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Pall Corporation Message Board

  • EquiSaurus EquiSaurus Mar 7, 1999 2:29 PM Flag

    The Politics of Arrogance Killed a Compa

    I have followed PLL for at least 15 years at a
    close level. Contacts in senior management, mid level
    management, and even on the ground floor of some of their

    What has happened here is not unique to
    my experience as a investment follower of various
    firms. BUT, it is not ordinary either....

    company truly was, as many on the list say, "a once great
    company". I say this downfall is "not ordinary" because it
    is not rooted in the market or business/investment
    climate. This company has actually failed solely due to
    extreme arrogance and incompetence on the part of the
    highest levels of executive management. The atmosphere
    inside Pall has degraded to chaos among the middle
    management, as they scurry to and fro, attempting to comply
    with the competing and conflicting needs of countless
    tyrannical corp. VP's. The middle managers, often made to
    choose between political causes, (from where there is
    never a winning position at their level). The corporate
    officers routinely disregarding the principles of
    "Business 101" : No real timelines, no overviews of the
    staff targets, no leadership accountability, no formal
    training in staff management, no debated and dynamically
    refined strategy of any sort. Bottom line: Just plain no
    accountability beyond that which they rigidly (at the expense of
    morale) expect from the subordinates. I've been told that
    there are actually cases of employees at Pall waiting
    some 8 months past due, before getting their annual
    salary review from their supervisor/dept.head!

    No accountability is dangerous at any level in any

    No accountability from upper management breeds
    resentment and fear in all levels of management below. Which
    breeds chaos in the organization, a feeling of despair,
    followed by failure. You shareholders are here. --> X

    (Hey, everybody w/ me so far?) SEE PART


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    • Bashing is what happened to the shareholders---a spelling critique could cast a pall over these discussions.

    • dont be so self rightous, you definitley sound
      like a company man oops sorry company person or just
      like licking boots and kissing butt. Though soon you
      will soon find out in the imortal words of king kohn,
      "loyalty means nothing". And that is directly a quote from
      the horses ass oops i mean mouth!

    • Four months ago Barron's published a glowing
      positive story about PLL when the stock was about $23. In
      the current issue (3/15) it has a follow-up. One
      factor, it said, for the drop in margins, was the
      transfer of blood banks from hospitals to blood banks. The
      American Red Cross gets volume discounts. Another negative
      came from the industrial-systems sales, which is a
      relatively new business line.

      Although I would not
      consider the article totally positive, it did say, "Pall's
      short-term outlook is vastly different from its longer-term
      prospects, as discussed in our article four months ago".

    • "I guess we'll see by the 19th whether management
      truly has a vision for the future, or whether they
      only slashing blindly."

      The slashing
      started already not every one has to wait for the 19th.

    • Yes, I also am concerned about the direction the
      company will take in achieving the $50MM reduction in
      expenses and whether corporate mgmt has truly thought it

      Pall has not been successful in competing in the low
      cost, commodity filter market. They are not structured
      for it, and are not the low cost producer. Rather,
      the company has been marketing itself as selling
      solutions to customer's problems. This implies an active
      sales and R&D base, and flexible manufacturing to be
      able to custom design, tailor, and manufacture
      products to solve specific customer problems. It means
      selling myriad variations of the products, each for a
      unique application. Pall has focused on developing new
      products that it can convince customers are worth a
      premium price, and then getting them to the market before
      the competition catches up. This business model
      requires several things:
      1. A knowledgeable and active
      sales force that can search out customer problems and
      convince them to purchase premium products.
      2. An
      effective R&D base that can quickly design or tailor
      products to a specific application and get them into
      3. A flexible manufacturing base that can work with
      R&D effectively to produce the myriad "flavors"

      Given this business model, I don't believe it makes
      sense to decimate the company by heavily cutting staff
      at the lower levels where the actual work gets done.
      All this will do is overload and demoralize the real
      workers and further slow introduction of vital new
      products. Rather, management should look within itself and
      change the way they get the work done. Effective project
      management, rigorous cost controls, project time-lines that
      are actually met,

      Accountability for budgets and performance. That's managements
      responsibility. It's management's fault if expenses have gotten
      out of control. Where is their accountability?
      Without some major changes in how management runs the
      show, and is held accountable for performance, the cuts
      will be wasted. In my opinion, the company is not
      over-staffed in the lower levels, and can not afford heavy
      cuts. If there is deadwood, get rid of it; but
      wholesale cuts will be damaging. Corporate management
      should look within itself first. Are they being held
      accountable? Is the company properly structured for the
      business model? Should the business model be changed?
      Isn't this what they teach in business school?

      guess we'll see by the 19th whether management truly
      has a vision for the future, or whether they are only
      slashing blindly.

    • It appears my friend that you did not had a
      choice, did you ? It sounds that you are an ex-Gelman and
      now a Pall employee. Nevertheless, I think you are
      right, some people think inside out others think outside

      This is a great opprtunity to clean those that have
      heavy baggage and position the leaders of the future.
      Unfortunately only a very few leaders in that elite called
      Executive Level have their brain in the right

      What would you do ?

    • I would agree with you 100%. Let's just ask the
      CEO how many people from the Executive Staff
      (Operating Committee) is he letting go ? The reduction is
      bottom up and those areas that are extremely productive
      are been hit and those unproductive aren't.Why ?
      fairly simple.. Peter Principle. The organization has
      rewarded incompetent people with reviews of Excellency and
      now these people cannot be let go as they represent a
      legal threat for the organization. Bottom line: the new
      blood that are working their butt off are been laid

    • Another recent exPall person here. The part about
      low salaries is true. Since the company only hires
      locals who are deparate to stay local despite the low
      salary, Pall is the only game in town for anybody with an
      engineering degree (ok maybe there are a few other employers
      but seems like slim pickings on LI).

      All you
      said is true but until the die hard NY'ers are willing
      to move it won't happen.....and I'm am quite sure
      Pall hiring dept knows they can offer low salaries and
      some schmuck will take it. You would be amazed by the
      number of degreed young engineers who work as waiters on
      the weekend, or live with mom and dad to offset their
      low salary.

      Typical coporatate crap going
      on.....nothing new invented by Pall except perhaps the degree of
      cronyism. Sons of upper management now in the middle and vp

      Laying off the janitor is well and good
      and a short term band-aid to the bottom line, but
      where is the accountability to the yahoos running the
      money loosing groups......I will be completely
      surprised if any of the vp's running those groups are gone
      in these layoffs. How the heck do you lay off your
      best buddies son? It is a horrible situation of their
      own making and here are the consequences.

      Mediocre skills in the lower ranks due to low pay (if they
      have talent their stay is certainly short).
      2. Too
      many favored sons in high places.
      3. Bad purchases
      that dragged down the earnings and the balance
      4. The commoditization of the is
      inevitable despite the arrogance of the

      Anybody surprised by any of this? Not me.

    • 1) Turmoil NOT TERMOIl. Its no wonder PLL is
      failing, both the current and ex employees cannot even

      2)Pall is hardly alone among corporation which are
      "manufacturing driven." that is where the money is ...Duh. This
      does not automatically imply poor service and lack of

      3) If Pall wages are so bad and raises so meager,
      how did they ever get to the position they were once,
      shortly ago, in? I cannot believe an Engineer starts at
      30K. What, a sanitary engineer?

      everywhere thinks the technical community at their company
      is worthless and mindless. This is especially the
      case when the technical people behave like mindless
      slaves, working away like ants for peanuts, developing
      new and exciting products while management takes all
      the credit and gets all the benefits.

      Loyality? Dedication? Are you crazy? Stupid serfs. Get a
      life. Your company could care less if you die an
      painful long death in a sewer, why should you care about

    • been_there_done_that_111 been_there_done_that_111 Mar 12, 1999 8:41 PM Flag

      I am a former Pall employee (I left approx. 4
      years ago)who worked in a "privleged" department & I
      can tell you that Yes, the bonuses were great & Yes,
      there were salary increases in excess of 4% BUT that
      mainly went to the "in crowd" or those who kissed lots
      of executive butt. There were & still are plenty of
      hard working employees who get the standard

      As for the jumping ship of employees at the first
      sign of turmoil - that is soo far off the mark its
      disgusting. As someone hinted at, there are alot of employees
      at Pall who have over 10 years of service. They knew
      the pay wasn't the best but they liked their
      co-workers & the stability of the company. They were loyal &
      are still looking for the bright side to this dark
      cloud hanging over the building.

      I guarantee if
      you walk around that building today & ask anyone if
      they truly hate their job they will say NO. If you ask
      those same people if they hate what has happened & is
      happening they will say YES !!

      A few years back all
      employees took part in a survey to help management
      understand the workers. They came back with lots of
      constructive criticism but guess what - NO ONE LISTENED & NO
      CHANGES WERE MADE. That was a chance to turn things
      around - at least a little.

      It is a very sad
      situation and everyone (but management) knows what & who to
      blame. ERIC.

      I feel for all those folks who are
      getting laid off - those who have given their jobs their
      all. And to those of you who think the workers haven't
      given the company all they can, all I can say is -- Go
      talk with family members of the workers who put in 10
      - 12 hour days they will tell you the real

      I for one hope this mess gets straightened out for
      the employees sake.

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