Conference 7.286::digital

3288.0. "Leadership in the Americas" by POBOX::CORSON (Higher, and a bit more to the right) Mon Aug 01 1994 16:30

	AS PROMISED: These notes are from a personal friend, and well-known
    DECie, who was at this meeting. As I stated before, this should be
    shared with you all, and your feelings and comments are solicited.
    
    		the Greyhawk
    
For those that weren't at the 7/20 morning presentation by Harry 
Copperman to the NA/Channels DM's, here's my summary as I heard key 
points he made. It's not intended to cover everthing he discussed, just 
the highlights.

General comments:

1. We will start to play by the rules of the market.
2. We must increase our gross margins (today our w/s & servers have only
   27 points, lower than COMPAQ).
3. What he considers industry marketing:
  
   - definition of the key players
   - identification of the mission critical applications

4. Sees no reason our recruiters shouldn't be smart enough to know this
   (converse of this is his intent to have a minimal industry mktg 
    group).
5. Every division owns their own P&L, so he feels totally empowered.

His Initiatives:

1. Control costs
2. Vertically integrate our company:

   - forecast products
   - tell engineering what to build
   - detail customer requirements
   - tie together our adm support systems

3. Eliminate matrix mgt.
4. Drive faster to a channels centric model.

On the business model:

1. We are in a var driven business and must invest in the var channel.
2. Use appropriate channels to offload adm side of the sale.
3. He will invest in market development for the channels.
4. Must focus on e/u business development.
5. Invest in account mgt of 2 tier channels.
6. Invest in marketing resources.
7. Invest in marketing support.
8. Accommodate different buying anomalies by channel.

On his view of our (Digital's) present challanges:

1. We dont't have a consistent, clear strategy (e.g channels, pricing,
   tiering).
2. Field support is inadequete.
3. Need a simple, new structure (eliminate old culture based on
   conflict, revamp our T&C's, simple measurements).
4. Reengineer operations so our information systems are state of the 
   art.
5. Revamp/enhance our business practices (disc., allowances, t&c):

   o must be consistent
   o  "   "  predictable
   o  "   "  reliable

On morale:

1. Must get the downsizing done this calender year so people know where
   they stand and can focus on their defined job.
2. Get some big successes, so they can breed more success.

On Products:

1. His focus is on the Computer Systems Division Products, not PC's.
2. Selling PC's because they pull the server business is legitimate.
3. He will hold people in his organization accountable for forecasting
   what products our customers will buy.

His next 90 day priorities:

1. Build an organization.
2. Build the channel (we don't have enough partners).
3. Fix our T&C's.
4. Make the Q1 number.

His 12 month plan:

1. Develop best-in-class channels (believes vendors owns responsibility 
   to drive leads for its partners).
2. Become a KNOWN major player.
3. Become a company known for its marketing (referenced the PC success).
4. Be profitable.

Our challange -- what we can do:

1. Build excitement and commitment.
2. Get todays partners fired up.
3. Increase our business thru the channel.
4. Fix the little things we see and can influence.

Overall, I found Harry the first senior manager, bar none, to really see 
the bigger picture of what we must do to be a winner. He clearly 
understands the computer business from a product viewpoint, but equally 
important he understands the channels business too. I found listening to 
him very refreshing and inspiring.

I hope this summary helps you too!

    .0 sounds very similar to Damiani's objectives that he laid
    out 7 months ago. I think most people (including SLT) see
    the big picture quite clearly.
    
    Developing world class channels, making people accountable and
    squaring the circle are all reasonably easy goals to state.
    
    I guess we should see how the implementation of the goals turns
    out...
    
    re roelof
    
    
    

    re: .1 Copperman's speech ...
    
    There is nothing here that hasn't been said before, by many different
    levels of management within Digital, by our own people, and by outside
    analysts. The only thing missing was the lip service we usually pay to
    "Customer Satisfaction".
    
    The only difference is whether or not Copperman can execute. The proof
    of the pudding will come shortly. Digital is executing people at the
    rank and file level en mass this week, people who have done their jobs
    well and gotten little if any reward for it. If he wants people to
    generate "excitement and commitment" then he better do something to
    earn it. Fast.
    
    Geoff