Here is the view of a 20 year employee who worked across several of the consumer divisions: The decision to separate out McNeil from the rest of J&J consumer brands is simply a return to the state of play prior to the 2006 Pfizer Consumer acquisition where McNeil was a separate company, indeed an empire within J&J. The CEO level decision to combine paper goods products (fem hygiene), toiletries (baby products and other adult products) with precision OTC's into one division was a disaster of a mistake. When the downturn in the economy caused companies to downsize and cut back, the McNeil cash cow P&L paid for profit protection across the entire consumer sector. Plus, the FDA level quality controls established in the "old" McNeil was likely treated just like those in the parts of the business in cutting back, not protected as it should have been. Just look at the percent of employees laid off at the Ft Washington plant BEFORE the recalls started. Maybe the layoffs were not directly against QA people, but there is a cumulative effect as employees whose roles are related to QA “do more” or “don’t do” as they are asked to focus on what “adds value”. J&J now reaps the pain of this decision, including wiping out 25 years of goodwill built from Jim Burke's stewardship of the company through the two Tylenol tamperings in the 1980’s. Pat Mutchler is a good guy. I remember him as the toughest minded of the sales district managers in the old Personal Products division. So maybe he can do it – but he needs to think in FDA terms not typical toiletries. The real crime here is found in the proxy statement showing Weldon’s compensation. Colleen gets thrown to the wolves and Weldon still gets a 3% merit. Her 2010 comp goes down 75%, his only 12%. Given the J&J reputation (his job) is in trash, that seems a bit mild. It’s time for Weldon to get out. I am voting my shares against him. But I am not selling my shares …yet. I think there will be a bump up if Weldon gets the boot. Especially if someone from outside is brought in to give some new thinking. So everyone vote your shares against Weldon!! Any other J&J consumer employees with views??
Goggins, as one article noted, was too concerned with the graphics color in one ad.
McCoy, has roots in Personal Products R&D, that should be her focus to right the company and certainly not CEO.
Mutchler, may be a good guy but is just another marketing guy.
Just about all the products JNJ sells, including consumer goods, are more complicated than meets the eye, particularly to the current slew of marketing types running the show. Even lowly Band Aids require stringent manufacturing and sterilization.
Jim Burke clearly had an understanding of this.
The "depth" of the human resources was cut to the bone in the last ten years with layoff after layoff. So now when you walk into a JNJ facility you see nothing but fresh young faces and few of the oldsters providing the depth of insight and experience gained throughout the years that have the experience to handle a crisis and pass this insight on to the next generation.
Are the fresh young faces going to tell someone maybe you shouldn't push that faulty hip implant? Or here is how we should treat that musty pallet odor.
An old story has it that General Johnson was to visit the ESDP plant in NJ. So management cleaned house and painted everything in sight. For expediency management stored stuff on the roof for temporary storage. The General arriving by helicopter of course saw the mess on the roof and the rest is history. And today, Weldon's reaction to such a sight - 'hey great we have new storage space'!
At a McNeil plant in PA the FDA recently found a big hole in the ceiling of a manufacturing area and shut it down. Where was the adult staff at this plant? Where were the oldsters to stop production until the problem was fixed long BEFORE an FDA visit???????
Business Week Article: •Johnson & Johnson's Quality Catastrophe. There is a hidden danger lurking in the wings. Her name is Sherilyn McCoy. She is the one who carried out the gutting of the JNJ Enterprise over the years, and, in fact, was in the Consumer Sector and supported the McNeil decision making process. There is absolutely no reason for her to be "knighted" as the new CEO. Investors need to do their homework on her. What has she accomplished? What is her background? What are her strengths and weaknesses. Most importantly, what is her relationship with Bill Weldon? Don't let JNJ continue in its Death Spiral.