It's obvious that, at the very least, the two execs and one particular board member who drove this outsourcing debacle are textbook psychopaths—there's more of them out there than you think especially in the financial and biz sectors. IMHO this is their nifty little get (more) rich scheme and this is at least the second time this unholy trio have pulled it off in broad daylight: find a company that's either struggling, has a mediocre or grim long-term financial forecast, but not in the crapper just yet. Then manage to a man into the B.O.D. Then bring in your toadies to replace a couple of key positions top level, especially IT which is the main target here. Spend a year or two getting the lay of the land. Next, outsource IT and dump a crapload of loaded salaries. After all, if you can't add assets to kick the books up a notch you simply do it the other way round and purge liabilities. Either increase income (no way) or decrease outflow. Now to the good stuff. Once that is all done and you've booted people out the door, suddenly the books don't look quite as bad and the stock goes up several points. That's just dandy because that means they'll make a tidy profit just as soon as they dump it (or short it) which magically happens before the next earnings release. Oh, and make sure you compartmentalize as much as possible. Don't want some eagle-eyed accounting guy to suddenly see the entire equation and ruin everything. Once that's all done it's "so long and thanks for all the fish." These are bad people folks. No compunction, no decency, no loyalty. Those are simply quaint ideals to these guys. They are predators who watch for a sickly antelope, but don't rush in for the big kill. They get what they can out of it, then let it die on its own, then move on to the next sucker on their list. They were NOT brought in as "turnaround experts," believe me. Look at their history, where they've been and what they've done. It speaks for itself. They make money off of doomed companies, get a big ego boost in front of their business buddies, and screw the little people in the process—whistling all the way to the bank secure in the knowledge that they're the smartest guys in the room and the law can't touch them.
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This is a very well written para that tells in essence what exactly went wrong in that IT side. unfortunately problem doesn't stop there. The loopholes of incapable top management is now penetrating everywhere in the organization, not only in the US, but all regions. The direction is not clear, only it does fulfill the core value "sense of humour" as everything is a joke here in Fossil. There are simply too many "management" that are giving varies directions with unrealistic expectations without a true guidance on how to achieve where we need to be.
Since last year we started making big hooha on connected accessories, however it is mid 2016 already and there is nothing solid besides a numeric plan. Where are the products? delayed. distribution plan? ugggggg.... target? BIG! This is what would set a company to failure. dream high with no substance. Every management level is only looking after their own portfolio and has NO VISION for the big picture. Even the only a few decent ones has to be turned into a self preserving mode before they become victim of the incapable leaders. too bad the top top leaders in the company are just watching the failure. it has become a political realm, no longer a properly managed commercial organization.
The only thing is happening here is Empire building, in their own small regions, the US guys are turning a blind eye on it, without realizing that as much as blame game that they are planning, one day they would lose the company and then it would be way too late. share price is to 26 dollars. simply pathetic
Well written. We've heard how exJCP feel "We're just selling watch here"
They do not have the passion or drive for Fossil and they sure do not have the vision for this kind of business
Good post... I think this is exactly what is going on at Verizon now