I used to own a lot of shares in JCI until I learned about some of their managers' credentials. Do you believe they let Plant Mangers in with only a high school diploma? I guess there is some one in the MI/OH arean like this. Anyone with a one line employment history as a Plant Manager on the website "chainedin" or something like that needs to go back to school, and I do not mean back to high school. Glad I dumped my stock when I did. If you can't graduate from college with at least an associates degree, pick up a wrench and get back to the line scammer! Just stay out of management until you are qualified to manage!
Richard Branson of Virgin Airlines is a high school drop out. He can do circles around over 99% of MBAs. 60 Minutes TV show had the Mr. Gasket CEO on, he had sold the company to a large company and they had screwed the company up. He bought it back for a song and when asked how he fixed it he said "I got rid of the MBAs who did not understand the customers and brought back some good old boys who did. Don't judge people by their degrees, judge them by the job they are able to do!
200 MBA's and one plant manager and that is where the problem is? Being street smart beats out book smart in my book almost everytime. I'll take the plant manager. Allot of the most "successful" companies are run by "under educated" people like Branson, etc. You know who they are. Too many to mention. You must have read about them when you took your MBA classes.
My guess is that is not where the probnlem is located. Execution is left to the plant managers, and for the most part, the execution is not bad. The problem appears to be more of strategy. The strategic plan to focus on vertical integration of metals in Europe and to buy companies like Keiper, only adds to the fixed cost base when volume drops. Partial outsourcing in building efficiency has left the cost base in place, while taking away the upside potential during storng periods, and product design has hurt power solutions. Although standardization is generally a good thing, I have purchased three batteries for my car in the last year, and none lasted more nthan 9 months. This has to be hurting warranty costs.
Leadership is missing in the organization, but it seems to be a little higher up than the plant managers.