Table: Galvin's Fix-It Plan
Once the No. 1 maker of wireless phones, Motorola's worldwide market share has slipped from 26% in 1996 to 14%. Here is CEO Galvin's strategy for reviving the business:
Galvin has gotten more personally involved in the division. He meets with top managers once a week, four times as often as in the past. He also has the unit's chief reporting directly to him, instead of to another executive.
The execs responsible for Motorola's lost market share have been canned. In the past year, 11 of the top 19 managers in the mobile-phone division have been replaced, and Galvin has hired Mike S. Zafirovski, a respected GE veteran, to lead the group.
SPEED UP INNOVATION
Motorola has alienated customers, including SBC Communications, by missing deadlines for new products. Galvin aims to cut product development time from 18 months to between six and nine months.
Galvin's goal is to slash sales, marketing, and administrative expenses to $1.6 billion this year, down from $2.4 billion in 2000. That should help the division return to profitability by the fourth quarter.