being let go had nothing to do with the old culture. An MBA thought he knew better. Look where he is today... It pains me to read things about unions and such. Unions never fix anything; they mask the obvious. What needs to happen is a change in the management controlling the corporation. The leaders in the UK are nowhere close to being involved in the day-to-day activities in the US. You, the people that made Foxboro, need to stand up and take charge. There is still a lot of old culture that stands in your way, but if you can be strong you can win. Keep up the spirit! Foxboro can make a comeback; you have excellent products and people! Good Luck! Friday, August 20, 2004 - more about Unions: We all agree that management has made a hash of the corporation overall, and also trashed the companies that Invensys absorbed. Invensys is a sick organisation that doesn't need a Union to latch onto it and drain what lifeblood is still left. There is a fixed pot of money to allocate and management won't cut its share, so if some of the workers get paid more, others will be fired. How exactly will the Union ensure that corporate management becomes more intelligent? How will the Union make Invensys more profitable thereby increasing the size of the financial pie to be distributed? My proposal is for the stockholders to become informed of the problems with the current management, via this Weblog and other sources. That would hopefully lead to their being replaced with a more capable group. Stockholder self interest is a wonderful motivator. Friday, August 20, 2004 - about Unions being bad: Some of these weblogs imply that a balaced argument on Unions and Individual Liberalism is "pushing unionism". I try to bring some rationality to the argument, and they seem to think it's bad. The important bits were: Invensys corporate culture in tatters, walk-the-walk. etc It is obvious that some of these comments are in an effort to sabotage a very constructive weblog. I think maybe it is time to move off this unionism debate. Friday, August 20, 2004 - to the Union busters: I've worked in businesses that had unions. Also, many teachers, nurses, police, engineers and office workers work in unions, and yes laborers also work in unions. The interesting thing is that these employees want to keep their unions. Invensys management has destroyed Invensys and destroyed the lives of many employees - just ask financial investors, most employees and customers, or just read the financial press. Most senior management people look out for themselves, their consultant friends and their management picks. Why was Ulf the hatchet hired? Why was Rick H hired? Why were all the ex Enron executives hired? Let the workers vote, and if they vote for a union, we'd all be very happy and better for it. Friday, August 20, 2004 - from a Happy Employee: While I agree that Foxboro may not be all that it was previously, it is a FAR cry from the doom and gloom that some of the "front line" workers (who are pushing union talks) make it out to be. I am one of the "front line" workers at Invensys and accept the fact that the benefits that I get are good. Better than many companies out there and worse than some. But at least I have a job. I also could leave the company and take my employment some place else. But I choose to work here. Loyalty, maybe, but it is a good job. The union chatter is painting a rosy picture of having the ability to negotiate better benefits that are hampered by upper management "10K bonuses" and perks. DO you really think that this will solve any of those type of problems? If that is indeed the case, you’re only going to increase company costs overall. They’re not going to give up bonuses for the sake of satisfying a union contract! SO, the REAL point is the same union statement that I have heard when I was working at other manufacturers: "I want MY piece of the pie too, whether I deserver it or not and no matter WHAT the cost to my co-workers". Wake up. How many of the "loyal" Foxboro employees that you speak of are a part of this talk? And I’m not talking about the two or three on this weblog? THE UNION WILL HURT US ALL IN THE LONG RUN! I have lived through it, felt it, and switched jobs because of it. And why are you pushing the union if you don’t even work for the company? You made your choice, you quit! You need to move on. Friday, August 20, 2004 - re. Unions etc.
Wow! "polemic", "reactionary", "discursive maneover" - this is some dictionary beast. I probably have a lower opinion of management than you have, but my belief that a union is less than hopeful. It is not a panacea. Clutching at straws is natural. Thursday, August 19, 2004 - from an ex-employee: When Invensys companies (and there are more that just Foxboro) can guarantee things like continuity, security, satisfaction, career development - you know, all the MBA things that they espouse so easily - then maybe the unions have no place there. Unions generally provide strength in collective bargaining and don't extort companies to their doom. I have yet to see Invensys front-line workers OR union members, organizers or officials with 10k bonuses. I had the good sense to leave the Invensys fold about 4 years ago. But, I still have to watch the agony of my old colleagues that are still with Invensys, and they stay for various reasons. The least of those reasons for staying is NOT their inability to get other work; some of these guys are very well respected. The company that I am with would happily take any of them, but they dont want to leave. They have an investment, and they stay loyal even though Invensys keeps breaking promises. Blagging the loyal ones, the ones that deliver those technical things that Invensys does, will not fix anything. A polemic and reactionary argument on the value of unions is only a discursive maneover to distract readers of this blog from the real topic - the Invensys corporate culture is in tatters. The MBA types can talk-the-talk, but they find it difficult to walk-the-walk. Wednesday, August 18, 2004 - re. the Pro union rant: All that is needed is a bit of bread and cheese since the union whine (flavored with trite cliches)is in ample supply. Gotta love the slavery... Some other great cliches:
I do agree with your bringing up of "rain bonus's down throughout management." Have you seen the salaries of the union management? On the point of overcompensated management, corporate or union, I am equally disgusted. During a local strike the union members starved while the union management including the secretaries were getting ridiculous salaries(public record). Wednesday, August 18, 2004 I can really relate to that person who said "Oh no - if a union comes in they will close the doors." Management has been saying it for years. Usually the people who don't have the courage to stand up for themselves will say the same thing! So they say, "Let the company do anything they want to us. We can't do anything about it anyway, or if we open our mouth they will force us out the door." If the whole world was like you, there would be no freedom at all. We would be back to the time of debters prisons, indentured servents and not to mention slavery. We have lost ground over the years in salary, company contributions to insurance and for most jobs that they send overseas. We are still here in Foxboro because we are talented, reliable and what we make works. More then I can say for the majority of the outsourced parts. They won't let us speak for ourselves, so we need a union to bargain for us. We have to hold management's feet to the fire, so that we may have a liveable wage where the average worker doesn't have to scramble pay check to pay check, or even support their families without part time jobs. Invensys seems to rain bonus's down throughout management, and then tell the workers that they are not entitled to a reasonable raise. So people who run scared give up and just take the scraps they are thrown. It makes me worry to think where we would be if everyone people thought like that. Wednesday, August 18, 2004 - commenting on both sides of the Foxboro negativity debate: Foxboro has its problems. Granted, the management is bloated and generally ineffective. It needs a good housecleaning at the top. On the other hand, Foxboro has many workers who haven't woken up to the new world of American business. They whine because things aren't as nice as they were in the good old days. The fact is that it isn't nice anywhere. Layoffs and benefit cuts are the norm. Foxboro workers are well off compared to most other workers, particularly the ones without jobs. All of this debate is rather academic since the Foxboro and Invensys situation is in the end game stage. It is too late to change the outcome. Wednesday, August 18, 2004 - from a recent employee: I wonder if the person who wrote the "stop the negative talk" weblog has ever worked at Foxboro. Surely he/she would know that there ARE hundreds of people there unhappy with the direction the company has taken in the last 15 years. Unless maybe he/she is one of those blind managers pulling in those $10K-$50K bonuses. I don't see how it would be helpful to have a union, but I understand the sentiment. Foxboro historically paid about $5K less than other companies for similar positions, but the tradeoff was that there was good job security and good morale, and adequate staffing. Those have all been taken away to make very few people at the top rich. If people were treated fairly, and not laid off randomly regardless of job performance just to make numbers, and there was adequate staffing, then there wouldn't be any union talk. BTW, many companies offer better benefits. Where I am now, 401K matching is 3% vs Foxboro's 2%, and a wider variety of options, including investing in company stock. My wife's company matches 401K contributions to 5%. We both also have stock ownership plans. Our health insurance is cheaper than Foxboro's, with same or better coverage. We also both have pension plans in addition to 401K. Her company allows carryover of unused sick days from year to year (but now they are being cashed in for all employees - still better than losing them). All that is really NECESSARY is for management to give employees what they used to have: stock ownership plans/profit sharing; adequate staffing (right now it is a joke, or cruelty, depending on how you look at it); respect for hard work accomplished; and take away the threat of unintelligent layoffs across-the-board cuts regardless of individual workers' performance or job function criticality. People can't be productive and creative when they are constantly made to fear for their livelihood. That's the climate at Foxboro, and has been for years. Wednesday, August 18, 2004 - In response to "wise up folks": If you like what you have now, as many Invensys employees do, you should be even MORE motivated to see a change at the top and a fundamental change in Invensys to ensure its viability as a standalone entity. Otherwise, what kind of "deal" do you think your new acquirers will offer the employees? Suffice to say it will absolutely, positively be worse than what you have. Thus, getting the Invensys ship in order should be the first objective, and it has to start at the top. This company could be significantly profitable in less than 12 months, but the idiots at the helm don't know how to sail in rough waters. Wednesday, August 18, 2004 Enough of this negative logs trying present a doomed future. Invensys is paying our wages on time. Let's get the work done. Tuesday, August 17, 2004 I can't believe all of the negative talk that I am reading about the company. Of course when you see this much negative activity, it always SEEMS like there are hundreds of unhappy employees at Foxboro. However, the deception of the web log is that one or two people can post messages as if they were 10 or 20! I'm not saying that there are not problems, but please, make sense out of what you are saying? Union?!? My God folks, do you all want to be out of jobs? The Union is nothing more than an organization for people who want to hold the company hostage for more money and benefits! The only successful Unions left in the country are the truckers and automakers and that is because they have those companies by the you know whatsies... I don't know what company some of you are working for, but I have pleased with my benefits. Have you taken a close look around at other companies to see what they are offering? I mean MOST of the other companies because you can always find an isolated company or two that will have better benefits. I'm not saying that our benefits are the best, but they are CERTAINLY not anywhere near the worst. That's the problem with union minded people. They never have enough. Look at some of the hold out strikes that go on for 2-3 years, what happens. The company decides to close the plant and the Union workers that were making $20-30/hour are now working at Burger King because they have NO skills to do anything other than weld this one part on this one door. Boy, $7.50/hr, now THAT'S an improvement huh? Wise up folks! Thursday, August 12, 2004 I was an engineer at Foxboro, and after 13 years, I worked my way to a supervisory position (rare). I was excited and motivated. I worked 11 hour days and took work home, pushed hard to solve problems and effect positive change with manufacturing and vendor problems. This despite having to lay off badly-needed, skilled people to reduce headcount and expenses. Unfortunately, I realized too late that my boss had a different agenda which conflicted with stated company goals. I found out near the end that I was powerless to change faulty methods, and was not given the support to make it happen. I was relieved of that position after 2 years. The message was that my primary function was to make him look good, and really solving problems would not necessarily get him bonuses. I was transferred and told that I had good technical skills, but not managerial. They culd not recognize that both could exist in one individual. In contrast, I was told by Dept. members that I was the best boss they had ever had. I modernized and automated processes, treated people fairly (which had been lacking) and listened to their suggestions and tried to enact some. I had zero $$ signing authority, was allowed $1 a day per person for expenses, and was not allowed to publish a memo without my boss first approving it. If you are not a director or other high-level manager, you are basically expected to be a seatwarmer or babysitter in Foxboro. Even directors are powerless in some areas. Management at Foxboro does not want change, even when it may hold promise of turning things around. They are more interested in building empires that may be temporary, but from which they can grab lots of $$$ quickly. I enjoyed 2 more years in another position, and then moved on to greener pastures when a rare opportunity opened up at another company. Not many have been able to do that, often because the jobs just aren't near their homes. Thursday, August 12, 2004 To address the posting by the individual who throws up the "At Will" statement, look and learn. "At will" employment is NOT the catch all that allows management to hide the real reasons for terminating an employee. "At will" applies only for Legal Reasons, and most states have many exceptions. Thursday, August 12, 2004 I'm responding to the email that asserted that the employees have no right to participate or read this weblog while on company computers. First, you are absolutely correct that the company can restrict access to websites. However, it may not be a morale booster to restrict access to this website in particular. The assertion that Invensys, and Foxboro in particular, would promote hard workers from within, is patently false. I worked in FoxMass as an engineer in an "engineering company" from 1994 to 1997 and in another office of the company until 2003. Prior to that, I was a successful project manager, division head and corporate VP for other companies. During my tenure at Foxboro, I never saw a single engineer promoted to management. All management came from outside the company, and once hired, most managers were not promoted from within. Once, one of the corporate bigwigs asked me about a manager I had once worked with who they might hire. I told him that the individual was a great salesperson (this position was engineering management), but had no technical knowledge of our industry. His response was "That's OK. He doesn't need any technical abilities; we'd hire him for [engineering] management." Thursday, August 12, 2004 - Re: Free speech at Foxboro: You are right, the corporation owns and has control over the equipment within its companies. Where I beg to differ is that "if you work hard, you too will have the privilege to join management." Who are you kidding?! Most (not all) management has been brought in from outside the company, and they in turn have brought in their friends who know absolutly nothing about this business. The people in this company doing all of the work are the people in the trenches, while most of management sits in their offices deciding where next to cut heads. Maybe your time would be better spent fixing the problems that exist within your ranks. We all know how top heavy this company has become - let's see cuts at your level. How many VP's does a company need? Thursday, August 12, 2004 - Re: previous weblog, corporate rant : That message is a wonderful example of how the "new order" at the Invensys purchased companies has failed to realize that morale and team spirit are not beaten into the serfs. Teamwork and success are created by having leaders who create respect via their actions. True leaders welcome critiques, anonymous or up-front. It is data that can be analyzed regardless of the method that provides its delivery. They should appreciate criticism because it gives them an opportunity to improve themselves. A "true" engineer realizes that in any reasonably complex control system, accurate feedback is what what provides the data necessary to make the system behave in the desired fashion. An interesting part of the message: "The bottom line is that the corporation owns the place and makes the rules." Well, the current/future stockholders "own" the corporation, not the managers. They deserve to have data that is not filtered through many layers of happy faces. Ultimately the stockholders change the rules. You can continue obeying orders, trying to subjugate Foxboro, or you can be part of a respectable solution. Re: "Work hard and earn the privilege of becoming part of management." Are you serious? The members of management (an amorphous thing that changes at least monthly) must "work hard" at leaving their former companies to join Invensys in leadership roles. Why all the outside managers? Are we lacking talent? Wednesday, August 11, 2004 - Re. Free speech at Foxboro: Being a citizen of the USA is not the same thing as being an employee of Foxboro, or any other corporation. The Bill of Rights does not apply inside a corporation. The corporation owns the computers and can make whatever rules it wants regarding their use. Legally, the computers are only there for use in performing company business. Surfing the web and griping about things on weblogs are not activities that the corporation is obliged to finance. The bottom line is that the corporation owns the place and makes the rules. You are an employee at will. You can quit any time you want, and the corporation can tell you to leave any time they want. If you want to change the rules, you can work hard and earn the privilege of becoming part of management. Wednesday, August 11, 2004 Invensys is a corporation whose stock is publically traded. As such, the stockholders who have put their money into the company have the right to hear what is the truth, whether Rick H. and company like it or not. For you people at Foxboro, working in that pseudo-socialist institution, we are with you. Tuesday, August 10, 2004 Well, I quess it has come to the point in Foxboro when it's a fact of life what the people can and cannot read on their computer screens. We have been informed that "certain web sites" are not welcome on the company computers because of the negativity. The company is going to have a site where you may hear the "truth" about the 1-by-6 plan. Now free speech has lost it's place at Foxboro. After all, with the track record of management, you don't dare tell them they are wrong. They still want the bandaid approach, instead of doing what has to be done. Sorry guys, this time it has to be management's head on the block - not the employees. Tuesday, August 3, 2004 Rick H. is a weak and powerless leader, and Ulf H. is merely a hatchet man brought in to do the hard stuff that Rick does not have the stomach for. The reason that the board approved Ulf's package is that they genuinely believe that by slashing costs and continuing the disposal programme, maximum shareholder value can be achieved. That is probably the case, given the unwillingness to reinvent Invensys. Sunday, August 1, 2004
From: Invensys Anonymous (IA) Rick, in your last "straight talk" message Rick you wondered -
Rick, not everybody thinks everything at Invensys is bad, but don't try to muzzle us by saying that WE are hurting the company. Don't take as "trust" what your direct reports (or their direct reports) tell you. Dig a little deeper and listen. Rick, stop the "straight talk". Talk straight. Here is your chance. See if YOU can answer us here and now. We dare you to respond directly on this weblog, and put YOUR name on it. Friday, July 30, 2004 I worked for Foxboro almost 6-years ago. I left because there were no new system sales in my U.S. region. We lost every bid, about 12, that I know of. I talked to someone who still works in that group – sales are pretty much dead. Field management at the time was abandoned. We had a real empty-suit of a manager. Whenever there was controversy he would heavily discount billable time just to shut the customers up. Users were trained to complain. Service reps who did not give away their time to customers soon learned that the users did not want them onsite. This also led to selfish infighting between reps to secure accounts as utilization (onsite time) was a large factor when it came time for reviews. This manager is now promoted. He is probably destroying a lot more of the business. Thursday, July 29, 2004 - re. previous weblog - "Ultimately those that are left are those without marketable job skills." In the case of Foxboro, there are some exceptions. Foxboro has a defined benefit pension plan. It is advantageous to stay there if you have considerable time with the company since the pension is based on years of service and highest salary. There are some good people staying there for this reason. Admittedly, there are also large numbers of Wallys and pointy haired managers. Tuesday, July 27, 2004 - addendum to previous "beating a dead horse" weblog: The religion and drugs needed to animate the (dead) steeds and riders must be impressive. Ultimately those that are left are those without marketable job skills. In a less philosophical [sic] note. What is really new in the one-by-six scheme? Screw our creditors on accounts payable (streettch!) and screw our customers on accounts receivable (nowwwwww!). How much faith does it really engender when the company spends money buying back interest yielding debt? This is in lieu of investing the same pounds/dollars in hiring new employees, or building/upgrading facilities. Sunday, July 25, 2004 - Regarding past weblogs about beating a dead horse: Friends, we are not beating a deadhorse. We are winners and refuse to accept to ride on the train of losers. This company was founded by people who refuse to lose, and we have not forgotten. Friday, July 23, 2004 Since everyone that works at Invensys is aware of the critical leadership and communications failures, why keep beating a dead horse? It sure hasn't had any impact on executive management decisions! The definition of insanity is doing the same thing over and over and expecting a different result. Maybe it's time to shift focus. How about taking the time to say a few good words about those few managers that ARE really doing a good job? They probably don't get any recognition for the current leadership, and the current leadership will learn what types of leaders are respected by the employees. Thursday, July 22, 2004 - Invensys shareholders meeting: It seems that some of the stockholders share the same negative opinions as Blog contributors regarding the rewards given to Invensys executives. Extracts:
UK Financial Times: Rough ride over pay for Invensys
Tuesday, July 20, 2004 - Re "Ask Rick" orogram: I am writing to confirm that Rick does not respond to "Ask Rick" emails, or at least the one I am aware of. The response received was from the VP in charge of the business unit. Critically, the "Ask Rick" email was sent to ellicit responses that were not forthcoming from this very VP. How ironic. Leadership & communication are the biggest failures of this company. The negative impact this has is obvious, hence the poor morale and the volumes of negative weblogs. Tuesday, July 20, 2004 What we need is a fresh start. We hope that Invensys will be sold to a company that cares. After so many screw-ups, we don't seem to trust anyone anymore! Oh by the way, at least this weblog gives us a forum, an outlet. The "AskRick" program is a sham, not trusted by anyone - all our sincere suggestions are simply trashed. Tuesday, July 20, 2004 Is there ever a positive comment on this weblog? I guess if not, then it should be renamed "complaint log." Here's my two cents: People stay at Foxboro because they like it, whether it's pay, atmoshpere, or whatever. Otherwise I'm sure they would migrate to one of the other, better managed automation companies. I don't think many have.
This weblog is NOT intended to be negative. I receive a LOT of weblogs with negative comments which are edited out. Many totally negative messages are NOT weblogged. I publish only those comments which are sufficiently rational and represent (in my own opinion) the true status of Invensys. I have invited Invensys management (many times, up to the highest levels) to comment. No response. Again, now. I invite Invensys executives and management to provide positive feedback. More that 1,000 people visit this weblog EVERY DAY, so it's worth your time and effort. Please be positive, and give us your own positive views about YOUR company. Sunday, July 18, 2004 - Regarding the weblog about the "Ask Rick" email program : As a former senior manager of an Invensys company, be advised Rick does not answer any of the "Ask Rick" submissions. One of his assistants read each one, then pass off to the manager of the appropriate business unit with a copy to HR. Depending on the business unit manager, the question or issue may be passed to as many as 10 individuals before an answer is crafted and returned to the employee. This was common knowledge among managers and one more reason Rick is not viewed seriously or with any credibility among the business units. Sunday, July 18, 2004 I'm surprised that more of us from Foxboro are not jumping all over Slick Rick after his last comments. Instead of taking this weblog as ammo to better the business by weeding out the bad (managers) and nurturing the solid knowledge-base of the true workers, he chastises those who speak the truth about what they see happening in their company. OK, so has anyone actually used the "ask Rick" email? If you have, have you seen a response, good or bad? It is supposed to be an "anonymous" (but not really) form of contacting your top Manager. It's awfully blind of Rick H. to think we will step out and say, "please fire me," by telling him about what we see happening. It's obvious that he has no clue as to what is happening in his business, and will always side with those he has hired. I think this weblog is helping shareholders understand that, as "Invensys", their stock will always be in trouble - even though there are some great companies under the umbrella. Sunday, July 18, 2004 Rick Haythornthwiate today adressed the company via e-mail/web page. He was obviously referring to this weblog, asking why there is continued "negativity" in public forums when there are many official channels for feedback to the company. Obviuosly your "official channels" don't work Rick. You are not listening. Duh. Sunday, July 18, 2004 - Responding to whining about finding another job, from a fellow complainer: I complain regularly about about what Invensys has done to my part of the company, But at least I realize that it is my fault if I stay and pray for changes. Here is my summary of the points (from a previous weblog posting) that purport to explain why Invensys employees don't find better jobs:
When you get a mortgage and run up bills, it is your decision. It is not a "reason" to not change jobs, unless you have an employability issue. Where is it written that good, talented, hard working people should be treated fairly, humanely and with respect? If you are talented you can find a better job. Somehow, the unhappy Foxboro employees remind me of people who lived on a flood plain; when interviewed post-flood by the media, and asked why they continue to live there, they said, "This is where our home is, and we wouldn't consider moving." Thursday, July 15, 2004 - responding to the weblog that wonders why we stay: I can only speak from all my years at Foxboro. The area we live has lost and is continuing to lose good paying manufacturing jobs. This is happening because most corporations are seeking to make more money for their investors through outsourcing the work overseas, and to other parts of the country were the wages are lower. They all have the single goal to have people work for little or nothing. I stay for a good reason - survival. I pay my mortage, my electricity, gas, and of course my taxes. So when I see some twit ask, "Why don't they just leave?" it makes me angry. The elitists who happen to run the Foxboro Co. now think that everyone is expendable - except those in control. Well, we have seen what they have done and continue to do - run the company into the ground. The employees deserve more than this. They are talented and skilled and, when put to the test, generally come up with the needed answers. We resent being treated as used furniture! We resent being called names like "fungible assets", or "ants"! The people of this company, along with the rest of the Invensys companies, are good, talented, hard working people. They deserve to be treated fairly, humanely and with respect. So to the un-thinking idiots who ask, "Why don't they just leave?" - here is my response: I think YOU should be the ones to leave, because you do not deserve to be among good and honest human beings! Wednesday, July 14, 2004 Responding to the weblog - with all this negativity, why not quit?
Tuesday, July 13, 2004 - from Invensys UK: I have personal experience on the subject of "support" & "producers". "Support" starts with good intension on every ones part. Very quicky it grows, both in number of functions, and sub functions, and number of people in each function. This is mainly due to its closeness to Management. In the 80's Invensys Corporate was started with 10 people in London for a company that Invensys acquired later on. Two years from the starting time, the numbers shot up to about 300, with a cost of about 5% of group sales, adding not "zero" but negative value. "Producers" are ususally kept busy by "customers". Management also finds it easier to receive "what they want to hear" from "support". Soon after, the "support heads" start to behave like the "board of directors" in a typical British Company, busy "making policy". "Information" becomes the mode of control. "Smart Producers" feed them "managed information" as they know it is used by the "support" to control them. "Support" is similar to "civil service". The power level of each "chief support person" has two key variable; first how close he is to the top man, and second how many staff he has. As support adds no value, by definition, power is not related to value. More people means more power. More cost budget means more power. It is so sad to see the high priced MBA's splurging shareholder's money creating this. A friend of mine calls this "cartoon management". Tuesday, July 13, 2004 I work in the BMS (Building Management Services) segment of the business (which includes IBS in Rockford, IL and Satchwell in Slough UK). Yesterday afternoon BMS employees were treated to the news (through a quarterly update memo from John Duerden addressed to all Invensys Climate Controls colleagues)that our business will probably be sold. In his communication Mr. Duerden states this possibility as if it were something we've always known. He also makes the statement that BMS is managed as a separate business segment within Climate Controls. Did anyone in BMS know this? If so, why is the management of Climate and Appliance calling the shots over our operations? My thoughts are that Invensys was presented with an offer they couldn't refuse and now management is backtracking by trying to make us believe they had previously announced that they wanted to divest this business. Let us see how close on the heels of this Duerden memo the announcement of our sale actually falls! Tuesday, July 13, 2004 - In response to previous weblog - why do people stay? There are still people who stay here out of loyalty to the original company(Foxboro). I don't know how long you stay in a job, but at Foxboro people have traditionally stayed until their working years where over. At this point, a lot of the employees have been here for twenty plus years. I am among those people, and at this time the job market is so bad that we probably will stay until they close the doors. This scenario will play out if these people don't stop spending company money to hire these high priced, do nothing, know-nothing executives. Their money would be better spent on higher wages or better benefits for the employees who actually do the work. Monday, July 12, 2004 I'd like to comment on the last few weblogs: As to the "support" exceeding the "producers", this has been a long term trend at Invensys, which was always a little top heavy. Since the purges of 2000-2004, this process has accelerated. Not only are the increased cost goods and services pricing Invensys out of the market against their traditional competitors, but massive layoffs of producers has created the ability of their customers to "self-perform" engineering by hiring the best of the former Invensys employees (I work for one such Invensys hardware customer who used to rely on Invensys services). It has also spawned many System Integrators to perform Invensys services at a fraction of the cost (I've done this as well for 1-1/2 years.) I'd also like to comment on the "why not just quit" blog. The answer is that many have quit. I know of several myself who have decided that being one of the top 10% of the "producers" may keep them employed, but at the cost of doing the work of several missing producers, and with no hope for advancement or increased compensation. These folks have taken up to a year to find something better and have left, further straining those that remain. This also encourages the services customers (and some hardware-only customers) to seek other avenues, since they can no longer rely on Invensys' overburdened producers to perform in an effective, timely manner. Monday, July 12, 2004 There seems to be a lot of unhappy Invensys employees. Who is holding a gun to your head to stay? If it is as bad as the comments on the Weblog, why not quit? Saturday, July 10, 2004 In the Foxboro division where I work, I recently took a quick survey of the balance between the "producers" and the "support staff". A "producer" is anyone who directly produces a product or service we sell. Everyone else, including managers and above, is in "support". "Support" slightly outnumbers "producers". The classic, "pyramid" has become a cube. When you apply a factor for the salaries, the cube becomes an inverted pyramid. The high salaries are mainly in the management levels. The "producers" on the bottom layer are supporting an ever-growing number of "supporters". Continuously increasing the prices of our products and services to pay excess "supporters" makes us vulnerable in the market place to more-efficient competitors. The solution may seem obvious but the power to do anything lies with the managers in the "supporters" camp. Have they got the guts to do it, or are they too comfortable? Self-examination comes after the "denial" phase. The medicine may not taste good, but if we won't swallow it ourselves, the next owners will surely force it down our throats. Saturday, July 10, 2004 - commenting on the last weblog: Don't under estimate Caliel. He is better than most at running a business, is politically sharp, and has a powerful "BS" detector. As soon as the Wonderware protectorate is gone (Rick H.), Caliel will clean house and scale back Archestra to a realistic level. Plans are already afoot for "rightsizing". Friday, July 9, 2004 Well! All those people, all that cheer leading, the 6/1 talk - we don't need it any more! We have ULF! Foxboro is safe at last! We have our superhero! So, why do I feel I have to find a underground bunker and wait for the air raid to end? More of the same I guess. But we have Mike Calliel!(SIGH), who has all the answers and doesn't change a thing except put his allies in key, high-paying positions. A brand new plan of being number one by 2006! He wants to focus on the customers wants and needs, sell them service to the hilt. Oh by the way, cut cost's. We, as employees, just say: Oh, oh! That means CHEAP CITY AGAIN! They want us to work for less money, pay more of our own insurance, and work two three times as hard to increase our productivity. And they still stay away from the root causes of the problems. They have no clue how to grow a business. Can you imagine that they can say with a straight face that they want to focus on the customers wants and needs? All I say is: Yogi Berra is right! DEJA VU, all over again! Friday, July 9, 2004 - About the over paid Executives: At the Invensys Division I work for, we affectionately call them "PB's" - "Profit Burners". We have lost General Managers, Plant Managers, VP's, etc. without them being replaced and the business keeps chugging along without missing a stroke. What does that tell you? Now we're about to (within a couple of months) lose all our manufacturing capabilities and people - moving overseas for the cheaper labor cost, so they say. Quality, delivery times and service will suffer but, what the heck, more nickels for those big bonuses. Thursday, July 8, 2004 Let's all be honest. If anyone offered me the kind of money Ulf was offered just to show up, I'd be hard pressed to think of reasons to turn down that offer. Ulf is just another symptom of THE problem - a bad CEO, and an even worse Board. If an employee representative could hold a seat on the board (as key shareholders with the long term business survival as their main goal, I sure think that would be a swell idea) there would at least be some oversight and reality infused into the decision making. But let's face it, Rick Haythornthwaite is the guy who spent a hell of a lot of money on consultants to tell us that "we don't know what we don't know". So it only stands to reason that his board would view a guy whose message is "keep doing what you're supposed to be doing" as a vast improvement. Ulf would earn his paycheck if he could dump Rick H. and all the consultants, replace the board and all the business group presidents that have not delivered to their plan. Not to mention the many senior executives that collect paychecks for no value added contributions unless you count burning cash on unnecessary programs. Wednesday, July 7, 2004 There comes a time where you have to ask what Invensys can do for you, after all you have done for Invensys. If the answer is, as it has been for years now: a meager, not even inflation-beating, 3% raise - if you are lucky, then time has come to say: "You know Ulf, I think that $3.6 Million, just to step in the door, is outrageous, no matter who you are." Monday, July 5, 2004 - This is a interesting analysis that appears on the Yahoo message board for Invensys stock:
Invensys...all systems gone!
Monday, July 5, 2004 A shareholder revolution is needed! Seems like the Invensys board of directors continually makes the wrong moves. Sunday, July 4, 2004 - on Ulf the Hatchet: Looks like Ulf and Rick H are being paid very well and are defintely looking out for themselves first - forget about shareholders, customers and employees. It really is time to bring in a Union for office workers and professional employees like engineers and customer services people. Who's looking out for employees? Not Ulf the Hatchet. Sunday, July 4, 2004 - on Ulf rhetoric: Ulf asked for as much as previous leaders of this once great company have done in the past. Unfortunately, we can not give much more than we are doing now and in the past. What Ulf failed to traverse in his text book spiel was what Invensys is going to do for us other than pay us each month and hope we turn around this Company. What Ulf should have spent a lot of time on was how he and his Executives were going to Empower us, Train us, give us Vision, a Mission, and finally how he and his Senior Executives are going to lead us to the promise land. We have given and put up with this Senior Management for ever and it is time we, as employees, got something back from the deal. Or no deal! Oh by the way Ulf: How hard are our Customers and Competitors laughing at us? Sunday, July 4, 2004 "ULF!" is the sound that a lot of Invensys employees are going to be making after being punched in the stomach by Invensys's latest hatchet man. It is pathetic that happy-go-lucky Rick H. did not have the "stomach" to make these moves himself. Neither of them true leadership skills. On this July 4th, we need an employee revolution! Saturday, July 3, 2004 Thank you ULF! Here in France, we are happy to know that the recent announced decision to fire 258 employees at Appliance Controls in Thyez, France will serve to finance your 'golden hello'. Our site today have 410 employees, so make the calculation about how many will remain in few months...and for how long? Most of them are women operators, at ages which will make it hard to other jobs easily. We will publish soon how much local management will have at the end of this restructuring... All this is just confirms that Invensys executives are better at destroying, than building and getting positive results from creating what markets expect. Invensys - a dedicated-to-fail-company! Think about us, the ones working daily to finance all this. Thursday, July 1, 2004: JimPinto.com eNews: Invensys COO - big bucks, no sizzle - Jim Pinto commentary.
JimPinto.com eNews - 1 July 2004
Thursday, July 1, 2004 - Re: Ulf : Of course he is not a total donkey - he is getting two million pounds for retreading platitudes. Once again Invensys shareholders are the donkeys. I am an Invensys employee in a low level sales position. I work at the coal face. After six years of relaying to my "superiors" the simple facts re the market place only to be told that I am wrong because the market place does not match the latest management dogma I have given up. I come to work, I take the money and I have no interest in the job whatsoever. I see this attitude commonly among my fellow employees. Time and again we are handed decisions to implement which any twelve year old could see are preposterous. This culture is what is wrong with Invensys. Information flow is from the management down and never the other way. The focus is internal and not on the customer, the market. This has seen the office I work in go from having a respected position with a market share in the 60-70% range to having a single figure share today. This has happened in five or so years. Throughout that period management have promoted people universally regarded among the staff as idiots to higher and higher positions. These moves have often been regarded with open mouthed amazement. In the end I still get paid every month. Take the money......shoot the dog. Thursday, July 1, 2004 Ulf does not seem to have too much vision. This fuels speculation that, despite Rick Haythornthwait's statements, the post-Rick plan would include further sell-offs and divestitures. Question is, when does he (RH) leave? My guess is before the end of 2004. Wednesday, June 30, 2004 Invensys plc announces that it has completed the sale of its Hansen Transmissions business to Allianz Capital Partners GmbH, a private equity company within the Allianz Group, for the previously agreed cash consideration of e132 million. The funds will be used by Invensys to pay down its debt and other legacy liabilities. Wednesday, June 30, 2004 The workers of Foxboro SCADA Rome believe that the crisis of the company is irreversible. The Italian management has abandoned the company (like the TITANIC before it sank), and the Invensys management promises new sales strategies to improve the business: To reduce the sales areas ?!?. Is the SCADA is a business part of Invensys or not? Wednesday, June 30, 2004 - re. Ulf, from a Foxboro employee: Take it easy on poor Ulf. He can't be a total donkey if they are willing to pay him what this article (weblink below) says.
UK Observer - New Invensys boss to get £2m
Tuesday, June 29, 2004 - from a Foxboro employee: Thanks for the great ideas Ulf! Lets see if I got this straight. So what we need to do is keep our customers happy, get more orders, do things on time and to budget, negotiate better procurement deals, be good leaders and make sure our customers pay on time. Gee, wish we'd thought of that before. This inspired, lateral thinking is exactly what Foxboro employees need at this time. Monday, June 28, 2004 - An Invensys observer comments on the memo from Ulf Henriksson: My initial thoughts are that Ulf stepped into a no-win scenario (probably motivated by $$$ and adding to his resume). This first, key opportunity to set a new leadership tone sounds more like reconstituted text-book-speak. Ulf's poor word-smithing will not save Invensys. Leadership, innovation and bold risk-taking might. Invensys employees are rolling their eyes. And Invensys competitors must, again, be pleased this day! |
With a stock trend like this (from Bigcharts, Invensys stock price 1988-2005 - makes a great mountain range picture) why would there be "sour grapes"? I think most people who were laid off (in this case the current Invensys employee poster makes him/her self feel better using the word "fired") were grateful to have been "released" right away, rather than to wonder day in and day out whether they would be around for another ration of abuse. If you think you've got it made, that's great!