Conference 7.286::digital

2851.0. "Digital Europe - New Management" by LOVADA::SCHERRER (Patrick - Corp Strategic Alliances) Wed Jan 12 1994 13:54

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     12-Jan-1994 09:32am CET
                                        From:     Barbara CUENOD @geo
                                                  CUENOD.BARBARA AT A1GVA05 @EHQMTS @GEO
                                        Dept:     Euro. Communications Group
                                        Tel No:   41.22.709.46.25
                                        Doc No:   001377

TO: See Below

Subject: I:Digital Internal Announcements from Vincenzo Damiani

                  *** DIGITAL INTERNAL ANNOUNCEMENTS ***


    This message is from: Vincenzo Damiani - President, Europe
    
    To: All Employees.

    Please find attached two announcements for your information 
    concerning:-

    1. Management Responsibilities - Europe
    2. Project Responsibilities - Europe

    Regards,













                    Management Responsibilities - Europe

                From: Vincenzo Damiani - President, Europe
    									   











    MANAGEMENT RESPONSIBILITIES - EUROPE

    The successful implementation of our Agenda, with its three objectives 
    and ten action points, will require considerable focus and dedication 
    from our management teams throughout Europe.

    To that end, and also to ensure the continued drive towards our goal of 
    having SATISFIED CUSTOMERS, I have decided to modify our current field 
    structure from seven territories down to five; to re-assign a number of 
    senior managers; and to amend the reporting line of others.

    OFFICE OF THE PRESIDENT
    The first step which I have decided to take is to establish the Office 
    of the President to co-ordinate urgent and vital management activities. 
    
    Werner OPPLIGER, vice-president, will become a member of this Office 
    with responsibility for leading the cross-functional team chartered to 
    implement three core processes. These are, 1)overall resource 
    optimization, 2)the strategic European HQ, and 3)European PM+S 
    strategies.

    Quality in the way we manage the processes and the projects will be 
    absolutely essential. So Virgilio GALLO, director TQM, will also join 
    the Office of the President. 

    Both Werner and Virgilio will report directly to me. 

    TERRITORIES
    We will immediately reduce the number of Territories in Europe from 
    seven down to five.  This will increase our efficiency, create 
    synergies, make better use of our support resources, and help us to 
    more effectively go after the growth opportunities which are so crucial 
    to our future prosperity.

    o. Territory A, will remain unchanged with Chris CONWAY responsible for UK 
       and Ireland.

    o. Territory B, will be France managed by Jean-Paul NERRIERE.

    o. Territory C, will be managed by Hans DIRKMANN, who will be 
       responsible for Germany, Austria, and Eastern Europe, including the 
       Baltics, the Balkans, the Czech and the Slovak Republics, Hungary, 
       Poland, Russia, Ukraine, and the remainder of CIS.




    o. I will assume management responsibility for Territory D, in an 
       acting capacity. This new Territory will comprise a number of 
       medium-sized countries, including the Nordic and Benelux groups, 
       Switzerland, Spain, and Portugal. 

       Alberto FRESCO, vice-president, will report to me and will assist me 
       as director of operations for Territory D. He will also manage the 
       transition of a number of our country operations to Territories C 
       and E respectively.  Additionally he will have particular management 
       responsibility for Spain and Portugal.
     
       Paul VAN DER SPIEGEL will retain his responsibilities for the 
       Benelux group of countries plus Switzerland, and Bo DIMERT will 
       retain his responsibility for the Nordic group of countries.

    o. Territory E will be managed by Mario BONZANO. It will include Italy, 
       Greece, Turkey, Middle-East, CDG, Israel, and South Africa. 

    All of the territory managers will report directly to me.

    BUSINESS UNITS
    There will be one change in the product and services business unit 
    management in Europe.

    Sergio GIACOLETTO, vice-president, will assume responsibility for all 
    aspects of Digital Consulting business in Europe including business 
    practices, resource management, functional excellence, customer and 
    employee satisfaction, and financial performance. Sergio will report to 
    Gresham Brebach, vice-president Digital Consulting and will continue to 
    be a member of the European Management Board (EMB).

    Herman OGGEL, vice-president, will assume a new role in charge of both 
    Digital Consulting integration services for Europe, and overall 
    management of Digital consulting services for the newly established 
    Territory D.  He will report to Sergio Giacoletto.  

    A more detailed announcement on this management change will follow.

    All other business unit responsibilities will remain unchanged with 
    each of the European business unit managers reporting to his Corporate 
    counterpart and being a member of the EMB.



    FINANCE
    Bob COHEN has assumed the role of chief financial officer with 
    responsibilities for the Finance and PM+S functions following Werner's 
    move to the Office of the President. He will report to me.

    SALES AND MARKETING
    Peter SMITH, vice-president sales and marketing will leave his current 
    role to return to the USA to take up a senior management position. The 
    details of his new appointment will be announced shortly.
 
    Per-Olof LOOF, vice-president, will become director of Sales and 
    Marketing in Europe assuming responsibility for a number of the  
    activities previously managed by Peter.  In his new role, Per-Olof will 
    have a key task in assisting and supporting the Territories in creating 
    and taking advantage of growth opportunities. The customer business 
    unit organization in Europe will report to Per-Olof.  The exact details 
    of the future industry organization and mission will be the subject of 
    a separate announcement. Per-Olof will continue to report to me.

    SMALL AND MEDIUM ENTERPRISES
    The number one action point in our Agenda is the focus on SME 
    customers.  It will be a top priority in achieving our objective of 
    creating sustainable growth.  Wolfgang JAEGER, vice-president, will be 
    responsible for this major thrust into the European SME marketplace.  
    He will bring to this task a wealth of knowledge and experience which 
    he gained through the acquisition of both Kienzle and Philips. He will 
    continue to report to me.

    COMMUNICATIONS
    Gordon MOULTRIE, director of Communications, will now report to me, and 
    also to Charlie HOLLERAN, vice-president worldwide communications. He 
    will continue the work he has already begun to improve both our 
    internal and external communications activities and the effectiveness 
    of the organization which is delivering those activities in Europe.

    Other European management responsibilities for HRO, Legal, and L&SS, 
    remain unchanged.

    I believe that these moves are a step in the right direction, and will 
    enable me to streamline the structure and at the same time provide 
    stability in the overall management of our operations in Europe.  In a 
    separate announcement I will outline the details of the projects which 
    support the action points of our Agenda, including names of the 
    responsible owners, and details of their assignments.

    Regards,

    Vincenzo.












                     Project Responsibilities - Europe

                From: Vincenzo Damiani - President, Europe














    PROJECT RESPONSIBILITIES - EUROPE


    CUSTOMER'94: A Leaner, Simpler, More Aggressive Digital in Europe

    I would like 1994 to be remembered as a year in which we DEDICATED 
    ourselves to our customers and to achieving our three key objectives of 
    creating sustainable growth, increasing our efficiency, and optimizing 
    our customer focused management systems and processes.  

    I have already outlined to you our Agenda with its overall goal of 
    having SATISFIED CUSTOMERS. 

    We have now finalized the projects which will support our Agenda and 
    deliver against the three objectives.

    The project owners will be entirely accountable for their programs. We 
    must move forward with a sense of urgency.  I expect each of the 
    individual project owners to have finalized their implementation plan 
    and optimized timing schedule in the week of January 24, 1994. 


    STEERING COMMITTEE
    The progress of each project team and its owner will be reviewed on a 
    regular basis by a steering committee made-up of European managers. It 
    will include:-

                        Vincenzo DAMIANI (chairman)

	 Mario BONZANO 	                         Sergio GIACOLETTO
         Bob COHEN                               Per-Olof LOOF
         Chris CONWAY                            Gianni MESSORA
         Giorgio CORSI                           Jean-Paul NERRI�RE 
         Hans DIRKMANN                           Werner OPPLIGER 

    David TOSO will manage the project office, reporting directly to me.

    PROJECT OWNERS
    Each of the projects and the name of its owner are listed below:-

    1. CREATE SUSTAINABLE GROWTH

    Project No.1: Small and Medium enterprises
    	 Owner:	  Vincenzo DAMIANI

    Project No.2: Multivendor Customer Services
    	 Owner:	  Gianni MESSORA




    1. CREATE SUSTAINABLE GROWTH (cont.)

    Project No.3: Digital Consulting
    	 Owner:	  Sergio GIACOLETTO

    Project No.4: Sales Re-Engineering
    	 Owner:	  Per-Olof LOOF

    Project No.5: Marketing Re-Engineering
    	 Owner:	  Per-Olof LOOF

    Project No.6: Market coverage and Mass Marketing
    	 Owner:	  Per-Olof LOOF



    2. INCREASE EFFICIENCY

    Project No.7: Total European Resources, Geneva HQ, Real Estate and PM&S
    	 Owner:	  Werner OPPLIGER


    Project No.8: Optimize the Internal Implementation System
    	 Owner:	  Sergio GIACOLETTO

    Project No.9: Finance:Implement Shared Resource Centers and Establish
    	 	  New Decision Support Capability
    	 Owner:	  Bob COHEN

    Project No.10:Market Segment & Application Group Rationalization
    	 Owner:	  Per-Olof LOOF



    3. OPTIMIZE CUSTOMER FOCUSED MANAGEMENT SYSTEMS AND PROCESSES


    Project No.11:Product Simplification and Supply Chain
    	 Owner:	  Vincenzo DAMIANI

    Project No.12:Country Rationalization
    	 Owner:	  Alberto FRESCO

    These are the projects which are currently in place.  I will keep you 
    informed on the progress which we make as soon as the project plans are 
    implemented.

    Regards,

    Vincenzo.
[ends]
    
Distribution:

TO:  SUBSCRIBERS:@GVA02A1@GEO
TO:  SUBSCRIBERS:@AMISA1@GEO
TO:  SUBSCRIBERS:@GVA05A1@GEO
TO:  SUBSCRIBERS:@A1_BEST1@GEO
TO:  SUBSCRIBERS:@A1_LEMAN@GEO
TO:  SUBSCRIBERS:@A1_NEUCHATEL@GEO

During the Jan. 12 DVN, Damiani announced a mail account for internal 
(two-way) feedback.  Attached is the message I sent this morning.  I'm 
curios about whether I will get a reply and/or be marked as a troublemaker.

- Scott
------------------------------------------------------------------
d i g i t a l

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     13-Jan-1994 09:53am CET
                                        From:     Scott DAVIS @FYO
                                                  DAVIS.SCOTT
                                        Dept:     Digital Consulting Engineering
                                        Tel No:   [33] 50 42 67 78/885-6778
                                        Doc Nr.   012921

TO:  Remote Addressee                     ( customer94@ime )

CC:  Scott DAVIS @FYO                     ( DAVIS.SCOTT )

Subject: Comments on the Jan. 12 DVN

Thanks for the opportunity to provide feedback and communicate.
I'll be brief:

1.  I would like to hear what Mr. Damiani will be measured on and what 
is considered "success".  Is he measured on getting to a certain level of 
expense?  headcount?  revenue?  profit?

2.  Mr. Damiani said that he wants us to become clearly competent in a few 
areas, so that when a (potential) customer thinks of Digital, they think
of these areas of competency.  I believe that is exactly backwards.

I would say that the people we want as customers don't have Digital in mind;
they have their business problems in mind.  Therefore, what we want is that
when the customer thinks of a certain kind of business problem, they think
of Digital.

3.  We heard a lot about "urgency" during the DVN.  Yet, Mr. Damiani said 
that he hopes to announce the "right" size of DEC Europe within 60 days.  
This does not strike me as urgent; 60 days is a long time for our morale 
to continue its downward spiral.

Best regards,
.
.
.

    I'd be very surprised is he's not primarily measured on profitability.
    After all, he reports into Lucente. 
    
    Regarding your comment the mental link customers should make between
    Digital and our capability (mindshare?), I take your point but from the
    DVN I understood it to mean:- 
    
    1) It is clear in what areas Digital has excellence 
    2) We're not going to be everything to everybody.
    
    Oh well, I'm interested to see if and what you get as a response.
    
    Rene

    
    Well, I was rather relieved to at last see a clear and concise message
    being given out. Digital Europe (or is that Digital) has been
    mindlessly wandering in the dark for too long.
    
    At least his general message was reasonably clear, backed up by the
    mails. This is more communication than I have seen in the last 3 years
    from his predecessors.
    
    Whether it will amount to anything, only time will tell. I have also
    written to CUSTOMER94 @IME so I am also interested to see the response.
    
    Cheers,
    
    Mark.

    Well, Mr. Damianzi doesn't mess around, does he?
    
    >>SALES AND MARKETING
    >>Peter SMITH, vice-president sales and marketing will leave his current
    >>role to return to the USA to take up a senior management position. The
    >>details of his new appointment will be announced shortly.
    
    Sounds like Pete Smith and his new boss may not have hit it off very
    well.
    
    Chet
                                                    

    It sure looks like Mr. Damianzi is a man of action. I hope
    he can live up to his advanced billing.
    
    
    			-Jim-

    Virgillio Gallo
    Mario Bonzano
    Sergio Giacolleto
    Giorigio Corsi
    Gianni Messora
    Vincenzo Damiani
    Alberto Fresco
    
    Hmmmm....
    
    re Rudolfo (formerly Roelof)

re .6

Guess I could improve my prospects by changing my name to Giovanni
then, eh ?

Jon

    Does this mean that Europe is going to ship all their rejects back to
    the USA for "senior leadership positions" here?
    

re: .8

>    Does this mean that Europe is going to ship all their rejects back to
>    the USA for "senior leadership positions" here?

Don't you believe that "turn-about is fair play"?

Ray

> Does this mean that Europe is going to ship all their rejects back to
> the USA for "senior leadership positions" here?

Hey, great idea! The average quality of management in both locations
will improve.

    I was concerned about his statement : "we should concentrate on what
    we're best at"....my feelings are that the customer does not give a
    s**t about what we're best at, they wan't to solve their business
    problems....
    
    c, martin

	re: .6 .7

	Roelof, Jon,

	I hope you were joking.

	Otherwise, you broke a fundamental rule concerning the use of the
	electronic conferences: avoid to offend someone' honour, directly
	or indirectly.

	Ciao,
		Sandro 

    .-1
    
    Sandro,
    I certainly hope that you're the only one who had
    any doubts about my humorous intention.
    
    The idea that half the European SLT felt that their 
    honour was somehow imbued and are now personally out to get
    me isn't one I particularly relish :-)  <- Note
    the smiley.
    
    re roelof (Back from Rudolfo, Sigh...)

re .12 re my .7

Sorry - I forgot to include the smiley face. I thought it was obvious.

Ciao,

Jon

    .8 (and others, maybe .4 or .5?)
    
    Several years ago, when I worked in Marlboro, Peter Smith had his
    office there too.  I think he's been over there for 3 years (or maybe
    4);  don't know whether he went to Europe for a defined period or "for
    the duration" (or if that would be public knowledge anyway, come to
    think of it).
    
    Dick

Here's some follow-up to .2  FYI, neither this message nor the previous 
one (from Jan. 19) have been read.
------------------------------------------------------------------
d i g i t a l

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     28-Jan-1994 02:48pm CET
                                        From:     Scott DAVIS @FYO
                                                  DAVIS.SCOTT
                                        Dept:     Digital Consulting Engineering
                                        Tel No:   [33] 50 42 67 78/885-6778
                                        Doc Nr.   013311

TO:  Remote Addressee                     ( vincenzo damiani@geo )


Subject: An expression of disappointment

Mr. Damiani:

I sent the attached message to CUSTOMER94@IME after your DVN, as you 
invited us to do.  The message was read, but no one has responded.  I sent 
the message a second time on January 26, asking simply when I might expect 
an answer.  That message has not even been read yet.

A number of people across Europe have asked me what your response was.
Unfortunately, I have not been able to tell them.

I would still appreciate it, if you could take time from your busy schedule 
to answer.

Best regards,
	Scott DAVIS


                           -- A T T A C H M E N T --    

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     13-Jan-1994 09:53am CET
                                        From:     Scott DAVIS @FYO              
                                                  DAVIS.SCOTT
                                        Dept:     Digital Consulting Engineering
                                        Tel No:   [33] 50 42 67 78/885-6778

TO:  Remote Addressee                     ( customer94@ime )

CC:  Scott DAVIS @FYO                     ( DAVIS.SCOTT )

Subject: Comments on the Jan. 12 DVN

Thanks for the opportunity to provide feedback and communicate.
I'll be brief:

1.  I would like to hear what Mr. Damiani will be measured on and what 
is considered "success".  Is he measured on getting to a certain level of 
expense?  headcount?  revenue?  profit?

2.  Mr. Damiani said that he wants us to become clearly competent in a few 
areas, so that when a (potential) customer thinks of Digital, they think
of these areas of competency.  I believe that is exactly backwards.

I would say that the people we want as customers don't have Digital in mind;
they have their business problems in mind.  Therefore, what we want is that
when the customer thinks of a certain kind of business problem, they think
of Digital.

3.  We heard a lot about "urgency" during the DVN.  Yet, Mr. Damiani said 
that he hopes to announce the "right" size of DEC Europe within 60 days.  
This does not strike me as urgent; 60 days is a long time for our morale 
to continue its downward spiral.

Best regards,
	Scott G. Davis
	Chief Engineer
	Digital Consulting (Europe)

d i g i t a l

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     07-Feb-1994 12:30pm CET
                                        From:     Vincenzo DAMIANI @GEO
                                                  DAMIANI.VINCENZO AT A1AMIS @EHQMTS @GEO
                                        Dept:     PRESIDENT EUROPE
                                        Tel No:   821-4961/Public:(41)22 7094961
                                        Doc Nr.   013448

TO:  scott davis @fyo

CC:  customer94 @ime

Subject: I: ANSWERS TO YOUR QUESTIONS

         Scott,
         
         Sorry for being late but here are my answers to your questions 
         following the recent DVN:
         
         I believe that I can answer your first question very simply. I 
         will be measured mostly on revenue growth and profit.
         
         The context for my comment which you refer to in your second 
         question is, I believe firmly that if a company has a solid "brand 
         image", then that is what forms the foundation of the specific 
         perception which the customer or consumer has of that company.
         
         The customer is certainly interested in finding solutions to his 
         business problems. We know that.  That is what we mean when we 
         refer to a "customer focused company."
         
         To your final question:  within 60 days does not mean, 60 days 
         from now.  In some European countries we need to comply with 
         specific rules and local policies.  However, I can assure you that 
         I will continue to inject the maximum possible sense of urgency 
         into the work of the project teams.
         
         Regards,
         Vincenzo
         /tc