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Title: | The Digital way of working |
|
Moderator: | QUARK::LIONEL ON |
|
Created: | Fri Feb 14 1986 |
Last Modified: | Fri Jun 06 1997 |
Last Successful Update: | Fri Jun 06 1997 |
Number of topics: | 5321 |
Total number of notes: | 139771 |
1520.0. "Layoff Process Memo to Ken Olsen - and Response" by FSLENG::JOSEPH () Mon Jul 08 1991 19:00
Attached is a memo that I sent to Ken Olsen, Jack Smith, John Sims and
Ted Sares regarding the Layoff Process at DEC. This memo was widely
circulated around the company and expresses a feeling that many people
share (or at least the several dozen people who have sent me mail have
so indicated). I wanted to provide some follow-up information on what the
"official" response has been since I sent the memo on 24 June.
I received a call from Ted Sares, who is the Worldwide Transition Manager
for Digital. He told me that he would like to meet with me to discuss the
issues I brought up in the memo. I met with him and Dave Landry, the US Area
Transition Manager, on Monday, July 1st.
There were several positive things that I learned in that meeting. The first
of which was that there IS a process that exists that is supposed to be used
by all managers in laying people off. That plan calls for the direct managers
to be the ones to personally notify the affected person that they are to be
laid off. In most cases, that carries with it the stipulation that the notice
be given one week in advance. In addition, it also calls for managers to
follow a thorough checklist to ensure that every employee who gets laid off
receives professional and courteous treatment.
I learned also that there are several regionally based transition centers
around the country and the world, within DEC Facilities, that are to be used
by people for outplacement assistance.
On the negative side, however, I don't believe that either Ted or Dave believed
that there is a serious problem with the layoff process. While it may be true
that my message and others circulating throughout DEC represent the exceptions
to what may be a very well organized and managed process, those messages
are taking what I believe is a major toll on the morale of the employees.
I expressed to both of them that it's very important that the word go out to
all employees in the company explaining the process that's supposed to be used,
admitting that there have been some isolated cases where it hasn't been
implemented properly, and provide the employees with some recourse to identify
cases where the process isn't followed so that the situation can be recitfied.
A problem that I don't see any quick resolution to is the lack of communication
around how organizations and individuals can receive advance warning of layoffs
so that they can have some opportunity to apply for positions elsewhere in the
company. Effective and truthful communication, I believe, is key to ensuring
that the employees in DEC don't feel ostracized and isolated.
We still have a way to go before I feel good about what's happening, but I
feel better than I did on June 24th when I wrote the attached. I have a
follow-up meeting with Ted and Dave on August 6th.
Thank you to all who have sent me mail expressing your thoughts. Any examples
(good or bad) or information you have concerning the layoff process would be
greatly appreciated.
Regards.
Dick Joseph
From: QETOO::JOSEPH "Dick Joseph - DAS1-2/N2 - DTN 275-2287" 24-JUN-1991 08:36:46.45
To: NM%MTS$::"MLO::KEN OLSEN" NM%MTS$::"MLO::JACK SMITH" NM%MTS$::"MLO::JOHN SIMS" NM%MTS$::"MLO::THEODORE SARES"
CC: JOSEPH
Subj: Layoff Process and its Effects
Attached is a message I sent to the Delta Office for ideas. They sent it
back to me and recommended that I send it directly to you for your action/
comments.
Regards.
Dick Joseph
THIS MESSAGE IS FOR DIGITAL'S EXECUTIVE COMMITTEE
A few weeks ago, I received a telephone call from a friend of mine who
had just been laid off from Digital. While she was aware that "downsizing"
was taking place, she didn't know that she would be one of the chosen. When
it happened, the callousness in the manner it was handled left her in a state of
shock. They literally tapped her on the shoulder, escorted her to the front
of the building, asked her to read the layoff notice, took her badge, told her
she was no longer a DEC employee, let her box up her belongings under guard
and then escorted her to the door. Her manager never said a word to her. She
was laid off on a Monday, and I was the first person she called with the news
on Thursday of the same week. Between Monday and Thursday, she stayed alone
at home crying.
This memo isn't about the fact that she was selected to be cut, nor is it an
argument against layoffs at Digital. Rather, it's about the manner in which
the layoffs are being handled and the impact that has, not only on the people
being let go and those of us fortunate enough to survive, but also on Digital's
image and reputation as a whole.
Attached is a note that was circulated early in the layoff cycle describing the
process that was used to notify people that they had been let go. Also attached
is a much longer message describing the chaos created within the CTC Facility
as a result of the incredibly poor manner in which the layoffs are being
handled there. Both of these messages, as well as the myriad of other messages
floating around the electronic and verbal network, demonstrate to me several
things about how a company renowned for having been a "people" company has,
instantly, completely and perhaps irrevocably, destroyed its credibility both
with those inside, as well as with those observing Digital from the outside.
First of all, it's clear that almost no thinking went into developing a process
for laying people off. In contrast to the humane way in which the voluntary
separations were handled, the layoff process is barbaric. One could argue that
the people who took the voluntary severance packages wanted out of Digital, and,
when the opportunity arose, they "took the money and ran," while those who are
getting laid off want to stay. I would venture a guess that a vast majority of
those who are being laid off want to remain Digital employees. Yet the people
who took the voluntary packages stayed around to clean things up and were
treated with the dignity that everyone deserves. While there are understandable
security considerations that necessitate the removal of access to Digital
systems and property, this doesn't require that the person be completely
ostracized.
In addition to that, there seems to be a dramatic absence of real leadership
on the part of the managers at every level in the company. I couldn't imagine,
under any circumstances, having people who work for me being told by anyone
except for me that they were being laid off. To have Security or Personnel
"tap" someone on the shoulder and tell them to pack their things and leave is
an insult and is inexcusable. If managers are responsible for identifying
people who are going to be laid off, then they should have the courage to face
those same people to tell them of their decision and assist the people through
the shock and trauma. If it's not being done that way, then it should be made
a requirement.
The net effect that the layoff process is having on the workforce here at
Digital seems to be completely lost on the upper levels of management at DEC.
I don't care where you go in the company, people are looking over their
shoulders to see if someone is there with the ax. Yet, the managers are
preaching the gospel of the New Management System, and speaking only of revenue
and profits.
Certainly profits are important, perhaps even the most important thing to
concentrate our energies. But the 100,000 (+) employees are the ones who are
going to achieve that profit. The New Management System is a positive step in
getting the company straightened out from an accountability and financial
perspective. However, the foundation that it's based on is "Entrepreneurship,"
which by definition requires the taking of risks.
Let me tell you from personal obeservation and experience what's really
happening in DEC now. People are clinging to anything that looks like it
will keep them secure until the "purge" is completed. How many people do
you think are really going to take a risk? In order to do that, there has
to be some feeling that the floor isn't going to drop out from underneath
them if the risk doesn't happen to pan out. That "trust" isn't there anymore
except in the highest levels (and even there I wonder how secure they all
feel).
In addition to that, there no longer is a feeling that Digital does right by
its employees. There isn't the enthusiasm to "Do the right thing for DEC"
anymore. Now it's, "Do the right thing, don't rock the boat and keep your job."
In my opinion, nothing worse could have happened to the company...and it didn't
happen because we started laying people off either. For the last several years,
there has been a feeling that DEC was too big and that we were carrying too
many people, so layoffs seemed inevitable at some point. However, I believe
that people expected it to be handled professionally and with the requirement
that the dignity of the individual be maintained throughout the process. I
know that I expected that each person who would be asked to leave would be
treated as though they had value and would receive, at the very least, a verbal
expression of gratitude for the work they had done and assistance from Digital
in making the transition. Only in very rare instances has that occurred.
People identify themselves with the work that they do and the company they
belong to. When someone asks me what I am, I tell them that I'm a Product
Manager for Digital. Digital is part of who I am. For every one of the
people being laid off, Digital has been a part of who they are for some
period of their lives. For some, DEC has been the major piece of their lives.
To all of a sudden have that taken away from them is traumatic at best and
totally devastating at worst. With a support structure from DEC in place to
help, that transition would be made easier.
What can be done now to help rectify the situation and get "the feeling" back
for the employees who are still responsible for making DEC a success? I think
a lot has to be done, and done immediately...before this next round of 7,500
layoffs starts. These may not be exactly what has to be done, but, certainly,
something like what I propose should be done.
1. Communicate your plan for the layoff. If you have a plan that's general
in nature, then communicate it to the employees the way it is now. By
letting people know what's in the plan, sure you'll get feedback that
disagrees with your plans, but you will start getting people prepared for
what will eventually come their way anyway. The secretive manner in which
everything is handled now communicates loud and clear to every employee,
"We don't trust you to do the right thing."
2. Require the managers to be the ones who give the layoff notices to people.
Then require them to counsel those laid off and to provide assistance
through the transition process.
3. Take the outside agency that has been hired to assist the people being laid
off and move them into a space within a DEC facility. Give the people who
are laid off access to the facility while ensuring that the proper security
precautions are taken. This way, people aren't just "cut off" from the
institution that has provided them with security, family and personal
identity during the time in which they were employed by DEC...and make this
retroactive to those who have already been laid off.
4. Provide frequent communication sessions about the progress of the layoffs
to the employees within the company. If there is continued uncertainty
about layoffs, then let that be known. Information, even if it is
potentially bad news or incomplete news, is better than no news, rumor or
speculation.
5. Most important of all, however, is to have upper level management put the
same degree of effort into developing an "Employee Value" plan as was put
into developing the New Management System. Go off to Heald Pond and come
back with a plan that will convince DEC's employees that Digital really
does value its employees, because they certainly don't believe that now.
Show them by your policies and actions that DEC values them enough to tell
them the truth about what's going on and trusts them enough to involve them
in the changes that DEC has to go through.
Read the two attached messages, and realize that this is your real starting
point. Digital has lost its most important base of support - its employees.
Without that, and without the honest recognition of their value, we will end
up as just another company that used to be great.
Regards.
Dick Joseph
ATTACHMENT 1:
<Many forwards deleted>
Subj: fyi - First ever layoffs have occurred
Monday, February 4th at 1:00 p.m. our group was hastily called together
to hear some unfortunate news. Product and Industry Marketing had just
implemented its "involuntary downsizing" plan. We were informed that if we
were at this meeting, then our jobs were safe.
Many of us then quickly glanced around the room to see who was and
wasn't there. We were told that people had been informed that morning.
Upon leaving the meeting, several offices had been packed and people
had already been escorted out of the building and the badges turned in. It
is a very sobering experience to witness, and one that I certainly hope to
never experience.
It appears from listening to second-hand information that approximately
10% of PIMG was eliminated. Our own group of 20 people suffered a reduction of
3.
This was not a complete suprise, about a week and half ago we were
told that Marketing had submitted a plan, and that plan was accepted with just
a few last minute tweaks. We were also told that no other group in Digital
had yet submitted a plan, lucky us!
The criteria for selection is not completely clear. What was told was
that people without assigned work, redundant work, and performance would all
be factored into the selection. In looking at the people selected, it is not
clear that these criteria were applied, but who can tell for sure.
An era has ended...
ATTACHMENT 2
Subj: One person's perspective
Folks,
I wrote the following as a stress-reduction exercise. I used to write
for a newspaper, and am used to that style.
Permission to forward internally within DIGITAL for non-commercial use
is hereby granted, provided that this header, the security classification,
and the copyright notice remain attached.
***** DIGITAL INTERNAL USE ONLY *****
CTC EMPLOYEES MEET THE 'NEW DIGITAL'
One hundred Digital Employees lose their jobs -- they think.
� 1991 Roberta L. Fox
It was 9:27 on June 13th, and Mike Taylor, Manager of the CE/CALS
Organization at Digital Equipment Corp., was about to wrap up his one hour
presentation to one hundred new reports, when a senior member of the technical
staff asked one last question.
"I'm very impressed with your cogent discussion of your technical and
business plans. I'm even more impressed," she continued, "that, in the 55
minutes of your presentation, not once did you mention our 100 "unfunded"
colleagues who were pointedly not invited to this meeting, and who
don't know what will happen to them on June 28th."
Originally scheduled to leave at 9:30, Mr. Taylor remained for more
than an hour to listen as, one by one, members of the "funded" CAD/CAM
Technology Center (CTC) voiced their pain and outrage at the fate that had
befallen their co-workers, some of whom had worked with them for ten years or
more.
Both Mr. Taylor, and Sunil Bhalla, new site manager for CTC, expressed
surprise at the depth of feeling on the part of employees whose jobs were
considered secure for the next fiscal year. The unusual display of emotion was
the culmination of employee dissatisfaction with CTC management that had been
building for several months. But its immediate cause was the perception that
middle management at Digital was treating long-time, productive employees with
callous disregard during a 50% cutback in staffing at the Chelmsford,
Massachusetts facility.
CUTBACKS NO SURPRISE
Everyone at the 200 person facility knew that their site was
vulnerable to staffing cutbacks, or, in Digital parlance, "downsizing."
Cutbacks were occurring throughout the company, as a series of successively
less generous "severance packages" were given to those who left, either
voluntarily or involuntarily. The CTC site manager, Dick Anderson, had
decided not to participate in the most rewarding of these severance plans,
TFSO I and TFSO II, in the hope that he could keep the site together. But in
January of 1991, "ownership" of CTC was assigned to David Stone, VP of The New
Software Group, who sternly reminded Mr. Anderson and the rest of CTC that
head count must be lowered. Predictions were made that between 10 and 30 CTC
employees would be sent packing.
ELEPHANT LABORS MIGHTILY; PRODUCES MOUSE
The management team got to work, and, after approximately two months
of analysis, rendered its headcount verdict: five people were given a few
hours to pack their personal belongings, and were whisked to the door without
a chance to say goodbye. The rest were called into a meeting with Mr.
Anderson, and led to believe that, at least for the rest of the quarter,
everyone else was safe. "I couldn't understand it," said one young support
specialist, "how much savings could eliminating five people accomplish?"
Several looked at what scant fiscal information had been shared with
non-management staff, and started to worry. It was clear, given the numbers,
that CTC was still way over head count. Many revised their resumes and cut
back on their personal expenditures; a few even put their houses on the market
with the intent of "buying down" to a lower priced home.
ANOTHER SHOE DROPS
On May 29, 1991, Mr. Anderson circulated a memo with startling news:
as of July 1st, the CTC organization was to report to Mike Taylor, who, like
Mr. Anderson, reports directly to David Stone. Until then, Mr. Anderson
stated, he would be continuing to work on getting FY 92 funding, but, he
added, "I will not be transferring with the group."
Many regarded the wholesale transfer as a puzzle. The CALS/CE
Program Office has its major focus on external business and new software
product development; more than half the CTC employees are assigned to
providing software services to meet Digital's internal hardware development
and manufacturing needs. The managers of these services continued working to
get FY 92 funding under the New Management System, which mandated a contract
in hand by June 29, rather than allowing for the "gentleman's handshake" of
previous years.
"It's been very hard to secure funding from other internal
organizations," explained one such manager, "they themselves don't know what
their funding will be on June 29th, so they can't, in turn, make commitments
to us. Some of our customers are waiting to see what other of our customers
are going to do; if we don't have 'critical mass', they don't want to be left
holding the bag."
"AN INVITATION TO A MEETING"
Late in the afternoon, on Tuesday, June 4th, about one hundred CTC
employees, half the facility's population, received a message in their
electronic mail: they were invited to a meeting scheduled for 4 p.m. There
they were told that their job positions were currently "unfunded", and that,
while there was still hope that additional funding would be found, there were
no guarantees. Thus, they were being given three and a half weeks to look for
another job, either by internal transfer or outside the company. A resume
writing and interviewing technique session would be offered, and a job fair
organized. The question of what would happen to those employees unable to
find a job in that limited time, and whether they, too, would be given the
current severance package, went unanswered.
News of the meeting swept through the facility, and, by Wednesday
morning, those who were not "on the list" [told to find a new job], were busy
helping those who were. "I'm devoting almost all my time at work helping my
co-workers revise their resumes, writing letters of recommendation, and
calling contacts at other sites for job leads for them," said one software
engineer whose position was still funded. "I went to the job fair on Tuesday
to look around for myself, but ended up mostly trying to find matches
between my "unfunded" co-workers and the job recruiters."
Many of the "funded" employees decided to go looking, too. "No funding
is yet set in concrete, including mine," explained one senior software
engineer, "I want to be ready, in case they tell me on June 28th to pack up my
office and go. "
THE UNANSWERED QUESTION
What will happen to those unlucky enough not to have found a job by
June 28th remained unclear. Repeated attempts to get personnel
representatives or CTC's management team to explain the process failed. At
first, the explanation that the decision to call the meeting had
occurred too swiftly for Personnel to catch up was reluctantly accepted, but
as the days wore on, CTC employees, both "funded" and "unfunded", became
increasingly anxious. "I just want to know what is going to happen to me if I
can't find a job," bemoaned one "unfunded" employee, "am I going to be given
the same severance package as everyone else has gotten this quarter, or
am I just going to be given two weeks in lieu of notice?" Some feared that
the severance would occur on July 1st, in the new Fiscal Year, when, it was
predicted, the severance package would be even less generous.
"WRITING THEM OFF"
In the midst of the confusion, it was announced that Sunil Bhalla
would be taking over as site manager for CTC. His first public communication,
to start the process of realigning the facility's organization within the
CE/CALS structure, alienated many "funded" employees by his limited
distribution of the memo: "This note is going out to all those people who are
currently assigned to funded projects, and all managers/supervisors." Said
one supervisor, "the message I read here is that Sunil has written off the
employees who are 'on the list', as if they have nothing further to
contribute." Consistent with this memo, only those employees identified as
funded were invited to the Thursday morning meeting, to meet their new boss,
Mr. Taylor.
Mr. Taylor found he was meeting a severely demoralized workforce, which
was skeptical of him, Mr. Bhalla, and Digital Personnel. "It's been eight
days since CTC announced the funding situation, and still management says it
doesn't know what is going to happen to our fellow employees on July 28th,"
stated one engineer. "This leads me to wonder: do you _really_ not know, in
which case, why should we trust you to lead us in the future, or do you know
and aren't telling us, in which case, why should we trust you at all?"
Meeting participants relentlessly pursued the issue, trying to get Mr. Taylor,
Mr. Bhalla, or the two Personnel representatives to address the question, to
no avail.
"You know, Mike", said a very senior engineer, "I came to this meeting
with the attitude that I was going to use it like an interview, to determine
whether _I_ want to work for _you_. So far, I am not impressed."
Mr. Taylor claimed he was uninformed on the issue, as he had just
taken over the group, but that he would meet immediately with Mr. Bhalla and
Personnel representatives. Mr. Bhalla committed to conducting another
meeting, to which all CTC employees would be invited, the next day. At that
meeting, he promised, "more information would be available."
"KUMBAYA, MY LORD"
But any hopes that more information on the status of the "unfunded"
employees would be forthcoming were dashed. Mr. Bhalla and Mr. Taylor listed
the projects that were funded, were non-committal on the new organizational
structure, and spent some time trying to assure employees that they,
personally, cared about them. And they had no news about employee status.
Paul Saschuk of Personnel informed the group that he had made copies
of the current "transition [severance] package, which they could look at. "We
know what is in the package," countered one employee, "but what we don't know
is whether we will be given it. Can we assume that we will be given it if we
haven't found new jobs by June 28th?"
"I don't know, I can't tell you, the decision hasn't been made yet,"
returned Mr. Saschuk.
"Who is making the decision?" he was asked. The question was
repeated, without an answer, several times before Mr. Taylor stood up to
explain that the decision was being made by a team composed of CTC management,
people from David Stone's organization, and the Corporate Transition
organization. But he refused to divulge the names of the individuals
involved, despite repeated requests to do so.
After the meeting, some participants expressed disgust. "I guess they
[management] hoped for the meeting that we would get in a circle, hold hands,
and sing, 'Kumbaya, My Lord'," an "unfunded" employee said, "there certainly
wasn't anything new to tell us." "I don't understand it," a supervisor added,
"they probably know, but have been told not to tell us. But I never heard of
an employee forbidden to say that he knows, but can't tell us."
Employee morale continues to be low, with many more people --
including several deemed critical to the long-term success of CE/CALS --
planning to look elsewhere for employment. "I don't want to work for these
guys," said a long-time employee. "I predict that, within six months, at least
half of the 'funded' employees will have chosen to go elsewhere," opined
another. And still others wonder whether any statements from Mr. Taylor and
his staff can be believed, no matter how reassuring.
"Funded" and "unfunded" employees alike are awaiting further
developments. But they know that they don't have long to wait -- June 28th
is less than two weeks away.
***** DIGITAL INTERNAL USE ONLY *****
T.R | Title | User | Personal Name | Date | Lines |
---|
1520.1 | I hope this doesn't further restrict information flow | SMAUG::GARROD | An Englishman's mind works best when it is almost too late | Mon Jul 08 1991 20:36 | 34 |
| Re .0
Congratulations on trying to let the highest level of decision makers
know what is happening down in the trenches.
A comment:
What's the betting that the outcome of this memo will be a policy that
further restricts the passing of information around the network. I've
already seen this memo a couple of times but it is interesting to note
that it was immediately censored from this notesfile the first time it
was posted because it violated the "No mail messages authored by others
in a notesfile policy".
And let us not forget that this policy was put into place after some
previous memos on TFSO/COD planning were circulated. My own bet is if
more thought had been given to the reorgs that started 3 years ago
we wouldn't be in this sorry state now. If a system was in place to
allow better information flow that bypassed the information benders
the company would be able to make sounder decisions and get decent
feedback quickly. But NO, each new policy tries to clamp down on
information flow so that poor decisions can continue to be made
behind closed doors.
It is interesting to note that two very poor decisions (1, Elimination
of reimbursement for inter-plant travel and 2, Biweekly paychecks) were
rescinded before they had a chance to do any real damage. I think a
large part of that was due to the airing these issues got in this
notesfile as well as through circulated mail messages.
Good decisions stand on their own merit, no matter how much they are
scrutinized. Bad decisions only stand if they are kept in the dark.
Dave
|
1520.2 | I get the feeling this is considered a non-problem... | ULTRA::SEKURSKI | | Tue Jul 09 1991 08:26 | 9 |
|
re .0
Did you get any assurances that "the process" would be widely
communicated ?
Mike
----
|
1520.3 | heads in the sand... | DIEHRD::PASQUALE | | Tue Jul 09 1991 10:51 | 18 |
| re .0
Congratulations for having the courage to articulate (rather well I
might add) the state of the company as seen from down below. I would
like to think that something positive will occur as a result of your
actions, but having attempted myself to deal with some of the folks you
addressed in your memo on another issue, I remain skeptical. As
inconceivable as it may seem that this could be considered a
"non-problem", unless they hear the same message directly from
literally hundreds of other employees then it's conceivable that they could
believe this to be an isolated problem. I sure hope that someone will
wake up before it's too late (if it isn't already). I'm afraid the only
way to fix things will be for Ken to shake the company to it's roots
and then rebuild it from scratch. Perhaps that's what NMS is going to
do.
/ray.
|
1520.4 | We try to "do the right thing" | QUARK::LIONEL | Free advice is worth every cent | Tue Jul 09 1991 12:58 | 42 |
| Re: .1
I want to respond to Dave's comments about the earlier version of Dick
Joseph's memo being "censored" (as he puts it.)
We (the DIGITAL moderators) removed the earlier version of the memo, posted
by someone else, for the following reasons:
1. It was not clear that the poster had the author's permission
to post the note; corporate policy on this is quite clear.
2. The poster had removed mail forwarding headers and part of the
original message text before posting the note, making it
unclear as to just whom had received the memo.
We asked the poster if he had permission, and he said "no". I later was
contact by Dick Joseph who said that he wanted the memo entered. I
replied that we'd be delighted for him to do so, and asked that he clarify
what actions had been taken and who had seen the message, to which he
readily agreed. So here it is.
In my personal view, the policy prohibiting posting memos written by others
without the author's permission is a good one. Context is often important,
and the author may find that their message, stripped from context and
broadcast to those the author never intended, may have serious and negative
effects to the author.
The moderators wish to encourage the flow of information, but not to the
extent of possible harm to individual employees or Digital as a corporation.
We don't ask much - only that you get permission before posting someone else's
message in the notesfile, and that you retain all identifying information.
(I recall several years ago someone taking a memo I had written describing
a presentation about several unannounced products, and submitting it to
a corporate-wide MAIL distribution list, but not before removing my name and
substituting their own! It's incidents like this that the policy is
intended to prevent.)
If you have further questions, please don't hesitate to write any of us -
use SHOW MODERATOR to see the current list including MAIL addresses.
Steve
|
1520.5 | Leadership??? You've gotta be kidding! | COOKIE::LENNARD | Rush Limbaugh, I Luv Ya Guy | Tue Jul 09 1991 13:38 | 9 |
| Given upper "management's" single-minded, almost maniacal obsession
with short term profit at any cost, I don't expect any improvement.
We would know that K.O. and company were truly concerned if the manager
who allowed that horrible incident cited in .0 to happen was summarily
fired, without severance support. Anybody wanna bet on whether that
will happen?
....and the death spiral continues.
|
1520.6 | Some Reasons | ODIXIE::NEILL | | Tue Jul 09 1991 16:21 | 34 |
| On the subjects of :
1. Leadership - the qualities most of us are looking for are found in
the direction and honesty in the way we are dealt with. Managers who
hide behind what's flowing downhill are not leaders.
2. Management - the dozen or so "managers" at the top have been giving
us the tough guy act for the past 2-3 years, but no real management,
the middle managers have for many years seeked higher level by building
larger and larger organizations - pushing themselves upward, there is
the problem.
3. Too Big - not really the problem, too many irons in the fire is more
of a problem as I see it. Too many products, all trying to compete in
many different markets.
4. C.O.D. (and other programs) - we tried to have successful people
move from what made them successful into field jobs closer to
customers, without teaching them what that meant and without changing
our field organization. It's like measuring engineers on units sold,
when they are concerned about 'units working'. The oter problem with
COD is that the commitments to the employees that moved to the field
were forgotten, a common field sales attribute. Everyone I know in this
program was told "18 months training and OJT before going on budget",
that's BS.
5. "The Package" was/is not administered the same across the company.
That is understandable where foreign countries are concerned, but not
equally across the USA is a BIG problem. It has become "Jobs for
friends" and "I don't know nuthin".
Now is a good time for a take over because Digital is no longer
different, it is just like the other big corporate machines - too bad!
Jim
|
1520.7 | | COOKIE::LENNARD | Rush Limbaugh, I Luv Ya Guy | Tue Jul 09 1991 16:42 | 9 |
| Re -1, Amen to your comment about field commitments being forgotten.
I am a survivor of the ill-fated Target Sales Force. We were also
given promises, some even in writing, which were then abandoned in
their entirety. When our "management" was challenged we were told
"things change".
A lot of these clowns are still around screwing things up.
|
1520.8 | one decision == two decisions | RICKS::SHERMAN | ECADSR::SHERMAN 225-5487, 223-3326 | Tue Jul 09 1991 17:09 | 14 |
| I heard the head of Coca-Cola interviewed yesterday on public radio.
He said something very profound that he apparently has identified as a
problem that upper-level managers of today tend to have. He said that
when you make a decision you have to remember that you are really
making two decisions. By illustration, when you get up in the morning
and decide on a tie to wear, you are also deciding to continue to wear
the tie for the rest of the day. Similarly, competent managers that
make decisions are also deciding on commitment to those decisions.
Our management did not apparently recognize the dual-nature of such
decisions with regard to, for example, COD. But, as the head of
Coca-Cola points out, it is a common problem with upper-level
management.
Steve
|
1520.9 | | AYOV28::DHUNTER | | Wed Jul 10 1991 04:46 | 26 |
| re: .8
Steve,
that's an excellent point. All too often, outwith TFSO/COD etc.,
in digital a lot of effort goes into developing policies which may
or may not be well thought out. Bottom line is that these policies
are all to often ignored by management (or even UNKNOWN to management)
in part or in whole.
Further, digital seems to have a prediliction with freedom of
choice. By this I mean that there are no standards when it comes to
implementing products/projects within digital. What I mean by this
is in Manf. why do we have MAXCIM, PIOS, IMPCON, MANMAN, DMS,
Internally developed databases ?? - and that's just in Europe!
I guess it comes as no surprise to me that implementing TFSO
in it's various manifestations was going to be non-standard across
the U.S. and that the disgraceful treatment of the COD people was
inevitable given the lack of forward vision by management, on the
one hand and the gullible loyalty of employees on the other.
In some respects digital hasn't changed much at all - organised
chaos, minus any dignity.
Don H.
|
1520.10 | A Manual of Layoff Style | TNPUBS::JONG | Steve Jong/T and N Publications | Thu Jul 11 1991 00:56 | 23 |
| I want to congratulate Mr. Joseph for a beautifully written piece
on the agony of layoffs badly planned. (It's rather long, but I
was absorbed by it.)
How could you expect Digital to manage its first-ever layoffs well?
Doing them well is apparently a corporate skill, one which Digital
thankfully never practiced before. That tales of horror and barbarism
should be told is not surprising. I submit that things could have been
even worse: at another computer corporation, it is said, the employees
rioted, and the local police had to be called. A document outlining
Digital's "layoff style," if you will, is a grimly good idea.
The later remark that Digital has "instantly, completely, and perhaps
irrevocably destroyed its credibility" as a people company is also very
true. At another computer maker, it is said, the founder called all
employees to a meeting in the cafeteria, and assured them he would
never lay them off. The company was very much a cult of personality,
whose founder was revered as is KO here. The employees believed him.
He was forced to eat his words, and perhaps that is what killed him.
One who was there has spoken of the shattering impact of the first wave
of layoffs there for those who had heard the founder speak. Those of
us who think of corporate culture know that Digital has changed its
culture in a significant way.
|
1520.11 | D.G. -> Data Generious? | NAC::SCHLENER | | Thu Jul 11 1991 17:31 | 6 |
| Re .10
Steve, was that Edison DeCastro from Data General that you were
referring to? If so, I remember that cafeteria scene well (It's amazing
how convincing Captain Eddy appeared to be but the truth came out one
year later!)
Cindy
|
1520.12 | | COOKIE::LENNARD | Rush Limbaugh, I Luv Ya Guy | Thu Jul 11 1991 18:27 | 6 |
| Nicely put, .10.
I really feel, however, that it is probably time to stop talking
about a Digital "culture", once and for all. Anything that ever made
us different has been swept away by a tidal wave of layoffs.
|
1520.13 | Was DeCastro really revered? | SCOBIE::CLANE | Did you hear what Rush said? | Thu Jul 11 1991 23:20 | 7 |
| re: .11
Since DeCastro is still alive, I believe Steve was referring to Dr.
Wang.
Chris Lane
|
1520.14 | | RICKS::SHERMAN | ECADSR::SHERMAN 225-5487, 223-3326 | Thu Jul 11 1991 23:52 | 6 |
| re: the last few
DeCastro sounds like the name they had on the report. I thought his
comments were quite valuable and have taken them to heart.
Steve
|
1520.16 | Accountability and Guts | BTOVT::AICHER_M | | Fri Jul 12 1991 14:04 | 21 |
| RE If I were manager....
Right you are Dick. Obviously you possess a rare quality
that is missing these days....GUTS. I've seen enough of this
"roll-over-and-play-dead" style of management to make me ill.
DO the uncomfortable things. Make the TOUGH decisions.
STICK your neck out to do the right thing whether
or not it will feather your nest or it's it's politically
correct.
Then....YOU OWN IT. You are ACCOUNTABLE. You get the parade
and glory if it flies. You get the heat if it fails.
GUTS and ACCOUNTABLITY will turn this company around.
whew...there...I feel better now.
Mark
|
1520.17 | | XCELR8::GAUGHAN | | Sat Jul 13 1991 01:12 | 6 |
| RE. 15 Security Gestapo.
The managers request security, or security would not be there......
charlie
|
1520.18 | But... | FRAYED::ADAMS | Visualize Whirled Peas | Sun Jul 14 1991 16:27 | 4 |
| re: .17
Or in the case of field offices, security was dictated by management in
*other* locations...
|
1520.19 | Brilliant. | DCC::HAGARTY | Essen, Trinken und Shaggen... | Mon Jul 15 1991 07:11 | 17 |
| Ahhh Gi'day...�
Reminds me of a story that a reserve army officer told me. He was told
by a staff sargeant on training about what happens if your unit really
gets into trouble. He said (paraphrasing):
"All the perks, the officers mess, the adjutants, the uniforms, the
careers, the lack of physical work etc etc of an officer is to be payed
back now. You are responsible, it's YOU who must take the lead, stick
your head up, find a way out of the situation, stand up under fire, and
LEAD THEM OUT!"
The moral is if you are getting paid to preform this function, then you
should have the (errr) intestinal fortitude to know that these are the
circumstances your privileges have paid you for.
Yes, accountability and guts just about sums it all up.
|
1520.20 | | BTOVT::AICHER_M | | Mon Jul 15 1991 10:15 | 20 |
| RE .19 Thank You! I hope it is widely distributed.
I also like the idea of an objective party outside
of DEC looking at the organizational mess....managers
with only couple of reports, or none at all etc..
The reason I mention this is that when I had an opportunity
to discuss this situation with someone at a higher level,
explaining how more could be done with less, I heard
something like "blah blah...need specialized skills..blah blah."
Bullsh*t. I have come to the conclusion that there isn't
anyone internally at any level that could objectively
look at this.
We should do it now before somebody buys DEC and does it
for us.
Mark
|
1520.21 | An apology...... | COOKIE::LENNARD | Rush Limbaugh, I Luv Ya Guy | Mon Jul 15 1991 13:01 | 10 |
| Someone called to my attention the inapppropriateness of my use
of the word Gestapo in .15
Having cooled off somewhat I agree, and also wish to apologize
to anyone whose feelings I may have hurt. Maybe I thought I
was in Soapbox.
However, my basic position remains unchanged.....a shameful way
to handle things. If I hire you, I'll see you to the door as
well and probably help you carry your boxes out.
|
1520.22 | | VCSESU::MOSHER::COOK | Harvester of Sorrow | Mon Jul 15 1991 13:27 | 23 |
|
From Digital Today, July 8, 1991.
"Questions Answered about Downsizing" Yeah, right.
"Q: If I am a borderline performer should I start looking for
another position?"
"A: Your manager is in a position to advise you on how to improve
your performance and develop the skills that are needed in today's
market place."
"Q: Why weren't we given an opportunity to find other jobs in other
organizations?"
"A: We have made the decision that we would have a common date
announcement date for each employee and that everyone would have
equal treatment to look at opportunities outside of the company."
Okay, who wrote this stuff anyway?? Words fail me when I try to
describe how I feel about this little work of art.
/prc
|
1520.23 | George Orwell? | FUNYET::ANDERSON | VMS: First and Last and Always | Wed Jul 17 1991 12:55 | 0 |
1520.24 | Funny, if not so sad | COOKIE::LENNARD | Rush Limbaugh, I Luv Ya Guy | Thu Jul 18 1991 15:58 | 5 |
| Yeh....I can't believe that the editor of Digital Today actually
agreed to publish that pile of trash. Until I saw it, I would
never have believed that Digital actually has its own Ministry of
Propaganda. The "unanswer" to the question about voluntary
departures was a classic....Goebels would have loved it!
|
1520.25 | | PSW::WINALSKI | Careful with that VAX, Eugene | Thu Jul 18 1991 17:38 | 10 |
| RE: .22, .23, .24
Upper management in this company seems to resemble an old-style Communist
Politburo more and more with each passing day. Regarding the Digital Toady
(misspelling intentional) article, I wish they wouldn't insult my intelligence
with that kind of garbage. Being laid off means that, for whatever reason,
the powers-that-be in the company feel that they don't need you any more.
Painful to accept, but true. No amount of whitewash can hide that fact.
--PSW
|
1520.26 | Trying to pull teeth slowly just hurts more ... | AUSTIN::UNLAND | Sic Biscuitus Disintegratum | Thu Jul 25 1991 05:40 | 29 |
| re: Digital Today, and other "Rightsizing" messages
I have seen a couple of different "news articles" in the internal
press, and have gotten a couple of one-page memos in the mail from
Management. None of which say much, but then that's to be expected
since this company hasn't got a clue about how to lay off people.
Management will learn quick, or they will suffer the consequences
morale and productivity plummet. Trying to put a smiley face on
the situation and dodging the tough questions will work, for those
people who are good at believing what they *want* to believe. It
strikes fear into the hearts of a good many others, because it
undermines their faith in the competence and integrity of management.
We all know the answers to the really tough questions: People in
this company are going to lose their jobs if the company as a whole
cannot perform well. If the company continues to perform poorly,
the layoff process will continue to occur. Redeploying people into
other jobs only moves the expense around, it doesn't eliminate it.
Employees aren't going to get much notice, because it doesn't benefit
the company any, and since the employees in question aren't going to
be employees much longer, the company isn't terribly concerned that
it will cause negative feelings. Besides, that's really what the
severance pay is for, your salary to go and look for another job.
Tough answers, but these are tough times, and our managers should
be tough enough to tell us about it straight.
Geoff Unland
|
1520.27 | Maybe Klinger is making these decisions? | ORABX::REESE_K | just an old sweet song.... | Fri Jul 26 1991 14:30 | 19 |
| Geoff:
Your point has been accepted by many people....people will go if
the company isn't performing well. However, months ago I read an
article on LiveWire that clearly stated performance ratings AND
budgets would be major factors in the decision.
I have just witnessed sales reps....2 performers.....some 200%
of budget walked to the door....and others who weren't even remotely
close to budget still here. If some of the reps still here haven't
booked any business in almost 2 years, why should we assume they
will acquire the skills now? This is what scares the bejeebers out
of me!!
Sometimes I feel as if I've just been transported into a bad episode
of MASH :-(
Karen
|
1520.28 | I guess goalsheets don't mean what they used to ... | AUSTIN::UNLAND | Sic Biscuitus Disintegratum | Mon Jul 29 1991 02:38 | 32 |
| re: .-1 "who got laid off, and why ..."
One of the most unsettling things about the way DEC is doing this
layoff is that the evaluation criteria used is a secret process
(at least to me). I, too, know of people who got laid off who had
met or exceeded their goalsheets. I don't doubt that management
had some reason for picking those people, but they haven't shared
them with anyone I know. If nothing else can be said of unions,
consider this: Companies that have employee unions have to defend
their selections fairly rigorously. That means the process used
to select employees is known, and an individual employee can usually
find out exactly where they stand in the rankings simply by asking.
It doesn't mean that everyone agrees with the criteria used, but it
does mean that you know where you stand.
So far in our case this hasn't happened. I've read the various memos
about what criteria are supposed to be used, but I've also heard a
number of *different* things from the actual managers who have done
the "laying off" in my area. Things aren't quite adding up, either.
The consequence is obvious: Rank and file employees really don't
have any way to judge the security of their jobs. Performance and
meeting goals may not be the best way of keeping your job in the
"New Digital", if the last round of layoffs is any indicator. Let's
face it, if your job now depends more upon how many middle managers
recognize your name (favorably, of course) than it does on how well
you've met your goalsheet, then a lot more people are going to spend
their time covering their behinds than they are doing useful work.
Needless to say, I don't think this is good for us or the company.
Geoff Unland
|
1520.29 | What we were told, re: sales downsizing | NEWVAX::PAVLICEK | Zot, the Ethical Hacker | Mon Jul 29 1991 09:53 | 21 |
| re: layoff selection criteria for sales
Our District Mgr told us that the layoff was supposed to be focused on
overall skills and future needs, rather than "making numbers". He said
that some people are likely to "make their numbers" in any given year
_despite_ their efforts, rather than _because_ of them (Can't
remember who told me, but someone told me that a certain customer
rated the salesperson very low on the customer survey, but liked the
rest of Digital very much; result: big sale made _despite_ the sales
rep who made his/her numbers). Likewise, a good rep could look lousy
on paper simply because the customer wasn't able to part with
sufficient funds during the year to make the rep look good (in the
Gov't arena, for instance, Desert Storm did a lot to dry up funds for
several months).
So, supposedly, the effort was to be centered on skills, rather than
which rep had a good or bad year.
Obviously, you mileage may vary considerably.
-- Russ
|
1520.30 | Some Management Perspective? | PIPPER::LEBLANCR | Ruth E. LeBlanc, Pipper::LeBlancR | Mon Jul 29 1991 13:59 | 49 |
| From what I've seen and heard, the first criteria in determining which
people will receive TFSO is their business function or projects they
may be working on. If I were a manager, I might then determine that
Project X is high-risk with a low profit potential, and my decision may
therefore be to offer TFSO to all those people on Project X. The
difficulty comes when the Project X folks are high performers, while
the hypothetical Project Y folks (a high-potential project) are low
performers, but happen to be on the right project at the time. This
dilemma results in good people being shown the door, but also makes
*some* business sense because it's keeping Project Y active.
One may argue that one or more individuals on Project Y be shown the
door, and an appropriate number of Project X folks be given those jobs
from Project Y. But, then we raise the questions of re-skilling folks
into the new project or the potential delays in Project Y because
x-number of people have to be brought up-to-speed. Not to mention the
potential legal hassles in trying to justify the decision.
It's a tough decision from a manager's perspective. Another problem
comes when it's determined that 4 people, for example, could accomplish
a project when there are 6 people working on it. How does a manager
determine which two will be offered TFSO? I've seen that done
differently in different groups; one group offered it to all with the
understanding that only two acceptances would be granted on a
first-come-first-serve basis, and another group used performance
criteria.
Of course, then we get into politic games where a manager determines
that Project X can be axed, so he transfers the people who aren't in
the clique into that project, then a month or so later eliminates the
project. All the while, he's put his favorite people into projects
that he knows will continue. [true story.]
In short: The system leaves a whole lot of discretion with Management.
Good managers are faced with tough decision, but the flexibility of
different techniques to make the BEST decisions for the company and for
his/her people. But, with Digital's philosophy of leaving discretion
with Management, there are bad managers out there who abuse it.
I guess it's a personal decision as to what we feel is best. I like
the idea that my manager has the options available to do what he feels
is right; I'd alternately HATE a union-type shop that doesn't allow
that flexibility (where seniority is everything, regardless of ability,
for example).
Disclaimer: I'm talking only of what I've seen. I have no idea how a
manager of a sales team, for example, would choose among team members.
But I do know that we have a lot of managers who are trying their best
in dealing with difficult decisions.
|
1520.31 | Using the furniture for firewood works for awhile, but ... | AUSTIN::UNLAND | Sic Biscuitus Disintegratum | Mon Jul 29 1991 17:06 | 18 |
| re: 1520.30 by PIPPER::LEBLANCR "Ruth E. LeBlanc, Pipper::LeBlancR"
> One may argue that one or more individuals on Project Y be shown the
> door, and an appropriate number of Project X folks be given those jobs
> from Project Y. But, then we raise the questions of re-skilling folks
> into the new project or the potential delays in Project Y because
> x-number of people have to be brought up-to-speed. Not to mention the
> potential legal hassles in trying to justify the decision.
This behavior illustrates the worst type of short-sightedness. Sure,
it lessens the impact to the current program, but what about future
programs? Whenever we sacrifice a qualified and versatile employee
just because they happen to be at the wrong place at the wrong time,
then we are just destroying our hopes of becoming a player in the
systems integration industry in the long term. Too bad ...
Geoff
|
1520.32 | | RICKS::SHERMAN | ECADSR::SHERMAN 225-5487, 223-3326 | Mon Jul 29 1991 17:59 | 7 |
| I agree with Geoff. In order to win in the long run we need to commit
to retraining good people and to using them once they are retrained.
Wouldn't it be nice if Digital made a commitment to keeping the best
and brightest and in continuing to invest in them through retraining as
market conditions changed?
Steve
|
1520.33 | | PIPPER::LEBLANCR | Ruth E. LeBlanc, Pipper::LeBlancR | Tue Jul 30 1991 13:21 | 11 |
| RE: .31 & .32: Amen. I was callin' 'em as I sees 'em, not as I think
they should be. My mother, who *was* a long-term DECcie, found herself
on a bogus project, then shown the door. DEC lost a dedicated and
experienced person, all because of short-sight
On the bright side, I *have* seen managers doing this process with
morals, ethics, and human consideration, but the few bad ones are
really hurting us.
:-(
|
1520.34 | Only criteria was.....no uniform critera! | SUFRNG::REESE_K | just an old sweet song.... | Wed Jul 31 1991 14:52 | 42 |
| I concur with Geoff (with the exception of unions :-); we are
hurting DEC by not discussing *whatever* critera was used so far.
But then again, perhaps there a some georgraphic areas who perhaps
don't want anyone scrutinizing their critera too closely????
~~~~~~~~~~~~
I've already discussed a friend who had been a 2 performer all but
her first 6 months in sales.....4 straight DEC 100's and DECathalon
in '88. She was well over budget.......she had been with DEC 15
years. NOT knowing why she was cut when others who are 20% of budget
were kept (and reassigned to dubious accounts that stretch the
theory of project importance being a consideration) anyway....not knowing
almost turned a highly motivated and self-assured professional into
a basket case for a few weeks. She said she could have handled
being told everyone on her team was a 2 performer....everyone had
more than exceeded budget...but someone had to go....so a name was
picked out of a hat <---------this she could have handled.
As far as business going away......the rep who picked up her accounts
had the audacity to call my friend at home.....see if they could
"do lunch" and my friend could fill the new rep in on each account!!
My friend agreed to the lunch because she was hired by one of our
largest distributors.....so she'll hopefully get a leg up starting
over.....stupid she is not!! If she works even half as hard for
the distributor as she did for DEC the last 15 years.....she'll
probably be much better off financially!!!!
I'm still not sure what to think of Ms. Sensitivity making
that phone call yet :-(
Someone else made the point about non-performers being given the
package.......I witnessed this also. A co-worker in a former group
was constantly on verbal or written warning.....when things would
get too hot the individual would suddenly be out on stressed re-
lated STD. That group had 6 managers in 5 years.....so there was
never one manager in place long enough to follow established pro-
cedures required to terminate a non-performer, thus the last manager
used the package to get rid the individual.....needless to say, this
individual had a BIG smile on her face the day she was notified....
she got TFSO II!!!!
|
1520.35 | Good luck on August 6th | SMAUG::GARROD | An Englishman's mind works best when it is almost too late | Thu Aug 01 1991 00:07 | 7 |
| Re .0
Discussion seems to have drifted a bit from the subject of .0. Just
wanted to wish you good luck on August 6th. Let us know what
transpires.
Dave
|
1520.36 | Just hope it isn't toooooooo late..... | ORABX::REESE_K | just an old sweet song.... | Thu Aug 01 1991 15:35 | 27 |
| I think my last entry might be more pertinent than you think. The
friend I spoke of was called at her home Monday evening by a VP of
this company. She forgot to ask how he found out about her, but
he made it very clear he was looking into reports that there were
some areas blatantly abusing the process that Dick described in
the base note. She had a breakfast meeting with one of his rep-
presentatives this AM.
My friend was rather impressed by the VP's representative....she
really expected to be given lip-service.....and she walked away
from the breakfast feeling different. She said they both agreed
that quite a bit of down-sizing would have to happen, but he
indicated the radio report of 20,000 still to go in FY 92 was still
off the plans for FY '92.....but agreed (assuming DEC is still
intact in a few more years).....that a population of 80-85,000
would probably be more realistic.
So it would appear that the noise level is starting to penetrate
walls we thought sound-proof (or maybe it's the stench wafting
in under the doors).
Karen
It would appear that people *are* starting to pay attention to the efforts
made by people like Dick Joseph and others.....guess we all have to
hope that it isn't too late.
|
1520.37 | Lower benefit costs? | FSDEV2::MGILBERT | Kids are our Future-Teach 'em Well | Thu Aug 01 1991 15:58 | 5 |
|
With all the long term employees who were supposedly good performers
over their careers having been shown the door one has too wonder how
many managers started looking at other employee cost areas when making
some of their decisions.
|
1520.38 | Directing change | DPDMAI::JONESR | REX | Tue Oct 15 1991 12:23 | 22 |
| It is very important to retain the most qualified personnel during the
much needed down-sizing. However, some of the people making the choices
are the same ones who directed Digital into its current problems.
Therefore, who is and who is not qualified?
A change is necessary. To effect change, you must change the positions
and resposnsibilities of the people implimenting the change. You can
not assign the same person to the same job of new title and expect
change.
Their has been some change in the directorate level of Digital and
personally I think this has been good. However, there has been little
change in the mid range and lower levels of management.
I must say that constructive discussion is necessary to achieve good
behavior (of managers and all of Digital's employees).
Rex D. Jones
|