Archived posting to the Leica Users Group, 1999/10/10

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Subject: [Leica] Open letter to Erwin (How to manage a camera company)
From: Bill Erfurth <m6rf@yahoo.com>
Date: Sun, 10 Oct 1999 16:16:24 -0700 (PDT)

Dear Erwin,

I truly admire the work that you do with lenses.  You
are one of the few, if not the formost authorities on
Leica lens in the world.  I came to that conclusion
after reading you work and your posts to the LUG for
years.  You should be very proud of what you have
done.

I too am proud of what I do, and I would appreciate if
you would judge my work in the same way I judge yours.

The following is your post of 10 October.  I will make
my comments in the body of it:

>>>>>>>>>>>>>>>>>>>>>>
From: Erwin Puts <imxputs@knoware.nl>

Someone (Bill Erfurth) noted in part:
>I truly believe that it is time for Herr Cohn to quit
>sitting on his hands (that is the nice way of putting
>it) and get an M7 to market before the Konica people
>do.  Herr Cohn has no choice.  If he lets the
Japanese
>get a foothold in the Range Finder market, they will
>eat him alive.


And someone (unknown) else noted, as a minuscule part
of his
postings:
>All Leica needs to do is make money on its current
products.  If it does that,
>it survives forever.
 


Most of the time I were under the impression that the
Leica
list 
consisted of owners of Leica equipment, whose primary
focus
and 
expertise is the use of this photographic equipment
for
purposes of 
self-expression or reality-recording on film.
Increasingly I have to assume this list is populated
by
management 
consultants, who as all consultants always do, will
propose
conflicting strategies and produce dense advisory
reports
of infinite 
wisdom, of naturally easy to implement for the poor
management that 
cannot  not see the truly obvious.
<<<<<<<<<<<<<<<<<<<<<<<<

As a Leica owner/user, private investor, and sometimes
consultant, I feel qualified to comment on Leica's
current problems...just as you are qualified to
comment on Leica's lenses.

I do short term consulting with the priimary purpose
of "making things happen".  I do not "propose
conflicting strategies" nor do I write "dense advisory
reports of infinite wisdom".  If you want to hire
someone to produce a 500 page report, you will have to
go find someone else, I am not interested.  If you
want immediate results, I'm your man.



>>>>>>>>>>>>>>>
Erwin continure:
Now a one-liner like: "All Leica needs to do is make
money
on its 
current products" is so obvious and true that I wonder
why
Mr Cohn 
never thought of that himself. Even the assembly of
shareholders last 
week failed to see this brilliant strategy. The
"Betriebsrat" (worker 
representative board) issued a long statement last
week,
how they see 
things working and developing. Again no one saw the
obvious. How 
stupid of them.
<<<<<<<<<<<<<<<<<<<<<

Erwin, please note that the above is not my statement.
And, I believe it is not accurate.


>>>>>>>>>>>>>>>>>>>>>
Erwin continues:
Now for the other post. Is Mr Cohn sitting on his
hands?
Does he have 
no choice but to follow the advice, so astounding in
its
simplicity, 
to get an M7 on the market in three months time. And
if he
does not, 
then our guru predicts the loss of the rangefinder
market
to the 
Japanese.
So let us combine both of these proposals. Bring out
an M7
before the 
end of the year, make some money on it and you prosper
forever.
<<<<<<<<<<<<<<<<

Erwin, this is so uncharteristic of you.  You have
quoted me out of context, and added words that distory
the meaning of what I wrote.

I will stand totally by what I said!  Herr Cohn is
sitting on his hands (or some other part of his
anatomy).  Case in point:  There have been NO NEW
PRODUCTS brought to market since Herr Cohn has taken
over.  The only products that have come out are those
that were "in the works" before Herr Cohn took over.

After having researched the current situation at
Leica, I believe that given the opportunity, I could
have a new product on the dealer's shelves in 90 days.
 I know what the product is, how to produce it, and
how it would be distributed.  And, furthermore, if
Herr cohn is willing to discuss it, I will put my
money where my mouth is.  If I can't have the product
on the dealers shelves in 90 days, I don't get paid. 
Plus, I will only be paid on the basis of the number
of units sold.  (Make me prove it...they can't loose)

And, as for the term "guru", I think that is totally
uncalled for.


>>>>>>>>>>>>>>>>>
Erwin continues:
 The 
Japanese are beaten and they lived happily and had
many
children. 
(Sorry  wrong line: this is the happy end of a fairy
tale!)
<<<<<<<<<<<<<<<<<<<<<<<

I don't know where the hell you came up with the
above.  But here again it is not mine.


>>>>>>>>>>>>>>>>>>>
Erwin continues to rant:
Then he goes on to note: "the lack of progress being
made
on sales, 
marketing and product development fronts". I assume Mr
Erfurth has 
insider knowledge here. Again the shareholders did not
comment on 
these issues. So the management board conceals vital
info
from the 
shareholders. Happily we have an outsider analist who
knows
it all.
>>>>>>>>>>>>>>

Erwin, let's take these things one at a time.

Sales:  R8 sales and to a lesser degree R lenses are
in the dumper. Leica has big money tied up in dead
inventory. That point is not argueable.  M6TTL sales
are far less then they had projected.(Do you wish to
argue with that?)

Marketing:  Leica's marketing in general and in the US
in particular is inexcuseably poor.  Yes, there is
somewhat of a marketing effort in Europe, but no where
what it should be.  They have a web site that they
don't take advantage of, e-mail lists and postal
mailing lists that they do not use.

Product development: The lack of product development
speeks for itself.  Where is the new product for the
Christmas season?

Therefore, as I wrote, there is a "lack of progress"
in all areas.  This is not rocket science or insider
information Erwin.  Open your eyes and you mind and
look at what is going on.


>>>>>>>>>>>>>>>>
Erwin continues:
The advice is again simple:
>"The time has come for Leica's board of directors to
hire
someone who 
>make things happen."

Well in three years time there is probably a vacancy,
but
then Leica 
is eaten, unless the advice is taken seriously.
<<<<<<<<<<<<<<<<<<<

Erwin, I stand by my statement.  But, let me put it in
a different way.  You don't treat a hemorage with a
bandaid.  Herr Cohn has made the necessary cuts in the
company's overhead.  That was necessary.  Now it is
time (actually past time) for him to deal with the
other side of the equation...Sales, Marketing, and
Product Development.


>>>>>>>>>>>>>>>>>>>
 "Leica has
the 
know-how and the technology to produce the product,
the
only thing 
they appear to be lacking is leadership".

 Again insider
knowledge 
must be presumed here. But as the only thing needed is
to
produce an 
M7, why do we need leadership for? And now for the
ominous
future: 
"the Leica name <will be> bought by some large
Japanese
company who 
would prostitute the products, but that is exactly
what is
going to 
happen if Leica's board of directors does not that
immediate and 
decisive action".

 Now this analist even knows what the
malicious 
intentions are of that Japanese company. But we get
more
insightful 
advice
>The wrtiting is on the wall.  Leica must start
immediately
to make 
>more productive and efficient use
>of their available resources, significantly increase
their
promotion 
>and sales, and get meaningful new
>products to the market place.
Leave out the name of Leica is this sentence and it
applies
to every 
company in the world and if a management consultant
would
produce a 
report with this type of absolutely meaningless
stories, he
might be 
sued for incompetence.
<<<<<<<<<<<<<<<<<<<<<

Erwin, I don't understand why you keep ranting and
making the personal attacts.  I don't expect you to
understand what I do and how I do it, just as I do not
understand the things you do. 

At no point in your post have you indicated anything
that I have written was wrong and/or offered a
constructive alternative.  Talk is cheap.

>>>>>>>>>>>>>>>>>>
Erwin continues:
I would propose that anyone who thinks he can run the
company better 
than Mr Cohn or has insider knowledge vital to the
survival
of the 
company contact Mr Friderichs, the chairman of the
board.
>>>>>>>>>>>>>>>>>>>

Ok Erwin, it's time to put-up or shut-up.

If you truly believe what you have written, why don't
you e-mail or FAX a copy of my original post to Mr.
Frederichs and a copy of what you have written above. 
I will stake my reputation on what I wrote...WILL YOU?

If you don't still have a copy of my original post,
please let me know and I will see that you get one.


Kind regards,

Bill Erfurth
m6rf@yahoo.com


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