Conference 7.286::digital

    I believe they were meeting earlier this week. Perhaps they still
    are. No idea of what came out of the meetings.
    
    Jim C.
    
    

    Purely anectdotal, but they meet here in MSO2 (future office of the
    President). They appear to have met for at least 2 or 3 full days over
    the past week or so. When I left the other night at 7 they were still
    here! 
    
    /thorgan

From:	US2RMC::"[email protected]" "Tamzen Cannoy" 22-APR-1994 15:36:43.81
To:	[email protected]
CC:	
Subj:	DEC rumors

Unsubstantiated rumor from the VP level...

Palmer is out the door and it will be announced Monday.

	... if my contact in personnel is correct.

I don't suppose there's a rumor of who the next president might be?  If it
was going to be based on having run a business in a major transition for
several years already, i might vote for Charlie Christ, though some of what's
been going on in the manufacturing side of storage makes me leery.  But i
suppose it will either be Lucente or someone from outside the company...

								- paul

    
    I'm sure the BoD doesn't have a collective clue how this company
    managed to spend its way into the abyss.
    Their next choice?  The picture with the dart hole in it.
    
    

    
>>>    I'm sure the BoD doesn't have a collective clue how this company
>>>    managed to spend its way into the abyss.
>>>    Their next choice?  The picture with the dart hole in it.
    
       Based on what I've seen and observed over the last few years its
       apparent that no one has a firm grip on what is happening. I can
       believe that there is a possiblity that Mr. P will be out and out 
       soon. But, I don't blame him for all the ills, yes he is at the 
       top, and has the ultimate responsibility for "what happens" in 
       the corporation. But, I believe that he "inherited" a "rats nest". He
       took over a corporation "where" accountability was difficult to
       obtain. How was the company organized? Who knows, well we had "red line"
       this and "blue line" that. I have never "observed" so many 
	re-organizations in my life "as I have here at Digital". Sometimes
	I think groups re-organized, just for the sake of re-organizing,
	or for "self preservation", who knows. It's a moving target, if it
	doesn't stand still, then we can't focus on it. I think sometimes,
	that the "downsizing" is heading in the wrong direction. Sure,
	maybe 85K is where we should be. Then let's do it! Get there!
	THEN STOP! Do you realize that 85K has been the target for the 
	last two+ years, and its taken us all this time to get there. In
	the mean time, we've been bleeding (financially) and MORALE is 
	is low, very, very low. MORALE is very important, my God, how 
	can people work (and work effectively) with this 'DARK SPECTOR' 
	of layoffs hanging over their heads. We had someone 
	from Corporate visit our office some time ago (it was a VP and 
	I'm not going to name names).

	He was asked a question about the employee survey results,
	rumor had it that the outcome indicated that employee
	"MORALE" inside Digital was BAD (The worst that the company 
	who conducted the survey had ever seen). Anyway, he was 
	asked, about MORALE. He looked everyone in the "eye" and said
	"THERE IS NO MORALE" problem inside of Digital and that he 
	didn't believe the survey results. He also stated that he
	doesn't believe in "NOTES/CONFERENCING" or "ELECTRONIC MAIL" and
	that everything "SHOULD BE DICTATED FROM THE TOP", my conclusion
	"don't allow people to freely communicate" and "our opinions do not 
	matter". What's scary is that this person could be a candidate for
	BP's position.

	I still believe that things can still be turned around, I really and 
	truly do. We do have "talented" people (most important asset this 
	company will ever have), great products and technology. But, as time 
	goes on, the margin for error is getting smaller and smaller. Mr.
	Caldwell is on the "Digital" Board of Directors, he was "instrumental"
	in turning "Ford Motor Company" around and making it the company
	it is today. I wonder if Ford could have turned it around if they
	had all the "MORALE" problems that we have. I doubt it would
	be were it is today. Perhaps, Ford would still be around, but maybe
	with "massive" downsizing and poor Morale, it would have had to settle
	with being number 3 or 4. Believe me, Mr. Caldwell knows the value
	of employees. One of the key factors in Fords success, is its people,
	and getting them involved in cost cutting projects, and getting their
	ideas on how to make improvements. "COMMUNICATION" is the buzz word
	inside of Ford today. They would not be were they are today, without
	their employees! I wonder how he'd feel about a VP that doesn't believe
	in "COMMUNICATION", "IGNORES SURVEY RESULTS" and "WANTS TO DICTATE TO
	HIS PEOPLE"

	Sorry for rambling on, My two cents and frustrations worth.

	RC

	

    Any short sighted knee-jerk reaction such as dumping a CEO at this
    junction is the silliest thing I can imagine. Justified or not, I don't
    believe this is something you do without very careful planning.
    
    We are just coming out of the CBU structure and re-aligning our sales
    organization as a corrective measure to the poor performance we have
    and are experiencing. The CBU's retain responsibility for our
    performance throughout this FY and we don't begin measuring performance
    for the new organization until July.
    
    I sense severe deficiencies in our supply chain planning given the
    amount of backlog we cannot ship (and get paid for) because of
    component shortages.

This is getting off track, i know, but who makes the decisions in Manufacturing
and Logistics that cause all these supply chain problems and other upheavals?
Is that ultimately driven by the M&L managers based on forecasts they're getting
from the businesses?  Are the forecasts bad for the hot-selling items like PCs
and disks, or does M&L not perform to forecast?  When they decide to close down
a Galway or Kaufbeuren, is it because the business group tells them to, or does
M&L decide what plants will do what and then tell the business groups what their
resources will be?  It seems like there's a big disconnect here among:
		Sales <--> Marketing <--> Engineering <--> M&L
but i can't figure out where it's originating.  Seems like a top problem for Mr.
Palmer, or for the next president if there is a new one soon.
								- paul

Re: .7


>>	... He also stated that he
>>	doesn't believe in "NOTES/CONFERENCING" or "ELECTRONIC MAIL" and
>>	that everything "SHOULD BE DICTATED FROM THE TOP", my conclusion
>>	"don't allow people to freely communicate" and "our opinions do not 
>>	matter". What's scary is that this person could be a candidate for
>>	BP's position.

I am willing to bet one week's salary that this "person" has NEVER heard
of the internet, or think of it as a "road-block" in the information 
superhighway (if he has even heard of the superhighway).....

The problem with DEC, is that as a technology company, we are managed by
people that know VERY LITTLE about technology. If I need the latest 
"non-marketing" information about any product in the company, how does he
think that MANY of us go about getting such info..?!?!

Notes/Conferencing is an indispensable tool for those for us in the field,
and for a VP to make such ludicrous statement, indicates a serious lack of
knowledge and understanding of how the "real business" is conducted at DEC.

Oh well, time for the NFL draft, gotta go...  

	... to guess who this "road-warrior" VP is??  :>)

RE: .10

>Re: .7
>
>
>>>	... He also stated that he
>>>	doesn't believe in "NOTES/CONFERENCING" or "ELECTRONIC MAIL" and
>>>	that everything "SHOULD BE DICTATED FROM THE TOP", my conclusion
>>>	"don't allow people to freely communicate" and "our opinions do not 
>>>	matter". What's scary is that this person could be a candidate for
>>>	BP's position.
>
>I am willing to bet one week's salary that this "person" has NEVER heard
>of the internet, or think of it as a "road-block" in the information 
>superhighway (if he has even heard of the superhighway).....
>...
>"Notes" indespensible tool for field, etc.

Hey, if your goal is to shrink the company to a silicon monger and PC
peddler, who cares if your internal folk can do VAXnotes, Internet, WWW,
etc.

We speak as if Digital is to continue to have some kind of networking
prowess. As fast as the company is falling I expect whole chunks of it to
be sold off... silicon & PCs will remain with the 'Digital' name on it.

Lee

    It's unsupportable that any Office/Information/Sales/Management EMPLOYEE 
    at Digital from CEO down cannot TYPE, SEND EMAIL, READ NOTES/NEWS AND 
    UNDERSTAND (EVEN AT A SURFACE LEVEL) what our products are and what 
    they do in the market place.
    
    Absolutely incredible -- No other technical sales company (except IBM) 
    would permit this level of nonsense to go on.
    
    If we gave a typing test to all 157 VPs, how many of them could do
    even 20WPM?  Typing is not the skill we want to nessisarily test
    for -- but for me it's a key indicator of folks serious about our 
    business and those just talking the talk...
    
    John W..
    
    
    (Note I didn't even say touch type...)
    
    
     

    RE a few back:
    
    It's not:
    
    		SALES><marketing><engineering><manufacturing
    
    That's exactly what wrong.  It should be:
    
    		Customer and Industry><Marketing><Engineering><M&L
    			^					|
    			^					|
    			^ <----Sales and Marketing <--------<---
    
    Marketing needs to be both the strategic direction setting and the
    feedback control system.  Since they do neither, we cannot get the
    right stuff identified to build in time and then we don't know how to
    promote it to our customers.  Marketing is conceptualizing products,
    getting them built right, priced right and in the right timeframe and
    then creating demand and supporting sales in servicing that demand.
    
    Bob
    

    RE .8
    
    Could not have said it better myself.
    
    		-Jim-

			<<< Courtesy of LIVEWIRE >>>


                       FOR DIGITAL INTERNAL USE ONLY


 
         (Following is the text of a letter sent today to Digital 
   shareholders from President and CEO Bob Palmer.)
 
   Dear Shareholder:
     
         At the end of last week, Digital's Board of Directors reviewed 
   your company's position and supported management's plans to accelerate 
   the next phase of Digital's turnaround strategy.
         That strategy has one goal: rebuild shareholder value.  That goal 
   can be realized only by improving customer focus, constantly strengthening 
   our product line and delivering our products and services through a 
   stronger, more cost effective organization.  Digital's reputation for 
   quality and dependability is itself an important strength upon which we 
   will build the future.  Preserving that reputation demands that any 
   turnaround be implemented methodically and over time.  While we have a 
   renewed sense of urgency, we realize that any effort to accomplish our 
   objectives too quickly or abruptly could truly jeopardize our viability.
         Let me reiterate the strategy.  Since we began the turnaround of 
   Digital 18 months ago, we have made many tactical decisions necessary 
   to bring control to the company and to frame the problems.  As with any 
   turnaround of this magnitude, there have been stops, starts and turns.  
   The disappointing third quarter results were an unfortunate example,
   but they should not obscure the progress that has been made.  For 
   example, during the past 18 months we:
 
         o revised senior management organization and personnel;
         o significantly downsized the employee population;
         o achieved a much leaner and more cost-effective infrastructure;
         o greatly reduced engineering redundancy;
         o and transformed Digital from a closed and proprietary systems 
           company to an industry leader in open client/server computing.
     
         We are now poised at the beginning of the second phase of our 
   turnaround -- a planned, strategic refocus driven by what we have 
   accomplished and what we have learned from phase one.
         We have laid a strong foundation, and we are ready to move 
   forward ... to focus our investments in the segments of this business 
   where we know Digital can prosper ... and to ensure progress by giving 
   management even greater accountability and more direct ownership of 
   their resources.
         During this second phase, which we expect to take about 24 months, 
   Digital will change in many ways.  But we do not expect to alter our 
   single, ongoing strategic customer focus on open client/server systems 
   that deliver solutions.  Nor will we alter our belief that customer 
   satisfaction is the surest path to lasting shareholder value and 
   sustained profits.
         We will emerge in the third and final phase of this turnaround as 
   a different company, guided by strategic reviews and focused on areas of 
   the business where we can achieve industry leadership.

         We bring strength, accomplishment and commitment to the tasks 
   ahead:
     
         o We have met all of our financial commitments and are financially 
           strong, with a cash position that currently exceeds $1 billion 
           and debt to capitalization ratio of less than 20 percent.
 
         o We have, in Alpha AXP, the world's fastest chip, with scalable 
           price-performance leadership throughout our product line.
 
         o We have strengthened and streamlined our management and 
           organizational structure; and we will continue to do so.
 
         o We are accelerating the process of aggressively aligning our 
           costs with the changing structure of our business.
     
         In the months ahead, your company will be concentrated on making 
   steady progress against our goals.  And, although we all share the 
   frustration of the inevitable setbacks that go with a turnaround effort, 
   I want you to understand that your board and senior management are 
   committed to our customers, our shareholders, our people, our products 
   and services, and on making this turnaround successful.
         I will, of course, report our progress to you from time to time.
     
         Sincerely,
     
         Robert B. Palmer

I'm surprised this hasn't hit the InfoHiway yet. Some will accuse Mr
Eunice of being too optimistic, but he has some valid points. I'm glad
to see from the previous note that our BoD appears to be able to
exercise patience and calm.

From:   [email protected] "Jonathan Eunice"
Date:   19-APR-1994 12:49:37.71
Subj:   Point/Counterpoint

Copyright (c) 1994 Illuminata


Digital's Had It Now: Fact, Fiction or Feeding Frenzy?


     Digital's 3rd quarter results were, in the words of pop
     musician Warren Zevon, "not that pretty at all."
                        - Terry Shannon, 4/18/94


     Sometimes, in the news business, people create
     cliffhangers where there are no cliffs and write about
     events in a tone of urgency that has no basis in fact.
     ...  And that is why some journalists' credibility
     depends largely on the forgetfulness of ... people.
                        - Garrison Keillor, 4/17/94 Boston
                        Globe


A feeding frenzy has developed around Digital's poor 3rd quarter
financial results. It's not clear  there's much to sustain this
frenzy other than the press's-and their readers'-love of the
sensational. Though the results are disappointing, and while
serious additional measures such as headcount reduction must be
taken, these are not much of a surprise. Indeed, most of the
relevant facts regarding Digital's financial and structural
situation were either already well known or quite predictable.
They've been seen time and again in similar restructurings. This
is how turnarounds happen, alternately moving forward and moving
back. They don't happen overnight, nor are they pretty. Given the
computer industry's ongoing reorganization, you'd think people
would understand that by now-but if you thought that, you'd
certainly be wrong. Here is our take:



Point     Digital is financially troubled.

Counter   Yes, it is. Like any large corporation forced to
          restructure itself and its principal product lines, DEC
          has considerable problems on its hands. It is losing
          money, and its margins are falling. It needs a much
          lower cost of doing business, and it needs to forecast
          its business better.

          On the other hand, Digital's financial problems are not
          the end of the story. Though troubled in some areas,
          the firm is quite robust in others. For example, it has
          over $1.25B in the bank. Total product revenues in
          3FQ94 were up sequentially, and AXP revenues up
          enormously, despite the fact that 2FQ is traditionally
          stronger. Digital's StorageWorks and PC business units
          are rapidly growing and are now profitable. Digital's
          book-to-bill ratio was positive in all geographies
          worldwide. Etc. Etc. Etc.

          In other words, users and investors should continue to
          be concerned. But the "doom and gloom" response to
          Digital's unacceptable 3Q financial report does not
          reflect the firm's strengths or opportunities. The
          question from a competitive or customer viewpoint is
          not where Digital's stock is going, but rather whether
          it remains a strong and viable business. Though issues
          such as a too-high cost of making and selling products
          are real, they are resolvable. A new, second generation
          of AXP systems has just been introduced, and these
          should contribute to sales momentum, even outside DEC's
          historical base. So with good execution, DEC's
          financial problems do not keep it from being an strong
          systems vendor.



Point     If DEC doesn't make a profit in 4FQ94, Palmer is gone.

Counter   Unlikely. Though the current results are disappointing,
          only a real optimist would have expected significantly
          better results from a company recovering from the
          malaise in which the company found itself when Palmer
          took the helm. The company clearly cannot be turned
          around within FY1994. Nonetheless, much has been
          achieved. For example, the company has been organized
          for accountability and proper reporting. Major captive
          divisions such as PCs and StorageWorks are now
          profitable and making market headway. Palmer himself is
          settling in. As an articulate, poised, and highly
          credible CEO, he is just the kind of leader DEC needs
          in its bad patch. Given continuing corporate
          improvements, as well as the reinvigoration likely from
          second-generation AXP systems, the current management
          team probably has twelve to eighteen months more to
          prove itself though improved results.



Point     Digital's gross profit margins have dropped.

Counter   Yep. Declining gross margins are an inevitability as
          traditional IT vendors are forced to adopt a PC-like
          pricing structure. Though even Robert Palmer admits the
          company does not have a competitive cost structure, it
          is improving. DEC's new AXP server systems, for
          instance, incorporate commodity technologies and new
          packaging that enable low prices while maintaining
          acceptable margins.  Anticipated product announcements
          through the rest of 1994 will proliferate and
          accelerate these advances throughout the product line.
          So while Digital has significant work ahead on cost
          reduction, it is at least "work in progress."



Point     Digital's cost structures are unsustainable.

Counter   Yes. Even Robert Palmer says this. That's why Digital
          will not have to sustain those costs for much longer.
          While Digital already has aggressively cut payroll, R&D
          and other costs, these efforts have proven inadequate.
          Management appears willing to make strong corrections,
          including reducing headcount well beyond the 7K
          reduction already planned for the current quarter.
          Digital also recognizes the need to leverage indirect
          channels to reduce SG&A, but believes that significant
          sales disruption would accompany immediate and drastic
          restructuring of the direct sales force. More work on
          cost containment and a lower-cost business structure
          will be necessary-but this is likely to occur.



Point     Digital cannot sustain the investment required to build
          AXP chips.

Counter   Nonsense. Many other companies with less skill and
          fewer resources in semiconductor fabrication-among them
          HP, MIPS/SGI, and Sun-have maintained chip design and
          fabrication efforts (whether in-house or
          collaboratively) over the past few years. There is
          little reason to suspect Digital, with its extensive
          CMOS experience and more than a billion dollars on-
          hand, cannot build or buy whatever is required.

          While there was cause for skepticism back in early 1992
          when DEC introduced its AXP strategy, there should be
          few questions today. DEC has managed to regularly up
          the ante. Current EV4 chips are shipping up to 200 MHz,
          with 275 MHz ready by 4Q94. The second-generation EV5
          chips (with over 9M transistors and 4-way super-scalar
          support) will soon be produced in volume. And the new
          Fab6 facility for producing third-generation EV6 chips
          is reportedly ahead of schedule. We see no signs that
          Digital cannot support its design and fabrication
          requirements for at least two additional AXP
          generations.



Point     Digital's service revenues are down.

Counter   This is an inevitable effect of the VAX-to-AXP
          transition, and to be expected. AXP allows  numerous
          VAX systems to be replaced with fewer AXP systems. Not
          only are fewer systems required, each of these systems
          is inherently more reliable. Though this has a good
          side, in that DEC can now provide a three-year hardware
          warranty with all second-generation AXP servers, it
          also means that fewer hardware maintenance dollars will
          be flowing in. This traditional maintenance business
          remains very profitable-there's just a whole lot less
          of it. Fewer people will thus be necessary to provide
          this service.

          While traditional hardware maintenance revenues are
          declining, consultative services such as systems and
          network integration are growing. This will enable
          Digital to capitalize on new revenue opportunities,
          though in the near term these revenues will grow more
          slowly than traditional maintenance falls.



Point     Digital is experiencing a precipitous decline in VAX
          system sales.

Counter:  Yes, of course. This is to be expected as DEC customers
          migrate to AXP platforms. Users now buy VAX systems
          primarily to increase capacity for existing, stable
          applications.



Point     Users are actually unplugging their VAX systems.

Counter   Yes, of course. Given the price-and-performance of the
          AXP systems, just one or two can replace an entire
          cluster of VAXen. As maintaining the older, less
          reliable VAX systems is relatively expensive, it is
          cheaper to decommission them that it is to keep them
          running. An inevitable side-effect of ever cheaper,
          ever faster systems is that hardware becomes more
          disposable.



Point     No one is buying AXP systems.

Counter   Not true. AXP systems are selling briskly. AXP sales
          were up 66% in 3FQ94 from 2FQ94. This represents robust
          sales growth that was, indeed, far more than the firm
          expected.

          The problem for DEC is that these systems bring in
          lower revenues and lower margins than those for the
          VAX. Better cost controls and lower headcount will thus
          be required to maintain a viable business. But the
          notion that DEC's problems are caused by users not
          buying AXP systems is simply hokum.



Point     Digital can't deliver AXP processors in volume.

Counter   Actually, it can. Though DEC has had recent order
          backlogs, these stem from poor forecasting regarding
          other system components such as DRAMs, disk drives, and
          monitors. AXP microprocessors have not been a
          significant limiting factor. Not only is the current
          generation (EV4) of AXP chips sufficient to meet
          demand, Digital's second-generation (EV5) chipset soon
          will enter volume production at the firm's Hudson
          semiconductor facility.



Point      Digital sells only to the installed base.

Counter   Over the past few years, this has been very much the
          case. As it underwent major product line transitions,
          the company hasn't had much worth offering outside its
          base. Watch for a reversal over the next six to
          eighteen months. This change is enabled by the advent
          of mature versions of DEC OSF/1 and OpenVMS running on
          second-generation AXP products. The recently announced
          DEC 2100, for example, represents a breakthrough
          product with the opportunity to break out of the
          installed base and to gain share in new markets.



Point     Digital has a poor corporate image and minimal
          mindshare.

Counter   Yep. Digital recent marketing campaign has focused on
          "the vision thing" rather than on articulating a
          compelling story or even product differentiation. At
          the same time, do not take shoddy marketing as a total
          catastrophe. Better advertising would help. More
          important will be the emergence of the second-
          generation AXP systems. The sales force is
          enthusiastic, and will be able to transfer at least
          some of this enthusiasm to customers-even those outside
          the installed base. Also remember that many companies,
          including Apple, Microsoft, NCR, and Oracle have
          recovered nicely from broad industry impressions that
          their main product lines belong in the "can't shoot
          straight gang."



Point     Morale at Digital is abysmal.

Counter   It's never particularly pleasant when a company must
          downsize, as Digital must do. On the other hand,
          Digital is hardly alone here. Apple, IBM, and many
          other leading vendors have seen similar requirements in
          the past year. Anecdotal evidence indicates that morale
          is fairly strong in light of the recent launch of the
          key DEC 2100 product set.



Point     Digital has a confused operating system strategy.

Counter   Yes, it does. Unlike rivals such as HP and IBM, Digital
          is finding it difficult to articulate a multi-pronged
          OS strategy. Nonetheless, DEC now seems to realize that
          its near-term success must rest on its two primary
          operating systems, OpenVMS and DEC OSF/1. It has wisely
          focused most of its development and marketing resources
          on these alternatives. We believe that these will
          increasingly become the front-runners in the months to
          come.

Re: .16

>>For example, during the past 18 months we:
 
         o revised senior management organization and personnel;
         o significantly downsized the employee population;
         o achieved a much leaner and more cost-effective infrastructure;
         o greatly reduced engineering redundancy;
         o and transformed Digital from a closed and proprietary systems 
           company to an industry leader in open client/server computing.
 
One could argue that the first three points are nothing more than one spin
doctor's view of reality.  For example, the US field organization is more 
complex and has more levels than a year ago.  And, the last point is valid
ONLY if the market accepts it as fact.

This company WILL NOT get well by "downsizing" and "reorganizing".

                 Digital expands Enrico Pesatori's responsibilities
    
             Digital President and CEO Bob Palmer today announced that,
       effective immediately, Enrico Pesatori, vice president and general
       manager of the Personal Computer Business Unit, has assumed the
       additional responsibilities of managing the company's Systems Business
       Unit, including the worldwide sales and marketing organization. In
       assuming these new responsibilities, Pesatori succeeds Ed Lucente, who
       has resigned from Digital to become executive-in-residence at the
       Graduate School of Industrial Administration at Carnegie-Mellon
       University in Pittsburgh.
             As general manager of the Systems Business Unit, Pesatori will
       be responsible for Digital's Alpha AXP and VAX systems as well as
       software, network and component/peripheral upgrade products. He is
       also responsible for Digital's industry marketing organization.
             "Enrico has created a growing and profitable force in the
       worldwide PC market, making Digital an emerging market leader in this
       sector of our industry," said Palmer. "In just over a year he has put
       in place an effective business model and has made extraordinary
       progress in establishing a successful direct sales, marketing,
       channels, engineering and manufacturing operation. He has met his
       business commitment in a very competitive environment. Enrico's
       demonstrated leadership, broad understanding of the marketplace
       realities, international experience and strategic channels vision
       make him highly qualified for these additional responsibilities."
             Prior to joining Digital in February 1993, Pesatori served for
       two years as president and chief executive officer, Zenith Data
       Systems, and spent 21 years with Ing. C. Olivetti & Co. in a series of
       senior technical and management positions. A native of Turin, Italy,
       Pesatori holds a master's degree in electronics engineering from
       Polytechnic University in Turin.
             Commenting on Lucente's departure, Palmer said, "Digital
       benefited significantly from Ed's experience and leadership. He set
       high standards of professionalism for our sales force and helped
       Digital move to a more customer-focused organization. We wish him well
       as he takes on this prestigious and important assignment for his alma
       mater, Carnegie-Mellon University."

    re: .16
    
    I have a morbid curiosity about what the currently correct term is for
    being let go.  We've heard layoff, right-sized and so forth.  Given
    this, I *suppose* the new term is/will be:  cost-aligned.  No?
    
    Steve

            <<< HUMANE::DISK$NOTES:[NOTES$LIBRARY]DIGITAL.NOTE;1 >>>
                        -< The Digital way of working >-
================================================================================
Note 2238.42                   DEC 7th TFSO Delay?                      42 of 55
UECKER::CHAKMAKJIAN "Shadow Nakahar of Erebouni"     14 lines  10-DEC-1992 10:41
--------------------------------------------------------------------------------

After WWI it was called   Shell Shock
After WWII it was         Battle Fatigue
After the Korean War      Combat Stress Disorder
After Vietnam it was      Post Traumatic Stress Syndrome


The first Round was called Separation and Restructuring
The second round was called Transition and Redefining Business Goals
The third round was called Early Retirement and Strategic Planning
This time it is being called Headcount Reduction and Focus on Core Competencies 
Next time it will be called On-going Cyclical Resource Deallocation and
                                 Cohesive Application of Competitive Responses 
                                      with Metaphysical Certitude

    re:  .14
    
    You've got it exactly right, but most people still don't even
    understand what you're saying, much less why it's necessary.
    
    re:  .19
    
    Boiling at the top.  One day this will make a great book.  I still
    think that the Board is going to remember the surprise we got this
    quarter.  Financial types won't forget that, or forgive.  As Bogart said
    in "The Maltese Falcon" -- "Somebody has to take the fall."  And they
    can't pin that one on Lucente.

WBCN played an old comedy routine yesterday -- David Frye doing 
his Richard Nixon impersonation.  

Setting:  Nixon taking the high ground as Watergate begins to
unravel.  Announces, with shock and dismay, the need to dismiss
1400+ employees of the Executive branch.

Then:  "Of course, I take full responsibility for Watergate...
but not the blame.  You know what the difference is between 
responsibility and blame, don't you?  If you're responsible, 
you get to keep your job."

Mark played it in "honor" of Nixon, but it sure sounded like 
a fit for this thread as well.

dq

    re:  last
    
    So who's responsible?  
    
    According the the Wall Street Journal, Lucente pumped too much sunshine
    and Palmer believed him, thereby not seeing disaster in the making.
    
    Does that sound plausible?  
    
    Where are our financial systems that should track and predict such
    developments?  Where was any mention of the fabled manufacturing
    problems this quarter, or of the "unfavorable foreign currency
    transactions" that were quoted last week?
    
    Somebody had to take the fall.  Lucente was not liked, or was Bob
    Palmer's rival, or something else that we don't know about.  Therefore
    he was a good candidate for the execution.
    

    >Where are our financial systems
    
    Ok, and while we're at it what is the state of our manufacturing
    technology?  
    
    /d.c.