Correction: "p.62 of the English (Annual Report) seems to suggest that they currently don't have enough money to pay more than about half of the projected pension annuity" should read "p.60": p.60 shows "Projected (retirement) benefit obligation" vs. "Fair value of (retirement) plan assets"

Monday, August 30, 2010

A belated abbreviated English version of the Japanese Annual Report has just been published (August 12) at http://www.yokogawa.com/pr/IR/pdf/2010/2010annual-en.pdf . An English summary of the Japanese Annual Report http://www.yokogawa.co.jp/cp/ir/pdf/annual/2010annual.pdf was posted here in this blog back on July 25 and July 26. The comments that were made then (back in the July blog post) apply to the new English version.

The figure on p.23 of English and Japanese Annual Reports shows that 44% of sales are to Japan, 23% to Asia, 10% to Europe, 8% to the Middle East, and only 6.6% to N. America. But the tables at the bottom of the page show sales in all of the markets shrunk between 2006 or 2007 and 2009 -- except for sales to the Middle East, which jumped (from almost nothing) from 2008.

The Annual Report says that just over 80% of sales come from the Control Business. "Measuring Instrument and other" businesses represent under 20% of sales. The Annual Report also says that more than 60% of Control Business sales come from overseas (and that was true last year too). Some of the "Japan sales" are probably for plants that other companies will export. The figure on p.07 is labeled "Moving towards Break-even point" in the Japanese (just "Break-even point" in the English). (In the one year period through to the beginning of August this year, Omron share price rose 40% and Yokogawa dropped 30%. Omron share price has recently dropped; as of the end of August, Omron share price is up about 17% and Yokogawa down by about 34% compared to one year previously [Google finance makes it easy to do comparisons]).

At the bottom of p.44 of the Japanese Annual Report you can see a table of profit/loss by country. Japan shows a loss of 9,952 Million Yen, Asia a profit of 7,224 MY, Europe a profit of 1,603 MY, North America a loss of 350 MY, and the Middle East a profit of 2,766 MY. So Tokyo's sales figure is 156,061 MY and loss is 9,952 MY, compared with North America's sales of 20,868 MY and loss of 350 MY.

It's pretty obvious where the major problems are - Japan, not America. It seems that the Japanese Annual report has recently been truncated to 48 pages, and this table showing profit/loss by country seems to have been removed from the latest version of the Japanese -- but it appears at p.65 in the English Annual Report. Grab a copy of the English before they truncate that too!

If you look at the "presentation material" for FY2005 (ending in Mar. 2006) at http://www.yokogawa.com/pr/pdf/pr-ir-2005-supplements-en-00.pdf then you can see on p.7 that the company brags that it pocketed 6.2 billion yen by switching regular employees from a lump-sum retirement money scheme to a pension-type retirement scheme. "Gain on transfer of retirement benefit plan" on p.42 of the latest English Annual Report and on p.43 of the Japanese may well refer to long-term contract employees who were not switched from lump-sum to pension in 2005. p.62 of the English seems to suggest that they currently don't have enough money to pay more than about half of the projected pension annuity (this information no longer appears in the current Japanese version). But don't worry about the directors, you can be sure that this is unlikely to affect them.

As you might expect, Customer Satisfaction and Quality Control comes almost last, on p.33. There's even a picture of just one row of the cute young ladies in the "Global Response Center" (mentioned in a July 11 blog post) at the bottom of the page. The caption on the photo says "24 hour per day, 365 day per year customer support". These "vigilant plants" look like daisies to me ;-) but watch out for leap years!

Monday, August 2, 2010 - Subject – Continuing financial worries:

The situation is more serious than most appreciate. There is a lot of hand wringing going on at HQ as the announcement of the FY2010 1st quarter financial are due shortly, tell the truth or not, that is their question.

The global project orders from the originally budget are only 30% to plan with no reason to believe that this can only get worse before year end, margin reductions mean that sales and GM will be down significantly along with an ever shrinking backlog. The so called toto orders have just died which means basically that the cupboard is bear.

As pointed out earlier, YCA may be struggling, but proportionately will be hit unfairly than anyone else in the next round of cuts. Seems strange the blogger from Yamatake keeps throwing his 2 cents in, what does he know?

Thursday, July 29, 2010 - Re earlier blog - Tuesday, July 27, 2010 - Subject – Yokogawa/BP/Deepwater Horizon/Business Ethics:

I left earlier this year under my own steam, you could see what was happening all over global Yokogawa, management don’t seem to realise that global account/industry/marketing teams develop a professional respect and do actually talk to each other and understand what is around the corner. The smarter ones amongst us that weren’t victims of the usual pointless/personal culls had the sense to lie low and wait for our moment of release.

The company now is probably smaller and for sure in far worse shape than it was 10 years ago. No point going over old ground about who’s to blame; it all been chewed over before on this blog.

Just before I left, I said it was like the final part of the wizard of Oz and it sure seems like all the mis-demeanours of the past are coming back to haunt them. You can’t keep dumping/bribing/loss leading for ever, if the business has no core, it will rot eventually.

As an ex colleague from England UK told me this week, hope it wasn’t the same team on the Scottish BP Bruce project that engineered on the Deepwater Horizon, the cover up will be more difficult this time. Shame, I worked with some really nice people there.

Thursday, July 29, 2010

Beware the "ides of September" and make sure your resumes are updated. August is almost here and another montly meeting will be on the agenda. More "smoke and mirrors", so do not let that lull you in to a false security. Nothing is secure. Exxon will take BP over, just a matter of getting all the paperwork together. Chevron and Shell are running scared in an attempt to make sure they have all their "rig" documentation in order. In November, there will be major changes in Washington, DC. And by the way, Hillary has me alittle jittery too. I am sure all these lame excuses will be outlined in that monthly "town-hall" get together. And I agree to a statement made in an earlier blog.....don't hang too many pictures in your cube. Just less to pack up when escorted out the back door.

Wednesday, July 28, 2010

Plan on another round of layoffs in September. WTF? SC has YHQ snowed on his capabilities of management. What actually is his purpose besides one who screwer and back stabber. CE is useless...

Wednesday, July 28, 2010 - Re Blogs on Yokogawa's continuing financial problems:

I assume the blogger is a colleague not a competitor but none the less, this and other content gives rise to serious concerns about the stability of our organisation.

The borrowing just to stay afloat, reductions in force everywhere apart from Japan and the loss of almost all the projected oil and gas business this and for a few years to come scares the hell out of many.

It is clear to all now that the upper echelons are just feathering their own nests, if any employee failed to deliver as spectacularly as they have done they would have been fired a long time ago. This anti hostile takeover scam just shows what little confidence they have in their own abilities to turn this around.

If we do get tied in with the Deepwater Horizon disaster, this will surely be the end as predicted by the blogger of Tuesday, June 29, 2010, just hope the benefits and pensions are safe.

Tuesday, July 27, 2010 - Subject – Yokogawa/BP/Deepwater Horizon/Business Ethics:

I’m not surprised that we have a Defcon 1 situation developing in san city (Tokyo HQ for those that don’t work here). The situation with BP is every overseas suppliers/contractors nightmare, the principle of the last product standing takes the can. BP are now forbidden fruit especially as they have no money to spend with us. How things change, I clearly remember a debrief of the BP assessment of Centum and prosafe at YHQ from the fall of 2005, where even then we were told that BP were talking about pulling strings and regime cooperation for multiple $Billion deals in Libya, that’s why we were so keen to sign them up and the Scots guy from Europe was promoting BP as a bigger and better prospect than Shell or Chevron.

Reading earlier blogs, if BP were operating with such callous regard for safety (see blogs on hiring illegals in Europe/supplying Libya-Iran/reported bribes/hiring ex BP senior decision makers after global contract awarded etc) it’s no wonder they have the problems they have, the problem now is that everyone connected with this will be tainted which is not fair.

I’m really angry about what happened in the Gulf but if it’s true the issues with Yokogawa in England Europe were reported to BP and their management did nothing but cover it up, BP clearly have internal problems in this area and deserve all they get.

I truly hope and pray that we are cleaner than clean in this, but somehow you just know it won’t be the case.

Monday, July 26, 2010 - To the blogger from July 19 2010:

I'd bet dollars to donuts that you're one of the "Power Elite" often referred to, if not closely associated with them and their myopic views. How can you possibly say ..."less than 2 years ago everyone was singing the praises of the American "Leadership Team"..."?

I went back and looked at the blog from that time period, starting with much earlier posts and up to the current ones. There is NOTHING that would indicate that anyone was enthralled with DJ's appointment as CEO 2 years ago, when it occurred 5 years ago, or anytime in between. Indeed, the first post that I found directly addressing the competency, or lack thereof, of the current regime, is just over a year ago (please see Wednesday, June 24, 2009 - "Yokogawa continues its downward spiral").

If you were in touch with the employees you would know that there has never been confidence in this management team. Do not mistake desperation and hope that they would somehow blunder into the right course of action as a vote of confidence. The most recent layoffs have once again shown that the Power Elite is content to follow the same course of action in getting rid of long term employees who have years of product and market knowledge rather than effecting any real change in management style, while at the same time protecting their own interests over that of the company and their subordinates.

Paring down the Systems group may be a step in the right direction. Unfortunately you can only carry a "loss Leader", as it's been called in earlier posts, when you're fat enough in other areas to cover the loss. When the situation is a bad as it now is and margins are a thin as they are, those changes are long overdue. Since the current CEO's background and allegiances are from that group it's hard for him to comprehend that anything to do with the Systems group might be part of the problem. But then again, myopia always has been his strong suit.

As to the past CFO, I'm glad that you are amused by people who, in your words, "spend a lot of time talking about things they don't seem to have any facts about....." I know the past CFO. He has always had a very good relationship with the Japanese. He is well liked and respected by them, and rightly so. He left YCA the first time on his own volition. He came back, again, his decision. He left the last time, once again his decision. The decision may have been leave or move to Houston, but the decision was his and he made it. In many people's minds, it was certainly the correct one.

And one last comment while I have the proverbial soapbox: To the blogger who posted the baseball analogy, Well done, Sir! Excellent! Entertaining, to the point and extremely creative! It’s a pity that it's so accurate in it's content. Maybe the Management Marvels’ turns at bat can best be summed up as: "Schwing and a miss!"

Monday, July 26, 2010

I overlooked it earlier, but at the bottom of p.44 of the Japanese Annual Report you can see a table of profit/loss by country. Japan shows a loss of 9,952 Million Yen, Asia a profit of 7,224 MY, Europe a profit of 1,603 MY, North America a loss of 350 MY, and the Middle East a profit of 2,766 MY.

So Tokyo's sales figure is 156,061 MY and loss is 9,952 MY, compared with North America's sales of 20,868 MY and loss of 350 MY. Remember that Tokyo can extract huge amounts of money (the maximum legally permissible in each country) as Intellectual Property licensing fees. Even so, Tokyo's loss divided by sales is a much higher proportion than North America's -- it's surely obvious where the problem is. And the solution is to lay off skilled, long-serving foreigners?

Sunday, July 25, 2010

The Investor Relations page June 28 announcement of "Vote Results of 2010 Annual General Meeting of Shareholders" says that 6.3% of Shareholders voted against the current directors. If this number of NO votes can be increased to about 33% then it seems that the current directors can be turfed out. I believe that in the past they permitted individual NO votes against individual directors, but this year it was a single YES or NO vote against all the directors.

The special two-year-validity "Poison-Pill" anti-takeover measures also have to be renewed (put to a vote again) at next year's shareholder meeting. If there were to be a takeover then the directors would be turfed out, so it's also possible that the anti-takeover measures could be voted down.

Sunday, July 25, 2010

If you look at the 2010 (FY2009) presentation materials PDF on the IR library page: http://www.yokogawa.com/pr/IR/pr-ir-library-en.htm

1. You can see from 2010 (FY2009) Operating Income by Segment (p.11, labeled p.10) that huge losses on the Measuring Instruments business almost wipe out all the Control business profits, and
2. You can see from Trend of Cash Flow (p.14, labeled p.13) that in 2007 they had a 20.8-51.0-30.2 or 61.4 billion yen net negative cash flow. Having to walk into their bank and ask for a loan of maybe 50 or 60 billion yen (half a billion dollars) cash to pay salaries & bills completely blew their credibility, which is why they needed to call on political cronies to get the 25 billion yen government-backed "hybrid loan" that they announced in IR News on the web site on Feb. 23. Without a government guarantee that the money would be repaid, banks would be reluctant to loan money to such an undisciplined and clueless company, and (as they say in their Feb. 23 news item) they need 20 billion yen of this 25 billion loan to repay a loan that's due this year. You can see that even one year earlier they looked about to dive into negative cash flow, but maybe they didn't understand what negative cash flow meant at that time :-(

The new Japanese Annual Report says that just over 80% of sales come from the Control Business. The Measuring Instruments and related businesses represent under 20% of sales. The Annual Report also says that more than 60% of Control Business sales come from overseas (and that was true last year too). It's not clear what proportion of "Japanese domestic sales" are for control systems that are part of plants that are exported by "Japanese domestic" customers. The Measuring Instruments business, on the other hand, has an export-sales ratio of just less than 50%.

The table on p.23 of the Japanese Annual Report shows that 44% of sales are to Japan, 23% to Asia, 10% to Europe, 8% to the Middle East, and only 6.6% to N. America. But the tables at the bottom of the page show sales in all of the markets shrunk between 2006 or 2007 and 2009 -- except for sales to the Middle East, which jumped (from almost nothing) from 2007.

The funniest part of the Annual Report is surely the CSR page (p.27) which trumpets International Human Rights, and the rights of Labor Unions and Working Mothers. This is something that they will surely never translate into English or Chinese ;-) Foreigners (like YCA and YEF people) are the easiest to screw or lay off in bad times. At the start of the Kuwait war, most Japanese companies in Bahrain shuttered shop and turfed their foreign employees on the street. You can't trust foreigners -- even long-time employees -- to run the business, and you can't expect Japanese to work in dangerous conditions, can you?

As you might expect, Customer Satisfaction and Quality Control comes almost last, on p.33. There's even a picture of just one row of the cute young ladies in the "Global Response Center" (mentioned in an earlier post) at the bottom of the page. The caption on the photo says "24-hours-per-day, 365-days-per-year customer support". Watch out for leap years!

Sunday, July 25, 2010

The problem for us is a serious one because BP was supposed to account for at least 60-70% of global project work over the next 2-3 years and now all these projects are cancelled. The same is true for Shell and Chevron but for different reasons; Chevron aren't placing business because of the relationship issues in Europe and the US because of the failing projects. If you are not worried about your futures you should be. Japan only takes care of and trusts Japanese persons; Europe and US have layoff policy - Japan none! Follow me and leave while you can.

Saturday, July 24, 2010

Headline from Automation Insider – July 2010 – “Yokogawa snubs WirelessHART users at the launch of the “World’s first” ISA100.11a wireless transmitters”

More shooting of ourselves in our feet (or market share) “ISA100 is the standard that has been developed by the user community, and expresses the wishes of the users, rather than the approach imposed by vendors (i.e. our competitors, specifically EMERSON), as exemplified by WirelessHART,” said our appropriately named Joost van Loon, Yokogawa Europe director of industrial automation.

Now the automation community outside of Yokogawa can witness the stupidity heaped upon the organisation and colleagues by these inexperienced ‘business warriors’ These comments were made public at Yokogawa User Conference, held in The Netherlands on 24-25th June. Customers I spoke to were aghast that Yokogawa were going alone (perhaps with Honeywell, but they are not a force these days) just after wireless Hart has been announced as EC Approved Standard (IEC 62591Ed. 1.0). One remarked this is like 20 years ago when Yokogawa refused Hart for the Brain protocols. We are going backwards, against the needs of our customers and the people at the top don’t understand enough about the technology or the market to see any differently. This is Loonacy!

Friday, July 23, 2010

Why do companies fail? Their CEOs offer every excuse in the book: a bad economy, market turbulence, a weak Dollar, hundred-year floods, perfect storms, competitive subterfuge -- forces, that is, very much outside their control. But a close study of corporate failure suggests that, acts of God aside, most companies founder for one simple reason: managerial error, do you believe Yokogawa Management in the USA and it's CEO made any mistakes or not... (YMAC, Canada, Mexico, 3 Sales Vice Presidents in 4 years, Yokogawa Southwest dismantling and many others, do not forget the massive hiring).

Friday, July 23, 2010

The only thing that is disturbing at Yokogawa in USA is the lack of vision and planning that caused 3 layoffs in one year. Should everything be blamed on the economy?

Friday, July 23, 2010

The Annual Report has just appeared on the Japanese web site -- http://www.yokogawa.co.jp/cp/ir/pdf/annual/2010annual.pdf -- but nothing on the English web site. Maybe I can provide an English summary later...

Friday, July 23, 2010 - Subject: Yokogawa and BP:

The blogger from 6/29 seems to have caused a panic attack within the upper ranks in san city. The deepwater horizon rig was built by Hyundai in Korea and guess who supplied the DCS and ESD. Hyundai has been a major client for years.

If major modifications have been made after commissioning but records have not been updated, then big san would be panicking, especially if the mods were performed by a subsidiary in the land of unlimited liability. It seems like some Enron style shredding of data is on the cards.

The comments from the blog of 7/19 also ring true about global support. If BP is such an important global account, why are service activities not globally transparent within Yokogawa? What started out as a jokey comment about the control system on deepwater made them realise what has happened and who supplied it!

Monday, July 19, 2010

I am a current employee who previously did not care nor pay attention to this weblog as I actually have a job to do and am grateful for it. But after hearing rumors for the past few months, I thought I would give it a look. After reading much of the dialog I would like to offer my opinion.

What I find amusing is people spend a lot of time talking about things they don't seem to have any facts about, merely rumor and speculation. As they say close but no cigar! So I would like to offer a few facts that "I know" are true.

1. The CFO did not leave the company by his choice.
2. The recruiting of the new VP of HR, an apparent hot topic with many bloggers, was originally initiated over 2 years ago by the CEO and was actually only approved this year by YHQ management. We now have a very experienced and professional VP of HR and this happened within 60 days. Does anyone really think YCA management can just add a Sr. Level manager without the approval of YHQ? Japan still pulls most of the strings.
3. The economy has a lot more to do with YCA's current status than incompetent management. Seems funny if not almost silly that less than 2 years ago everyone was singing the praises of the American "Leadership Team", now a few disgruntled people are throwing them all under the bus and asking for the Japanese to come back to run the company. Be careful what you wish for - I was with YCA when we were an 100% extension of YHQ - there were still layoffs, the direction was not clear, and the all employee meetings were very long and painful, I for one couldn't understand most of what was being said. Don't think I was alone.

Sunday, July 18, 2010

I started to work at Yokogawa in June 1984. I had great pride in YCA,I started in production and moved in to YTR in my 17th year. I no longer work at YCA/YTR.

When I started we never had lay-offs. If we didn't have orders we helped in other departments, washed compahy-cars and cleaned the parking lot. Early USA management and managers from Japan did not belive in lay-offs.

I resigned from YCA/YTR after 18 1/2 years, I had made it thru 7 lay-offs. I saw friends and long-term employees laid-off and employees that were friends with management promoted. To save my own peace of mind I left it was a hard decision, but it was time. I had nothing to gain by leaving, I was able to sleep at night without a lay-off hanging over my head.

Friday, July 16, 2010

You don't need Finkelstein, Collins or anyone else to understand how bad it is. If the customers aren't buying, and the employees don't have confidence in the leadership, it's time for a change.

Friday, July 16, 2010

And so the layoff of the summer of 10 begins. This is almost 13 months after the 09 summer and 6 months after the last big one. This one affected mostly systems, still no money hogging upper management and elite affected. waiting until there are no employees left. Morale is gone, just waiting for the axe.

Thursday, July 15, 2010

The "Playing with Pigs" advice in Jim Pinto's "Urge to Merge : 2000" article is spot on! ;-)

Wednesday, July 14, 2010

"It is the bottom of the ninth inning of game 7 for the Yokogawa World Series. The champions of the Yokogawa American Division, the Management Marvels, are up 8-1 over the National Division winners, the Workforce Wizards. The Wizards have two men on with 2 outs, and unless they produce a miracle in these final moments, they will face elimination. On deck...Newnan Nick. The curve-ball closer for the Marvels, Dane Johnston, has already struck out Steve Systems and forced Eddie Engineering to pop out. On second and third are Transmitter Tom and Shawn Safety, respectively, who were able to advance thanks to a wild Proposal pitch.

"Newnan Nick takes his place in the box, adjusts his gloves, and glares back at the mound, knowing that Dane Johnston only throws the one pitch. Johnston winds up and delivers..."Strike one!" Nick steps back, takes a breath, and looks to the dugout for a sign. Unfortunately, the bench is nearly empty and the manager is nowhere to be found. He steps back up, a lump in his throat, trying hard to muster up the last bit of courage he has left. Johnston comes in again with the curve ball, but this time Nick gets a piece of it. A foul and strike two, the Marvels are only one strike away from a victory.

Johnston casts a cocky glance towards Nick and steps back onto the rubber. He appears to be squeezing the life out of the ball as he places it into his glove. Nick, knowing that the hopes of the Wizards are riding squarely on his shoulders, pounds the bat against the plate. He raises the bat and exhales, waiting on what is likely to be the inevitable ending to this matchup. Johnston heaves the pitch, a curve ball that comes inside and high. It's a swing and a miss. Strike three! Marvels win!"

Take heed Newnan Nick...the curve ball has already been pitched across our plate and is headed your way. I say you charge the mound!

Tuesday, July 13, 2010

Both the Sydney Finkelstein 2004 book "Why Smart Executives Fail" and the Jim Collins 2009 book "How the Mighty Fall" carry a similar message, and even share several of the case studies. The former book's chapters on "Seven Habits of Spectacularly Unsuccessful People" and the concluding "How Smart Executives Learn" are real gems.

Jim Collins points out that "Any exceptional enterprise depends first and foremost on having self-managed and self-motivated people - who accept responsibility, (then) you don't need to have a lot of senseless rules and mindless bureaucracy". Collin's table of "Leadership Team Dynamics: On the Way Down versus On the Way Up" is particularly good ("blame other people or outside factors for setbacks, mistakes and failures").

Finkelstein mentions "greed, cronyism, and denial" and says to be wary of control freaks and cowboys, and "place(s) where asking questions only gets you into trouble". "Rather than expecting CEOs to know, we should be expecting CEOs to create an organization that will know".

Maybe the easiest criteria for predicting success or failure is worldview -- "zero sum gain, divide and conquer, winner takes all, North-Korean-style "Great Leader" versus "Openness, Teamwork, and Diversity". "Zero sum gain" means that if the directors want more money, they need to screw their employees and their customers. Think about it. Such a "winner takes all" mentality is not sustainable. There's a limit to how far you can screw your employees and your customers -- and lost trust or lost credibility is not easy to recover. The opposite of the "zero sum gain" model is the "goodwill" model -- i.e. "a good team with diverse talents can be worth far more than the sum of its parts". This is the same model as the surgical team model in Frederick Brook's "Mythical Man Month".

Two of Japan's most famous turnarounds are Nissan and Sony -- and both picked non-Japanese as their CEOs. The Nissan site showcases the need for diversity -- and explains why it makes good business sense. Sony's site also promotes diversity. But Google for "Yokogawa diversity" (without the quotes) and it will get you only one "Emproyee's Coment". Pathetic.

Surely Yokogawa is increasingly moving backwards toward the "Great Leader" model, discarding one or two directors every year, removing from its financial reports information that first-rate companies continue to provide -- like "number of employees, average salary".

Similarly-sized but successful companies like Yamatake share the credit for their success among quite a large number of key executives (listed in their reports); Yokogawa reports blame outside forces for its continuing decline.

Sunday, July 11, 2010

I am surprised the Japanese allow a high school graduate to run their North American business. YHQ has always prided themselves on hiring only from the top engineering schools in Japan. It would be one thing if he was a real rainmaker.... I guess 12th grade woodshop is all the training one needs to run a Yokogawa company!

Sunday, July 11, 2010

The CFO who just resigned was the only one who could challenge DJ and the only one of the Corp Elite who had any business sense. With the CFO out of DJ's perfectly groomed hair.... will he have another season to run?

Sunday, July 11, 2010 - Virtual smoke and mirrors at the shareholder meeting

Every year, after the shareholder meeting, there's an exhibition of company products (this year there was nothing new of note, of course) and a view through the window of the "Global Response Center".

The "Global Response Center", a huge glass-windowed area next to the hall (above the entrance lobby) where the Shareholder Meeting is held, is supposed to be where support for problems in Yokogawa control systems is provided, according to the explanation.

It's "manned" by a couple of dozen young ladies who look like the rental mannequins you find at consumer electronic shows and motor shows in Japan. But the sign says "no photographs", what a waste!

Strangely enough, nobody asks, "if Yokogawa control systems are so reliable, why do you need so many computer screens and so many lovely young ladies".

If you were to ask, "Is it really a *Global* Response Center - surely most of the girls don't speak fluent English or Chinese?", they'd admit that "No, there are other Global Response Centers overseas -- in Singapore, Europe, and America, for example".

The girls don't look like support engineers, either, but it might be rather embarrassing to ask about that. Although the the girls undoubtedly have mirrors (in their bags) to adjust their makeup, there are no mirrors to be seen -- and it's a smoke-free (non-smoking) environment. The smoke and mirrors are purely virtual! Maybe it's Yokogawa's image of the next generation Star Wars starship control room?

Sunday, July 11, 2010

I agree that they need a new CEO, but NOT another "San". They've shown that they just don't get how to conduct business here.

The Systems business here is, and always will be, a loss leader. The Japanese can't wrap their heads around that either. They dominate the market in Japan, so it's inconceivable to them that it could possibly be different here.

Previous CEO-Sans were here for a few years, and spent the first year getting settled in and trying to figure us out. They spent the next year or so trying to influence how we did things, then the last year or so coasting until they went back to Japan. All the while, they kept Japan in the dark as to how things really ran over here. Why disillusion YHQ with reality when you're going back there in a couple of years? It's known as a "Career Limiting Move". Better to snowball them so things are easier when you go back to YHQ.

Installing another CEO-San only perpetuates the cycle that repeated many times before DJ took over. The only difference with DJ is that he doesn't have the luxury of waiting things out and leaving a steaming pile for the next guy to deal with, like previous CEO-Sans. He's it, and it's all catching up with him. If there's someone in upper management who does have what it takes, let him have a shot at it. He can hardly do worse.

Friday, July 9, 2010

What YCA needs is another "san" as CEO. They gave an American a chance and 'twas a dismal failure. The "systems" bidness just ain't where the money is....despite what DJ might be thinking. We've got a Japanese CFO now (because the one we had has the good sense NOT to move to Houston)....PLEASE let's get another one as CEO!

Friday, July 9, 2010

Even if the Japanese finally figure it out and get rid of DJ, do they have the courage to replace him with the right person or will they simply fill the slot with another "Paper Tiger"? Unfortunately, DJ's had five years to saturate the top levels of the Power Elite with layer upon layer of seemingly incompetent “Yes” men.

They need someone tons-o-sales experience, the “in the plant” kind. Someone who has done everything from spending time on the plant floor with technicians to meeting with engineers and Board members. Someone with the technical product knowledge as well as an understanding of a manufacturing operation. If you start out on the street and work your way up you get a whole different perspective on what the customers need and how they want to be treated.

Yokogawa does have one person in the upper management structure who fits that description and actually understands YCA/YIA/JYC, call it whatever you like. Good luck getting the Japanese to give anyone with that kind of experience a shot at straightening things out!

Thursday, July 8, 2010

YCA has had layoffs over the last few weeks. They have been kept quiet by varying the number and location of the layoffs. This is an across the board layoff that is not finished. Top management is under pressure to produce results by the end of September. Little hope is on the horizon for a short term turnaround so expect more changes.

Saturday, July 3, 2010

More YCA employees are not waiting for the next round of layoffs which are just around the corner; some are leaving on their own. Most employees have had their resumes updated and out on the Internet job-search sites. Why wait till the next (quiet) Friday when you see employees led out the back door where the police are standing? Why wait for the next monthly meeting of charts and graphs depicting the red, yellow and green dots? Just another excuse for DJ to "toot" his horn. I think he has tooted too much. And if you think "he" (DJ) hasn't had his resume updated and on the street, you need to think again. When the CFO gets a different position, who do you think is next in line?

Friday, July 2, 2010 - In response to the blogger on July 1st:

Not all the temps are inexperienced and many work harder than the true permanent employees. Some have been there so long the permanent employees do not realize they are temps. So to say get rid of the temps first is such a discriminatory and shows great idiocy. The temps are cheaper than the perms, so to save more money the slacking permanent employees should go. I can named quite a few right now. You are just a scared permanent employee who wants to create a smoke cloud so that you feel you are safe and probably one who does not work that hard. But remember that no one is safe...

Friday, July 2, 2010

The Japanese have NEVER understood the American market or mind set. To say that they are supporting DJ in an attempt to deliberately drive YCA into oblivion is giving them way too much credit. It's more likely that they finally recognized the fact that they don't know how to conduct business here and have resorted to letting a Giajin give it a try.

Unfortunately DJ's making the same mistakes by isolating himself from the people in the trenches with folks who look good on paper but have no clue how the real world works. You can't run a company with Managers holding Mail Order MBA's and whose biggest acheivement is playing rugby with the guys at prep school in Singapore. Sounds worldy, but it doesn't mean squat.

DJ is failing miserably and the bottom line is that he apparently has no more of a clue than the Japanese did when they turned it over to him. All of this is, of course, just my opinion.

Thursday, July 1, 2010

If Yokogawa has another layoff, the temps should be the first to go, and not the regular permanent employees. We've been hit hard enough. Temps are all newbees anyway, which makes them the low man on the totem pole. Get rid of the temps.

Tuesday, June 29, 2010

If you understand Japanese culture, and their risk adverse nature, you will know that what is really happening here, is that YHQ is supporting DJ in closing the business in America. The folks at YHQ are not idiots, and would not destroy YCA unless it is what they had in mind.

For a moment, imagine that you are running a foreign company in the USA. Would you be interested in working in an environment of unlimited liability, and laws that are changed and become retroactive? Imagine if a Yokogawa DCS was implicated in a plant explosion, or other disaster. Yokogawa would be “Nationalized” by Honeywell purchasing the shares at 10% of the fair market value. Look at what is happening to BP and you will soon understand what America has become. I predict that Exxon will take out BP at 10 to 15% of $62.38 (52 week high), and all will be very happy as Exxon will cover the former American Employees pension commitments that BP could no longer keep.

Yokogawa’s risk/revenue attributed to USA sales has now approached infinity, it’s time to shut down!

Friday, June 25, 2010 - Re the Thursday, June 24, 2010 – Message to Japan:

I believe Mr. Johnsons degree was for a train engineer. The party train...

Friday, June 25, 2010

Car program? You are lucky you have a desk and it hasn’t been used for fuel to fire the boilers. I don’t know if anyone is aware we don’t have the work to support the staff we have. The staff seems to be living like Guantanamo detainees, only aware of what is happening within your own cube. For those who have been hired recently please don’t spend time hanging pictures in your cube no need to get comfortable you may not be here that long. The most important thing you should be aware of is to treat the CEO like a rock star. Don’t be afraid to use plenty of Chap Stick, take a lesson from anyone in the power elite.

Friday, June 25, 2010

Interesting how this blog recently picked up again. This always seems to happen before...............hmmmmm.

Thursday, June 24, 2010

I am very disapointed that the VP of my division is so short sighted in supporting the best decisions for YCA. As other blogs have noted, upper management is all about "ME" and nothing about "US", "sales people" are so involved in internal politics they don't sell, etc. I heard there was a car program presented to upper management and that my own VP was not supportive of it! I, personally, would like a new car and I would not mind having my activity tracked. Maybe some of my couterparts would get out from behind the phone and actually make some personal visits to customers. Not sure why anyone thinks the products sell themselves. Upper management needs to get over it! Do they not realize that if the company goes down, they do too! I do know that unemployment would no way compensate them for the lifestyle they are accustomed to... If they don't want to participate in the car program, I would venture to guess they make enough money to pay for their own car!

Thursday, June 24, 2010 - Message to Japan:

Help! The current CEO in North America (DJ)is not qualified to run this business. He has abused his power and used YCA as his personal playground since the Japanese left 5 years ago. No one will follow this guy... in good times or bad. His open womanizing, partying, promotions of his golf and tennis buddies are a disgrace to Yokogawa's 50 years in North America.

Look at his bio on our intranet boasting of not one, but 2 engineering degrees. Anyone who has spent more than 10 minutes with him in a meeting know he's not an engineer.

Hold on Engineers... 6 months since the last layoff. Wer'e due for another round... the sales boys haven't produced any orders, even though DJ hired more of them since the last engineer cut. The engineering ranks contniue to be trimmed, while the sales boys are laughing and scratching all the way to the bank.

Thursday, June 24, 2010

Another quote from Larry Kersten that is appropriate for the YCA debacle that sounds like the moto of our CEO: "If you're not a part of the solution, there's good money to be made in prolonging the problem".

Thursday, June 24, 2010

This month ends the first quarter of FY10. Losses, cutbacks and more layoffs are due so it's business as usual at YCA. Those in the trenches take a beating while the power elite continue to get fat on high salaries and unlimited expenses. Don’t worry the lucrative business we need is in the pipeline just temporarily stuck. Someone needs to get the plunger, unclog and flush this mess along with the current management.

Thursday, June 24, 2010

RE: "Yokogawa HQ Japan has no knowledge of YCA is doing":
If they don't know, it must be by choice or incompetence. There are plenty of ears on the ground with direct ties to Japan.

RE: "How can one hand not know what the other is doing? With the modern technology of video conference, email and cellphones, how could this possibly occur?"
Choice or incompetence. To quote Larry Kersten "Incompetence - When you earneslty believe you can compensate for a lack of skill by doubling your efforts, there's no end to what you can't do"

RE: "YCA need to have a Japanese CEO to bring it back on line as it once was and recover from its current mistakes."
You're probably right, but if the problem has been ignored for this long it may not be the lesser of two evils.

Wednesday, June 23, 2010

Yokogawa HQ Japan has no knowledge of YCA is doing. You have GM's planning vendettas (complete with falsified information) and with complete support of the CEO of that division. How can one hand not know what the other is doing? With the modern technology of video conference, email and cellphones, how could this possibly occur? YCA need to have a Japanese CEO to bring it back on line as it once was and recover from its current mistakes.

Sunday, June 20, 2010 - Re. posting dated Thursday, June 3, 2010 (correction & extra info.):

Yamatake's US subsidiary is capitalized at US$20.8M (correction). Yamatake's Chinese subsidiary is capitalized at about US$8.9M.

The table on p.5 appears to show that, over the past four years, Yokogawa has wiped out about 1/3 of its assets (and its assets per share); over the past two years its *losses* amount to about 200 yen ($2) per share.

By way of comparison, over the past two years, Yamatake assets have increased by about 8% and its *earnings* per share total about 213 yen (about $2) per share.

Incidentally, the Yokogawa directors have halved their bonuses compared with last year, but still appear to pay themselves more than the Yamatake directors get. After all, Yokogawa's losses per share are comparable to Yamatake's earnings per share. ;-)

JEMIMA is the Japanese equivalent if ISA, and last year Yokogawa apparently could not afford to exhibit at the JEMIMA annual show.

Wednesday, June 9, 2010

I agree with the low morale and firing of best employees. Upper Managers, as well as, low level employees have personal vendettas against middle management. How can you give an exemplary review to an employee and at the same time say they are a bad manager? Get the politics out of the business and concentrate on production, sales, and maintenance of the qualified employees that you currently have.

Thursday, June 3, 2010

For the first time, it seems, an English version of the Shareholder meeting notice has been produced, the "Notice of 2010 Annual General Meeting of Shareholders" in the Investor Relations section of the Yokogawa.com site.

In table 2(b) on p.5 you can see that the Yokogawa parent company has wiped out about half of its net assets in just five years. On p.6 you can see that Yokogawa Corporation of America is capitalized at only US$1000. Surely this can only be to fly under the tax radar -- I understand that comparable subsidiaries of other Japanese companies (such as Yamatake's US subsidiary) are capitalized at about US$1M. Massive amounts of money have been poured into China -- Yokogawa Electric China is capitalized at over US$43M, and Yokogawa China is capitalized at over US$17M. This seems far more than competitors such as Yamatake have tied up in comparably-sized operations in China.

Notice on p.9 that the number of employees in the loss-making test and measurement business has been split off from those in other business segments. It appears that there is a strong possibility of this part being sold off or shut down.

Notice on p.13 that the seven in-house directors now get over $US333,000 average bonus -- in addition to employee salary. Note 4 says that company rules allow the directors to bump their bonus up to nearly four times this amount.

Wednesday, June 2, 2010

Does Yokogawa Corporation of America have a "vision"? I don't believe the current leadership have a vision or a statement of vision. Without a clear vision and a plan it is likely that the company will experience a major failure very soon. Other signs showing at in the company:

• There is low employee morale
• Internal politics are more important than doing the job well
• Employees stop telling positive stories about the company
• Leaders stifle initiative
• Leaders talk about growth with no clear plan and strategy
• Bureaucratic procedures impede flexibility
• There is a tendency toward superficiality
• Problem-makers outnumber problem-solvers
• There are few rewards and recognition
• Management spends more time inside than outside headquarters
• Sales Employees spend too much time focusing internal operations

Tuesday, June 1, 2010

I do not think the round of layoffs are over. The current employees are running scared and with all the false graphs and bar charts presented during those monthly meetings... it is all "smoke and mirrors". The upper and middle management "hope" to display a great picture for the future, but here again, only smoke. YCA must diversify and not have all their salesman "try" and get the "big one" from the oil companies. There are many major companies (not just oil) out there needing new and updated installations of process controls and automation. It is just too bad YCA has "blinders" on and they have let valuable people go, who had the insight and intelligence to accomplish major changes. Too bad, too late. It will take years, not months, for YCA to rebound, even if they ever do. With the current leadership at YCA, it will never happen as long as the "smoke and mirror" mentality continues.

Friday, May 21, 2010

I am glad to see Yokogawa trying to fix the mess they made with all the layoffs. Sadly, I don't feel it will help them much as they let some great employees go and kept some poor ones. There are still areas in the company that are lacking support and the morale is so low. If the employees could they would leave like rats jumping from a sinking ship. Until they fix the employee gaps they have currently and bring back some of the hard working employees, they will have no hope. By continuing to cut in some departments and yet still creating more duties, they are running the employees into the ground. Wake up HR and Managers, listen to the supervisors and employees, they need help to achieve the far fetched goals you hold so dear.

Thursday, May 20, 2010 - More changes at YCA.

Customer Service and Production Control have been moved from being part of Marketing and are now under the control of Manufacturing. They've been split into three teams and will work staggered shifts so that reps in the other time zones can have someone on their schedules. The choices for the three Managers heading up these groups is interesting, to say the least, but I hope it works.

The Customer Service folks are suppposed to carry after hours cell phones now and will be taking calls at home. Whether or not this will help us get more orders will have to be seen, but you have to wonder how much they can do from home without the computers and inventory reports in front of them.

Interesting approach, I hope it's productive.

Saturday, May 15, 2010

Hire the best, then fire the best; first years as sweet, then they beat you down til they have used you up. Banishment and cut you off, want you to do managers work when not manager no more...

Friday, May 14, 2010

Gee, they can change upper management but not get rid of the crappy GMs?

Friday, May 14, 2010

The financial results have been published on the English and Japanese web sites. It's not mentioned on the English web site, but the Japanese web site says that, as of the June 25 Annual Shareholder meeting, Uchida will no longer be one of two representative directors (along with Kaihori); rather Kaihori will be sole representative director. Uchida remains as chairman, and Kaihori remains as president.

Friday, May 14, 2010

The news about the YHC (Yokogawa Human Create) subsidiary being shut down appears on the English web site at www.yokogawa.com/pr/pdf/2010/20100202-03-en.pdf (February 2 item under Investor Relations www.yokogawa.com/pr/IR/pr-ir-index-en.htm )

Monday, May 10, 2010

What a shame, when Yokogawa feels they have to demote people, who don't deserve it. The Human Resources Department is a joke - you ask for assistance only to have your OWN words twisted to their [HR] advantage and thrown back into to your face. Maybe, instead of stabbing people in the back, HR and the current GMs, should support the people you have.

Is it not the responsibility, of the HR department AND the GM to support, investigate and resolve problems with in your division when assistance is asked of you? How many others do the HR department and GMs plan on screwing over?

Sunday, May 2, 2010

Both Shimadzu and Yamatake have similar market capitalization to Yokogawa, Horiba has a bit over half the market capitalization, but Yokogawa has been showing negative growth and lagging the others over the past five or ten years. Shimadzu and Horiba have shown significant and consistent growth over the past five years, but Yamatake is also ahead.

Saturday, April 24, 2010 - HR...HR...HR...:

Isn't this the same thing that YCA has been doing for years? Laying off good employees, code it as a reduction in force with the DOL then hire back for those same positions? If it was a true reduction in force and you find yourself needing those postions again, why not look to the folks you layed off? Can someone please inform the DOL. I've read several HR blogs where the Management Team in HR states that people interviewed good and didn't produce...can you say fire...not reductions in force. Because the HR Team (and that is another point of laughter) has nothing in place to determine if anyone is really performing well, they just rely on who they are friends with, people only really get "reduction in force" if they don't fit in with the clique.

Why I say "HR Team" makes me laugh - no "team" work in the group. Just a bunch of people talking about one another seeing who can get the biggest title. Lets see who'll win...the former secretary moved to HR after YCA...non YCA...then YCA again, person that knows how to suck up with the higher ups.

These are people's lives. Some people have lost everything over this. I'm ashamed that I work for a company that does this to people. I was really sad to hear about the women and how they are treated. As a husband and father it makes me sad that we have companies in the US that torment employee's when they are out on maternity leave. And to top that off...we don't allow our older people to retire. That is such a true fact that I read in a previous blog.

Friday, April 23, 2010

The CFO's last resignation was to enable him to go to work for another company in California. After a couple of years he came back to YCA. I do wonder about his timing now though. Things are very different than the last time he left. He's a little young to retire, but he has done well over the years and has more than enough set aside to not have to work. Besides, not everyone thinks highly of moving to Houston. The Japanese love him as he has always done well by them. But I have to wonder if he doesn't see the oncoming headlights and has decided it's inevitable. Can't say that I blame him.

Sunday, April 18, 2010 - Response to; “one of the General Managers promoted a Global Major Acct manager to director level."

The writer is correct about the spouse’s employer – after 28 years of marriage and throughout those years working for several competitive companies, professionalism and integrity have always prevailed. Simply put - not once has there been a breach nor will there ever be – period!

Regarding experience and position: In this persons career spanning over 30 years in the oil and gas industry there has never been a promotion garnered by standing on the shoulders of a friend or associate. Any and all promotions (to President, VP, General Manager, VP Sales, Rep, etc) for various companies have been earned not given. The ladder to success and experience is climbed one rung at a time - the hard way, with many late hours and travel away from loved ones. Even to the very latest company meeting where as his mother’s life was slipping away he remained to listen and contribute until the last possible moment.

Saturday, April 17, 2010 - Response to April 6.

I am a current YCA employee. I know the General Manager and the global account guy you're talking about. They are excellent employees and get the job done. I depend on both and they always come through. The global guy deserved the promotion and the general manager made the right call. Your comments are out of line. Did you get passed over for that promotion? Be fair and respectful in your comments. You're dealing with people's reputations here.

Saturday, April 17, 2010

The CFO is resigning and the local HR Manager is retiring. That's just a very small amount of salary that needs to be cut on the upper management level to help this company thru another 6 months! On top of that the CFO is boasting about not going to another company because he is finacially stable and doesn't have to work, although he will be working from home as a "consultant/contractor" for Yogogawa Headquarters in Japan. Wonder how much that pays? This is his second time resigning. Would a time clock employee be given those odds!

Monday, April 12, 2010

In response to the post from 6 April: No, neither the HR manager nor anyone else are able to tell Mr. Johnson anything. We've all seen what happens to people who bother him with reality or common sense.

Tuesday, April 6, 2010

Interesting that a few organizational changes were announced; especially so soon after letting employees go. Now there are openings in several departments and additional individuals are being promoted! In particular, one of the General Managers promoted a Global Major Acct manager to director level. Product or business knowledge doesn't seem to matter, nor does the fact that his spouse is a technical engineer with Yokogawa's number one competitor! Being long-time friends and the good ole boy system prevails! Is it wise to let people go, create openings in some of those same departments, promote your buddies, all while not giving any raises for 4 years and actually cutting your other employees' salaries by 2.5%? Wake up Human Resources manager - can't you raise your hand and say something to Mr. Finance VP and Mr. Johnson to keep some of these actions in check?

Tuesday, March 30, 2010

Sorry to say that no one's looking particularly hard at these blogs right now. Yokogawa customers, reps and ex-employees are waiting to see what changes the last week of the fiscal year bring, while current employees are trying to blend in with the carpet.

As bad as it's been for a while, I've never heard current employees as afraid for the future as they are right now. Orders are close to non-existant, and Mr. Johnson's last company-wide speech (technical difficulties aside) apparently was filled with corporate-speak and left most with the impression that he really had no idea how to respond to the present difficulties.

Let's see what bright new days dawn for them Next Monday.

Monday, March 22, 2010

Did anyone notice this on Yoko’s website:
http://www.yokogawa.com/
February 23, 2010 Notice of Funds to be Procured through Hybrid Financing (Subordinated Loan)
http://www.yokogawa.com/pr/pdf/2010/20100223-en.pdf
Could this be the investors last hope to save their huge investment?

Monday, March 22, 2010

The #1 by 2010 statement did a lot to align employees who cared about the company and their own success. This alignment and motivation brought with it some amazing success, not seen before at YCA.

In 2004 YCA’s system division sold less per year then many individual rep companies it hired, by 2008 Yokogawa in North America was a threat to many majors like Emerson and Honeywell, and was headed in the right direction. This just goes to show the power of the “human spirit” and what can be manifested by individuals who are aligned by a strong message.

In my opinion, the problem at YCA is that the “human spirit” is gone. It takes intelligent, “human” people to manifest the impossible. These people are in touch with customers on a different level, and truly understand what it takes to succeed in the long run. They care about their customers, and speak out when things go wrong, enabling management to do the right thing so the relationship can be sustainable for many years. Unfortunately the management team that supported these individuals was let go; we saw them go one at a time.

What is left is self-serving, fearful, and weak leadership from the CEO to the General Management level. The people who still work at YCA and write to complain, are doing this because they still have hope that YCA can be a great company with “human spirit” once again. I’m certain that they hope that YHQ will take action to correct YCA’s management problems.

I hate to say that generally, the apple does not fall far from the tree, and YHQ may make things worse if they intervene. Generally market forces are great at fixing bad companies, and YCA will have to correct it self, or die.

Jim Pinto Note: I have met Uchida-san, and have great respect for him. His challenge for Yokogawa to be "Number-1 in process control" was courageous, and I agree that it did a significant amout of good for the company!

Monday, March 22, 2010

The next round has apparently begun at YCA, this time with some impact in HR. Let's see if the CEO has the courage to thin the ranks in middle and upper management as well. There aren't enough of the guys and gals in the trenches left.

Sunday, March 21, 2010

Japan (Kaihori) is forecasting a return to profitability in fiscal year 2011. They used the same tea-leaf reader that Uchida used to predict “Yokogawa will be number 1 by 2010” so you can bet your severance package on it.

Sunday, March 21, 2010

Maybe this blog will help people (employees) realize that they have a good job that is worth applying 100% every day. If not, please take your special skills to another company - if you are that talented they will grab you! And stop being so afraid they aren't going to be able to sit around mumbling, groaning about everything - just because you don't agree with what was communicated in the employee meeting doesn't mean you should not try to help YOUR Company. It is YOUR company because YOU are being paid to do YOUR best and make the company better. Why is that such a foreign thought for so many who gladly hold out their hand for their paycheck?

False expectations. For the past 40 or 50 years, Americans have lived by a series of unofficial tenets: A good education guarantees a good job; hard work will bring prosperity; and 40 years of 40-hour-a-week work earns a comfortable retirement. Then, maybe; now, not so much. Workers who believe that somebody owes them a comfortable life just because they try hard are risking bitter disappointment in a Darwinian economy, where there are likely to be more losers and fewer winners than we're used to. The winners will be those who learn how to adapt, expect nobody to give them anything, and are prepared to work harder in the future than they did in the past. That's how it was in America before anybody ever heard of the middle class. And it may be that way for a while again. The real middle class - the true bedrock of the nation - will be able to handle it.

Saturday, March 20, 2010

I am currently a long term employee at Yokogawa. The first 10 years were great; the last few not so good. I've seen the company's downward spiral coming for years, and thankfully I've been preparing for it. I'm going to stay until the end, either by my own terms of retiring, or the so called "package". I am truly sad about the companies affairs and some of the comments, but unfortunately some of them are so true.

I'm sad to say that I agree with most folks when it comes to the complaints about upper management. They only hear what they want to hear. We have one particular General Manager; yes, we have presidents, vice presidents, general managers, managers, supervisors and group leaders, that ignores us and on a very sutle basis threatens us with his comments, and lack of attention to our problems. It is a fact that if you complain you are a target.

Some of the long term employees also feel like there is some prejudice against anyone over 55 years old. Our experience and work ethics don't mean a thing anymore. They think young, slim, trim and beautiful is going to save the company. Oh yeah, I almost forgot, it's a man's world at Yokogawa. Women use to be considered and even promoted into management positions; not anymore, unless you have your nose in the right place with management.

I admit Yokogawa has been good to me over the years; I've been able to make an honest living that I'm proud of. But I'm glad I won't have to work another 10 to 20 years and have to deal with the company's issues - if they continue to be a company. It's a sad situation that I thought I would not see at Yokogawa.

Wednesday, March 17, 2010

You’d think that an international corporation that holds multi-national video conference calls on a regular basis could get a better audio and video feed when the CEO and "the boys" are addressing the employees at "mandatory" all-hands meetings. Last month, no audio; this month audio via Maxwell House coffee cans. What was that y’all were saying about Yok having an IT department?

Tuesday, March 16, 2010 - Responding to the "Control Walt Boyes’ blog (extracts)":

You and Walt are a little late, see the March 1st blog on the JimPinto weblog: "YCA Houston we have a problem".

What was posted from Boyes’ blog is more of a marketing piece, likely spoon feed by YCA management to Control for publicity. You should be more concerned with the facts leading up to this. YCA originally purchased the rep business from Dixon for a hefty sum and YCA couldn’t manage it profitably. The solution was to lay off experienced personnel, take the financial loss and turn the territory over to, as stated "relatively newish firms". Turning this over to groups with little knowledge of Yokogawa products in the middle of the most turbulent time that YCA has ever had is questionable. At least they now have someone to blame outside the elite circle for any loss of sales. These are the types of decisions YCA management continues to make.

It is well known in the industry that "Yokogawa fared less well during the current recession than others" but the comments on the "good job of restructuring" have yet to be proven. The current climate within YCA would be contrary to the thinking that the restructuring is good, working or anywhere near over.

Tuesday, March 16, 2010 - From CONTROL Walt Boyes' blog (extracts):

"In a clear sign that Yokogawa's North American sales management sees the recovery beginning to happen, the company announced today that it was, effective March 16, appointing Techstar and BBP Sales as their representatives in the two most important US territories for the oil, gas and petrochemical focused automation giant. Techstar will represent Yokogawa in the all-important Houston area including the Ship Channel. as well as the rest of Texas and Southern New Mexico. BBP Sales will represent Yokogawa in the scarcely less important Louisiana territory as well as Southern Arkansas.

Normally, we don't print or cover announcements of new hires, new rep placements, etc. This however is significant for what it appears to signal, not just who's who. This one though, is important for everybody to think about for a number of reasons.

Yokogawa fared less well during the current recession than others of their competitors. At the same time, they appear to have done a good job restructuring and we'll see just how good they have done when the wallets come completely open, which is estimated by most observers to be late this year or in early 2011.

Clearly, they went looking for a few good reps. Both Techstar and BBP are relatively newish firms, and are young, aggressive and technically competent, with large support and service staffs. Even more importantly, not only do they share Yokogawa in contiguous territories, but they have several other product lines in common as well. This is a sales manager's dream date: two reps in the hottest territories you have to cover who already know and work with each other.

We'll see if Yokogawa guessed right. My money, speaking as an automation professional with about 30 years experience in sales management, is on "they did."

Tuesday, March 16, 2010

It's not a surprise that Dave Johnson is failing. Think about it.

The Japanese had a stranglehold on YCA, YIA, JYC, etc., ever since the beginning. There wasn't a single part of the operation that wasn't directed by Japan. For years they sent Japanese over to be the president in the states for 2-3 year stints. The first year was spent looking at the American operation and getting used to us. The next year was spent formulating a plan, which was left hanging for the last year as the President coasted until his return to Japan. Once they returned to Japan, they swept all problems and learnings under the carpet and move on to bigger and better things. To admit that there were problems in America is to admit that they were ineffective while they were here, a surefire way to kill their continued career.

By handing YCA off to Mr. Johnson, they distance themselves from the problems and leave him to drive it the rest of the way into the ground on his own, seemingly the only role at which he's effective.

Monday, March 15, 2010

Only two and a half weeks left until the end of the fiscal year. Keep your head down and try to look busy. If this does not work, try to match your attire to the wall coverings in the office and blend in as best you can. I hope they keep Doc Johnson; he has helped lift employee’s spirits and hemlines, or vice versa.

Sunday, March 14, 2010

Hold on YCA...it is about to get even worse. Yes, here in Newnan we were hoping for a big turn around in the HR group and most of us were glad to see most of finance move to TX. That was short lived. I guess the GM HR is going to stay in GA. Lucky us!

Wednesday, March 10, 2010

Very interesting. I think the best post so far is the blof og Tuesday 19th January, 2010, that lists the items being exposed on this blog, which does not apply to any of the competitors.

If this is true, when Washington has finished flogging Toyota, it may be Yokogawa’s turn. This may explain why the "leader" has surrounded him self with so many to blame.

Sunday, March 7, 2010

As a former employee of Yokogawa, I was told this blog might be some interesting reading. Obviously, it's reading about people who need a place to release some stress anonymously because their stress may not be caused from their workplace.

In reference to the comments about the definitions of the HR and IT department – did an HR professional or IT professional write this or is it written by someone who also believes that management spends all their time getting people to brown nose? Has this person ever been in management? Probably not.

Why should you worry about pay, annual reviews, surfing the web, texting on your cell phone or making personal phone calls on the company phone – you are a professional, right? Anything you do on “company time” (that is the time you are getting paid to do your job) is not anything you need to hide, right?

If someone else is abusing their job it’s not your problem. And when they no longer have a job you will know why just like the people in HR and IT will know. In every successful company, eventually people who are just taking up space are weeded out.

Talk about generalizations - it is also amazing that people who are posting on this blog don’t even have their facts straight. It is obvious they are just repeating what other people “think” is true. Maybe these people have such a lack of self confidence they have to attack the leaders and departments of the company to make themselves feel better.

So, your skills and your job doesn’t grow on trees and uprooting your family is not an option – an option you don’t want to choose – so, maybe you should realize where your financial provision is coming from and start trying to make your environment a better place instead of feeding the negativity. We all have options.

Unions – you are not always protected, if you don’t do your job you will still go and you should.

And like the person posted before me – not all of us are forced to leave Yokogawa, some of us choose to move on to other opportunities and take good memories with us.

Sunday, March 7, 2010

I am a current employee of Yokogawa.
I am an ex-employee of Yokogawa.
I am a customer of Yokogawa.
I am an employee of a competitor.

My point? Believe maybe 15% of what is written here. Good luck trying to figure out which 15% to believe...

Sunday, March 7, 2010 - To the 2/27/2010 blogger:

We didn't say anything about beauty and brains. No need to worry about your future, you have them right where you want them. You are notorious about hiring the wrong people. Don't give us the crap about "they interview well but don't perfom." I have to say that I've personally seen some good talent in HR. It has been few and far between but we have see a couple. However, we run them off just as soon as we get them. As for the comment about the 1-800 number, looks like we kicked that person that was saying that to the curb. Gosh, why did it take so long for you to see that she wasn't a people person nor did she have any computer skills? I think when our HR team is threatened by talent, so they get rid of them. We had someone that stood up for the employees at YCA, they did a great job telling us about our benefits and helped people that had no clue what they were reading. We kicked her to the curb.

So when you are sitting in your bed at night reading these blogs and trying to find a "come back" look at yourself. How can you make our company great again? Some of us like working at YCA, we want to continue but we have a hard time not taking advantage of the openings at other companies when we can't see out future here. It is troubling to hear that we have employees that have been out sick or giving birth and we torment them while they are out and usually fire them when they return. Can't someone have a personal issue without this find of consequence? I look around and see what we let go and what was kept.

Tuesday, March 2, 2010 - Regarding the ongoing commentary on HR, a few posts back:

I think a few of you, both employees, and HR professionals, really don’t understand the role of HR at any corporation. HR departments do not exist for the benefit of the employees. HR exists for the sole purpose of protecting the employer from employee. The following is a list of some of the functions HR departments provide:

1. Maintain the lowest standard of pay, and benefits for any given position
2. Work closely with the legal department to ensure all agreements are in the corporations favor
3. Maintain an annual employee review process, to establish justification for corporate action
4. Provide a professional development program to create evidence of employee support

1. Track the cyber activity, the web sites you explore, the Emails you send
2. Track your phone activities (desk and cell) of all employees looking for rogue behavior

Things can go wrong when the leader of the company uses HR, IT, and the Legal department for his own purposes rather then for the benefit of the company. This happens in Companies as well as in Governments. All anyone has to do, is research a few dictatorships to see how the human animal behaves. If you are interested, Google Stalin. Stalin was so threatened by his generals, eventually he imprisoned and killed many of his military leaders. The bottom line was: he was afraid of losing his job to better qualified people. This is why in democratic countries, the number of terms that a leader can serve is limited. The leader knows that his job is temporary, and will not feel threatened since the end of the job is inevitable.

Is it possible that Yokogawa has turned into a dictatorship? Is the leader a dictator that surrounds himself with weak non-threatening people that don’t question him? Does he eliminate strong and qualified people that could do a better job then he does? How many years has he been working at the same company?

Tuesday, March 2, 2010

It is a sorry, sorry time to see Yokogawa where it is today. Many talented workers are gone. Many talented workers are still there (even in management) The current VP's and managers should look around them and see how they can help stop the biggest problem with Yokogawa (and that is the current CEO). He has one goal and one goal only and that is to make everyone do what he wants and not what is good for the company. He was probably the wrong choice from the beginning but, he knew how to impress the Japan office. I'm sure if enough people email contacts in Japan with concerns and facts that everything will not fall on deaf ears. (Or at least I would hope not). Next time Mr. Johnson walks by just look at his face and you will see that it is not a face of a leader, and you will see some fear and at lot of anger in his eyes.

Tuesday, March 2, 2010

Reading these sure makes one insecure about their future at YCA! Maybe its time to start circulating the resume... I can say that YCA gave me a lot of room for growth, which I have appreciated and have returned the favor with 110% of effort and dedication. YCA certainly seems to be losing a lot of good worker bee's - management seems to not appreciate the Indians - thank goodness we have so many chiefs.

Monday, March 1, 2010

This is very entertaining; some one should make a movie about this company. It would be like the documentary on Enron with more sex.

Monday, March 1, 2010 - YCA Houston we have a problem.

March 2010 is the last month of the 09 fiscal year or, for many, the last stop on the employment highway at YCA. YCA’s current downward spiral will increase as this month’s close of business brings losses to an all time high. Loss leaders include Engineering and Service with disappointing projects and high head counts. Manipulation of the figures deep within the departments is no secret and is reminiscent of the saying, "robbing Peter to pay Paul".

A few years ago YCA paid a large sum to purchase the largest and most profitable sales-rep organization in the YCA region, Dixon, and turned it into Yokogawa Southwest (YSW). The management did a good job of running the YSW division into the ground. This part of the company was recently closed. Over 20 more people lost jobs a few weeks ago and the remainder of the business was turned over to a new outside-rep organization.

Part of the YCA rep organization was put on 30-days notice to terminate; due to performance issues. Although the instrument groups claim they are not contributors to the losses, this can be disputed by a number of factors. YCA has lost customer confidence in delivery with long lead times. YCA is also being excluded from opportunities that they were previously included on at major companies. This year Japan stopped all prepaid warranty money; this money for many years was paid to YCA in large installments at the beginning of each fiscal year. Any funds not consumed during the fiscal year were then added to the individual departments’ profitability at year end. After many years of this misuse of funds, Japan finally figured it out and decided to pay for warranty on a case by case basis. This, along with the economic downturn, constricted cash flow further.

YCA is facing more hard times as the growing loss of qualified personnel exit the company. Sporadic layoffs over January and February were kept low key, on top of early retirements and resignations. This has affected many projects including top customers like Shell and Chevron and caused a strained relationship to become agitated with YCA’s help.

More employees are set to leave the company in March, some with advance notification others will have the YCA surprise package at the end of the month. Maybe you remember the words of the CEO when he said “we have had no layoffs”, and his comments after the first layoff “we will have no further layoffs”. It may have been more appropriate to say “fasten your seat belts, it’s going to be a bumpy ride” or “you can’t handle the truth”.

It appears that, in order to save face, Japan will keep the current management and let them run this ship right into an iceberg. For those of you who have left already, consider the severance packages and additional perks as your life boat. Those that are still aboard should be looking for anything that can keep them afloat.

Monday, March 1, 2010

I cannot comprehend why employees that know that the company they work for is horrible, continue to stay and complain how bad it is.

This is not 1942 Germany. You are free to make a choice. Although many of you say Hitler is in charge, and the SS is everywhere, you will not be shot for deserting if you quit and join a better company.

My advice: Stop complaining and get the hell out while you can. If you are valuable, another other company will see this and pick you up immediately.

Sunday, February 28, 2010 - To the Saturday, February 27th blogger on HR:

I know of more than one person over many years that YCA HR did not help, and in more than one instance hurt by helping implement management’s wishes. This can be confirmed by many people within YCA, or by others that have left. Assuming you are part of HR by the comments you have made, I am not surprised as your department hires your own.

HR at YCA is ultimately managed by the CEO and his cronies, and does not fight for any employee outside the power elite friendship base. The puppets within HR are under the control of management and their jobs are manipulated by the puppet masters/management pulling their strings.

Don’t concern yourself with complaints about HR; you should have enough to do with the pending year end layoffs. Soon you may get the chance to lay yourself off, or layoff others within your own department. Everyone I know within YCA has said that the last place you want to go and discuss any type issues is HR, with the exception of your benefits and pay, but if you get help, get it in writing and have it signed.

My suggestion, to any fellow YCA employee that has any issues, is to get a lawyer and see if you have a case first, then have your lawyer do the talking with YCA. Make sure everything is documented, with a copy sent to YCA, your lawyers’ office, a relative, the local newspaper and keep a copy in a safety deposit box. If you can’t afford to get a lawyer call your local bar association and they can usually help.

Your comments “it is more likely they are just unhappy with their life and they would complain no matter where they were, instead of taking charge of their life” shows the quality of person we continue to hire. Generalizations about people who have issues coming from anyone concerned about YCA HR or employees, I think you may have been right about “Everyone likes to think they are a "people person", but they are not. You appear not to be one.

Did you know that in Yokogawa Japan they have unions? Did you know that most Japanese management frown upon unions or the talk of unions in YCA? Why, when they have them for Japanese employees? The only way to make a change at YCA or Yokogawa globally is to unite as employees and form a union to make sure we have a voice. This way we don’t need to worry about HR helping us; we will have a union that will take care of the people with seniority and experience.

Saturday, February 27, 2010

My comments are to the employees who continually bash HR - if you have an issue and need assistance you should not accept the response: "just call this number"... HR is a department established to take care of employees. It seems to me that the people who continuously complain either don't really have a problem, or they don't need HR for assistance.

As far as who is experienced in HR. Do your homework. HR is more than just smiling and answering the phone - most people think they can work in HR but they don't have a clue. Why do you think HR keeps having turnover - sometimes people interview great, but can't (don't) perform after being hired. Everyone likes to think they are a "people person", but they are not. And you should know, if you are the one who keeps complaining about your paycheck not being correct. If you really want to find out who you have in HR - call them. They are there to help you. Just because the company is having layoffs and some employees are unhappy in their job doesn't mean the people in HR are not qualified. It probably really isn't their job at Yokogawa the complainer is complaining about - it is more likely they are just unhappy with their life and they would complain no matter where they were, instead of taking charge of their life.

Also, contrary to popular belief - there is not one woman in HR who has ever had any type of relationship with management other than professional. Again, do your homework - don't assume (in HR) because a woman has looks, she must not have brains, or she wouldn't be in her position.

Start focusing on doing the best job and being the best employee you can be. You are getting paid by the company to enhance the company, not to do a half job and see how much trash you can talk over lunch. Like the others before me... just my 2 cents.

Monday, February 22, 2010 - To the person who commented on 16 Feb, "one person that (sic) continues to write all the negative comments":

how can you possibly read what has been posted here and think that. If it's not clear by now that its a pervasive mood by the workers in the trenches, and that these are comments left by numerous contributors, then you need to go back and look at the different writing styles and descriptions of the situations and problems. Not only are there many different contributors, its obvious that there's multi national input from both sides of the pond (although none seems to be from our Asian colleagues......?).

Also, just a point of clarification. A former HR manager is returning, but she was there maybe 5 or 6 years ago, I'm not sure exactly. The reason I make that seemingly minor distinction is that we did have another manager approximately 10 years ago who WAS a disaster. She came out of the Corporate Communications department and had no heart, people skills or aptitude for the job.

The manager from 5 - 6 years ago came out of the Accounting group, and while she may have not had an HR background, she had managerial experience and good people skills. Unfortunately, she was also in over her head.

Again, please do not mistake the preceding for any type of support or defense of the current management, I'm just trying to keep it honest.

What does surprise me are the repeated "If you don't like it leave." comments. Folks, we're instrument people, recorder people or systems people and the like. We don't grow on trees and neither do our jobs. For many of us, changing jobs means a major relocation. If you have a working spouse and kids entrenched in schools, churches and sports, uprooting them is simply not an option.

Tuesday, February 16, 2010

The one person that continues to write all the negative comments about Yokogawa seems to be quite content on continuing to work at this awful place. If it was that bad, it seems they would leave. The job market is tough; but if the job is that bad you can always find a job somewhere else (or maybe this is the only job this person can find that will have them). I am sure some of the information that is being printed is true, but I am sure that half of it is NOT! You are a bitter little person that needs to move on.

I am a former employee of Yokogawa, and not everyone that leaves is fired.

Saturday, February 13, 2010

To see this manufacturer get discraced, as they currently are today, is quite a shame. Here we are again making major territory changes just to save a CEO's poistion. Since my time with Yokogawa, I have seen this inner operational restructure happen several times usually about every two or three years. The problem doesnt lie within the Rep-network, or the previously direct outside-sales, but realistically lie upstream in the very top level management. As many of you read this post, who are still employeed within our faboulous Houston location, are aware of the current pay increase to our Tier 1 board immediately after the headquater sales change this week. I just can't seem to understand why the Ninja hasnt fallen on his sword yet.

Friday, February 12, 2010

I just found out from a Manager earlier this week that an old HR person is returning. She sucked 10-years ago; why would they want her back again? Oh wait I forgot... friends of the new HR Manager (soon to be VP of HR) as I was told. What do you think?

Friday, February 12, 2010

I did read over most of the blogs and do agree with all these issues, but I think we need to be more mad at the fat-cats up top getting fatter. Most of us are every day people, trying to survive. We just want to come to work, do a great job and be paid a reasonable amount of money. I did have a hard time reading some of the stuff. I had no idea that some of the people that we have in HR are so ruthless and got their jobs from knowing someone. I believe that we are letting good people go, and that is a shame. Most of these people will find something else. But why should we promote like crazy and then have layoffs and then turn around and give money back to our employees? Don't get me wrong, I do love the fact that some of my money was returned; but I would have much rather have seen this money be kept and keep some of the good people we let go.

With that said, I do worry about the direction of our HR Team. We don't have a true leader. Just a bunch of women brown nosing to see who can climb the ladder the fastest. Come on, fearless leaders, stop looking at the high heels and whats under the chin and look what's above the shoulders. We have new/old HR people coming back. Did they do a good job when they were here before? Or are you just trying to proove a point with the person that hired and fired them many years ago?

Tuesday, February 9, 2010 - Re the blog from Sunday Feb 7th

No surprise really my esteemed colleague, is it not the natural reaction of a salesman to find fault with everything apart from their own performance? Earlier blogs spell out exactly why projects struggle to deliver on time and to cost; you can’t make a silk purse out of a pigs ear!

I (and most) agree though about your comments about the ‘Teflon coated’ interim? Manager. After 5 years, what exactly has he contributed? He started life here as a strategy implementer because our wonderful management team were too busy to develop the business. His first assignment was helping (controlling/directing) our old service manager develop low cost servicing which resulted in buying 2 vans, 3 extra service engineers and no additional work, just adding to overhead. He also moved the responsibility for commissioning projects to service which accounts for their rapid increase in sales and prevented the projects group increasing our margins on a project i.e. robbing Peter to pay Paul.

I remember being told that he was turned down for a job at SCE and after the service manager left, he was in charge? Temporarily (the service manager told quite a few people before he left that Mr Teflon and the DD was the reason he moved on due to his manipulative, bullying, interfering mismanagement). His next project was to set up an installation service for projects, high risk and never tried before, resulting in probably the biggest loss on a project in the UK. He then took over projects where he couldn’t lose in that he was only trying to minimise the losses, if it improved he took the glory, if it failed it was a bridge too far.

Anybody noticed a pattern here? The DD always manages to keep him occupied, pay him twice as much as the senior managers but keeps the failing managers on in a reduced role with their old salary/perks. Both Mr Teflon and the DD used to work at Invensys so it looks like another case of jobs for the boys.

Perhaps when the Amersfoort ‘thought police’ review this blog they should start asking questions and Japan should investigate why they are reducing costs everywhere but allow this to happen. It appears that a lack of engineering management experience doesn’t stop you getting paid over the odds and bleeding the place dry for years, all you need to be is a buddy of the DD.

Monday, February 8, 2010 - Blog response to Wednesday, January 27, 2010 - Re: Yokogawa Business Ethics:

Ex colleagues have pointed me to this blog and from what I have read so far, ethics doesn’t seem to have the same definition in Yokogawa as every where else. When I worked there, the emphasis was always minimising the loss making situation sales put us in with no expectation, or in my opinion desire, to do future business with a customer afterwards. The blog earlier about the Iranian projects sums up for me what was (is) wrong with the place. I’m not a sales or business person (and have no desire to be one) but a good old fashioned engineer who knows what is good ethical practice, so my comments are related to that side of things.

I can’t remember which of the 2 Iranian projects it was, but the cabinets housing the ESD system were dropped off (fell from a great height!) the container ship at the (Bandar Assaluyeh?) docks in Iran, had not been fitted with impact indicators so we didn’t know how or if the electronics on the safety system (pro-safe) had been damaged or not. The safety cards had not been fitted properly at the factory and had all fallen out of the 19” racks. The cabinet was repaired but the safety cards were just plugged back in without any inspection. Management knew all about this but it was kept quiet from the customer/contractor. The reason for this I was told was that the pro-safe ESD was made by Siemens for Yokogawa who had announced they wouldn’t be making it anymore and any spares/new cards etc went up in price by nearly 100%. I far as I could see, the decision not to replace or even investigate and at least inform the client of any concerns Yokogawa had was made only for financial reasons. Sort of contradicts the spirit of IEC61508 me thinks. Hope they don’t ever have an emergency shutdown on site.

Sunday, February 7, 2010

What a surprise! All we are seeing is engineers calling sales staff in the UK, never questioning their own lack of ability. As I have asked in a previous blog – If you are so talented, why are you still at Yokogawa? There is a shortage of good engineers at many companies.

This is typical under skilled engineering staff, taking the easy option and blaming sales. It gets more difficult to sell Yokogawa systems job’s due to poor delivery by engineering on previous work.

I must agree though on the comments about the project director, and once again we have the Mr Teflon ex-service now as the ‘lack of engineering manager’

Friday, February 5, 2010

Yokogawa UK - I have resisted the temptation to post here previously, as I agreed with a previous bloggers comments that ‘dirty washing should not be aired in public’. Having read some of the blogs about who we are as a company and what we apparently represent these days, here’s my 2 cents/pennies/euro’s worth.

Management claim that the strength and success of the company is down to the people that work here. What is not said thought is that most employees do need leadership that can be respected and have trust and confidence in. In the words of the ex-service manager "we have employed a bunch of suits who don’t care about the place or the people that work there and every decision they make is to further there own self interest". I have worked for a few companies and have never known a company to tolerate poor performance and abject failure the way Yokogawa does, especially from its managers.

We have a projects director who doesn’t anymore after managing the 2 worst financially disastrous projects in the UK’s history, now working as a glorified clerk/secretary/sales support person, presumably on the same pay scales and package as he was when he was a Director. If he couldn’t do his job, why wasn’t he sacked?

We have a Financial Director who only does about 30% of what his predecessor did with twice as many staff and seems to spend most of his time on Linkedin. You have more chance of seeing a UFO than seeing this guy take ownership of anything.

Our Damaging Director, as he is now referred to, actually has set an example to us all, especially to those in sales. His excuses for his own failure to steer the ship in the right direction is that it’s not his fault, it’s the global downturn, it’s Amersfoort’s poor management bla bla, has given the sales guy’s the perfect reason to do as little as possible (certainly not busting a gut anyway) and if questioned about performance, trot out the DD’s excuses, what a brilliant example to us all.

There is no price for failure in management, but a big price to pay at the coal-face. Like a previous blogger commented: if Japan does read these blogs, why hasn’t anything been done before now? Would any sales guy who didn’t make his targets after 7 years be still in a job? I (we) think not. I am mindful of the old saying of small people always hiring smaller people than themselves to make them look good. We now have a significantly vertically challenged management team.

Wednesday, February 3, 2010 - Blog response to Wednesday, January 27, 2010 - Re: Yokogawa Business Ethics:

The blog re. the project that was for the Iranian companies cost the projects manager his job. Sales had quoted for something like only 15% type-testing and the customer ordered 100%. Sales either missed this point or ignored it when they accepted the order, which resulted in extra costs and 1000’s of man hours. The MD did not want to know about the problems as usual and left it to the PM to sort out. The PM had no choice but to comply with the contractual requirements, but he lost his job but no one in sales did. At the end of the project on internal close out and review, which lost over £750K, sales informed us of a fee to be paid to the middle-east just as the project was being closed out which made the loss almost double. Unbelievable, such mistakes can happen, but as usual projects got the blame and the PM lost his job as a result of this. The PM was an experienced professional who ran a tight ship and was respected by his team. Most of the good project people left after this, and it seems Yokogawa have lurched from one project disaster to the next. I could never understand why the MD accepted that sales didn’t review with projects before order acceptance. The accepted orders at a claimed 15% margin and after order acceptance we found in most cases the profit was virtually zero within 2-3 weeks of accepting the order. How projects were supposed to make up the loss and maintain good customer relationships was something that none of understood. Virtually every project was the same. I worked for Emerson and ABB and both had problems of some type or other, but the Yokogawa sales teams negligence and a company philosophy of ripping customers off with extra’s is the worst I have ever come across. I hear the UK MD is still there, how can this be?

Tuesday, February 2, 2010

Gunter glieben glauchen globen
All right
I got something to say
Yeah, it's better to burn out
Yeah, than fade away

-Lyrics from Def Leppard's "Rock of Ages"

Monday, February 1, 2010 On the comment about send in the clowns, don't. They need to send in a OUTSIDE ADUIT TEAM TO FIND ALL THE MONEY THAT IS GOING INTO A BANK ACCOUNT. From the outside looking in, sounds like someone or someones pocket is getting fat. This company is miguided by it's mangement and that is sad!!

Monday, February 1, 2010 - Re: Sunday, January 24, 2010 "Joke":

The joke going around Runcorn, UK at the moment is: Osama Bin Laden has released his latest video, to prove he’s still alive. In the video, he included the statement that he knows that Yokogawa UK is still losing money with the UK Damaging Director still in charge. After examining that specific statement, the CIA and MI5 are saying that this video is not authentic proof of a recent recording, as it could have been made at any time in the last 7 years.

Monday, February 1, 2010 - To the blogger on Thur 28 Jan:

Maybe you're talking about the HR group in Houston? The HR head here in Newnan (who is relocating to Houston) was with YCA Newnan years ago as an HR Generalist. She left for a year or two for a higher position in HR at (I believe the Red Cross here in Atlanta). She came back to YCA/YIA as the Newnan HR Manager. She "survived" several HR managers who were based in Newnan and were absolutely wrong for YCA/YIA. One had absolutely no HR background and she embodied the myopic, cold lack of humanity that has become YCA/YIA. The next was from a much larger company and it was obvious from the start that employees were not people at YCA/YIA, only numbers.

Please do not interpret this post that I am in any way defending the current "Power Elite". I just want to clarify that, IF you're talking about the current HR Manager in Newnan, soon to move to Houston, she does come from an HR background.

Having said that, HR has no role in deciding who leaves YCA/YIA "to pursue other opportunities..." All they do is process the paperwork once DJ and the boys finalize the list.

Regarding the CEO's Ex-secretary/girlfriend going to HR, she obviously couldn't stay as his secretary; but it's a shame when a rich, successful CEO and his girlfriend need a second income to make a go of it. Oh, wait. Did I say "successful"? Not from where most of us stand. Rich? Yeah, maybe he should look at that big salary of his first the next time he needs to find a way to cut costs. It'd have a much larger impact and save the jobs of 5 or 6 of the folks who are doing the real work around here. Not to mention sending the message that he's going to shoulder a little of the pain. Something that hasn't happened to this point, to be sure.

Monday, February 1, 2010

Being in this industry and reading other blogs here, I have stumbled on Yokogawa. It seems that a lot of people have come here to vent about personal opinions and feelings. It seems that those that have posted here have a lot of negative comments about Yokogawa.

No matter where you go, you will find things to criticize. However, in this time of our economy and the extremely high rate of unemployment, shouldn't you all be thankful you have an employer? And if you are truly that dissatisfied with the company, why are you still there? Wouldnt you be better off somewhere else? Or would you find all their faults as well?

It's easy to find fault in every employer. However, stop to think of those who don't have a job and would give anything to have a job that paid half of yours to support their family. If you knew you would lose your job today and had to tell your spouse, wouldn't it make you just a little more thankful for that job? And maybe ease up on criticizing people personally at the company. You never know what kind of stress they are going through, or where they are in their lives. You may think you know their story, but there is always a piece or pieces that you DON'T know, which could change your perspective and the story you have been told.

Even when I get frustrated or ill, i take time to stop and become thankful for having a job to be ill at. It somehow changes things to seem a little easier to deal with.

Just my 2 cents, based on what I've read here. I hope it might help.

Sunday, January 31, 2010

Comments: Isn't it rich?
Are we a pair?
Me here at last on the ground,
You in mid-air.
Send in the clowns.

Isn't it bliss?
Don't you approve?
One who keeps tearing around,
One who can't move.
Where are the clowns?
Send in the clowns.

Just when I'd stopped opening doors,
Finally knowing the one that I wanted was yours,
Making my entrance again with my usual flair,
Sure of my lines,
No one is there.

Don't you love farce?
My fault I fear.
I thought that you'd want what I want.
Sorry, my dear.
But where are the clowns?
Quick, send in the clowns.
Don't bother, they're here.

Isn't it rich?
Isn't it queer,
Losing my timing this late
In my career?
And where are the clowns?
There ought to be clowns.
Well, maybe next year.

Thursday, January 28, 2010'

I do agree with the 1/26 blogger that we have a terrible HR Team. The Management Team at YCA is terrible, and the HR group is no exception. It's very hard to take the group seriously when we've seen an HR GM get promoted from Marketing, then we hire someone that was a little "off" from GM and now what are we doing? Yep, promoting like CRAZY a friend of the CFO's. Not to mention the former secretary of Mr. Johnson's that is now working in HR. What is she a Manager of now? Secretary to Manager of HR? Did she get a degree that we all don't know about?

We laugh at lunch when we talk about the HR Team. We've seen a couple good employees that have been hired but they are asked not to help the employees out. What? Most of us have agreed to put in for the next HR Generalist position we see posted since all you need to have is some voice skills to tell people to call a number if you are having issues. Year after year we have issues with payroll and benefit deductions. Nobody seems to care that are paychecks seem to suffer.

Wednesday, January 27, 2010 - Re: Yokogawa Business Ethics:

I used to work in the Yokogawa UK projects group and witnessed on many occasions how the rules were breached/bypassed on export control to countries that were on the UN/Uk or even Japan’s own METI (Ministry of Economic Trade and Industry) organisation’s ‘banned list’.

A previous blogger reported a couple of projects for Iran that were sold by the UK and these almost certainly broke the rules. There were official procedures in place that clearly stated the even before a quotation was be made, that the final destination must be known and an export license obtained from HQ Tokyo before any quotation could be made as permission would not be given retrospectively.

I know on these projects that sales ‘forgot’ to do this, but they were granted retrospectively by Japan in breach of their own rules as the EPC would have sued Yokogawa for the full cost of the contract value, and more if they hadn’t delivered.

I remember a colleague also pointing out in a memo to the MD that the instrumentation supplied on these contracts fell under the UK export regulations in the dual-use category (i.e. could be used for WMD purposes) but he refused to let us contact the UK Export authority to confirm our suspicions and clarify the situation. This was completely at odds with the memo’s he used to send out saying we must be vigilant in these matters! We used to joke amongst ourselves that his response was part of his own ‘dodgy dossier’.

I also remember another case which was documented internally about how a Yokogawa company in Europe had an arrangement to take an order for a DCS locally and, for a small fee, pass it on to Yokogawa in the Middle East so it looked like an internal order.

The DCS was then sent to the client in Europe who then shipped it to the Tabriz Petrochemical Company in Iran who were on the ‘UN/US/METI banned list’ as they made WMD (missiles and nuclear I think). By the time Japan found out, the DCS was on site. As far as I remember it was just kept quiet. I don’t blame Japan for this as it was the other Yokogawa companies who broke the rules but the policing of the policy didn’t work in practice.

There was also a trading export company in London that bought DCS spare parts from the service dept destined for Libya/Iraq/Iran for years before it became too obvious and it couldn’t be ignored that all of these countries were on the banned list. We also used to receive in service, requests from small export companies in the Uk who provided part numbers of old Centum h/w, destination to countries and companies who had always been on a banned list for over 20 years, so who supplied the systems to them in the first place?

In the time I worked there I had the feeling that the only reason that instructions on export control were issued by Holland HQ was to cover them in case something went wrong. As has been said before, good people, poor management, lousy company attitude.

Wednesday, January 27, 2010

Cutbacks and layoffs in product sales-force – The latest plan from our leaders in Amersfoort is to reduce the size of the sales-force by up to 40% across Europe and only deal directly with the 20% of the customer base that gives 80% of the revenues. Must have originated from the Yokoboro/Foxagawa mafia as this is what they did years ago and lost most of their business eventually. The systems guys have never seen the point of instrument sales and even Hauptmeijer has said we should be a services and systems company for years. It’s easy to cut but hard to grow and everyone now realizes that our senior and middle managers milked the company when it was growing but have no clue how to deal with the crisis except to cut costs (people).

Tuesday, January 26, 2010

Let's see...1/8/2010 we laid off 75 employees, and then Monday we are told that we will get back 2.5%. Glad to have the money returned, but are we struggling or not? Confused. Sounds like too many fish and not enough Indians!

Tuesday, January 26, 2010

An interesting aspect of the Japanese management style, even more so than any other culture, is that most decisions are made by large committees after an endless series of meetings. If the outcome is good, everyone in upper level management adds it to his list of accomplishments. If the outcome is a disaster, then it was not carried out properly by subordinates and everyone covers everyone else's backsides (you don't actually think that a group of high level execs could make a bad decision, do you?). That philosophy is carried to an extreme, and the folks in the trenches bear the brunt of poor decisions by upper and middle level management. It truly does roll downhill.

Tuesday, January 26, 2010

I find myself not being able to hold back from the comments in the 1/7/2010 blog. I won’t get the writer excited and say that it was very upsetting. But we all know that YCA is using the “tough economic times” comment as a front to furlough a lot of good, hard working employees that didn’t get their jobs from knowing the CFO. Most of us didn’t have kids that babysat or washed hair of our “power elite.” Sorry, 1/7/2010 blogger, I reused your wonderful word but I do think we need to use it sparingly especially since the GM of HR “gets off” on this type of “writing skills” especially when it pertains to herself. Our HR Team is sorry. I believe if we are going to survive we need to stop hiring our buddies and look at credentials. It has been a long time since we’ve had a good HR Team. I’ve been lucky enough to survive the furloughs, but I’m not sure what will happen in the future. Scary to think of that situation when you are the major bread winner in the family.

I can’t say we are too happy about the HR Team in Newnan moving to Texas. We have an HR Manager that is a Finance transplant that we are happy to get rid of. The former Jr. HR Clerk from 10 years ago (now GM Manager) will not be any better. It seems if we do get someone that is willing to help the employees, we let them go.

Sunday, January 24, 2010

The joke in HQ now is that last week, our superman chairman Isao Uchida called his President, Senior VP’s, VP’s and Regional CEO’s to a meeting in Tokyo to mend the company and improve results. The meeting was held on the roof of the tallest office and Uchida ordered them all to jump off the roof as the journey to the bottom, and the adrenalin rush would inspire them to think of a strategy to resolve the company crisis. All but 2 of them landed at the bottom, some injuries but no new ideas. The 2 that still haven’t landed yet are the 2 regional CEO’s, Hauptmeijer and Johnson, who keep stopping asking for directions......

Funny, but this also shows the graveyard humor that exists in the company today, and it is also an accurate reflection of how most employees actually see their leaders performing.

I was asked last week by an old timer from production - what is being done to make our business better? I was embarrassed, because I could not give a truthful answer. Everyone blames Harry Hauptmeijer for the loss of production, which started when he was VP for instruments and has been given away to pay for the new building. Analyzer Instruments are what produced the money and we used to export everywhere. When the situation was bad before, the Analyzer profit kept us all OK; but now we buy, not sell, and the money is no more. Most I know think Harry is like a book-keeper with no personality, and is not a motivational manager who can give us confidence in these times.

We have serious problems and I don’t know what can be done to improve. But worse is that, along with my colleagues, I don’t think our managers know also.

Friday, January 22, 2010 - To the management responder of the blog 01/19/10, ‘Yokogawa is not the center of the universe’:

It is, if it pays your mortgage, utilitys and food bills! What arrogance to assume that if you don’t like it, you can just leave. Surprisingly, a few of us joined because we were sold the Yokogawa message, and believed we had a future to the extent we relocated with our wives and kids and all the upheaval that involves.

Friday, January 22, 2010 - Re: Yokogawa Ethics and how they do business:

I remember when I worked at Yokogawa many years previously; I attended a global strategic selling program at Amersfoort HQ. I had been on the same course many years ago at a previous employer, but this one was run by an ex-Yokogawa Japanese senior VP who was well known historically to European management through his local involvement with Shell, Chevron etc.

I clearly remember the shocked and embarrassed faces of the participants when this ex VP gave his definition of the term 'coach' used in the program. It was not the same as described in the official course program notes. His explanation was not only how this type of person could 'guide you' through the sales process to make a sale, but went on to explain how in his experience what must be done for this type of buyer/influence. There was no doubt about what he was saying, and never before or since have I heard such a blatant admission or suggestion that customers should be paid to win business. As is normal, unfortunately, nobody challenged him on this, but it was the topic of conversation in the bar later that night.

I saw enough in my time at Yokogawa to realise that the Japanese meet with your key accounts without telling you before or after the event and are very secretive about their dealings with customers. If a project engineered out of Europe has Japanese connections, we often used to find our Japanese colleagues were meeting in secret behind the backs and without the permission of the EPC contract holder. For any US or European Key account manager, when a project surfaced at best the role they performed was that of a bag carrier for the Japanese Global Account manager. I used to think at first it was because they didn’t trust us to win the business; but now I think there were inappropriate reasons why they didn’t want us to meet their contacts.

After I left Yokogawa, I wasn’t surprised to read that they were winning all these global agreements but even after employing their own unique win strategies, most customers I know think they ‘hit and run’. But as previous bloggers have commented, it’s a regretable purchase decision they have to live with for 20+ years.

My opinion is that Yokogawa are collapsing now due to how they have gone about their business in the past, and the quality of the management they have. They can’t blame the economic crisis forever. Restructuring (as they always seem to be doing) is the desperate strategy of amateurs who don’t know, and probably have never known, how to run a successful business. The issues of subsidies to prop up businesses in the US and Europe sounds to me like the old nationalised industries in the UK many years ago, and we all know what happened to them. I see on their web site their intention is to restructure, to break even by 2012. I’m glad I don’t work there any more, but I’m even more pleased I’m not a shareholder!

Thursday, January 21, 2010

In response to the problems in YCA (13 January) my colleague is misleading in his comments about European performance. It is only recently we have been in profit, and this is not in all areas. It is also not correct that no subsidies/financial help have been received to Europe from Tokyo.

If my memory in my mind is correct, the UK only has been in benefit over the years to an amount that must be greater than €8M, including monies from Japan for what are undocumented activities/reasons and various recapitalizations due to the debts they had with Amersfoort. An earlier blog referred to the advantages enjoyed by GB (below manufacturing cost buying of DCS components, hiring of illegally non EU nationals etc) which again causes a question to be answered about why the loss is so great over the many years?

Other subs have had problems before, but always recover within 18 months. Why not GB? Someone suggested earlier about an external audit being a good idea. It would be interesting what could be revealed in GB. Where has all the investments gone to? And why they have only made one really small profit in the last 10 years?

Thursday, January 21, 2010 - Re: Blog from 9 December about new GB sales manager:

With recruitment freeze and firings or short term daily workings across all of European operations, why is it possible that this has occurred. Why is not the GB country manager not running the sales teams?

As this operation is the continuous failing for many years across Europe, why can they still be hiring? Can anyone explain what he is doing all week? From the small number of information and talk, we are told he never visits customers, or talks to the sales people, or is involved in the loss-making project activity. So, like my GB colleagues, I must ask what is he paid for. Many of us in Europe are suffering the pain mainly due to the economics but GB is like a disease in the operation and should be cured or removed. It is their negative results again that drag us all down. It is no more a paper reporting problem, but the loss of real peoples jobs. Why does Harry protect them so much for so long? Does anyone know this?

Thursday, January 21, 2010 - Yokogawa blog versus other blogs:

In response to the blogger from Tuesday 19th January, re: all company blogs are similar, I would agree to a certain extent - apart from the fact that, having read as much as I can of the other blogs, I can’t recall any of our competitor blogs exposing:

1. Unfair (illegal?) financial support to compete in overseas markets
2. Pricing (dumping?) solely aimed to gain market share
3. Alleged payments/gifts to customers to win business
4. Misleading authorities by lying to them in order to hire cheap overseas labour in the EU
5. Paying a salesman US$1M for winning a new contract before any orders were placed
6. Senior management falsifying expense claims

There are so many blogs on Yokogawa that I see now we have our own space. Perhaps if senior management in Tokyo took the time to investigate only 10% of what is said or reported, they would start to realise how bad things are and there is a direct correlation between bad management and disasterous results. To my way of thinking, this blog is no different than the company staff mailbox, apart from the fact it is more secure. But still management ignore what is reported.

Wednesday, January 20, 2010

I was recruited to join YCA late 2008 and was let go in a period of seven months. Coming there was the worst decision of my career. I am glad to be back on my feet again after another seven months. The time at YCA was pure hell, a blessing in disguise. Apologies for the dirty laundry, but it is an honest opinion.

Wednesday, January 20, 2010 - To the Tuesday, January 19, 2010 blogger:

A true reflection of the YCA management mind set. I quote: "if they don’t like his management decisions then quit. Everyone is expendable and replaceable". If you are not a manager, you certainly qualify for the position at YCA.

It doesn't give me a good feeling to know that someone working at YCA has that philosophy. People can't just quit in this economy; they try to hang in and hope that they can help make a change. This blogging is a desperate attempt to encourage change. In YCA you cannot speak up. If the management doesn't like it or you have a question that may implicate management, and if that manager is a friend of the chief, you can bet you will have some misfortune fall upon you.

YCA problems are not just due to the economy; some of the problems were created by plain old bad management. You did get one thing right: the person at the top of YCA is to blame. Your comments on "business decisions" are laughable. You should list out all the great "business decisions" YCA has made since April 2005, then the status of those decisions and how they were based on customer trends.

Keep your pennies you may need them after April 2010.

Tuesday, January 19, 2010

I find it admirable that people give their thoughts on a company they hold so dear, yet I'm disappointed by the blatant airing of dirty laundry on the Internet. It's a love-hate relationship. I just wanted to share my thoughts on the matter.

Every company has its share of problems and internal politics. They are just rarely shown to the public. Just take a look at one of the other blogs on this site, like Honeywell or Siemens. Some of the problems there resembles the problems happening at Yokogawa. It's just the nature of having an organization with many conflicting mindsets.

If there is a problem, the first instinct is to blame the person at the top. He is the scapegoat. It comes with the job and he should accept it. People should also realized that they have a choice. If they do not like his management decisions then quit. Everyone is expendable and replaceable.

Yokogawa, like all business, exist to serve customers. Customers spend money. Take off all the smokes and mirrors of "employees first" and, ultimately, all that matters is serving the customers. Business decisions are made based on customers trends and not employees reactions.

Yokogawa is not the center of the universe. By reading some of these blogs, it seems to most people that it is. Granted some of these people here probably spend more time at work than with their families, but they all had to go home some time. If you were fired or laid off, move on with your lives. If you still work there, do the best you can to keep your job to support your lives at home.

Change hurts. It's human nature to resist change but it's necessary to move on.

And there's several pennies for my thoughts.

Sunday, January 17, 2010

I am a current employee and wanted to make a few statements about the blogs on YCA, that have become popular within the company.

I have taken my time to carefully read the statements and have come to the conclusion that many of the comments are true, based on my knowledge of the company. The comments have raised the awareness of many employees on how wide-spread poor management is noticed within the company. The overwhelming comment from many of my fellow employees is: why isn't Japan taking any action to correct obvious problems? One of the previous bloggers said we shouldn't hold our breath; I am beginning to think that is right. I have heard that in the past Japan has stepped in and made corrections, but it looks like they are unaware of what is happening.

The current state of YCA has caused a great lack of enthusiasm from all the employees. No one I know will bring up any negativity to our President/CEO; this would surely result in being singled out and eventually dismissed by our direct managers, when the time was right. So I finally decided to write a blog.

The politics within YCA are present and troubling, in my opinion; they have hurt our overall ability to do business. Even though the products are great, we need leadership that can build a company and bring everyone together. I look forward to a time when things get better, but can’t see the current management leading the way. This is just my opinion based on what I have seen and discussions I have had.

Friday, January 15, 2010 - Response to YCA Field Instruments colleague 13/01/10:

When I first read your comments I thought you were discussing the UK situation, the parallels are frightening. The instrumentation business in the UK as far as anyone can remember has propped up the systems group who lose money for fun it seems.

Only a complete moron could argue for taking a project at a low margin and expecting to recoup money later on MRO business. How many times have the system sales not even bothered to try and get instruments included as part of the project and then we find ourselves in a price fight with Emerson, ABB etc. Even if they do remember we actually make instruments, MRO actually means in the real world small additions that the customer initially forgot about at the project start. Most automation systems/instrumentation has an operational lifetime expectancy of at least 20 years and since we make the most reliable/never go wrong products in the world our MRO business is virtually zero. The same can be said to a large degree for our serious competitors, ones or two’s on a plant per years is a reasonable normal expectation for MRO so that philosophy when examined by anyone with at least a couple of brain cells is dead in the water.

You could try the argument that our leader now prefers that you take the lifetime profit of all the service contracts on a project/add ons/extensions etc and over a 25 year spread, the profitability will be OK. This argument is flawed when our last 2 projects for BP and Exxon Mobil, lost over €4M, it’s a lot of service and MRO business to make up for!

Most businesses are judged on a year on year basis, not a 25 year period unless you are a financial services provider and we all know what a great success they have made of things lately. The upside of management supporting the 25 year view is that most of them will have retired or left in 25 years when judgement day comes a-calling.

Despite it seems buying the h/w and s/w at a really good (less than it costs to make?) transfer price and using cheap but illegal engineering services and I’m told by my colleagues in the know at Amersfoort, that after receiving over €5M including monies from Japan and various recapitalizations due to the debts they had with Amersfoort, our business has only ever made an €80k profit over the last 7 years and losses of many millions, not bad for a company employing 60 people! We are also told that our MD is the worst performing employee ever employed by Europe and like the rest of us, are confused as to why he is still here. I wish I had his KPI’s.

What is worrying is that despite all the global financial subsidies Tokyo have provided over the years, the business is still in a mess. Which ever way you look at it, propping up failing businesses, accepting loss making activities for so long, market pricing less than the levels in Japan, only spells one thing, dumping. All of us who have worked for other companies before have been naïve in not acknowledging that Yokogawa works a lot differently than other companies in the pursuit of its objectives and should have seen this coming.

I agree what is really frustrating is that you invest a good portion of your career into the company, try to be as successful as you can be and see all your good work flushed down the pan because of the Forest Gump management philosophy preached and practiced by so many. It seems sometimes that we have been constructing the building brick by brick only to find that the foundations of the building (put down by management) were made of wet sand and sawdust and it all comes tumbling down.

For those bloggers calling for Japan to sort this out, don’t hold your breath. Has it not occurred to you that if you have a poorly performing employee you should look at the person who hired them in the first place? You would think they would realise by now that all this slash/burn/restructuring results in shock, awe and eventually exodus of the people that make the business successful.

Personally, career wise, I’m going to do my best to reach a senior position within the company where I can live out the rest of my days in a state of true unconscious incompetence like the rest of them.

I feel better for this, it’s been a cathartic experience and also it’s the weekend.

Wednesday, January 13, 2010 - To the blogger from Europe who wrote "Unlike Europe, YCA has been in great benefit of generosity from Tokyo......":

I assume that you're talking from the perspective of the Systems group? Field Instruments have long been profitable, until recently that is, and have carried the Systems side of things for years. They carried Japan when they went through their domestic and regional downturn a few years ago. I think the same can be said of T&M and Recorders more than carrying their own weights.

Yokogawa has excellent products from a technical standpoint, and used to have very solid technical people in the field to back them up. Over the last 6-8 years, however, any technical expertise has been culled, in favor of smiling bobble-heads who have no clue how this stuff works, but have a hell of a smile and are on Mr. Johnson's "A" list.

The Systems group has always been a "loss leader". The supposed rationale being: "Bring in the project at little to no margin and you'll make it up in MRO business." Again, it shows a complete lack of understanding as to the reality of the beast. So you win a 6 million dollar project. It does you no good if it costs you 9 million dollars to execute it. AND the MRO business never materializes.

The "Tell me who you are and I'll split my bet money with you" comment would be laughable if it wasn't such a pathetic attempt at finding out who someone is so that another "problem" can be eliminated.

As to "having an axe to grind", a "hidden agenda", etc. What the ex-employees who post here have to gain is - absolutely nothing. We've already taken our shot and reaped the "rewards" of Mr. Johnson's approach to correcting problems.

Am I upset? You bet! I put a lot of effort into making things work, only to have it laid waste by a management team who didn't have a clue, but knew how to spend money; and middle level management who didn't have the courage to present a unified front to the top levels in addressing chronic problems. I have friends who are still trying to make a go of it, with no cooperation, appreciation or direction from the anyone above them.

All that we can do is express our opinions on what is wrong and what needs to be done, to correct it for the sake of our friends and colleagues who are still employed at YCA. If we can improve the situation for them, so much the better. They have seen what happens when fellow-employees try to address problems "within the system".

That's my $0.02 worth and I'm sticking to it.

Wednesday, January 13, 2010 - To the blogger from Europe:

You hit the nail on the head. YCA was making it to be self sufficient, or at least looked as if they we were. What changed was the forced effort to be "Number 1 by 2010". The YCA management analysis called for unlimited and unjustified spending as a strategy to get to the lead position. I actually heard a manager say we need to spend more to get to number 1, and they would try as hard as they could, and did. Crippled by a small customer base, and management staff designed around loyalty to the CEO, it was doomed from the start. We can't forget to add up the new office allocations for Sugar Land, Mexico and Canada. What is really remarkable is that Sugar Land was in the process of spending more money to expanding the building until Japan put a stop to it.

It seems as if YCA management had no idea that a business should grow based on its own sales and the quality of its employees. It appears to some degree that the financing from Japan is being taken for standard operating income. This goes back to the comments on mismanaging, the qualifications of the CEO and the friendship-based (not qualification-based) setup headed by Dave Johnson and supported by Kaihori and so on.

I don’t see how some of the employees let go from YCA can help clean up this mess. Short term, sure the reduced head-count can show a reduction in the loss on the books. Long term, can it improve the company’s position in the industry? Not likely. Sweeping changes need to be implemented by Japan to get YCA back on its feet. This includes a complete replacement of management starting at the top, and some across the pond. The end of the fiscal year is right around the corner, and I am sure a few of the so-called 'power elite' will be dusting off their resumes, if they haven't already done so. Since this is the same thing most of the staff is doing, I am not sure how much of a qualified company staff will be left between resignations and readjustments.

Wednesday, January 13, 2010

The recent blog activity from our colleagues in YCA would have been laughable if it were not so serious. Unlike Europe, YCA has been in great benefit of generosity from Tokyo with subsidies as far back as anyone can remember. It seems the entire business has been supported at the expense of investment to other Yokogawa areas and they still have the nerve to complain!

We too used to be a negative contributor many years ago, but guess what, we worked hard and used our talent to make it good again. I would suggest that you all do the same and as well as ‘talking the talk’ (which you seem to do better than everyone else) start the walking also.

Tuesday, January 12, 2010

This is the worst I have seen it at YCA. I don’t care if Dave Johnson wants us to come into his office and discuss problems. It will put me between my manager and the CEO and I have to deal with my manager regularly. I am sure my manager’s relationship with DJ is better than mine. It will also put me in the spot light and next on the short list, or at least a more favorable fit for the next readjustment. He should have thought about this before, but I guess he was busy mismanaging, budding up and all that playing executive stuff. Wish I had the courage to speak up in person, but I have seen what happens to people in this company that speak up. That’s why I have placed a blog, after hours of course. It’s the only voice I have here. I think they should change Dave’s title to CUO Chief Unemployment Officer, that’s the one thing he seems to be good at.

Tuesday, January 12, 2010

I worked for Yokogawa when Mr. Johnson first "ascended". On one of his first trips to Newnan, he wanted to meet individually with the employees in the PMK's (that's Yokogawa-speak for Product Marketing Groups). We were told to bring a resume with us for him to look at. As soon as they realized how transparent that request was, they dropped it. BUT, it was obvious from the start that he was sizing people up.

To pick up on another blogger's comment, again, take a look at who is on the recent list and you will see no managers, at least none that I am aware of. If you are in the "Power Elite" you have nothing to worry about.

On the other hand, some of the recent recipients of Mr. Johnson's business acumen are very long time employees in Newnan. They are, again, the ones in the trenches, the gears on which the inner workings of the company turn. They know the ins-and-outs of the products, the processes, the relationships in Japan and how to get things done.

In his wisdom, Mr. Johnson has further hobbled Yokogawa's ability to carry on it's day to day operations. The only thing worse than a CEO who makes bad decisions is a CEO who repeatedly makes bad decisions and is good at implementing them.

As usual, the views expressed here are strictly my opinion, yada-yada.......

Tuesday, January 12, 2010 - To the Angry Blogger from the Current Employee:

You are wrong in guessing my identity, but I note that you're off base in your comments about the company, too. You are clearly motivated to find destructive information and spin it to hurt YCA. You could be an employee, since you had access to the layoff date and some other YCA gossip. Most point to a couple of inside politicians, one who got demoted and deserved it, and one who had fantasies about becoming a manager and did not deserve it. That would certainly explain the grudge you have against the people you've attacked. I guess we'll never know. So, if I've guessed wrong, why are you so dedicated to attacking YCA? What's in it for you? If you will reveal your name and I'm right, I will split my bet winnings with you.

Monday, January 11, 2010

The bloggers that are posting positive comments in response to very detailed complaints have provided comments with no substance. Many of the comments on this blog are true. What you have heard in the message from Dave Johnson is called putting the spin on it. You have very detailed blogs that are to the point about the ongoing problems within YCA. Many of you may not have access to the real story behind many of the facts listed here. I don’t think any bloggers assassinated Mr. Johnson’s character; the comments were directed at his inability to manage and how he has structured the chain of command within YCA. The politics in YCA are not like most companies, they are much worse.

The 09 fiscal year ends on March 31, 2010 and Newnan hasn’t completed its move to Sugar Land. I would be skeptical of the propaganda provided in a meeting from the person (Dave Johnson) at the center of the problems that has his job along with his friend’s jobs on the line.

At the end of June 2009 similar statements were made after that layoff. More layoffs occurred between July and up to January 7, 2010 with a more noticeable layoff on January 8, 2010.

The count of employees laid off in one of the Friday blogs is wrong. YCA has now had 3 different layoffs (excuse me, restructurings) during this fiscal year. The first and the third layoff near the end of the first and third quarter the second layoff was spread over the second quarter. The total is well over 200; plus or minus some employees that resigned. According to Mr. Johnson’s own statement; 811 people worked for YCA in May 2009, with the reductions YCA has had an approximate decrease of 25% of its staff overall. The remaining staff has more to do and will need to rely on a few to answer simple questions and get real work accomplished. This will become more evident over the next few months.

Pull up a copy of your organizational chart (org. chart) on the intranet. Of those laid off how many across the top horizontal lines (management) are still on the org. chart? How many of those listed on the vertical lines (workers) are still on the org. chart? What has changed? Answer nothing, if you are in, or a friend of the power elite.

Do an internet search on your manager or fellow employee’s name with or without the word Yokogawa. You will find almost all YCA management and a few friends of management with a posting on an employment website (linkedin.com). For some reason I could not find some of the managers and workers in Newnan on this site, although I was surprised to see a few names pop up. I saw so many names I started to think a posting on this site was a perk for working at YCA. If it is a perk why isn’t everyone listed? Many of the managers have “career opportunities” and “job inquires” marked on the “Interested In” section of each person’s posting. Do they know something we don’t know? This is starting to sound like what happened at Enron around August 2000; investors and employees were told one thing while management had the inside track.

Monday, January 11, 2010

I want to begin my comments by stating that I am a current YCA employee. I am not a manager or a member of any power elite group that other bloggers have reffered to. Dave Johnson just addressed us in an all employee meeting and the man was a stand up guy. He explained how he made the decision to readjust the company size to fit current business conditions. He spoke straight to the point and told the facts. I am OK working for this guy. He invited us employees to come tell him our honest opinions, and I think he means it and will listen. While I am at it, I will add that there are politics in YCA, like most companies, and it is probably the politicians who are making most of the negative posts here. Much of what I read is pretty radical spinning of the facts. Most actual employees are not going to participate. It just looks like some folks have grudge to bear.

Sunday, January 10, 2010

YCA is having problems due to the policies and practices initiated by CEO Dave Johnson. Employees are divided; those brain washed by repeated claims of product reliability, others who are overcome with the fear of being laid off; and yet another group in fear of being asked to move to the Houston office from Newnan. If you could speak freely to the reduced staff they would tell you that they are leaving as soon as they find another opportunity.

Some employees will tell you that the products are good and YCA is restructuring due to the economy, that’s what they have been compelled to say. If you go deeper you will see that the company is not supported by its own sales. It has been propped up for years with financial support from Japan. This did not affect the over hiring and wild spending associated with expenses, conducted by many General Managers and underlings in the last two years. Apparently it was a spending free-for-all and CEO Dave Johnson looked the other way. This type of management should concern customers, investors, employees, managers and board members. As stated in a previous blog, an outside audit of YCA would be suitable at this time to track the funding provided by Japan.

The positive comments you see from bloggers are from Management and Sales trying to offset the negative comments. The comments that they place are aimed at preserving the hierarchy not solving the issues. Many of the comments from Yokogawa US and Europe on this blog were aimed at solving issues, exposing poor management and uncovering activities deemed inappropriate. Little has been done to change the companies’ practices, unfortunate for those in the trenches. Politics exists in all companies but YCA under CEO Dave Johnson has brought it to an all time high.

During the evaluation process to determine who would be laid off from what department, some managers created false chargeability for members of staff in an attempt to insulate themselves by retaining friends. Chargeability is normally defined as hours billable against available work measured over twelve months. However YCA managers artificially inflated hours associated with employees they viewed as friends to help preserve the buddy system. This did nothing to boost moral or retain qualified individuals it only confirmed the preferential treatment provided to managements friends. You can expect more changes between now and the end of the fiscal year.

Saturday, January 9, 2010

I work for another company and read this blog. It has to make me wonder why a company like YGA is laying people off. If the products they offer are good and they say, have great service, who is going to mind the store? We continue to pickup more business from former YGA customers who were dis-satisfied with service. It would make sense to me to keep or hire more personal to keep the business going. It has been my experience when this happens, it was management not doing their job and one if not a few people were on the take to rob the company blind. I feel sorry for the people that were laid off, because the (management) was not doing their job. Good luck Yokogaw, and thanks for the business!

Saturday, January 9, 2010

Why isn't management held accountable by Japan? Instead they are allowed to fire (notice I said fire) employees and blame it on poor company performance. What happened to a system of employee reviews, goal based performance systems with follow-up during the year. If the employee didn't achieve their goals, or were insubordinate, it was noted in their file. After two or three strikes... the employee was let go. This is not how it works at Yokogawa. Employees daily just do what they think they should be doing with no direction from their managers. With their job descriptions and duties left to total ambiguity, it allows management to say and do whatever they want when the workforce has to be reduced. The manager should be blamed on the employees lack or poor performance; not the employee. Job ambiguity is both a sickness and power tool for management. It allows the company to make hiring, promotional, and firing decision based wholly on personal opinions, friendships, cronyism. This is what is taking place at YCA.

Also, I believe it needs to be made clear that this is not a layoff. It is a reduction-in-workforce and firing of employees. They dangle the carrot of giving a weeks salary for every year worked and paying your health insurance for a few months if you agree to sign the paper that says you will not sue them and you hold them harmless. Sounds like blackmail to me. Especially for those of us that only have enough savings to pay the mortgage and bills for a couple of months. It also allows the CEO, the CFO, and VP's to sleep at night and convince themselves that they are handling this the "Christian" way.

What happened to telling the employee that "you have done a good job and we value you at our company. Because the economy has slowed and orders are down, we have to lay you off temporarily. We would like you to consider working for us again and would like to reserve the right to call you back at a latter time. We are sorry that this has happed. Unfortunately we do not know how long this will be and that you may never be called back. Thank you for your service." I am sure they will hang their hat on some legal reason for handling the downsizing in this manner.

YCA is "shooting themselves in the foot" and the skilled employees will never return. I know I will work in Home Depot to make a living before I would return, just because of the way they have handled this. A little "sour grapes"... maybe, but I am a realist and know that companies must take this action sometimes. What happened to professionalism. It just goes back to poor personnel and operation management of should I say, the lack thereof.

Friday, January 8, 2010

It's interesting that the "airing of dirty laundry" does make one feel better, but it is doubtful that anything really changes in a company unless comments are taken serious by a company's decision-makers. Yokogawa's problems are deep and systemic.

1. To begin with, YCA is not much more than a big distributor in the US. It purchases both complete products and parts from Japan at various xfer rates. While some manufacturing is actually done in Newnan (almost the same amount as 10 years ago) and many of those parts are purchased domestically, the rest is bought from Japan. Japan doesn't consciously "dump" products in North America, moronic decisions by management allow the products to be sold below that xfer cost. And Japan treats YCA like a customer! Not much more than that. Day-to-day support from them is desperately needed but still not there even after 20 years.
2. There is no real engineering at YCA. While there are many "system engineers" that configure the DCS hardware and systems HMI interfaces and control schemes, there are only a couple field instrument engineers in service, technical assistance, and marketing. Support is provided by technicians. And there is a skeleton staff of them in certain departments. As a matter of fact, marketing does 10% marketing, 30% insides sales, and 60% applications engineering. There are a few manufactuing engineers in Newnan that keep the product assembly and test department operating but that's it.
3. Operationally, from a human resource standpoint YCA is broken. There are no more performance reviews, no annual goals, no day-to-day leadership except fire fighting, and no management training programs. The only continuing education reimbursement is for undergraduate degrees and the $$ is pathetic. Education is not valued, respected, or encouraged. Only a few upper management personnel even have bachelor degrees. Many of the upper managers have been with the company for 20 years or more. Like one of the original bloggers pointed out below, many "don't even know what they don't know". This was referred to as "unconscious incompetence". That description is very accurate.
4. As previously stated, there are only skeleton department numbers in certain areas. Management is still under the assumption that marketing personnel should know how to do everything (and do it) from enter an order to shipping the product out the door and all tasks in between. This thinking is valid in a "Mom and Pop" operation but in a $250 million operation?? This is not efficient nor cost effective. Tasks and job duties should be defined and segmented. How can a company scale up or down its resources??
5. Account managers, managers of account managers, and senior managers continue to be hired at ridiculous salaries. Today was the first time an account manager or regional manager were let go. But this takes place while middle management and hourly personnel suffer with the 5% pay-cut and no cost of living raise in several years. As another blogger pointed out, the "good ole boy" network prevails. Mr. Johnson has promoted or hired only the people that tell him what he wants to hear. The CFO, VP of Marketing, and GM's have put in place their friends at various levels. If you are viewed as negative or do not subscribe to their method of management, you might as well say goodbye to your job. And for goodness sakes, don't have Human Resources report to the CFO. That could be a major conflict of interest!
6. Yokogawa's independent Rep force have both strong sales personnel and weak sales personnel. Some are also strong technically and weak technically. Yokogawa Gulf Coast (the former Yokogawa Southwest organization and the former Dixon Engineering organization) also have similar attributes. But this inconsistancy is a major drag on Yokogawa product and system sales and service. Yokogawa does not have the infrastructure to support the technically weak sales personnel. The manager of Yokogawa Southwest had the opportunity to hire real sales engineers when the independent Rep was fired. Instead he hired the former Dixon personnel that were very weak technically. That was the easy way out.

So how can Yokogawa be fixed?

• First, the President needs to step down, or be removed along with 2-3 of the VP's and possible 2-3 of the GM's. Unfortunately, Japan must take control, but only until qualifed personnel can be found.
• A six-sigma or Lean element for Office must be introduced. An operational consultant will have to be used unfortunately, to help Human Resources revamp and implement a goal-based performance, review, and incentive program. Job duties should be documented and then redefined.
• Applications, inside sales, and marketing should be segmented and personnel hired. They should then come up with a real objective at the top and drive it down.
• Re-evaluate the Global Major Account objectives and perform a cost analysis. Sales at any cost is not a wise business plan for a company that is no more than a big distributor.

Friday, January 8, 2010

I've worked in both Newnan and Sugar Land for Yokogawa since the 90's. All in all...a good place to work.

A company that added 500 staff over the past 5 years and has to cut 50 in this economy is not the scum of the earth. I think all of our competitors laid off a much larger % of their staff.

It's also entertaining that both happy and unhappy current/Ex employees have tried to disguise themselves as customers!

One last comment of support from a previous blogger... Do we have to keep sharing our blog with Omron? Surely all this hand-wringing merits a blog of our own! (no offense to our Japanese cousins at Omron).

Note: This is now the Yokogawa weblog

Friday, January 8, 2010

The layoff did happened as predicted, which would make one think that someone is an insider with the knowledge of the ins and outs. If they do what they did after the last layoff, they will bring in temps to replace some of the ones laid off. They were already very short-handed before. I would be surprised if we see Yokogawa much longer. Current management is running the company into the ground. Morale has dropped even more, leaving the remaining empolyees wondering if they are next.

Friday, January 8, 2010

Short personal barbs aimed at employees and customers that have identified problems within YCA that have resorted to blogging as a last resort, are usually answered with arrogant statements by management further adding to the impression nothing will ever change. This type of attitude is nothing new for Yokogawa management and is at the root of the problems created by the leadership of YCA. As the company continues its downward spiral, management continues to attack everyone outside the power elite. It sounds a bit narcissistic.

Friday, January 8, 2010

Perhaps the former Yokogawa employees, now fiction writers, are being joined by a few trolls from competitors. Doesn't smell right to me.

Thursday, January 7, 2010

The products are fine the management and internal issues are the problem. It doesn't matter how good the products are if the company is not functional. Yokogawa has lost presence in the field and in front of the customer and they don't plan on any replacements.

Yokogawa has long lead times and has been dropped by long time users for this. If you have a catastrophic loss call YCA and ask for replacements in large quantity. A situation like this just happened in Georgia close to the YCA plant. Why? Because they ship the equipment in from China and keep stock to "just in time" that is never on time.

Lack of skilled local presence has always been a problem and continues to be today. Many customers are pulling Exaquantum and replacing it with Pi. Why? Lack of support and the price of support. A Japanese company in the southeastern US dropped Yokogawa and replaced the system with Delta V. More Japanese companies to follow just ask the competition.

If you are looking forward to this Friday January 8, 2010 I would call out sick.

Thursday, January 7, 2010

I've been using Yokogawa products in the US for many years, and the reason why is that they offer the most reliable products I've ever used, as the previous blogger pointed out. In addition, I've received top-notch support over the years.

Yes, a few times over the years an issue would come up; but in every case Yokogawa has bent over backwards to take care of me and my operation. I can not say the same thing about most of the other automation vendors. Furthermore, contrary to the previous bloggers comments, I've always found Yokogawa products to be one of most, if not the most, technologically advanced products around. A lot of vendors disguise weak core measurement and control technology with extra and often useless bells and whistles, which does fool many users. But for me I've always sided with highly accurate and reliable measurements in products that outlast the competitors. No company is perfect, but in my opinion Yokogawa is certainly better than most.

Thursday, January 7, 2010 - In response to the January 7, 2010 blog on YCA:

I don’t see you disputing any of the facts, but confirming the reduction in the work force at YCA. Further confirming the "restructuring", or as you call it, "managing tough economic times".

Restructuring was repeated in every management statement ever issued, blogged about since 2002, and in every Yokogawa press release, including that from Kaihori in his message to investors in July of 2009. (http://www.yokogawa.com/pr/IR/pr-ir-message-en.htm) I suggest a change from "Vigilance" to "Restructuring" as the Yokogawa motto.

I suspect you are one of the "power elite", trying to appear loyal to keep your own job. You have only demonstrated your lack of understanding by calling facts "fiction" and you need to reconnect with reality.

Current employees care about the company and see the lack of support for staff and favoritism within management. YCA's problems are also recognized by customers and potential customers. How could you be so blind? Maybe that's how you helped YCA get to this point. The only coincidence in the blogs about Yokogawa (domestic or international) is that the employees and customers have had enough.

You are the epitome of the YCA "power elite" and can only see and hear what you want to. If for some reason I have mistakenly called you this and you are not, you have successfully passed the test and are now fully qualified.

Thursday, January 7, 2010

There is no doubt Yokogawa is a good company and its products are good. Unfortunately what users have blogged about Yokogawa America is true. I have been using Yokogawa for more than a decade, and didn't find anything to complain. The products are not that technologically great compared to American counterparts, but run for a long time, troublefree.

Engineering was a real mess and Yokogawa America doesn't know how to use the proper resources. They sent few inexperienced folks to site, even though they have good experienced people. What n trusted insider tells is that they have started laying off few top brass on 6th January, 2010. The laying-off spree continued today for some middle level and contractual employees. But what the trusted sources comment is that the gala event would be this Friday, 8th January,2010.

It appears that Yokogawa North america leadership failed miserably and couldn't set the company back on thye right track. Other Automation companies have recovered and are back on track. One of important thing that the insider told me was that it appears everything is on a friendship basis, and many inexperienced folks are being given a lead position at sites, which is really pathetic.

As a Yokogawa user, I feel really sad about how North American management has messed up, and assume this blog would be read by their Japaneese counterparts in Japan. The fact in Yokogawa America is that they are not capable of grabbing a project and are losing to competitors.

Thursday, January 7, 2010

I see an obvious cooincidence here between a company that is performing reductions-in-force to manage tough economic times, and the number of blogs with extreme comments. I suspect that a few former Yokogawa employees should exercise their real talents and pursue new careers in writing creative fiction.

I know Yokogawa reasonably well, and see a large degree of poison-pen work in this blog. The work of "customers" and "insiders"? Not very likely. I take many of these comments with a grain of salt. No, make that a pound of salt.

Wednesday, January 6, 2010

I was just referred to this blog by a contact within the industry. After reading some of the comments here, I can see I am not alone. I wanted to express my frustration with Yokogawa/YCA somewhere, and will try to limit my comments. Fortunately I was able to remove them from our vendors list due to a consistent lack of responsiveness; I am sure they don’t even realize it. When I needed help I couldn’t even get a return phone call, so we found help elsewhere.

I had heard from other vendors that Yokogawa seems to be in a constant state of flux, but I did not believe it at first. My relationship started out very positive with YCA, on the initial sales level, but I need action not words to support my plant. I can receive more responsive and personalized service from one of my other vendors or a smaller company that has more on the line. I only found out late in the game. I intend to spread the word about this blog to any other YCA customers I hear of, and suggest that other readers and bloggers do the same.

Tuesday, January 5, 2010

As a recent prospective customer of YCA, it was very interesting to read the various comments on this topic here as some of these comments were experienced during our evaluation process for a significant project.

Initially we were quite impressed with YCA, as the many meetings with Sales, their Mid-Level and Senior Management staff was such that we had a clear preference for Yokogawa at the end of the bid stage. Their proposal was straightforward, and the highest quality of those received.

Only when we began to interview former and current clients of YCA at the urging of our management team did we uncover problems. We expected to receive a few negative comments regarding past performance as no vendor has an unblemished record of performance. However each and every YCA client interviewed by our team provided the same story. While fully impressed with the quality of their equipment, the unanimous comments were with regard to YCA's inability to deliver projects in a professional manner. All interviewed clients expressed an extreme degree of dissatisfaction with YCA's project execution and project management staff totally unexpected and previously experienced by our team members.

As a result, we were unable to recommend a decision to purchase Yokogawa to our management team based on these negative referrals. Based upon our initial opinions of YCA, we can only hope that they are able to correct their project execution problems quickly.

Sunday, January 3, 2010

Does anyone know what is going on at Yokogawa Corporation of America (YCA)?

In May 2009 in an interview featured in Control Global, current CEO Dave Johnson said "We have had NO layoffs." Here is the link:

http://community.controlglobal.com/content/dave-johnson-yokogawa

"We are now $320 million in YCA. Products are $140 million, systems and engineering $160 million, with services at $20 million. We have 387 employees in Atlanta, 370 in Houston, 47 in Canada and Mexico, and 73 others (our regional sales people). We have had NO layoffs."

Layoffs occurred between June and December 2009 with an additional loss of more YCA direct employees. This was kept quiet and performed sporadically so customers would not be alarmed.

December 2009 ended the YCA third quarter with more bad financials resulting in additional layoffs scheduled for January 2010. Mr. Johnson will need to make major modifications to both his FY09 year end financials and employee count for the next interview.

The layoffs are apparently aimed at removing most of the experienced staff and firming up the power/friendship base in the Sugar Land office with new less experienced personnel. This was a strategic move to confirm the perceived position of management as a knowledge base.

In the same article Mr. Johnson indicates the official corporate office will be relocating to Sugar Land (Houston) Texas. Not a surprise, this has been in the works since the Sugar Land office opened. As stated previously, Human Resources, Finance and Legal are the first groups to be “requested” to move to the Houston area from the original Newnan Georgia location. This has left the Newnan staff depressed and demoralized; these are the people that helped build YCA. Rumor is the Newnan move will be accelerated in 2010 and you will also see a restructuring of the engineering center.

But we need to look closer at the rise to power of Mr. Johnson. During the reign of the previous YCA CEO, Shuzo (Shu) Kaihori, apparently Mr. Johnson made himself invaluable to him. As we all know Kaihori structured his current rise to CEO and President of Yokogawa Electric Inc. (YEI) and placed his friends in positions to support him. Unfortunately the process industry looked at the selection of Mr. Johnson as one of the least qualified individuals to hold the helm at YCA. I am sure the board of directors is taking a closer look at both Kaihori and Johnson, they can’t continue to blame the economy with the decisions they make.

The Senior Vice President (VP) of Sales, a former Invensys/Foxboro employee; adding to the “home for Ex-Foxboro” comments made by the industry and internally named “Foxagawa” by YCA employees. You would think that anyone in a position of this magnitude would have more to offer to the sales staff then a berating to meet the numbers; obviously limited in his sales abilities and mentoring skills. I will say his skills are enhanced only by his overall lack of understanding of the departments he “inherited” after the abrupt departure of the former Senior VP, at the hands of Mr. Johnson.

On 8 December 2009 a press release was issued by YCA, see the links below:

http://www.yokogawa.com/us/cp/aboutus/news/2009/937_Yokogawa_NextNine_AdvancedRemoteMonitoring_YCA.pdf

http://www.nextnine.com/index.aspx?id=2935&itemID=2096

I understand that the board of directors and senior management of Yokogawa Japan are reading this blog. Not surprised since US employees forwarded or brought copies to Japan. This being the case since Mr. Johnson and his “power elite” (quote from previous blogger) took over what has changed within YCA? I know the Sugar Land office is nicely decorated and the same old customer base is impressed with it; but you can’t be blind to the strangle hold Mr. Johnson and his “power elite” have on this regional office. Although Japan has deep pockets, investors and board members need to begin questioning financial allocations made to support YCA. Go beyond SAP and take a closer look at how the allocations are distributed and what the backing is actually used for; an outside audit may shed some light.

I have seen the rumor on this blog noting that a person from the US (YCA) may be added to the board of directors. I hope this is just the sake talking.

Recently Human Resources (HR) sent a request to all personnel asking them to verify that your spouse is really your spouse. Seems as though some employees signed up "friends" for medical benefits; how was this discovered? Guess we will never know as long as you are a friend of the CEO. This does give new meaning to the old term "friend with benefits".

Recently the General Manager (GM) of HR in Sugar Land was "requested" to move to Newnan Georgia and the HR Manager of Newnan was "requested" to take over in Sugar Land as GM. It is well known within YCA that the former Sugar Land GM of HR was from Finance and had little experience heading the HR department for the last two years. Again another friend of the CEO, this person did little to help employees and the company but did get the CEO to create a management position for her son-in-law.

As you can see from the many blogs on Yokogawa the problems are not limited to regional operations. Could this be the result of the direction set by the supreme leader and Chairman of Yokogawa, Isao Uchida? Maybe he started as a humble instrument salesman but he is a legend in his own mind now. He has lost touch with the employees and is unaware of the problems within his management. Remember his statement “Yokogawa will be number 1 by 2010”. This was not based on any logical business process or reasonable percentage increase over time. It resulted in an international assignment of quota to meet the expected financial results necessary to be number 1. The problems are complex and are compounded by the ineptness of YEI leadership.

If you are one of those hit by the layoff samurai in January 2010 don’t forget to ask HR and Mr. Johnson about the sayonara party that includes open bar and fine steak dinner, similar to that provided to Mr. Johnson’s girlfriend when she was asked to leave by Japan.

Happy New Year?