Honeywell continues to report strong results while the homes business (Resideo) is struggling. I guess Darius knew what he was doing when he got rid of the business and the leadership that was responsible for the poor performance. Most of them are still in key roles and their lack of performance is more obvious in a stand alone company. ADI continues to drive whatever success we are having and with the relatively low margins you get from distribution, they can't cover up the failure of the products/solutions business. They initiated cost cutting last quarter by eliminating jobs, now it's time that they take out high cost employees that aren't delivering!!
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Resideo needs to pull itself out of the nosedive. Forget quixotic pursuit of grand unifying platforms. Customers don't care about platforms. Make an ecosystem instead...products that sorta play well together but more importantly do something better than the rest. That's how Nest/Google/Amazon beat us. Current CTO is still beating that platform path. Clean house on engineering and marketing. There are many great performers from the "old" homes and HSF but unfortunately large cadres of offshore and L1-ed inshored were hired starting in 2016 to do the platform projects. Pull the plug, cut the loss, move on. Hire people who can produce and have real track records. Not because of what region they come from or that they cost 20K instead of 150K. Less numbers, more quality. Even without hiring bunches of new people, between the folks in GV and Melville there is enough old talent to deliver at least one k–ler comfort product and one k–ler security product. But only if you cut through the mandate that offshore/L1 must develop/lead everything. What is there to lose at this point?
They are F***ed. Glad I got out and kept my HW not REZ!
Fg1 - yeah, you got it right.
zak - I want to make sure I understand this. It was Honeywells fault we cant develop software and never fixed what was broken. it was Honeywell fault we never developed a Platform thats scalable or stable. It was Honeywells fault our marketing is a complete joke and its Honeywells fault we never innovated or attracted any talent and fell decades behind Nests and Rings of the world. It was Honeywells fault we hired an incompetent and abusive CTO incpabale of leading or delivering anything and allowing that to linger for years. just want to make sure I got that.
I agree with all of the comments. It was Honeywell's neglect that created some of the problems and gave us the leaders that moved with the business. The rank and file of HW is still not happy with HW leadership and HW definitely saddled us with debt and environmental clean up costs (not to mention the ridiculous licensing agreement that someone agreed to). All of these points reinforce the original point that Honeywell was smart to spin off the homes business.
Hon also saddled us with a huge amount of debt and environmental cleanup costs.
Post this on Hon page
It will get a ton of thumbs down
Yes, you’re right. But it was Honeywell’s neglect for years that made us fall behind and set us up for failure.