Finally, people are starting to mention the unmentionable - radical and aggressive cost cutting, see New PaperlinX CFO lists priorities published by the AFR in today's digital edition .
Truth is that only harsh medicine can now save PaperlinX. Who better to administer it than a newcomer with a track record of corporate turnarounds. One can easily imagine that Richard Barfield obtained a clear mandate for change before accepting this post as he has his reputation to protect.
First to go will the obvious symbols of past indulgences, like Milton Keynes. That's too easy although it was beyond former management. Expect vigorous cuts in middle management soon.
SuX has previously resisted stating the obvious about the head count. The period between Barfield's appointment and release of Marchant's imminent review was the logical window, see Putting lipstick on a pig.
One of Barfield's most attractive attributes for this role is his diversity of corporate experience. No longer will "paper is different" be an excuse. This is an affliction of those who know nothing else but paper.
The PaperlinX Board has a lot to answer for. If anyone can justify needing 6,200 employees to produce the same revenue in 2011 as did 5,000 employees in 2003, then they may have a security of tenure problem under the Barfield regime. Here is the 2003 vs 2011 comparatives of head count and revenue. Scary stuff, for those in management.
And to those few remaining critics of suX, the above figures are from audited accounts.
Where does Andrew Price fit into the Barfield plan? Who knows; however one would reasonably expect these two agents of change to share common values. Hopefully they will meet when Price in in the UK next week. Or will the Board prohibit their meeting?
What does Mr Market say?
What does Harry Boon say?
"I'm not interpreting this as a personal vote against me - it is a vote against the performance of the company," he said after the results of the EGM were tallied.
A new dawn at PaperlinX or just wishful thinking? One of the recurring themes of the Hastie Group fallout is a culture of hiding bad news. It's been a recurring theme about PaperlinX at suX too.
The AFR story carried this picture which hopefully symbolizes a new openness at PaperlinX.
We live in hope. Be strong Mr Barfield.
No comments:
Post a Comment