NEWS Flash! -- Ulf torpedoes KB

Invensys has just announced that in a really unexpected move, and one which will not bring cheers from the troops, Ken "KB" Brown, who has been acting President of Invensys Process Systems since the precipitous departure of Mike Caliel last June, will not be confirmed in his post. I had the opportunity to discuss KB with many senior Invensys people last December at the Invensys Customer Conference, and they were unanimous in their desire that he be confirmed as President. Oh well, too bad.

I mean, why should the Board of Directors listen to the people who make the money, I ask you?

Instead, Ulf Hendrickson has announced the appointment of Paulett Eberhart, formerly President of EDS Americas, as President. Eberhart, with no experience in manufacturing, but lots in consulting, is what London thinks the "weak man of process automation" needs.

"Our customers in industrial automation are increasingly seeking solutions and services that improve the efficiency and safety of their operations and - with the recent launch of our Asset Performance Management strategy - we have been adapting our business model to ensure that we address these needs," the press release quotes Hendrickson as saying. "Paulett has been very successful in growing similar businesses within EDS and I know that she is looking forward to the challenge of leveraging the significant opportunities which have been created within Invensys Process Systems."

Brown will be (surely only temporarily) returning to his post as General Manager of the Measurements and Instrumentation Group within Invensys. Clearly, however, someone with his talent and capability will not go unsought-after elsewhere.

At this time those of us who have fond feelings for Foxboro, Triconex, Avantis, Simsci-Esscor (which Brown brought back from the brink) and Wonderware should probably bow our heads and pray. As Mike Caliel himself told me two years ago, Invensys Process Systems must "deal with London the way we all must deal with the law of gravity." It imparts drag, but that's all.

It will be interesting to see how Ms. Eberhart either accomodates herself to Invensys, or how soon the bloodletting will start. Clearly, the Invensys Pty Board have a completely different vision for what IPS is than the company's customers and employees do. In situations like that, it is hard to see anything but "interesting times."

Personally, I doubt that any of the big automation suppliers will be able to turn themselves into a pure consulting and services play-- like EDS was able to do under its legendary founder Ross Perot. Regardless of the siren call of "free money every month" the fact is that the manufacturing infrastructure business, of which the automation industry is a significant part, is a project driven business. Even though Invensys' own Peter Martin has been preaching against this for years, it doesn't look like anybody is listening very hard. As a project driven business, money is spent in chunks because it is a cost that develops and asset...and services fees come off the bottom line every day. Not a very good business model to hang your company's hat on.