I agree jj, the worst business was the on highway truck engine, High volume and no profit. It will be interesting to see the dif without the drag. The accountability philosphy started with fites and separate profit centers, with each being accountable for their worth or no worth. Most have had little trouble until resent. Of course there will be changes but the overall philoshy will not. I think that was graf's point.
I will say I have heard that Oberhelman has plans to hold those in accountable positions accountable... I believe you will see alot of restructuring once it is determined where no/low value is determined to be coming from in the company.
"Any opinions on how management will be restructured?"
Wont be! Doug is a product and member of the same team that has been managing Cat for decades.... he was trained and part of the Bill Blackie, Bill Franklin, Lee Morgan, George Schafer, Don Fites, Glen Barton, Jim Wogslund, and Jim Owens team. He'll address the challenges and issues of his time in office about the same as his mentors Don Fites and Jim Wogslund.
Cat is a very top-heavy co-> The sr leadership has more in common with GM than Deere it seems. Through 2009 the sr mgmt (SG 26 and above, those who get options) have been largely untouched. There are some units in Cat that look like Gov't jobs programs they have so much mgmt. All Ownes has done is squeeze the hrly, salaried, and staff. Still, no units or divs have been combined or eliminated.
It's too bad you can't see the dif, between Cat and GM, no it's sad. I do agree that the wealth could be better disbuted thru the ranks, but don't compare Cat, not being able to compete in the market place like GM. Cats put GM out of half the businesses they have been in.
As the company has downsized dramatically and they let 34000 people go in 2009 it would seem only sensible that they reduce numbers accordingly. It will be interesting to see what happens when Oberhelman takes over as he has a reputation as a profit focused guy.