Thread regarding Cummins Inc. layoffs

What is happening with innovation?

Why has this become a totally non-innovative company? Why are there no new, good innovations? No money for innovation? No people who are innovative? Or are innovative and good ideas not appreciated?
I’m not sure what all the reasons are, but I know it’s a symptom of a dying company. Too bad, this used to be a much better place.

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Post ID: @OP+1a14VVHw

8 replies (most recent on top)

“Legacy” of continual market decline, reductions, and evidence of failure.

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Post ID: @4ger+1a14VVHw

If “a ton of brand equity” is true, why then routinely closing plants globally, with thousands of jobs lost?!? Brand equity would routinely result in new plants, and hiring not firing.

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Post ID: @4ujl+1a14VVHw

Zerox followed that same strategy as well. Gone the way of the do-do bird!
Cummins is receiving backwind.

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Post ID: @4dsn+1a14VVHw

Kodak, GE, Cannon and several other companies tried that outdated strategy as well, now they’re all ghosts. They didn’t innovate for several years, and got quickly replaced.
Revenues for the full year 2020 were $19.8 billion, 16 percent lower than 2019.
Sales in North America declined 21 percent and international revenues declined 7 percent.
Sales declined in all major regions except China. Continual market decline every year.
http://www.therepublic.com/2021/02/04/cummins-reports-2020-fourth-quarter-results/

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Post ID: @4yun+1a14VVHw

It's really as simple as their market share is big enough that there's no need for innovation. With CAT (and practically Navistar) out of the picture, they can just keep pumping out the units and raking in the cash. They can hire from a "minimum viable" labor pool and pocket the savings because there's still a ton of brand equity. With that cash, Tommy Lines can buy up a bunch of sh– to build a "legacy."

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Post ID: @4rka+1a14VVHw

Forced ranking systems are widely recognized to k–l innovation and collaboration as people avert risk and don’t share information. It drives mediocrity into the culture of the company as people seek sanctuary in the middle of the bell curve distribution. Even GE understands this now.

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Post ID: @2mzc+1a14VVHw

Jack Welch, the CEO of GE, also stole the ownership of Six Sigma. He implemented it all across GE, and took credit for those process improvement tools, but they originated from Japan. Cummins is in GE’s footsteps for several years. They’ll soon collapse for the same reasons as GE.

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Post ID: @1jwc+1a14VVHw

Jack Welch of GE learned this lesson back in the early 2000’s: cultural and communicational.
Welch decided to off-shore his entire IT department in efforts to cut costs. All of the current IT staff were told to wipe out their desks. Habib and his off-shore homies just took their jobs. It turned out a failure. Welch also implemented global plant closures, downsizing and restructuring (like Cummins). So in attempt to apply a band-aid, Welch decided to bring on-shore a Project Manager from India to communicate back to the homies what was expected. The devil in the details: the Indians had all done exactly what they were told by the PM. Never any deviance even if they saw flaws in the process, or any areas for improvements. They all just done exactly as told. After a few years of product quality and customer satisfaction decline, Welch brought all of those IT jobs back to America, eliminated every off-shore role. The off-shoring experiment cost GE multi-millions of dollars in failure; Cummins has been learning that lesson for several years now. You asked why no innovation: delegating to stooges.

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Post ID: @1mss+1a14VVHw

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