Vacuum Cleaners Discussions

http://www.telegraph.co.uk/finance/financetopics/recession/7400742/Sir-James-Dyson-plan-to-fill-UKs-engineering-vacuum.html

M00seUK and vacmanuk, I'll be glad to learn what you think.

Venson

Dibster:  You're wrong, as usual, just as James was wrong in 1999 about bonuses and wrong with MAP of 10 percent.  Money is made with effective and wise business decisions and leadership.  It has nothing to do with faith and only a small amount to do with inventiveness.  500 dyson engineers is overkill and cost ineffective by all and any standards of business measures. 

A business leader who refuses to pay employee bonuses based on a misguided opinion that doing so is insulting and demeaning is in itself insulting and demeaning to employees.  James made his fortune largely through parlaying 2 large lawsuit payouts in a robust world/consumer economy.  He used slick bagless marketing and outsourcing manufacturing jobs from the UK to a contractor housed in Malaysia. 

It's been downhill for James in recent years [since 2006] in large part due to his own business decisions and product blunders/failures.  He alone is the blame.  2006: James' net worth was $2 Billion.  2009 James' net worth is multi-millions.  That's a big monetary fall and not due solely to the economic recession as the article that M00seUK posted here would have us believe. 

Carmine D.

It's possible that Dyson's net worth has dropped considerably due to charitable contributions.   

From The Sunday Times

Apparently James is planning to step down as CEO. 

And you might think he is preparing for something, as he lets slip that he will shortly stand down as chairman of Dyson, the business he founded in 1992. Bob Ayling, long-term board member and former boss of British Airways, will replace him. The company’s chief executive, Martin McCourt, another long-term ally, will remain in day-to-day control.

Dyson himself will have a new job title. “I’ll probably be called chief designer,” he says. “It’s just to make sure there is proper continuation should I go under a bus.”

...

Dyson doesn’t need anyone to warn interviewers off certain topics. He will talk about wealth if you want, though he is barely interested. That could be because he is worth more than £920m in the forthcoming Sunday Times Rich List. He was a billionaire three years ago but won’t mind dropping a notch in the recession.

I guess in American dollars, James is still a billionaire (£920m). 

Hello SEVERUS:

Certainly a real possibility.  But being old school, I won't believe it until it's proved true.

Carmine D.

Dibster:

 I was a successful independent vacuum business owner/operator for over 40 years.  I didn't slave to any boss except me.  I didn't make my fortune by suing others and/or bashing my competition.  I had no business complaints filed against me by any customers in all that time.  I sold the business to another independent who still has the store and business in the same location.  Then, I spent 1the next 15 years as a self-employed industry consultant before retiring in August 2006.  I have degrees in accounting, economics and business from what many would consider an Ivy League University.  I think that I know and speak authoritatively on all matters of vacuum related business.  I also know good business leaders and wise business decisions.  Just as I know and recognize the bad ones.  Big and/or small men and/or women with and without rock throwing abilitie have no bearing on the successful outcomes of businesses.  Both sized men/women are equally capable and/or incapable of being good and/or bad business managers. 

After more than 3 years into retirement, I'm pleased to say I still receive offers of employment and contractual bid requests.  All of which I have so far graciously turned down.  

Carmine D.

Hello SEVERUS:

Forbes March 29, 2010 List of World's Richest puts James Dyson exactly at $1B in net worth.  This is a decline in net worth since first making the list several years ago with a reported $1.6 Billion.  James is tied in last place [number 937] with 8 others.  He just made the cutoff for the list.  I presume that's what is meant by not minding dropping a notch in a recession.  However, more accurately and truthfully, tied in the last position at 937 puts James 236 notches [names] down from last year.  

According to Forbes, the net worth valuation is based on an estimate, in many cases not even vetted/verified, at one point in time: Feb 12, 2010.  The amount may have declined/increased since the Forbes publication.  I presume a disingenuous person, knowing the approximate time of valuation, could delay debt payments and expense payments in order to meet the $1 Billion cutoff.  I don't say any one, let alone Sir James, would actually do that although it is a possibility according to Forbes.  

Carmine D.

If you use the 920 million British pounds figure from the Sunday Times, it is equivalent (with an exchange rate of 1.51317 USD to 1 British pound) to around 1.39 billion US dollars.  Given that his wealth is tied up in his private company, who knows what he's really worth.  One guess is likely as good as another.  Perhaps the British estimate is higher because they include more good will in the company's valuation.    James would be very foolish to be concerned about the Forbes rankings. 

It's curious that he's thinking about turning over the CEO reigns of the company.  Perhaps he sees that he's made some poor decisions (e.g. washing machine, hiring Dustmite as a spokesperson ...), and he's decided to stick with design.   the fact that he's willing to put someone more business savvy in charge of the company tells me that he's smart enough to know that he's in over his head.  

Hi Severus:

Forbes is "the" list for the world of the "rich" and "famous."  Sort of like Consumer Reports and product sales/recognition. 

On all other points, I agree with you.  Harkens back to a statement I made here and elsewhere years ago that engineers make terrible CEO's especially of their own companies.  Steve Jobs and Apple are the rare business exception.  Typical of Sir James, he took too long to come to that business realization.  Not choosing a family member, as one would naturally expect, to take the reigns of the helm speaks volumes.  As well it will be a constant cause of problems for the new dyson CEO and its employees.  Many of which are already insulted and demeaned by Sir james.  Expect a cut in the 2500 dyson Malmesbury employees as the first order of business by the new CEO.  Wonder how secure Dibster's job is?  Should have gotten out when the gettin was good.  As the saying goes:  With all your getting, get wisdom.

Dyson's stepping down now from all operational business ties [Chief Designer is a made up job for him to stay on the company dole] guarantees with almost absolute certainty that he will not make the Forbes list next year.  I'd say he came to the realization this was his last year on the list.  Good timing for a change on his part.  Last year and last place. 

Carmine D.

Carmine,

I don't subscribe to Forbes, but I was curious whether there were any other vacuum related people on the list.   It would be curious to know if their personal fortunes dropped similarly to Sir Jame's.