Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (60078)	4/29/1999 1:41:00 PM
From: Andreas	Respond to of 97611

Another Step in the Right Direction!! I'm not so naive as to believe that any single post on this thread will influence management. However, it is nice to fantasize once in a while that what is written here is at least read by Rosen et. al. In one of my earlier posts I sounded off about lower market share, lost business (ie. losing eds account) and eroding margins through price reductions instituted in a vain stop-gap attempt to recover lost sales. Since that post facts have come out (market share figures, ibm profits, gtw profits, etc.) which virtually confirm my gut feel. I believe and am almost certain that "Sales and Marketing" had dropped the fall in the last 6 months and EP naively thought he could put a band-aid on the mistakes of "Sales and Marketing" by lowering prices (which killed profit margins). Therefore, to see the forced retirement of head of "Sales and Marketing" is good news indeed!! Now the tough part. Lets get each and every sales and marketing direct report and one level (possibly two levels) down into a conference room with the office of the ceo and have Rosen canvass them in detail as to what "Sales and Marketing" (hereinafter "S&M") did that, in their view was wrong or at least should have been handled differently. Get specific answers as to what changed internally with S&M, what changed externally (ie. what is marketing thrust of competition vis-a-vis business customers), what was neglected, how cpq s&M failed to address competing threats, etc. Also, delegate to the appropriate persons in S&M the responsibility of contacting major business customers - informing customers of departure of S&M head and conveying to customer in no uncertain terms that cpq s&M thrust (come on get your head out of the gutter, I didn't mean that kind of S&M thrust)will change and in a way to benefit cpq customers.

To: rupert1 who wrote (60078)	4/29/1999 1:52:00 PM
From: John Koligman	Respond to of 97611

Probably good news when viewed as a continuing 'house cleaning'. Seems like Rosen and company are moving quickly on the personnel front. More business and fat commissions for Heidrick and Struggles I guess... John PS - Andreas makes some good points in regard to customer contact. Gerstner of IBM got lots of good press when he started, because he spent a good bit of time talking to many IBM employees (we were encouraged to email him directly if desired) and hit the road to spend time with many customers. This was when IBM was widely perceived as 'arrogant' and not responsive to their customer base...

To: rupert1 who wrote (60078)	4/29/1999 1:53:00 PM
From: rudedog	Respond to of 97611

Victor - There have been rumors for a while that Mike Heil would go also. The WW sales and marketing job has been a suicide post since it was created - first, because EP had such a chokehold on the sales strategy that the post was nearly powerless, and second, because the regional heads, in particular Barth, had the rest of the power. We saw three executives in as many years who were shot out of the saddle. The big question after 1Q99 was whether the product groups or sales were primarily at fault for the profit shortfall, and it looks like the evidence pointed to the sales group. IMO Rosen is smart to go back to having the regions report directly - it cuts out another layer of management and three reports instead of 1 is manageable.