![]() |
![]() |
Weblog - Rockwell Automation
| |
|
Read the original article |
Rockwell Automation is a leading supplier of industrial automation products. The current management group under Keith Nosbusch has been trying to turn the company around to get beyond the original PLC-products leadership. Where is Rockwell headed? Will it soon be acquired by ABB, or someone else? The extracts from JimPinto.com eNews trace the news and developments at Rockwell Automation from 2001. |
![]() Automation Unplugged |
Whither Rockwell Automation? updated Sept. 2003 in Jim Pinto's latest book Automation Unplugged. Read the Table of Contents. |
Send a weblog on this topic.
Return to Weblog Index HomePage
| |
Weblog Comments - Rockwell AutomationWeblog comments will include date of submission, most recent first.
Note: Jim Pinto does NOT include any personal comments, unless specifically mentioned. Sunday, August 17, 2008 There is a critical leadership void at the Senior Management levels with too many chiefs unable to execute any creative innovative thought and thus the fractured verticals and poor product and services performance. The massive changes that are being attempted will not be successful with the current lack of innovation and the type of leadership required to truly being great. The gamble of purchasing outside innovation at a premium acting as “strategic catalysts” can’t hold up against the good-ole’-boy succession culturewhich is leading a CEO with tunnel vision continuously to drink his own kool-aid. As a successful, but frustrated, middle manager I recognize that something is needed urgently to get out from underneath the thumbs of these bully, do-it-or-die, white bread, male, “my way or the highway”, senior managers. It’s getting really tough to have these folks continuously adjust compensation downward for their subordinates while they suffer no repercussions for their own inept actions and make more and more. This is especially the case for those in the do-nothing, negatively oriented, management-by-force top sales roles who make disproportionately more money than the rest of us for their ROS. I’d say it’s time for a true assessment and purging of the senior leadership. Thursday, August 7, 2008 I worked for Rockwell for two years and happily left just as the wheels were coming off. The managment knows it must become more than a parts and products company. They know that they must diversify their customers and fix their supply. They understand that their once dominant market share in N America is slowing and sliding, and yet the only thing that their out-of-touch chairman could tell analyts is that they are still looking for cost-cutting measures. Talk to the workers who have been let go, and the workers still there, and ask them how long Rokwell has been and will continue to draw down costs, instead of looking for growth in new markets and emerging geographies. If my memory serves me right, Rockwell is making the same grave mistakes that it is trying to help it's auto customers avoid. Long term, overpaid, incented, benefits-heavy workforce, with old technology, bloated good-old-boy culture, without a global supply-chain and channel strategy. Tuesday, August 5, 2008 With regard to the comment about someone buying up ABB. Who would have the inclination or clout to raise the appropriate funding to buy a $30B per annum company? To suggest that ABB would be a more credible aquisition without suggesting any potential bidders is simply ludicrous. Even with the the share price stagnant, at best I can't see why anyone would make an approach. Wednesday, July 30, 2008 I agree that rumors have been floatimg around that someone will buy Rockwell. And pundits have been making all kinds of statements as to why someone will buy Rockwell. If you look really close, Rockwell has a solid track record of earnings and growing customer base. ABB has done very poorly in the past they have tried to buy companies and integrate, last major one almost got them into bankruptcy. Anyone with good business sense and money will spot right opportunity and can buy ABB, yes... they can suck $5B cash out, and it's more lucrative to buy them than Rockwell. Wednesday, July 30, 2008 Seems that people have been buying stock in ABB or GE. One wonders why, in 10 yrs of rumors, they never they really made a move? I still struggle to understand what would ABB or GE get from buying Rockwell. ABB strenght is on Power and Services, and Rockwell can't bring much of that (or at least not much new to the plate). The low stock ROK has today has much to do with the volatility of the American stock market and the not very acurate growth expectations set at the beginning of the year. It will come back as soon as this effect dilutes. Monday, July 28, 2008 7:04 AM I agree with your thoughts that this news and the confirming statement by the interim CEO on Squakbox confirms that ABB is looking for an automation acquisition. Somehow though, I feel that the recently announced plan by GE to spin-off it's consumer & industrial division will factor into things somehow. Perhaps if nothing else GE may also put the GEFanuc component of the enterprise solutions division on the table. There could also be a race to move on Rockwell. If GE finds a buyer for the appliance division they'll be cash rich (est. $4-6B from that sale), industrially focused and perhaps on the hunt for a major purchase to grow their organic base. Monday, July 28, 2008 JimPinto.com eNews 28 July 08 includes analysis of ABB/Rockwell possibilities:
Two weeks ago, ABB named Joseph Hogan, the head of GE Healthcare, as CEO. During his tenure at GE, Joseph Hogan spearheaded a number of large acquisitions including GE's biggest-ever acquisition. Now expect him to bring out ABB's big guns. Rockwell will roll. Sunday, July 20, 2008 "Rockwell UK have had an excellent year so far and look to be finishing 40% above plan, and all due to the sales management that has been put in place." As a Rockwell sales employee it's concerning to hear those thoughts come from a person who claims to be a sales management individual. I can only hope that such thinking is concentrated to a region (UK) that is known for it's pompous and arrogant leadership throughout history (no offense to the majority of Brit's who are salt of the earth types). It's truly disgusting to think that one of our own has the audacity to suggest that making the number is only a result of the guidance offered by management and not anything to do with the efforts from the front line troops. I can only hope that should senior management read this entry they will take it upon themselves to utilize the keyboard-entry tracking-ools that exist on all Rockwell issued PC's and have the IT dept. root out this person so that they may hung, drawn and quartered! Friday, July 18, 2008 So, let me get this straight. If Rockwell UK sales management are doing such a great job and country is going to finish up at 40% over target then why decide to lay off some sales guys? Certainly from the management posts that I've seen it looks as though there are going to be lay-offs come the end of the FY. Isn't it the sales guys who make the sales? Would laying them off improve sales? I don't mean to be simplistic here but duh....! If anyone should be fired then get rid of the moron who proposed the idea of firing sales guys. I'm so glad I don't work for Rockwell. Not with that level of ineptitude. Thursday, July 17, 2008 The other big contradiction is that Rockwell tells its customers and prospects that it can be the "valued partner" in implementing a long strategic automation and data centric plan in order to raise OEE and compete in todays fast moving and lean economy. - Big words and requires a longer term strategic investment by both parties. Then internally it apperas to be managed by a product sales mentality which implements a short term target driven sales plan and measurement system and creates division within it's own ranks. If there is no co-operation internally then how can there be co-operation externally? Product sales or engineering solution provider? The business models are different - which one please? Wednesday, July 16, 2008 Have been watching this blog for some time and the most recent blog quoting "all due to the sales management" really seems to sum up Rockwell UK sales management for me. If indeed Rockwell UK are indeed 40% over plan, for a sales management team to take all the credit and not even ackowledge that some the front-line sales guys (presumably RUK do like some of their sales guys) have not contributed to these figures in someway is nothing more than arrogant. And finally i am not a Rockwell employee but a sales guy who puts lots and lots of hours and miles on the clock to get my sales figures. Wednesday, July 16, 2008 I'm confused about the contradiction on the last couple of posts. If my maths is right, starting at a base level of 100 for sales for the previous year, then 30% down is 70. If this is 40% about the plan then the plan was for 50! So you aimed to half your sales revenue ( or order entry if that's what you measure)?? Glad I don't work for Rockwell! To be honest, even as an outsider, it's easy to spot the management posts on the blog, and it doesn't endear you to others in the industry and is hardly an good advert for RA as a great employer when management won't take responsibility for their staff when things get tough. I look at the quality of the people who you took from my organisation (no loss in many cases) and I hope that ABB do the honourable thing and put you out of your misery for your customers' sake. Wednesday, July 16, 2008 40% above plan my **** ! The last blogger needs to go to an open mike spot at the local comedy club. I agree Sales management in the UK is not the problem; it's the European and Regional management who lumbered them with an unrealistic plan who are to blame. Regarding the Proscon posts - I'll eat my shorts if that acquisition has achieved its targets. And now it'll be another burden on the UK management team. Give em a break. Wednesday, July 16, 2008 Rockwell UK have had an excellent year so far and look to be finishing 40% above plan, and all due to the sales management that has been put in place. It is a little known fact that less than a year ago the average number of customer visits made by account managers was less than 3 per week. Thanks to the sales process being rigorously enforced by the sales managers, this number is now up to over 7 visits per week. And the previous post was right - the big axe IS coming. Perhaps it's the sales guys that should be fearing it's effects because the sales management have done a great job. Wednesday, July 16, 2008 Rockwell UK is about to finish the year on a real downer. 30% below last year! Yikes. I see a big axe coming. The middle management are starting to sweat! Wednesday, July 16, 2008 The Proscon guys have just started getting their Rockwell business cards. After 18 months Rockwell has finally accepted them as part of the organisation! Tuesday, July 15, 2008 What is the actual status at Proscon after 1.5 year, post February 2, 2007? Once the Proscon backlog is eaten up, ... into a two year earn out period, then once the guys who pushed it forward have taken their glory, the revenues will erode. Friday, July 11, 2008 The time is nigh I'm afraid. Today, Rockwell closed at $41.65 - nearly half the price at this time last year, when ABB didn't pursue any "official" bid, presumably because that the price wasn't right. I'm not an expert by any means, but if ABB or someone else dosen't move in shortly, I'll eat my shorts. What's that noise I hear... oh.. its the clock... tick tock, tick tock, tick tock..... Friday, July 11, 2008 JimPinto.com eNews 11 July 08 includes Rockwell analysis:
If ABB or GE (or a Chinese or Indian company) offers a 60% premium over current stock-price, say $70/share, this would recover the stock to close to the April 2007 peak of $77/share, and most stockholders will likely fold. Friday, July 11, 2008 It's about time that another company takes over Rockwell Automation. This central driven, products company, has no serious future in the industrial automation world of today, where software and services become more and more important. This is coming from an ex-RA employee who left RA (to some posters on this blog I am now a loser) voluntarily (without taking or asking for a getaway premium). The reasons why I left were twofold: 1/ after working so hard (which I really liked and still do) I found that my direct senior managers (VPs)had no knowledge whatsoever on what I was doing, and therefore could not really advise me nor manage me. 2/ The way that the people who actually do work in the field are taken for granted. The best engineers leave RA and start for themselves. The reason why they leave is all about how they are being managed. PS: After I left RA I started my own company, which is now a "Phase 1 company" according to Jim Pinto. I work even harder than at RA, and it shows. Some advice to RA senior management: Implementing 2 new business systems (Peoplesoft, and now SAP) in a period of 6 years is not really solving anything. Tuesday, July 8, 2008 What is going on at EJA, the Rockwell company in the UK, is nothing short of ridiculous. The decision by the bean-counters to move manufacturing to lower-cost countries was made a while ago. It's now being split between two other countries hundreds of miles apart. The suppliers are still in the UK meaning that parts are getting shipped across oceans and lead-times are going out of the window as a result. The engineers and their product know-how are still in the UK for these products, so any on-the-spot reaction to our manufacturing issues has disappeared faster than we manufacturing people at EJA are getting the bullet. The timescale for these moves that has been organised (did I say organised?) is chaotic, leading to all kinds of problems. EJA use to be a great place to work; we made all the Guardmaster safety switches which were designed here by good engineers and built by a loyal workforce (remember loyalty do we?). Now these switches have gone to places who don't have any of our manufacturing know-how, purely to save money. This is completely false, as all the shipping costs will make these products far more expensive. Whoever made this decision needs to seriously recheck the finances. There's no way on this earth that these figures could support this commercial and logistic folly. Who organised this? It could only be an extremely cunning plan by one of our competitors. Monday, July 7, 2008 Well, the jelly-belly duo have finally taken the North American cash cow and milked it dry. With their HQ-centric driven, do-it-or else, micro-management style, along with a hard-headed, no turning back, crippling re-orginazation, there is no faith and no morale in the field. Parallel that by what will be a paralyzing SAP transition, the HQ "emperors" have no clothes and ought to get off the bus to nowhere themselves. Hopefully, I'll get off before it crashes. Monday, July 7, 2008 - Whither Rockwell? Not easy when your local (American) market is in a tailspin. I've seen Rockwell operate in several countries now - everywhere from Switzerland (where they don't seem to have a presence at all) to Australia (where they have a good market share). What are they doing wrong? Problem number one is their software - it is weak and buggy. The whole FactoryTalk Directory, Security, Activation etc. is awful. Seasoned integrators struggle with having to use Vmware sessions of various packages because "they don't play nice". RSView ME, er I mean, FactoryTalk View ME is one particularly awful package. Worse yet is RSView SE or FTV SE. This package (now at version 5) has NEVER WORKED in larger installations. Imagine, perhaps, a large facility with scores of screens and tags and background scripts. It just does not work. I will say I was happy to hear about the deal with Pi as RSSQL/MSSQL never worked either. I've seen FTV SE put up against Wonderware etc. and it just is too buggy. RSBatch etc. - just as bad. Of course if you have ever had to suffer with Siemens SIMATIC PCS-7 then you might forgive Rockwell Automation! What are they doing right? Their PLCs are top notch (I still think the Siemens S7-400 is the best piece of hardware I've ever used, but Step7 hurts my brain with all the weird tricks you have to remember). OK, the whole IEC 61131.3 thing is a big joke, but everyone else has the same problem. I don't care for structured text on ControlLogix but the traditional ladder logic is great. Even the RSLogix5000 software holds up quite well (yes, don't forget to save often as it does seem to crash quite badly once in a while). But there is FactoryTalk Activation. Oh yes, and please can you guys just ALL start putting the popular industrial field buses into the core of your systems - that means NATIVE Foundation Fieldbus and PROFIBUS etc. support for ControlLogix. Just because Siemens like PROFIBUS does not mean Rockwell Automation has to ignore it - make the bold step and support it! Can they beat ABB, Siemens etc.? I'm not sure about that. I don't get a good feel from Rockwell when discussing process automation versus "old fashioned" industrial automation. For example, I've worked on ABB systems - they need improvement too (especially on the software side), but when you sell the DCS, all the instruments and have great support, you've got the automation job - I don't see how Rockwell can beat them right now. Even tougher to beat ABB or Siemens with things like their power generation arms , water treatment people etc. Then there is DeltaV - whoa - just try to figure out the cost of the hardware and software - some kind of secret sauce. Plus Emerson don't play nice (how many integrators have had the local Emerson guys go behind their backs and quote a job directly? Hey, I'm your friend not your enemy!). Finally there is Rockwell Automation's own integrator arm. This is a big beef with me and Emerson, Siemens, Rockwell etc. - I'm told I have the best price possible on a piece of hardware only to find out that my customer gets a better price (even funnier is comparing two customers' supposedly lowest possible pricing - always different) OR you're quoting the customer directly behind my back OR you're giving freebies away to the customer (subsidies aren't going to last, but you can't blame the customer for accepting them - even the OEMs have to make money indefinitely and using the DeltaV model of hiding high prices by obscurity won't work forever). Also, the dog and pony sales shows that promise things the software just does not deliver really don't help anyone. Stop telling lies (that goes for ALL automation companies). So what next for Rockwell Automation? Perhaps the Invensys model of acquisition for themselves - er, proven not to work. Or get bought out ... but by whom? ABB (perhaps, they seem to have enough money, but could they swallow Rockwell - they are weak where Rockwell is strong)? GE (good idea, I think, their PLCs are awful), Siemens (no, the Siemens model of buy then kill would really hurt the Rockwell customer base)? Chinese company (I hope not, but then the software quality can only get better)? Japanese (they don't seem interested, remote?). I'll leave that prognostication to Jim Pinto. Monday, July 7, 2008 I understand the gloom and doom on this board due to the excesses of management and their follies, but to some degree I think this is a plague that besets most American corporations due to our short term thinking and executive greed to get larger bonuses at whatever the cost. I do see Rockwell's market share continuing to slip away, however, I do feel at the core that they produce a multitude of good solid products that have industry wide acceptance, and thus will not fade away to nothing. There has been acquisition talk at Rockwell during my whole 20+ years and the old boys have been running the show since the day I started, though now we seem to be recruiting old boys from other malfunctioning corporations. Nonetheless, as a Rockwell shareholder things are scary, but I would still feel safe in continuing to sell and recommend Rockwell products with a clear conscience. Sunday, July 6, 2008 The gentleman is correct in stating that Rockwell Automation should hire a third party investigator. At other companies similar in size to Rockwell, some Director level purchasing people were getting direct deposits of cash into their or their spouses checking accounts. The only way you find these things out is by doing a true investigation. Thursday, July 3, 2008 The reality is that Rockwell Automation is a dying company. Slowly dying, but dying none the less. It tries to pose as a global company - with leadership that is best suited for the old days when North America was the growth engine of the manufacturing world, and when good ol' boys could play their game. The further you get from Milwaukee, the less Rockwell understands what it's doing. Its management is weak, its product strategy is inept, its growth strategies are a hodge-podge of gobbly-gook that only a marketing weany would try to love, and, fatally, it is more focused on process than production. In the minds of its customer-base, Rockwell Automation is being out-performed by its global competitors across the board, pure and simple. It should be sold off while it still has some value. Its day is done. That said, I expect the current management will likely just ride it down until the stock reaches firesale levels, and then they will cash-out and fade away. Wednesday, July 2, 2008 In response to the guy who talks about the purchasing agent being cleared of any wrong doing by the ombudsman has to be joking. What Rockwell needs to do is hire a third party private investigator to do some real research into the unethical practices of these purchasing directors. Do you think that if someone asks a person, "Hey are you stealing from the company?" they are going to say yes? give me a break! What Rockwell needs is to look deeper; 100million component spend and no one is getting favors? How about a real investigation? Stock price is in the tank, and purchasing directors on the take. Monday, June 30, 2008 Rockwell Automation is an Old Boys Club. They still view the old timers as their assets, even if they have failed to perform in their current roles. A company can never grow if it can't fire leadership for not being responsible to meet goals. Check out most of the sales management in the company and you will see same trend over and over. Old timers are promoted and selected for management roles. June 28, 2008 No, things are not 100% at Rockwell, and yes, they may have been over ambitious in their growth aspirations over the past couple of years. However, one of the things that current Rockwell employee's can be sure of - they work for an ethical Company that does business on the merits of its employees, products and services. Even the "ex Rockwell" bloggers on this site can't deny that. I know where I'd rather be at the moment. Friday, June 27, 2008 I still see sales guys complaining about Rockwell Sales Management in the UK, and how the managers should be fired because they are driving the sales too hard and too fixated with the sales process. Well, guess what? The sales process approach is the model of every successful sales company out there, and it is here to stay. The management team have been tasked with administering this policy and given the positive results we have seen so far there's no point in changing this model. But you still complain. So, here's a suggestion: Either get with the programme or go and find a job that doesn't require hard work. Rockwell is all about making the effort and winning. There's no room for losers. Thursday, June 26, 2008 The simple reason behind the stock price drop is the revised guidance issued on Wed, citing less than expected growth in US and Europe. Behind this however is the harsh reality that all the effort has been in pushing sales of Logix. Some recent UK-based weblog posts have bemoaned poor local management and that may well be the case. But, the Company has been chasing unrealistic sales target for Logix equipment sales Globally, resulting in very unhappy sales folk who know the hill is simply too steep. A few years ago RA embarked upon pushing services. A few individuals leading this charge evangalised the fact that customers wanted more "total solutions", but the RA requirement for high-margin product sales and short-termism drove these people out. The solutions side continues to grow, but at lower margins. Nobody thought to tell wall street this! Now the wheels have come off and no amount of incremental sales people can force the customer base to turn back the clock and buy just hardware. Logix is a great product with true Global appeal. But customers want more and RA needs to re-engage the reality of a services-based approach. Look at what's happening at the competition. Thursday, June 26, 2008 Just wanted to let you know that there was a comment that was posted on this blog that did not check out. Back in February 08, someone accussed a PA of being on the take accepting Super Bowl tickets. I had our internal Ombudsman look into it. Turns out there was not a shred of evidence to back up this false claim. Everyone seems to want to believe the worst in everybody. It's more fun to spread gossip than to seek the truth. Just wanted to clear the record. Wednesday, June 25, 2008 The Rockwell price drop is purely because of the fact that just weeks ago they affirmed guidance and now they drop it. They continue to show they are not in control of their business. They have to rotate their management team and bring in people who can be successful. Otherwise they will die, and the remaining stars (there are many) will jump ship. In reality, the CEO has surrounded himself with people not able to adapt to the new world. In particular, the place is littered with has-been VPs who are holding up real growth. Just look at the facts:
Wednesday, June 25, 2008 Problems? This is called having the same supply chain business model for to long, and not lookin at the true total cost of ownership for materials that go into our products. ie. electronic components...... Wednesday, June 25, 2008 Regarding Rockwell's big drop today - I dont see ABB or Emerson cutting outlook. Rockwell's problems are Rockwell specific. As a shareholder, I think its time they considered a sale. Wednesday, June 25, 2008 Hey, let's not lose site of what's been said about RAUK Sales Management. Self-empowerment is a great thing and the comments are appreciated. However, there are a couple of sales managers in the UK organisation that, unless they are removed, will lead to increased demotivation and unrest. I'm all for empowerment, but when you put the wrong guy in charge of a highly skilled team there is only one solution, and that is to get rid of him straight away rather than wait for the situation to miraculously improve. Wednesday, June 25, 2008 Rockwell shgares down 11% to about 46 - mid-morning June 25, 08. Anyone got any thoughts on today's profit warning? Blaming slowing growth in US and Europe - nothing new there - but anyone got any deeper insight? Tuesday, June 24, 2008 I am an ex-Rockwell employee but do not work for competition. I sincerely believe that - whilst Rockwell UK sales are growing - they should be growing more because the products and portfolio are the best they have ever had. I note in the blogs that some people do not differentiate managing and leadership. Self-empowerment also goes only so far; teams win and have fun! Targets alone create the kind of situation we see in these blogs and is 90's style sales management. The last blog sounds better - sales guys ask your manager to take the lead in giving you Rockwell UK's objectives,(but not just targets!)and in helping you decide what is the best use of your time to meet the objectives. Sunday, June 22, 2008 There does seem to be a lot of bitterness in these blogs as of late. As a current employee of RA-UK, it's hard to say if the posts are coming from current or former employees. I would say a mixture of the two. I have to agree with the last message. There are plenty of opportunities within RA to be successful. It's the type of company that is driven by ambition, and if you are willing to work hard then you will get rewarded. On the subject of management, I think it would be fair to say that the current sales management in the UK is rather inexperienced. The Sales Director is a seasoned professional and we look to him to make the right decisions in picking his team. Granted, he has a team of sales managers trying to do their job. But some of them aren't managing as well as others due to their inexperience, and yes there are some very upset and demotivated sales guys as a result. I don't think the solution to this problem is as simple as firing the sales managers. However, it would be worth gathering the thoughts of some of the guys on the ground in order to make a sensible decision on how the management team is performing. Personally, I'm OK with my situation, but I have spoken to far too many unhappy people recently, and it's not doing anyone any good to let the situation continue this way. My last company had an appraisal process that worked both ways, and an employee would influence his/her managers pay rise. I don't think this is the time to adopt this as a policy in RAUK, but it would provide a valuable insight if an exercise to see how everyone feels was to be taken. Saturday, June 21, 2008 As I read the information in each of the blogs, I find it very curious that self empowerment and self direction is not very clear from people. The lack of self accoutability in most posts is striking. Rockwell Automation is a company that rewards indivuals that practice self motitivation, self direction, and personnal empowerment. The ex-employees of Rockwell Automation that have posted and left Rockwell Automation blame Rockwell Automation Management for their problems. Self analysis might be suggested. As a long term employee of Rockwell Automation, I am reminded daily of the personnel of Rockwell Automation that drive professional and business growth for this company. For those people that support OUR pension, thanks. (And Yes, I will probably never get the pension but I have accepted that! I have the neccessary years but I also accept that I have certain finanical responsibilities that I must cover in my life also.) With such bitterness towards management, current employees and ex-employees should only look to themselves as the issue because of their own shortcomings. Rockwell Automation supports its employees and its products with such support that it makes the competition look weak in comparision. This is why daily it nice to know that when I choose to make a difference I can. Sure you can find areas that all companies are weak and do not support employees or products, but at Rockwell Automation there are still plenty of people that realize their number one job is to support the customer. For the ex-employees of Rockwell Automation, good luck making a difference where you are. If you keep the same self perspective you had while at RA, you will be finding another job soon. For current employees of RA, reach out and expand your footprint. Management will support it. Good luck. Thursday, June 19, 2008 It's always easy to spot the Rockwell management blogs. That last one was a complete lie and fairly typical of sales management in the UK. Come on John, come over here and get rid of these deadweights before it's too late. Wednesday, June 18, 2008 Once again the "non-Rockwell" bloggers are on the Rockwell site spouting off with minimal information... Clearly they have nothing better to do! If they were still part of the Rockwell organisation, they would know the agenda that John McDermott will have whilst he is in the UK. The UK Sales Team do, because they will be meeting him. It would appear that the negative bloggers (obviously ex-Rockwell employees) are missing the team that is now stronger than it has been for a long time! Tuesday, June 17, 2008 The Global VP of Sales is indeed coming over next week. However, the previous blog is wrong in stating that he is coming over to sort out any perceived problems in the UK sales organisation. Although he is making a courtesy visit, I don't think it would be a bad idea if he spends a bit of time in gathering input from the UK sales team members as to the types of problems they are facing. Rather than review the situation with the sales management team, he would be better off asking the sales guys themselves. Part of the problem in large organisations such as Rockwell is that the people further up the chain (ie middle management) feed their opinions upwards and ignore those of the people below them. This leads to the guys and girls on the ground feeling totally left out, and further highlights the incompetence of middle management as they try to cover their mistakes by presenting a rosy picture to senior management. I'm sure the Global VP of Sales knows all of this very well, and perhaps has neglected the problems being faced in the UK. It's time for change. Monday, June 16, 2008 Rockwell's Global VP of sales is coming over to the UK next week to sort out the abysmal situation the UK sales team have got themselves into. Hopefully he will see the faults of what the sales management team have been doing and effect a few changes. Monday, June 9, 2008 Whilst all the mails seem to be from the UK, we shouldn't forget Rockwell is present in over 90 countries and seems to be growing faster than the respective economies. The UK will always feel blighted because that is a mature market and no longer the kings of the empire. If the UK guys were any good, they would position themselves in new growing industries or geographies. If they don't want to do that, get ready for how companies treat mature and cash cow economies and that doesn't matter what company it is. Time to stop whining and face the reality that the UK market will never be the key pivot point for any of the major automation companies. Think East Europe, China, India, Brazi and Rockwell guys reflect how you are doing in those markets. Sunday, June 8, 2008 To the Siemens Guy: It's easy to drop comments into a Weblog when it’s anonymous. But either way, welcome back to the Rockwell Weblog. If it is so green on the "Dark Side", don’t be shy. Why don't you tell your ex-colleagues at Rockwell who you are, and how well you are doing? It's always good to hear about someone being so successful! Although coffee always tastes sweeter when you put an extra sugar in at the beginning, bitterness it seems does linger on! Let’s hope you are getting, and continue to get the promised rewards at Siemens. Sunday, June 8, 2008 To the weblogger who commented on the management team in the late 90s, as someone who was also around at the time it really was THE place to be! So maybe the solution is to get Coulton to give up his job in Asia and find out where Hardy is and persuade them both back. But lets get realistic, people move and so do organisations. What is needed is fresh blood with the same passion and leadership that Rockwell had at that time. And by the sound of it, it's needed fast! Saturday, June 7, 2008 Hey, it's me again. The guy who left Rockwell and went to Siemens. The grass is greener. The coffee tastes sweeter over here. Friday, June 6, 2008 - with reference to the comments of said Rockwell manager: I never knew anyone who left a job to work for a competitor for less money or indeed a lower achievable OTE. Who wants to be in the kitchen when the Chef has lost direction and focus, the food is past its sell-by date and all that's left has gone rotten. Friday, June 6, 2008 Reading through these blogs over the last couple of weeks I have noted the following:-
Thursday, June 5, 2008 I see all of the Rockwell UK Sales Organisation e-mails have started up again. As a former member of the UK sales team I can certainly sympathise with the people involved. It's common practice when a new sales manager is put in place that a few peoples noses are put out of joint. The UK organisation has a little too much pride though, and when they make a bad decision in hiring/promoting a new sales manager who upsets the sales guys, they leave him in place for far too long. They do usually end up rectifying the problem at a later date by getting rid of said manager, but it's too late by then as many of the team have either left, are looking for new jobs, or are too demotivated to care. So, if anyone with some power and sense is reading this, then please avoid the repercussions of taking too long over rectifying a bad hiring/promotion decision. Rockwell has a good sales team and to lose them to the competition would be a big mistake in the present climate. Wednesday, June 4, 2008 Any comments out there regarding Rockwell's acquisition of Incuity software? Monday, June 2, 2008 It beggers belief to think that someone claiming to be from the Management organisation would have written that comment a few days back (Thursday, May 29). This is exactly the sort of bullying behaviour and culture which is the inherant reason behind the problems. Given that his/her view is that everything is so rosy I am sure that the cut backs in expenses, the long term postponement of a major business system implementation, the ridiculous high staff turnover, the arrogance... oh the arrogance .. are completely indicative of the actions of a successfull business. I'd hate to see how they behaved if the company was not performing so fantastically well. I am surprised he could get his head out of the sand long enough to see what he actually wrote. The writing is clear on the wall..Share price dropping , +ve swing in exchange rates between dollar and european currencies, cut backs on spending... Work the rest out yourself. Sunday, June 1, 2008 As a near 20 years of service employee in the UK sales organisation, and an avid reader of this blog, I thought I should add some realism to the current comments on the UK. We all know that the issues in our organisation didn't just start. We've not had a strong local management team since the late 90's and most of that team have now left the company. The current management team are good people and are trying hard, but they're just not the right calibre for what's needed to turn the business around. Sunday, June 1, 2008 Compare two following statements:
Weblog: 29 May 08:
SEC Filings ROK Form 10-Q on 25-Apr-2008: Sunday, June 1, 2008 Its been said many times before, but Management IS the number one issue at RA GLOBALLY!! RA grew predominantly in the US due to its Sales Model; in a good growing market, differentiated sales models and gung ho sales management will work. The world and the markets change however and now the US and European markets are not growing significantly. This means RA needs to grow by taking market share from competition. In the automation products area this needs a different approach and one where RA is failing miserably. "Lets just get to it" "Get after the numbers" "Grab the ball and run with it", all phrases oft used in RA meetings. "Why?" "How?", these questions are what customers ask when being asked to change to RA. They are also the questions used by employees to their managers in RA. If management simply answer with "If you can't stand the heat get out of the kitchen" then they are not answering. Hence RA's customers do not get the intelligent, rational answers they require either. Instead RA chases unrealistic sales targets and underachieves. The results: customers stick with what they have, RA grows at market rates and employees churn. Friday, May 30, 2008 Hey all you Rockwell UK sales people, your manager's attitude sucks big time. Perhaps he's the one they should get rid of, if they have any sense. Just remember, you will outlast any idiot with that attitude. Sheesh! No wonder people are leaving. After reading the post by the manager at Rockwell Automation UK on 29MAY I understand why the employees are very unhappy. The manager's attitude certainly validates their complaints! Thursday, May 29, 2008 The Rockwell UK management team take a very strong stance on some of the defamatory mails that have been surfacing on this web-site. The UK organisation is experiencing unprecedented growth and continues to do so, and there are a number of employees who just can't keep up with the pace. This is why everyone is being looked at so closely. It's time to separate the men from the boys. Rather than complain that they are being hard done by management perhaps these employees should take a close look at themselves and decide how they can work more efficiently. Otherwise, they should seriously consider moving to one of our competitors where the reward potential is substantially lower and the workload a lot less. All this whining needs to stop. Remember, if you can't take the heat........... Friday, May 23, 2008 After reading the latest JimPinto.com eNews, I think a merger of Cooper and Rockwell would be a hoot. They could call it Cooper Rockwell Automation Products. Friday, May 23, 2008 JimPinto.com eNews 23 May 08 includes Rockwell discussion: "At $5B annual revenue, Rockwell Automation made questionable UK acquisitions in an effort to grow, but itself is an acquisition target."
Thursday, May 22, 2008 To really judge the effect of "chemistry" one must look at what Rockwell actually bought (Allen-Bradley). Once a great industry leader; long ago, no doubt. Now look at the facility improvements: the Cafeteria yes, Production, Engineering, and future vision Outsourced and Lean. Good luck convincing the Shareholders. Quality - it's not about you. Thursday, May 22, 2008 I see all the Rockwell mails have started up again after a curiously long absence. The paranoid amongst us have even suggested that Rockwell complained to Jim Pinto and that's why the mails stopped. I don't think so. No one stops Jim Pinto from publishing. Anyway, we are being led to believe that the market is going through a rough period and will remain to do so for perhaps another year. Rockwell UK, rather than treat it's employees with the respect they deserve, has instead resorted to big brother style micro-management techniques, and is setting up a close eye on all members of the sales team. What does this mean? Well. middle management have been tasked with the unpleasant job of administering and running this pointless and painful exercise (hey, don't feel sorry for them though, as some of these guys love to play school teacher and tell off all the naughty children). It won't work though. People always vote with their feet, and Rockwell, instead of taking advantage of the situation, are about to lose a few more staff. The competition is just waiting to snap them up.
Thursday, May 22, 2008 I'm a Rockwell employee in the UK Central District Sales Team, and will be leaving within about a month. My time at Rockwell has been good, but the current direction is totally wrong. The UK lot keep claiming that they are being driven by Brussels; but I know that it's got more to do with ineptitude of the UK management team than with Brussels management. If you are thinking of joining Rockwell, make sure you know what you are getting yourself into. Thursday, May 22, 2008 My time with Rockwell Automation in the UK was only brief; around 2 years or so. I decided to leave my previous company after 15 years following its acquisition by GE, and seeing many things, including customer service, declining rapidly. A former colleague invited me to join him at Rockwell (he has now left), and all I can say is that it only took me maybe 3 or 4 months to see that it was never going to work. My role was a 'specialist' Account Manager within RA and not the core business. Management is obsessed with short-term targets, with no interest in fixing the many long-term problems that I uncovered with customers on a regular basis. I attempted to form a strategy for longer-term commercial success - stressing to Management that there was no quick fix and that we needed to earn customer credibility before they would commit to us. My Manager was clueless with respect to my area of expertise, and showed no interest in my ideas or suggestions. He did, however, threaten me with disciplinary action if I again failed to meet my montly sales targets, despite being aware of the many ongoing problems our existing customers were experiencing. Anyone thinking of joining RA should be aware that I have never known such a large turnover of sales staff, and people on disciplinary action brought about by 'barrow-boy' Managers that I'm sure couldn't hold down a job anywhere else. I had no real problems in securing another position. Indeed I had my pick of two or three different jobs, and have now worked for around 18 months for a blue-chip Japanese corporation in a UK/European role. It couldn't be more different from the fiasco that was RA. Anyone thinking of leaving, just do it - RA needs you far more than you'll ever need them. Wednesday, May 21, 2008 I'm sad to see, after reading the blogs here, that things are declining even more at RA. I left Rockwell after many years selling what I thought were the best products for every customer. But Wonderware welcomed me with open arms... and forget the coffee... they've got cappucino machines! And I am back to selling the best products on the market and taking market share from Rockwell every day! My point is instead of bemoaning the situation, take control of your own fate and make a change. Saturday, May 17, 2008 As a successful, long term Rockwell Automation employee myself, I have seen this company go from a truely great organization (which I was proud to part of) to a dollar-driven, self-serving company. Sadly, they have fogotten that Rockwell is just a name; it's the people behind the name that make the company. The current management, and not just in Milwaukee, are nothing short of a group of self-serving parasites that feed off the legacy of great products (and they still are great products, for now) and the backs of the good workers (many of them long-term employees) who have to suffer the indignities of the organization as it now is, hoping they can hang in long enough to get a pension. Many are feaful of this, as there seems to be a game afoot to get rid of long term employees to save paying them a pension. How dishonourable! And they have the audacity to make everyone take an ethics exam every year. What a sham! You think I'm just blowing smoke? Did they not recently change the retirement number of the US based employees from 75 to 85? This was for the good of the employees, right? Talent Retention, that's how they spun it. Indeed. Could it possibly be that they are just buying time until they ship production to low-cost centers, and save paying some of those longer term employees their well earned pensions? As for new employees, and some that have higher aspirations (or simply can't take the bullshit any more), Rockwell is experiencing a 15% turnover. That's a pretty significant number. Maybe have some respect for your employees, pay them properly, and stop the bullying tactics, and you might entice people to stay. Loyalty is now gone. This shouldn't be surprising; you get what you give. The Management team, if we can even call them that, are either too blind to see the disintegration of a great company, or simply don't care. Upper Management, please get your heads out of the trough long enough to see whats going on before it is too late! But I guess it doesn't matter to you. You'll get fat bonuses, while the real people of the company will be left to pick up the pieces of their broken lives due to your short-sightedness and unabashed greed. Low-cost manufacturing is the new ticket i.e. Asia Manufacturing, Latin American is only a slight improvement). But they haven't realized that this comes at a cost - quality and customer satisfaction. If I have learned nothing else in all these years in business, there is one certainty; take care of your customers and provide them with good products and services at fair prices, and the business will take care of itself. "But the shareholders will run!!" Yes, initially, some shareholders may sell off some of the stock. But they will soon realize that the company is a good, stable investment with moderate to good year-over-year growth, a "blue chip" stock. And they will return. And I should know, I'm an investor too. I guess in closing, I should mention that I am entertaining offers from other companies. This means I am walking away from a pension - truly a sad statement. But I also know that I am a good employee, with good skills, and that I can offer this to other companies and get fair value in return. This has been proven by the offers put forward to me already. Most assuredly, if anyone at RA figures out who I am through my opinions stated in this blog, I will be terminated for pointing out what we on the inside know as the reality at Rockwell. Happy Hunting! Tuesday, May 13, 2008 I have a question for Sr. Management. Why did the new management make changes to only a portion of the operations in Twinsburg? It appears they changed the position of the plant manager in Twinsburg in order to improve production, but no changes were made in the purchasing organization. Is purchasing not part of operations? Why are the same directors in purchasing and sourcing allowed to have free reign and no accountability for their purchasing decisions? Does management not see that if you allow a purchasing or sourcing director to stay in the same position for to long that they can form some “unhealthy” relationships with suppliers?, considering the millions of dollars we spend. How objective can a person be when their suppliers have been wining, dinging, gifting and golfing with them for years and years? How object can you be when your supplier is your next door neighbor, and your children go to the same schools? Are we really getting the best price and support from or electronic components supplier? When can we expect some changes in the purchasing organization? When is purchasing going to respect engineering and ask for our input when choosing suppliers?
My apologies. Due to spam filters and other reasons, the weblogs have been blocked. The problem has now been corrected, and your comments are now coming through. Please continue your weblogs. Jim Pinto Friday, March 7, 2008 Why can/should/will Rockwell be acquired?Rockwell Automation now has revenues of $5B, and is run by CEO Keith Nosbusch, an Engineer. With a strong, but declining N. American market share in PLCs and related products, and inability to generate organic growth in other geographies and markets, Rockwell is stuck.Rockwell MUST pull-off a $1B+ acquisition to sustain growth. But, Keith Nosbusch just doesn't have the vision and management depth to buy anything bigger than about $100M. And the company is busy with band-aid strategies - alliances and partnerships - which won't generate any serious revenue growth. Sooner or later, Rockwell will be vulnerable to takeover. By ABB, or someone similar. Read insights and analysis by Jim Pinto in the latest (7 March 08) issue of JimPinto.com eNews.
Tuesday, February 26, 2008 I'm a former RA-UK employeee who now works for Siemens. I genuinely understand what the guys are going through, having faced it myself over a number of years. What I can say though is that it is a fairly common occurrence that cycles from time to time, and rather than jump straight away it's always worth riding out the wave for a bit. Senior management, although a bit slow on the uptake, does have a tendency to weed out the thistles when required. RA-UK is a good place to work and has a lot of great folk. It's a shame that it gets ruined by a select few. On the other hand, life at Siemens are great, and if any RA-UK guys want to come over we'll welcome you with open arms! The coffee here tastes great. Monday, February 25, 2008 Now that ABB CEO Fred Kindle has gone and the Board looks like it might take a more aggressive approach to acquisitions, who are the likely automation targets for ABB? Apparently they are most interested in acquiring product rich companies to stuff through their existing sales channels, who would be the best fit there?
Monday, February 25, 2008 It's a while since I checked out this site. I was surprised to see that things at RA UK are still in turmoil, or at least that's the message that comes across form recent posts. I guess I shouldn't be surprised though, Account Managers are no doubt still being micromanaged and left fighting for their bonus. Before writing this post I checked out Siemens, ABB, Emerson and Schneider blogs. Not a whisper from those guys regarding problems with management, sales guys, strategy etc. Maybe it really is time for RA Account Managers to "Wake up and smell the coffee" Sunday, February 24, 2008 Hmmmm... I thought this weblog had gone quiet from the UK after they changed the Sales Management. Is this a case of "Meet the new boss, same as the old boss" ? Saturday, February 23, 2008 With reference to the previous post, I'm always surprised that in large organisations such as Rockwell or Siemens certain individuals can ruin it for everyone else, and this isn't necessarily at a high level. When will Rockwell UK wake up and smell the coffee. (I'm sure this phrase is well known) The automation market is buoyant, and hiring practices show that the big 4 automation companies are keen to hire employees away from one another. And when people get upset they vote with their feet. I don't personally condone this type of practice but surely Rockwell UK should realise that unless they change the Sales Organisation structure soon it will change anyway. There is already very strong news circulating that unless there is a major change in the sales management structure in RAUK Central District by March 31st that no less than 3 of the sales team will resign! C'mon Rockwell UK. WAKE UP AND SMELL THE COFFEE!!!!! Saturday, February 16, 2008 The Rockwell Automation UK sales team has become so disjointed over the last year that they are in danger of losing business rather than gaining it. There are vertical specialists, product specialists, account managers, solution sales specialists, and customer support specialists. On paper this may look great and show that RA-UK have a streamlined sales process. Strip back the layers and the reality is a jumbled mess: account managers, who should be sole account owners, are fighting for commission against other teams; customers are being exposed to disjointed activities from the various sales teams, who don't seem to communicate amongst themselves; additional sales managers have been hired in order to streamline the sales management process, but are instead turning the sales game into a hugely time-consuming paperwork exercise. At some point, all of this will come to a head and a decision will be forced rather than reached rationally. The sales team can, and should be allowed to look after themselves, with minimal supervision from so-called team leaders. Siemens have been successfully hiring away from RA-UK in recent times, and this is likely to increase dramatically over the next 12-18 months unless a change is put into place SOON! Friday, February 22, 2008 I hear that the Director of Global purchasing in Twinsburg had two Super bowl tickets, weekend of golf, and hotel stay paid for by a certain distributor Arrow? I wonder how much a Super bowl weekend would cost in Phoenix? $5,000 or $10,000?? Now it makes sense why Rockwell Automation is so adamant about dealing with a certain distributor. Management are you listening? Are there really any ETHICS policies at Rockwell?? I fear for my job and these purchasing managers enjoy the finer things in life? Wonder if the SEC would like to know that our purchasing guys are on the take? Friday, February 8, 2008 I would like to comment on the purchasing practices at Rockwell. The gentleman that commented below, about measuring OEM supplies on delivery performance, when they are purchasing electronic parts through Arrow, seems go have a good grasp on the problem. How can you fix, excess inventory, down time, and part shortages, by doing more of the same thing?? Arrow has been the preferred distributor at Rockwell for 8+ years, and you mean to tell me that in 8 years no one has looked at other supply chain options?? What if Rockwell did not change its design practices or change their product offering in 8+ years how competitive would our products be?? The in plant store is not the solution to part shortages and down time. Just ask the Genie Garage door company that just laid off 800 employees. When is this new management going to start asking the right questions of the purchasing management in Twinsburg and Mayfield Heights?? When is management going to ask what else is out there besides Arrow? When is management going to ask who is truly following our ethics policies??? Change is good, and more of the same Arrow strategy is not the answer. Black belts, Lean, etc., means nothing if you don’t fix the logistics portion, and look for options other than the Arrow model…… Who implemented the Arrow model at Rockwell? Who decided on the in Plant store? Maybe they should be asked to explain why they have not looked at other options. Maybe its time to change that person’s role at Rockwell, in order to make real change?
Thursday, February 7, 2008 I am an entry level employee of Rockwell Automation responsing to the Tuesday, November 20, 2007 comments on salaries for the top people. It is embarassing that our Senior V.P. salaries are less than a million. This talent needs to be properly compensated or they will jump ship. If our leadship is lost the rest of us would be adrift and our great company maybe dashed upon the rocks of a lee shore. We could all do a bit more rowing and a lot less crying so the captains could focus on steering this mighty vessel. Put your backs into it, spare not in the face of our foes, for long and peaceful is our slumber in death, knowing that we pulled for our company. Give them a raise! Tuesday, January 22, 2008 Wow...I've been gone from Rockwell for a year and heard a rumor about ABB buying Rockwell and thought I'd check out Jim Pinto's blogs because they're always so informative. I didn't realize all the problems beyond where I came from within the Rockwell organization. As a 20+ year employee with continued professional growth within a "boys club" environment, I finally decided to leave after seeing all the focus on internal metrics versus solving customer problems. It was very hard for me to leave because I enjoyed the opportunities I had within Rockwell over the 20 year period and have always thought of them as a great company with great products, but as many have stated here...poor management and leadership making bad decisions. It's a number game that makes them look better than they are, performance wise. I saw it first hand from a field sales position when it came to paying me. I enjoyed a career in both the corporate environment and sales. I left while in a sales position. What I saw during the transition to internal focus was restructuring my account package everytime I grew 20-30% year over year, which the change always resulted in paying me less because I would end up with a lesser package and have to start from (almost) scratch at new accounts or territory base. I got frustrated and left on my own accord. There is so much talent at Rockwell and so much opportunity for this talent outside of Rockwell if Rockwell's not willing to value their employees anymore. The hard part is the strength of the company because of the installed base everywhere and people sticking to what they're used to. The demographic is changing and this is an opportunity for aggressive competition. Regarding their new sales structure...sounds like there is some confusion within Rockwell sales and with distributors and at customers. There are multiple sales folks calling on the same accounts, which makes it less efficient when trying to solve a customer problem, which may cross over the "complete solution" line and causing multiple resources to get involved, and causing confusion for distributors and customers - who do they call. Oh, and all RA Sales guys have to sell services so they internally fight over who gets the order if they're both in at an account. It sounds like the pay structure is punishment too. Do more, make less. This sales structure has not been implemented in every district YET, but I'm sure glad I left when I did. Anyone know more about the ABB rumors? on Friday, January 18, 2008 Reading my latest engineering magazines.... If I read one more time about the skills gap and lack of engineers my head will explode. Instead of providing a better career for engineers, companies throw their hands up and say "Skills shortage, the H-1B system is broken" or worse "Send manufacturing to China where the engineers are". Granted in the present industry most work will be done by contractors like Rockwell Automation since few plants have engineering staff anymore, but you'd think Rockwell and other players would work harder to respect and take care of engineers rather than status quo - business leaders take all the income, cost cutting as much as possible, and golden parachutes for the leaders when acquisition companies come knocking. The answer to the skills gap - make engineering a better profession! Do more for the remaining engineers and less lining the pockets of our mind numbing huge overhead of business executives. You want to attract talented young folks, make engineering the respected industry it was in the 1950s. Tuesday, January 8, 2008 Heard on good authority that an official approach is imminent from ABB. tick....tock, tick...tock. Tuesday, January 1, 2008 Just finished reading some of the blogs on this site. I too was a former employee at EJA in Wigan, UK. It's sad to see what the Americans have done to this industry - not only in the UK but world wide. Not suprised really - look at the idot who runs the country, he can't even string a sentence together. Does the management (I use that term lightly) actually know what they are doing to people? It is soul destroying; lots of roumours and hearsay. The site manager can't even look you in the eye when he speaks to you. Thats when he's there.... I wonder what golden handshake he will come out with at the end of all this? Then he can move on to his next victims... Who is it going to be next? Beware... At the end of the day we all are only clock numbers. We are not supposed to have feelings, opinions, thoughts etc. Good luck to you - all that are left at EJA. It's not going to get any better. But there are better things out there. Just watch out that they are not owned by Rockwell Automation- or any Americans, come to think of it.........
Read the Rockwell weblog archives - see link below |
![]() Pinto's Points How to win in the Automation Business Pinto Picks Business & Investing Watch Video Previews, browse books, DVDs, widgets Go shopping - books, electronics, CD/DVD Selected advertising coming here. Contact Jim Pinto for rates. |
Read the Rockwell archive (Dec 31, 2007 and previous)
Return to Weblog Index HomePage
Return to JimPinto.com HomePage
If you have ideas or suggestions to improve this site, contact: webmaster@jimpinto.com