Most agree that new management is needed. I wonder, hypothetically speaking, what could the new management change for the better?
From this perspective, it seems to me that the situation at NOV is irreparable. Years of bad decisions and bad moves could not be fixed just like that. Possibly by taking some drastic measures.
Lets be clear & transparent NOV does not need a new management team, there is nothing wrong with the current management after all ignorance is bliss.
Downhole profitable?
I heard the rumor of a sale of downhole to an investment company.
NOV has never manufactured well.
The US Downhole business was barely profitable. At least their profitability is improving now. When everyone is selling the same stuff, going cheaper is the main option, which usually means going international. It’s actually really obvious why they’re doing what they’re doing.
Look at Downhole manufacturing. They can’t manufacture anything on time and the leadership in Houston has moved everything international. How does that make since for a US focused business? Trucking along has to eat big time at our margins. Abaco must just love us.
The rot started around the time the new heir apparent joined. No international experience, zero personality, no empathy with employees. Beni Reinhold will be rolling in his grave. Too many yes men and women back-slapping each other in management. How do these people sleep at night? They sleep well because the entire leadership levels below them feed their ego and tell them they are doing a grand job. The heir apparent is working on consolidating the company into one system. Unfortunately, he is sucking the li the entrepreneurial spirit out of the divisions and the regions that this once great company was known for. All for control. The healthy reserves were built by previous regimes. It's being squandered now.
Unless the whole leadership team was changed from the top down to at least VP level then nothing would change as the old NOV thinking would still be present.
Save the shareholders money and sell the business to companies who can make something of it rather than leave it in the control of incompetent managers who only know the NOV way of doing things!
As regards outside consultants, NOV have always loved using them, in many cases I have seen that people in the business have the answers, consultants come in, talk to the people and then report what they have told them taking a big fat fee for the privilege. It seems that the leadership team do not believe that the answers are within but if they paid to find out then it must be true, crazy and not smart but it’s been going on for years due to very bad management of the business.
Its worth a try at least. Old management is useless and we all know that.
Cut some costs that arent NOV employees. Why do they move people from one building at PW to another building at PW? Paying movers to move cubes and stuff? Quit changing the name ...new signage and literature costs money!
Look at the ROI on all of the onshore and offshore consultants ...some of them have no idea as to what an oil services company does ...lots of rework of their work. Costs a lot to do things over since it wasnt done properly the first time