The FIPNET Principle

Quote
A Review of FIPNET part 2

Apologies for the multiple posts above.

The statement below is the one that seems to cause the most controversy, particularly when viewed in light of the 2010-2011 organizational restructuring, and subsequent FTE reallocations:

"It is a recognition that we can do more by working with outside organizations than we could deliver by ourselves."

Of course that means external collaborations outside of Lilly's core competencies (e.g. IT), but more and more it means external collaborations inside Lilly's core competencies as well. True partnering. From a business perspective, not at all a bad thing; often a win-win.

From an HR perspective, however, it's a potential nightmare, which leads to the kind of unhappy posts we read here. How does a business strategy such as FIPNet, without proper OCM and appropriate HR planning and execution, impact the minds and motivation of the (remaining) inside organizations? Are those internal resources still valued? What are those resources valued for, and is that clearly communicated? Does the current PM process truly create a framework where an educated, motivated employee can succeed using defined, measurable objectives?

Can Lilly, the company of Excellence, Integrity, and People, even afford to concern itself with these human resource problems, and live to fight another day?

I contend it can, and it must, to survive as an American Corporate concern.

American workers expect a fair employment market. As American employees, we have to do our part to understand what that means to our employers now. On the surface, 5 Chinese scientists on a lab bench for $500/day sounds better than 1 American scientist on a lab bench for $500/day. Are the Chinese scientists smarter, better, faster than the American one? I don't know. Maybe not, but there are 5:1 odds on the Chinese. That is a fair employment market.

Harsh, maybe. But for those (like me) who have been reallocated and for those still to be, FIPnet is a fact of global business today. Even if Lilly left America, reincorporated in China or elsewhere, this resourcing business model will continue look for the most bang for the buck. Why? Greed? Perhaps. But it's also Global Capitalism, and it's here to stay, and the patient is still waiting.

Ask yourselves: what can I do to retrain, retool, reeducate, remarket myself as valued resource today, either inside or outside of Lilly? Yes, Lilly owes employees a better professional development and performance management process. Yet American workers owe themselves and their (actual or potential) employers the relevent education and skills that will add value to the business in today's global employment market.

What do you want to do next? Evaluate and act.
 






Re: A Review of FIPNET part 2

Yes, evaluate and act:

BEFORE you are just another face among thousands of Hoosiers on the street.


BEFORE it's not voluntary anymore.

But... the company does not even have the integrity to offer voluntary separations.

This is AS LOW AS ANY EMPLOYER can go, and no doubt dozens of high profile lawsuits will emerge in the coming years - cheap idiots in management.


Anonymous said:
Apologies for the multiple posts above.

The statement below is the one that seems to cause the most controversy, particularly when viewed in light of the 2010-2011 organizational restructuring, and subsequent FTE reallocations:

"It is a recognition that we can do more by working with outside organizations than we could deliver by ourselves."

Of course that means external collaborations outside of Lilly's core competencies (e.g. IT), but more and more it means external collaborations inside Lilly's core competencies as well. True partnering. From a business perspective, not at all a bad thing; often a win-win.

From an HR perspective, however, it's a potential nightmare, which leads to the kind of unhappy posts we read here. How does a business strategy such as FIPNet, without proper OCM and appropriate HR planning and execution, impact the minds and motivation of the (remaining) inside organizations? Are those internal resources still valued? What are those resources valued for, and is that clearly communicated? Does the current PM process truly create a framework where an educated, motivated employee can succeed using defined, measurable objectives?

Can Lilly, the company of Excellence, Integrity, and People, even afford to concern itself with these human resource problems, and live to fight another day?

I contend it can, and it must, to survive as an American Corporate concern.

American workers expect a fair employment market. As American employees, we have to do our part to understand what that means to our employers now. On the surface, 5 Chinese scientists on a lab bench for $500/day sounds better than 1 American scientist on a lab bench for $500/day. Are the Chinese scientists smarter, better, faster than the American one? I don't know. Maybe not, but there are 5:1 odds on the Chinese. That is a fair employment market.

Harsh, maybe. But for those (like me) who have been reallocated and for those still to be, FIPnet is a fact of global business today. Even if Lilly left America, reincorporated in China or elsewhere, this resourcing business model will continue look for the most bang for the buck. Why? Greed? Perhaps. But it's also Global Capitalism, and it's here to stay, and the patient is still waiting.

Ask yourselves: what can I do to retrain, retool, reeducate, remarket myself as valued resource today, either inside or outside of Lilly? Yes, Lilly owes employees a better professional development and performance management process. Yet American workers owe themselves and their (actual or potential) employers the relevent education and skills that will add value to the business in today's global employment market.

What do you want to do next? Evaluate and act.
Click to expand...
 






In general terms, the litany above poster gave is understandable, with following caveats:
(1) Economy - We are in a inflationary depression
(2) A multi-year track record of lack of management's ability to understand the CORE business principles. Why hasn't Lilly's own research spearheaded the NCE profile? Not that there aren't such entities, but eVPs are all out to diss out with hefty stock option and quit a rather boring city.
(3) Lack of management's integrity - Failed to convey to employees what is at stake? other than their job. I have seen people toiling thier ass off, yet there is no moral support, no pat on back - thank you, bud for job well done. This is the poisonous environment that everyone hush-hushesing talks about. Sorry, John, Jan you are not my buddy, anymore.
(4) Criminal intent on the part of management - for 18 months or so the whole management chain knew fully well what they were doing marketing with Zyprexa. I bet that there is more hidden truth inside the criminal misdeaminor plea than average employee is told indicates clean and opene discussion of mistakes done.
(5) Outright lying - Do not ever say Lilly never fires people...this is like "read my lips" by George Herbert Walker Bush, Sr. People will fxck you cxnt!
(6) Absolute lack of diversity - even your own internal video shows how people are derogatory to each other. There is a clash of Whites v. Chinese. Say so, and improve the discord.
(7) Implement Vision Jam outcome. Not a single VJ highly discussed point has been implemented.
(8) Investigate why Sidney Taurel became Board of Directors of IBM, after he left? Lilly paid for services to IBM for VisionJam? IS there a quid-pro-quo? This is direct conflict of interest.
(9) Strip all Stock Option plans until 2020.
(10) If Lilly is merger agreement, let your employees know as they have to lose most.
 






Anonymous said:
Don't you miss him? http://www.lilly.com/news/speeches/081119/default.html Kiss them for me, Syd
Click to expand...

This quote from Sidney is a gem.
==
Albert Einstein is credited with defining “insanity” as – I quote – “doing the same thing over and over again … and expecting different results.” Einstein makes a good point.
==

Didn't Sidney understand that the FIPNET strategy has been done over and over by others before him and has failed miserably every time as a long term strategy. Sure, this strategy has enriched a few CEOs before destroying their company. But every time the stockholders and employees of the companies that followed this strategy have been left out in the cold. So who's INSANE? So who's RICH?
 






Anonymous said:
This quote from Sidney is a gem.
==
Albert Einstein is credited with defining “insanity” as – I quote – “doing the same thing over and over again … and expecting different results.” Einstein makes a good point.
==

Didn't Sidney understand that the FIPNET strategy has been done over and over by others before him and has failed miserably every time as a long term strategy. Sure, this strategy has enriched a few CEOs before destroying their company. But every time the stockholders and employees of the companies that followed this strategy have been left out in the cold. So who's INSANE? So who's RICH?
Click to expand...

FIPNET is BULLSHIT!!!! Warren Buffet, a fellow Nebraskan, does business the old fashioned way....learn how to make money, then "git-r-done", a quote from another Nebraskan.

Lilly, under John Lechleiter, is a disaster. Why in the hell shareholders don't revolt and throw the board of directors over board is a mystery.

The best thing that could happen to Lilly would be to change the name of the corporation....to something like PharmaCrap. I feel for the members of the Lilly family who have to watch this Titanic sink with John at the helm.
 






Anonymous said:
FIPNET is BULLSHIT!!!! Warren Buffet, a fellow Nebraskan, does business the old fashioned way....learn how to make money, then "git-r-done", a quote from another Nebraskan.

Lilly, under John Lechleiter, is a disaster. Why in the hell shareholders don't revolt and throw the board of directors over board is a mystery.

The best thing that could happen to Lilly would be to change the name of the corporation....to something like PharmaCrap. I feel for the members of the Lilly family who have to watch this Titanic sink with John at the helm.
Click to expand...

What an interesting post. I worked with a member of the Lilly family. She was really fast and smart, and very very quiet (I wonder why...) John is very old school, very old-boys club, even if some of the boys are girls these days.
 
























Anonymous said:
Lilly, under John Lechleiter, is a disaster. Why in the hell shareholders don't revolt and throw the board of directors over board is a mystery.
Click to expand...

Poster #21 here again. The answer is simple.

Shareholders are being paid a nice dividend. They like that, so they are holding onto their shares, and that keeps the share price up. The board members like that too, as many of them own shares.

Company executives are motivated to make business operations decisions (such as controlling and reducing costs) that will result in keeping retained earnings high in the face of declining current revenues (sales). Why? Because retained earnings funds the dividend, and a high dividend keeps the stock price up. Execs want to keep that share price up, as their own bonuses are often distributed as shares.

This is the greedy part. In the past, some companies have held back dividends in slow sales periods, saving cash for operations expenses, and asking shareholders to join in bearing the burden of a slow economy. Why this isn't done today says as much to me about shareholder loyalty as it does about employer loyalty. And I think it says something about us as investors.

Even if you knew for certain that Lilly had good prospects in its pipeline, would you hold onto your shares and tolerate no dividend for quarters, or even years? We are a society that wants immediate gratification. I believe our behavior as investors, as well as as consumers, influences the risk-taking behaviors of those company officers making the most important operating decisions.
 






True growth companies don't need to pay shareholders to hold the stock.

Little or no dividend, with an upward spiraling stock price - now that is a growth company.

Lilly is a shrinking company.


Anonymous said:
Poster #21 here again. The answer is simple.

Shareholders are being paid a nice dividend. They like that, so they are holding onto their shares, and that keeps the share price up. The board members like that too, as many of them own shares.

Company executives are motivated to make business operations decisions (such as controlling and reducing costs) that will result in keeping retained earnings high in the face of declining current revenues (sales). Why? Because retained earnings funds the dividend, and a high dividend keeps the stock price up. Execs want to keep that share price up, as their own bonuses are often distributed as shares.

This is the greedy part. In the past, some companies have held back dividends in slow sales periods, saving cash for operations expenses, and asking shareholders to join in bearing the burden of a slow economy. Why this isn't done today says as much to me about shareholder loyalty as it does about employer loyalty. And I think it says something about us as investors.

Even if you knew for certain that Lilly had good prospects in its pipeline, would you hold onto your shares and tolerate no dividend for quarters, or even years? We are a society that wants immediate gratification. I believe our behavior as investors, as well as as consumers, influences the risk-taking behaviors of those company officers making the most important operating decisions.
Click to expand...
 












Anonymous said:
True growth companies don't need to pay shareholders to hold the stock.

Little or no dividend, with an upward spiraling stock price - now that is a growth company.

Lilly is a shrinking company.
Click to expand...

This is exactly what happeed to Enron, who out of a wazoo jacked up the dividend payment to like 7.5% and senility followed. Messageboard on Yahoo was blasted by giidy-up old farts like they have touched the heavens. Six months later all wept like there is hell there. So many posters mentioned that this is a boilerroomoperation, but nobody listened.

WorldCom, another darling of the Wallstreet is another example. Merger of so many companies with sky is the limit was their debt (purchasing MCI by LDDS's Bernie Ebbers, I think). What happened? CEO lied, lied to employees, shareholders, wallstreet, SEC, Com Dept, and the US Fed, FBI, US Congress. Identify which of these behaviors Lilly have? So many similarilites -- Decade of fFailed telephone companies; two decades of failure at Pharmas.

As Lilly pays up more for the dividend, like Enron did, I hope best wishes for few who have left less than two years before retirement and pray that they get it. These are some real real good folks that you see once or twice in your life (excpet family). Most of the people cared less to know each other, and worst is the management - ffcking dinosauroshit.
 






I thought the retirement money was in a trust fund... isn't it guaranteed by the Fed Govt? Well, we all know how guarantees fade over time... like the lifetime job security we were promised.

The dividend is too high. I recall someone posting last year that the payout was a very high percentage of cash flow - not sustainable by any means. Then again, the IMCLONE purchase didn't help anyone, employees or stockholders. You think we would have learned from Martha Stewart.

After Enron collapsed, the employees had a huge beer party at Corporate - I wonder if the same will happen....

Anonymous said:
This is exactly what happeed to Enron, who out of a wazoo jacked up the dividend payment to like 7.5% and senility followed. Messageboard on Yahoo was blasted by giidy-up old farts like they have touched the heavens. Six months later all wept like there is hell there. So many posters mentioned that this is a boilerroomoperation, but nobody listened.

WorldCom, another darling of the Wallstreet is another example. Merger of so many companies with sky is the limit was their debt (purchasing MCI by LDDS's Bernie Ebbers, I think). What happened? CEO lied, lied to employees, shareholders, wallstreet, SEC, Com Dept, and the US Fed, FBI, US Congress. Identify which of these behaviors Lilly have? So many similarilites -- Decade of fFailed telephone companies; two decades of failure at Pharmas.

As Lilly pays up more for the dividend, like Enron did, I hope best wishes for few who have left less than two years before retirement and pray that they get it. These are some real real good folks that you see once or twice in your life (excpet family). Most of the people cared less to know each other, and worst is the management - ffcking dinosauroshit.
Click to expand...
 






Anonymous said:
I thought the retirement money was in a trust fund... isn't it guaranteed by the Fed Govt? Well, we all know how guarantees fade over time... like the lifetime job security we were promised.

The dividend is too high. I recall someone posting last year that the payout was a very high percentage of cash flow - not sustainable by any means. Then again, the IMCLONE purchase didn't help anyone, employees or stockholders. You think we would have learned from Martha Stewart.

After Enron collapsed, the employees had a huge beer party at Corporate - I wonder if the same will happen....
Click to expand...

Zyyyprexa PopperParty!
 




































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