New faces in Motorola restructure

Electronic News, June 16, 1997 by Bernard Levine

Under its new Semiconductor Products Sector structuring (EN, June 2), Mr. Hanson, based in Geneva, Switzerland, will now be Motorola's top distribution honcho worldwide. Mr. Williams, who reports to Mr. Hanson, is Motorola's top distribution executive in the U.S.

Meanwhile, many Motorolans awaiting re-assignment in the restructuring are reportedly still considering new jobs inside and outside the company, with decisions expected shortly (Off the Shelf, June 9). According to industry scuttlebutt, Mr. Hilton has been weighing a Motorola assignment in Canada, while Mr. Beaver is considering joining the firm's new Networking and Computer Systems group. A Motorola spokesman Friday would not comment on those reports, but emphasized that in the interim, Motorola executives and employees are maintaining their current responsibilities through the transition.

Motorola issued a major press release outlining the broad features of its restructuring on May 27, and the buzz here at a Powered By Motorola Customer Appreciation event the weekend before last was that another major announcement detailing further impact on the troops is slated for around June 27.

On the new Motorola organizational chart, Mr. Hanson is corporate VP and general manager of the firm's Geneva-headquartered Semiconductor Components Group, which covers discretes and power ICs. Mr. Williams is the Phoenix-based VP and assistant general manager of the Semiconductor Components group. In its recent release on the restructuring carried out under new Motorola executive VP and Semiconductor Products Sector president Hector Ruiz, the firm cited "the co-leadership" of Messrs. Hanson and Williams in running the Semiconductor Components group organization.

In addition to its own discrete and power IC products, which are heavily sold through distribution, the Semiconductor Components Group is also responsible for distribution sales of all other Motorola ICs. OEM sales and other responsibilities for those other ICs have been given to the four additional new groups Motorola has created tied to end markets: the Transportation Systems group headquartered in Austin, Tex.; the Consumer Systems group headquartered in Hong Kong; the Wireless Subscriber Systems Group headquartered in Austin; and the Networking and Computing Systems group, also with an Austin HQ.

While many of the details of the restructuring have yet to surface, the distribution game plan was outlined by C.D. Tam, senior VP and GM of Motorola's new Transportation Systems group, in an interview at the Powered By Motorola weekend at Disney World here.

It made sense to assign the chief distribution responsibilities to the Semiconductor Components group because "in discretes and power ICs, this organization, the primary infrastructure is distribution," Mr. Tam said. "Most commodity products go through distribution. Our sales force (in the Transportation group) becomes reps" for them.

Mr. Tam noted while the Semiconductor Components Group "headquarters is in Europe, the assistant general manager is in the U.S."

There has been speculation (EN, June 2) that the new structuring would give more clout to the more internationally-based of Motorola's distributors. "We would like many global distributors," said Mr. Tam. "This structure will be stronger and stronger," adding "distributors are delighted." No changes in Motorola's distribution roster have been made.

Discussing the total restructuring, he noted "this is the first major change in 14 years. Increasingly, the customer wants a total system solution," and the end-market strategy makes sense for Motorola because of its broad product line. "This structure is good for companies with a lot of strengths," he said.

New in the job, Mr. Ruiz was free and clear to make such a sweeping change, Mr. Tam suggested. A new guy "can make a big change, because he has low baggage," Mr. Tam said.

Asked about some industry speculation that one key impetus for the restructuring was Motorola's heavy dependence in the past on Apple Computer, Mr. Tam emphasized Motorola's strength in many diverse areas. "Everybody thinks this is our only area of activity, but in fact, Apple-Power PC is not that big, no more than 10 percent of our business. The major business has always been elsewhere."

Noting the many opportunities he concentrated on in his previous post as Microcontroller group VP worldwide, Mr. Tam added "We are most efficient by using all our strength." He noted the previous product-oriented structuring sometimes discouraged joint sales that cut across different company units, but that problem should be done away with in the new order. "We always had this strength. Our business now will be getting better."

Motorola has said the new structuring features expanded global participation and a stronger role in each market region. In addition to the end-market and Semiconductor Component sectors, it also features regional units for the Americas; Europe, Middle East & Africa; and Asia-Pacific and Japan.