Struggling Invensys finally drops IBM IT relationship
I present this as a case history of how misguided projects go awry
in large companies, while yes-men minions stand by. And then, after
good people are destroyed and huge amounts of money are wasted,
the old mistake is reversed. And the guilty remain.
In June 2001, I reported in JimPinto.com eNews that that Allen Yurko,
then CEO of Invensys, was already in deep trouble. To cut expenses,
he initiated a terribly mis-directed program dubiously dubbed
"Project Unity". This included outsourcing of all Invensys IT systems
(including hardware and software) and transfer of current IT employees
to IBM through a "strategic outsourcing arrangement" (read: layoffs)
to take place in "Autumn 2001". Not one of his "yes-men" questioned
Yurko.
Just a few weeks after, it was clear that Allen Yurko was being booted
out and Rick Haythornthwaite was hired as his replacement. Yurko was
still shamelessly staying on at Invensys HQ, supposedly exiting
gracefully, with a princely pension. But, Project Unity had not yet
been implemented - the deal with IBM had not yet been signed.
In 2001, I had already exited Action Instruments (now owned by
Eurotherm, which was part of Invensys). But, recognizing the
opportunity to stop Project Unity, I personally contacted several
key Invensys Managers, and notably Peter Tompkins of Eurotherm.
Peter Wade, CEO of Eurotherm had already exited, and I hoped that
Tompkins, (previously dubbed Repeater Tompkins because he echoed
everything Peter Wade ever said) would now find an opportunity finally
to make a decision for himself. Tompkins could now be a hero to his
own people. He could advise the newbie Haythornthwaite to stop the
deal with IBM, or at least himself stop the transfer at Eurotherm
and Action Instruments. But sadly, Tompkins chickened out and the
debacle of "Project Unity" proceeded.
This past week, after damages that amount to hundreds of millions
of dollars over two years, the news came via the weblogs that the IBM
deal was finally cancelled. Apparently, Haythornthwaite finally wised
up, or perhaps the scaled down Invensys was not profitable for IBM.
Some 600+ ex-Invensys-now-IBM employees are now to be re-transferred
back to Invensys.
Who can calculate the damages in already replaced hardware, misplaced
documentation, half-baked software transfers and irreparable damage
to many, many previously dedicated employees??
Who will take responsibility now, and fire the yes-men who stood
silent when their company was being destroyed??
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