Corporations often employ executives, which are not experienced nor educated for the type of products and services they sell. Is this a fact that could put life of consumers and users at risk?. Here we analyze P&H – Morris Material Handling of Milwaukee, USA.
Electric Overhead Cranes, those yellow train-like machines that run overhead on rails in any Industrial operation, are yellow or similar bright colors, to denote that they move. Since they move and lift weigh, they are intrinsically a safety concern. Cranes have components that perform several horizontal or vertical motions, and do have motor/reducers and sophisticated electric controls along with structures to carry it all. Often, Cranes have to co-exist with explosive gases, acid, extreme heat and dusty environments while providing the backbone strength to productivity. Would you buy an Overhead Crane from a Sales Manager with no significant product experience, no technical background, no university nor post secondary education related to Cranes or any Crane Components? well, if your business is located in Chile, you like the P&H label and have the budget for it, in all likelihood, you will..
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One top producer of Hoists and Cranes is Morris Material Handling Inc. formerly P&H Material Handling Inc. a trademark, technology proprietor and producer of the reputable P&H hoist and the legendary P&H refinery cranes. Bright people from this company worldwide have, ever since the US heavy industry early childhood, provided the Industry Steel Mills and Refineries with top notch Overhead Crane Equipment. For a long time second to none, the P&H product has provided outstanding performance and top return on investment to customers throughout the world.
Harnischfeger of Milwaukee, USA who used to own P&H Materials Handling prior to the mid nineties, went through significant financial difficulties due to transactions in China going sour with respect to their Paper Mill machinery division. As a result of this event, Harnischfeger sold P&H Material Handling to Chicago investors who took over with little cash and lots of financing. In turn, P&H Materials Handling itself soon filed under Chapter 11 for bankruptcy protection causing the traumatic pains associated with cost cutting and effective weigh-performance ratio adjustments.
Former Harnischfeger Industries Corporate Headquarters
This is where Mr. Jack Stinnett comes in, a former US Navy man, with little or no experience in Overhead Cranes but a savvy Manager with a war like tradition, capable of snatching as many heads as necessary to accomplish the mission. He became the company CEO on a Chapter 11 environment and, of course in charge of trimming the fat-off-the-sup. It is said that the situation room meetings would end with the saying “let’s go ‘n kick ass”. His basic philosophy derives directly from the strict and disciplined Navy education where there are friends and enemies and those that are neither are at least neutralized.
When the Saddam Hussein statue was toppled from its base in Baghdad by the EM88A2 US Army tank Hercules, Morris at the Oak Creek headquarters was quick to claim that it was the legendary 50 ton P&H Winch manufactured by Morris that was doing the statue pulling. Over the years, Morris has supplied the US Army tanks with the winch, so it was considered likely that the P&H winch has something to do with it. A marketing pitch?, an honest mistake due to the picture quality? or simply an error caused by not knowing the product? The Milwaukee Journal Sentinel reported on April 22, 2003 (you may see the article here) “What seemed like an Oak Creek firm's claim to a bit of history probably won't rate a footnote.” The winch that did the job was not the P&H winch. The article goes on to quote Mr. Stinnett saying “It's my belief that it was the little winch that pulled this guy over", "was a mistake on our part". He then changed the subject to mention the actual sales in the order of $3.6 million dollars for that week. He also used the chance to lower the profile to rumors on dealings with a recent unsolicited offer to buy his company by a competitor. No doubt these comments are more familiar grounds to the skillful CEO.
Saddam statue toppled by a winch
So, How would you feel as a customer to know that your Strategic Equipment supplier has a key player with little or no experience in the product his company is selling to you? Is it important to you or not?. It is clear that not much investigation is required to see that Morris Materials Handling is but a shadow of what used to be. A quick look across the ranks will leave a sense of loss. Many bright, hard working people are no longer there, perhaps taking valuable experience with them forever. There was a time when a tour of the P&H manufacturing plant floor pointed to workers proudly displaying on a plates hanging from the nearest wall their years of seniority at their post. In those days experience was the most important asset the company had to show for. Not the case today in many areas of the Morris organization. Let’s explore some examples:
Morris acquired Kaverit Steel and Crane, an Edmonton, Canada based Crane Company during 1996. At the time of the take over Kaverit was standing alone where used to be lots of competitors including P&H distributor Hansa Iron Works. Kaverit was perhaps the most successful Crane operation in North America. A few months ago Lorne Nakonechny was named General Manager in Edmonton. “...will guide Kaverit’s growth in the crane equipment, parts, upgrades and service for our Western Canadian customers.” Says the Morris press release, and goes on to say “Mr. Nakonechny served as the President of FCX Newman Hattersley, a valve manufacturer and distributor in Edmonton. Previously, Mr. Nakonechny served as President of Autotech Rebuilders and Distributors, Ltd. in Calgary. Mr. Nakonechny studied at the University of Alberta, Edmonton where he obtained a BA in Political Science.” No crane experience here. Having Morris recently shuffled the deck in Canada, all previous key people have been terminated or left, today Kaverit/Morris in Canada has little or no people from the old school to show.
Take now a look at Overhead Crane Service and Supply Company Limited (OCS), a Morris subsidiary based in Ontario, Canada, which recently replaced its General Manager naming Scot Gilbey as the new General Manager. “Scott is new to the crane and hoist industry but brings eight years in the elevator industry in Sales and Engineering and six years in specialty wood fabrication in Sales and General Management.” Says the news release by Morris head office in Milwaukee. Again, no overhead crane experience here.
You might say that there are plenty of examples of company Managers that took companies to higher levels of achievement without knowing the product. Maybe true but, back to Mr. Customer: How far down the line this product ignorance will become unacceptable to you?
You have to consider that we are talking about machines that might cost over six figures, where is not unusual to have a Sales Manger involved in half million dollar projects. Then there are the Engineering and safety factors and the regulations and on, and on. These crane systems have several sophisticated components critical to the safety of employees and customers. A Sales Manager, without a doubt, you might say, needs to have proper product knowledge when it comes to overhead cranes.
Morris Chile, subsidiary one hundred per cent owned an operated by Morris Material Handling Inc. of Milwaukee, recently promoted to General Sales Manager the former Parts Clerk Susana Sepulveda. Susana had a few months of experience as a Parts Sales Clerk and order desk attendant with Petricio Industrial, a P&H distributor in Chile. She worked there expediting part imports and typing quotations for customers. Senior Sales and Engineer personnel had to previously process these quotations, she was never able to work unassisted. She then left the post to go and work selling children toys at Mattel for another year or so until she left again. While unemployed she was contact by the newly formed Morris Chile to work as Parts Clerk. She was fully integrated early 2000 and generally did a very good job in selling parts. She worked with help from computer assisted catalogues, from the Milwaukee Parts Sales Clerks and the Technicians and Management at the branch office. She was truly unable to operate unassisted. Parts processing and order taking was very important for Morris Chile, particularly when supporting Service Operations in the field that accounted for most of the Parts Sales at that time, and Susana did a good job at that.
Codelo Chuquicamata open pit copper mine
Now Susana is responsible for all sales at Morris Chile Ltd., at least 3 million dollars worth, including new Equipment and Crane Modernization projects. She oversees the field Service Sales, the Technicians sales activities, the Equipment Sales Engineer, in short she is essentially responsible for all quotations that leave the office. Not bad for someone without university education and no Overhead Crane experience, except as parts sales clerk and virtually no technical skills what so ever. Nevertheless, her signature goes on quotations dealing with volumes of technical, financial as well as complex engineering data.
Suzana Sepulveda, General Sales Manager, Morris Chile.
Codelco is one of the largest Copper Mine organizations in the world. In Chile Codelco has several Copper Mines, both underground and above ground. Morris has in Chile one of the very few on-site Service Contracts located at Chuquicamata Codelco mine, north of Chile. This contract was established prior to Susana’s appointment as Manager.
So we are not talking about an unimportant customer located on an unimportant region of the world for Morris. Would it be fair to say that every time an inexperienced Manager approves a sales quotation or a technical task, lives are in jeopardy?
Let’s make also clear that it is also a fact that many knowledgeable fully qualified middle Mangers still remain working for Morris Material handling Inc. But, unfortunately, this fact is taken for granted. So, when the less common fact that not so qualified Managers such as the Sales Manager in Chile are employed by Mr. Stinnett, no doubt it is enough to surprise customers, shareholders and industry at large.
Morris Material Handling has a bright future ahead, either on its own or as part of a new corporation. In particular because since the year 2001 the chapter 11 is out of the way. Morris also has a big customer base inherited over the years plus the tangible "know-how" that comes from drawings safely kept at the company’s vault. Morris also has the powerful P&H label. It should be about the right time to consolidate. We also need to mention the valuable asset represented by those people that in spite of all the people terminated, moved or just gone, are still at their battle stations doing an outstanding job. All in all, a mission accomplished by Mr. Stinnett, up until today.
Arnold Cohin,
May 2004.
..
One top producer of Hoists and Cranes is Morris Material Handling Inc. formerly P&H Material Handling Inc. a trademark, technology proprietor and producer of the reputable P&H hoist and the legendary P&H refinery cranes. Bright people from this company worldwide have, ever since the US heavy industry early childhood, provided the Industry Steel Mills and Refineries with top notch Overhead Crane Equipment. For a long time second to none, the P&H product has provided outstanding performance and top return on investment to customers throughout the world.
Harnischfeger of Milwaukee, USA who used to own P&H Materials Handling prior to the mid nineties, went through significant financial difficulties due to transactions in China going sour with respect to their Paper Mill machinery division. As a result of this event, Harnischfeger sold P&H Material Handling to Chicago investors who took over with little cash and lots of financing. In turn, P&H Materials Handling itself soon filed under Chapter 11 for bankruptcy protection causing the traumatic pains associated with cost cutting and effective weigh-performance ratio adjustments.
Former Harnischfeger Industries Corporate Headquarters
This is where Mr. Jack Stinnett comes in, a former US Navy man, with little or no experience in Overhead Cranes but a savvy Manager with a war like tradition, capable of snatching as many heads as necessary to accomplish the mission. He became the company CEO on a Chapter 11 environment and, of course in charge of trimming the fat-off-the-sup. It is said that the situation room meetings would end with the saying “let’s go ‘n kick ass”. His basic philosophy derives directly from the strict and disciplined Navy education where there are friends and enemies and those that are neither are at least neutralized.
When the Saddam Hussein statue was toppled from its base in Baghdad by the EM88A2 US Army tank Hercules, Morris at the Oak Creek headquarters was quick to claim that it was the legendary 50 ton P&H Winch manufactured by Morris that was doing the statue pulling. Over the years, Morris has supplied the US Army tanks with the winch, so it was considered likely that the P&H winch has something to do with it. A marketing pitch?, an honest mistake due to the picture quality? or simply an error caused by not knowing the product? The Milwaukee Journal Sentinel reported on April 22, 2003 (you may see the article here) “What seemed like an Oak Creek firm's claim to a bit of history probably won't rate a footnote.” The winch that did the job was not the P&H winch. The article goes on to quote Mr. Stinnett saying “It's my belief that it was the little winch that pulled this guy over", "was a mistake on our part". He then changed the subject to mention the actual sales in the order of $3.6 million dollars for that week. He also used the chance to lower the profile to rumors on dealings with a recent unsolicited offer to buy his company by a competitor. No doubt these comments are more familiar grounds to the skillful CEO.
Saddam statue toppled by a winch
So, How would you feel as a customer to know that your Strategic Equipment supplier has a key player with little or no experience in the product his company is selling to you? Is it important to you or not?. It is clear that not much investigation is required to see that Morris Materials Handling is but a shadow of what used to be. A quick look across the ranks will leave a sense of loss. Many bright, hard working people are no longer there, perhaps taking valuable experience with them forever. There was a time when a tour of the P&H manufacturing plant floor pointed to workers proudly displaying on a plates hanging from the nearest wall their years of seniority at their post. In those days experience was the most important asset the company had to show for. Not the case today in many areas of the Morris organization. Let’s explore some examples:
Morris acquired Kaverit Steel and Crane, an Edmonton, Canada based Crane Company during 1996. At the time of the take over Kaverit was standing alone where used to be lots of competitors including P&H distributor Hansa Iron Works. Kaverit was perhaps the most successful Crane operation in North America. A few months ago Lorne Nakonechny was named General Manager in Edmonton. “...will guide Kaverit’s growth in the crane equipment, parts, upgrades and service for our Western Canadian customers.” Says the Morris press release, and goes on to say “Mr. Nakonechny served as the President of FCX Newman Hattersley, a valve manufacturer and distributor in Edmonton. Previously, Mr. Nakonechny served as President of Autotech Rebuilders and Distributors, Ltd. in Calgary. Mr. Nakonechny studied at the University of Alberta, Edmonton where he obtained a BA in Political Science.” No crane experience here. Having Morris recently shuffled the deck in Canada, all previous key people have been terminated or left, today Kaverit/Morris in Canada has little or no people from the old school to show.
Take now a look at Overhead Crane Service and Supply Company Limited (OCS), a Morris subsidiary based in Ontario, Canada, which recently replaced its General Manager naming Scot Gilbey as the new General Manager. “Scott is new to the crane and hoist industry but brings eight years in the elevator industry in Sales and Engineering and six years in specialty wood fabrication in Sales and General Management.” Says the news release by Morris head office in Milwaukee. Again, no overhead crane experience here.
You might say that there are plenty of examples of company Managers that took companies to higher levels of achievement without knowing the product. Maybe true but, back to Mr. Customer: How far down the line this product ignorance will become unacceptable to you?
You have to consider that we are talking about machines that might cost over six figures, where is not unusual to have a Sales Manger involved in half million dollar projects. Then there are the Engineering and safety factors and the regulations and on, and on. These crane systems have several sophisticated components critical to the safety of employees and customers. A Sales Manager, without a doubt, you might say, needs to have proper product knowledge when it comes to overhead cranes.
Morris Chile, subsidiary one hundred per cent owned an operated by Morris Material Handling Inc. of Milwaukee, recently promoted to General Sales Manager the former Parts Clerk Susana Sepulveda. Susana had a few months of experience as a Parts Sales Clerk and order desk attendant with Petricio Industrial, a P&H distributor in Chile. She worked there expediting part imports and typing quotations for customers. Senior Sales and Engineer personnel had to previously process these quotations, she was never able to work unassisted. She then left the post to go and work selling children toys at Mattel for another year or so until she left again. While unemployed she was contact by the newly formed Morris Chile to work as Parts Clerk. She was fully integrated early 2000 and generally did a very good job in selling parts. She worked with help from computer assisted catalogues, from the Milwaukee Parts Sales Clerks and the Technicians and Management at the branch office. She was truly unable to operate unassisted. Parts processing and order taking was very important for Morris Chile, particularly when supporting Service Operations in the field that accounted for most of the Parts Sales at that time, and Susana did a good job at that.
Codelo Chuquicamata open pit copper mine
Now Susana is responsible for all sales at Morris Chile Ltd., at least 3 million dollars worth, including new Equipment and Crane Modernization projects. She oversees the field Service Sales, the Technicians sales activities, the Equipment Sales Engineer, in short she is essentially responsible for all quotations that leave the office. Not bad for someone without university education and no Overhead Crane experience, except as parts sales clerk and virtually no technical skills what so ever. Nevertheless, her signature goes on quotations dealing with volumes of technical, financial as well as complex engineering data.
Suzana Sepulveda, General Sales Manager, Morris Chile.
Codelco is one of the largest Copper Mine organizations in the world. In Chile Codelco has several Copper Mines, both underground and above ground. Morris has in Chile one of the very few on-site Service Contracts located at Chuquicamata Codelco mine, north of Chile. This contract was established prior to Susana’s appointment as Manager.
So we are not talking about an unimportant customer located on an unimportant region of the world for Morris. Would it be fair to say that every time an inexperienced Manager approves a sales quotation or a technical task, lives are in jeopardy?
Let’s make also clear that it is also a fact that many knowledgeable fully qualified middle Mangers still remain working for Morris Material handling Inc. But, unfortunately, this fact is taken for granted. So, when the less common fact that not so qualified Managers such as the Sales Manager in Chile are employed by Mr. Stinnett, no doubt it is enough to surprise customers, shareholders and industry at large.
Morris Material Handling has a bright future ahead, either on its own or as part of a new corporation. In particular because since the year 2001 the chapter 11 is out of the way. Morris also has a big customer base inherited over the years plus the tangible "know-how" that comes from drawings safely kept at the company’s vault. Morris also has the powerful P&H label. It should be about the right time to consolidate. We also need to mention the valuable asset represented by those people that in spite of all the people terminated, moved or just gone, are still at their battle stations doing an outstanding job. All in all, a mission accomplished by Mr. Stinnett, up until today.
Arnold Cohin,
May 2004.
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