Magazine

Table: Corner-Office Clash


Critics say Joe Tucci, EMC's new CEO, might have moved faster to make necessary changes if Executive Chairman Mike Ruettgers and the combative culture he helped create hadn't stalled him:

COST CUTS

Under Ruettgers, EMC (EMC) tested its storage gear for 28 days--a length that Tucci felt was too long and too costly. It took Tucci six months of study before he could assure Ruettgers that quality would not suffer if he cut the testing time in half.

SOFTWARE DEVELOPMENT

The chief hardware engineer didn't agree with Tucci's emphasis on open software, slowing its development. It took more than a year for Tucci to move the chief engineer to an advisory role because Ruettgers urged that the engineer be treated gingerly because of his past work.

PRODUCT SALES

The chief hardware engineer also shunned a midrange, lower-priced storage box, so the sales force did too. That cost EMC sales when rivals undercut EMC's prices. And it helped IBM (IBM) pick up 4.4 percentage points of external storage market share in 2001.

NEW BLOOD

Ruettgers says he's disappointed that Tucci hasn't recruited more top execs. EMC's longtime reputation as a tough, even nasty, place to work has made it hard to attract outside talent. Tucci says three new executive hires will soon join EMC.


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus