Wednesday, January 23, 2008

Motorola's management churn foretold today's troubles

Motorola's troubles just keep getting worse - as reported today in the WSJ. At least the new CEO, Greg Brown, is predicting "no quick fixes".

Looks like a quick fix was tried last summer, though prior to Ed Zander's departure. We track management turnover and you can see from the MOTO chart that there was a major reorg in July. [Red are departures, blue internal moves and green hires - dark are execs, light are managers]. That July spike looks like it was a reorg to take management from ICS - the Integrated Supply Chain group (procurement etc.) - over to mobile devices - maybe in an attempt to cut costs in the phone business. When logged into the system you can see the details of each move easily so you can determine what departments are affected by the changes.

As you can see from the FirstRain chart, this was just the beginning of the churn and the drain of management has been increasing ever since, including Ed's departure at the beginning of December. These charts make fascinating reading for many companies.

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