Thursday, July 26, 2012
"Triconex is a pill looking for a disease" Bill Barkovitz Sr. During the 1980's, catastrophic industrial accidents at Bhopal and Chernobyl caused public outrage and increased government oversight. The ISA SP84 committee was formed in 1984 provide safety standards. Patients soon began taking their medicine, and by 1989, Triconex was the number one safety perscription on the market.
Sunday, April 15, 2012
Before the Internet Revolution - The World of Industry
1989 was a year of tumultuous events and the beginning of the greatest entrepreneurial story of our time. From the fall of the Berlin Wall to the dawn of the dot.com economy in 1995, two startup companies from Orange County, California made the world safer and advanced the business culture. Triconex and Wonderware operated locally but defined themselves globally. They defined an era of entrepreneurship in the age of globalization. Risk taking men and women became part of a greater good. Their passion and success reached beyond their grasp. The wall of Industrial automation had little time for an avant-garde movement launched from Bauhaus laboratories in Southern California.
But Bill Barkovitz of Triconex sold the world on a better safety system and Wonderware's Dennis Morin changed the business culture. Triconex held its IPO in March, 1992 and Wonderware had its spectacular debut on the Pacific Stock Exchange in July, 1993.
Tuesday, February 28, 2012
"With immediate effect, all persons are free"
"East Germans are free to travel where they wish, with immediate effect."
The statement was profound, but it was not an original thought.
That same year in Irvine, California, Triconex CEO Bill Barkovitz and Wonderware Founder Dennis Morin were challenging investors, markets, and employees who wanted to be part of a new world order (and make more money). The world of industrial applications was a conservative one. Much of the industry had their own proprietary safety systems and operator interfaces. They supplied the control and process systems for their factories from established vendors, who ofter were as large as themselves.
It was time for something new, with a stamp from the evangelical sun culture of Southern California, and time for insanely cool products to enter the world of automation. It was time for Wonderware's InTouch and the world's premium safety system from Triconex. Their products were not new technology, nor where they incremental changes. They were business solutions of relentless quality and reliability. Through users groups and steering committees, users became part of the experience, an unheard phenomenen in non-consumer product markets.
With immediate effect, the fall of the Berlin Wall signaled the start of the History of a Safer World. Within two years, both Triconex and Wonderware were mentioned by Business Week as two of the fastest growing companies in America. A New World Order indeed. This revolution was complete by 1995, and was broadcast on the World Wide Web.
Sunday, February 26, 2012
"We don't realize the most significant moments in our lives, but we remember them"
The man who opened the door was not the same man who closed it. There was one founding and two visions. A unique path was followed from two different directions to the same destination.
Mickey, Manufacturing, and Evangelism
The evengelical sun culture of Orange County, California, is a place where extremes have thrived culturally, politically, and in the business of manufacturing. Orange County was the base for the political career of Ronald Reagan and for a time, home to Timothy Leary in Laguna Beach. Disneyland opened in Anaheim, in Orange County, California, in 1955. Walt Disney himself led the opening day ceremony. The same year, the Reverend Robert Schuller preached at a drive-in theatre in Garden Grove, California. Orange County itself was officially separated from Los Angeles County by the California State Legislature in 1889. Some historians point to taxes as the defining issue for independence, others say it may have just been a troublesome commute for those who wanted to get business done and had to travel up north.
We fast forward to Irvine, a master-planned community incorporated in 1971. City planner envsioned a technology park in the city alongside UC Irvine, and soon enough, the manufacturers came. They were led by Western Digital, a powerhouse in the disk drive market. Roger Johnson became CEO of Western Digital in 1982. A prominent local business leader, he also was an original board member for Triconex. In 1992, Mr. Johnson invited Presidential candidate Bill Clinton to speak at the Western Digital campus, and the event drew a sigificant crowd. Mr. Johnson, a Republican, later served in the Clinton administration.
A Western Digital employee who worked under Mr. Johnson, Bob Rasmussen, came to work for Triconex in the early 1990's. Mr. Rasmussen was a graduate of the California State University of Long Beach. Not long after being hired by Triconex, he assumed full command of the manufacturing operations for the company, supervising over 100 employees. His facility manufactured the world's leading emergency shutdown system for industrial plants, and therefore was required the highest quality and international certification standards. He was a product of the people-centric culture inspired by leaders like Roger Johnson and Triconex CEO Bill Barkovitz. Over a decade of his leadership, his facility produced over 100 million dollars annually for the corporate parent, and each year faced the same external and internal pressures that each manufacturer faces, particularly in a high-cost area like Orange County. Mr. Rasmussen's team consistently exceeded his goals each year. Eventually, corporate cost targets, and markets demanding lower prices led to the decision to outsource much of the Triconex manufacturing base. It was a facility that was built into the original business plan by Jon Wimer in 1983. Denny Harris, hired in 1986, brought quality controls into the process from his background from Ford Aerospace.
Mr. Rasmussen steadfastly announced the outsourcing move to his team in April, 2009. The transition would be complete in December, 2010. There were over 200 people in the room during his presentation, and at least 100 people in the audience realized that their jobs would be affected by the announcement. It was Mr. Rasmussen's forthright delivery, he was a man who could speak to hundreds, yet connect with each individual in the crowd, that instilled that bit of confidence in each listener. The future would be different, but there was going to be a tomorrow. And for the next 18 months, as those who lost their jobs said their goodbyes monthly, there were hugs, tears, and yet not a single incident to disrupt operations. It was the culture that sustained the family during the times of transition.
After overseeing the move, and Mr. Rasmussen himself left Triconex after 18 years to join his old boss, Kevin McGlensey, at FMC corporation. Mr. McGlensey had been a former President of Triconex.
The History of a Safer World.
We fast forward to Irvine, a master-planned community incorporated in 1971. City planner envsioned a technology park in the city alongside UC Irvine, and soon enough, the manufacturers came. They were led by Western Digital, a powerhouse in the disk drive market. Roger Johnson became CEO of Western Digital in 1982. A prominent local business leader, he also was an original board member for Triconex. In 1992, Mr. Johnson invited Presidential candidate Bill Clinton to speak at the Western Digital campus, and the event drew a sigificant crowd. Mr. Johnson, a Republican, later served in the Clinton administration.
A Western Digital employee who worked under Mr. Johnson, Bob Rasmussen, came to work for Triconex in the early 1990's. Mr. Rasmussen was a graduate of the California State University of Long Beach. Not long after being hired by Triconex, he assumed full command of the manufacturing operations for the company, supervising over 100 employees. His facility manufactured the world's leading emergency shutdown system for industrial plants, and therefore was required the highest quality and international certification standards. He was a product of the people-centric culture inspired by leaders like Roger Johnson and Triconex CEO Bill Barkovitz. Over a decade of his leadership, his facility produced over 100 million dollars annually for the corporate parent, and each year faced the same external and internal pressures that each manufacturer faces, particularly in a high-cost area like Orange County. Mr. Rasmussen's team consistently exceeded his goals each year. Eventually, corporate cost targets, and markets demanding lower prices led to the decision to outsource much of the Triconex manufacturing base. It was a facility that was built into the original business plan by Jon Wimer in 1983. Denny Harris, hired in 1986, brought quality controls into the process from his background from Ford Aerospace.
Mr. Rasmussen steadfastly announced the outsourcing move to his team in April, 2009. The transition would be complete in December, 2010. There were over 200 people in the room during his presentation, and at least 100 people in the audience realized that their jobs would be affected by the announcement. It was Mr. Rasmussen's forthright delivery, he was a man who could speak to hundreds, yet connect with each individual in the crowd, that instilled that bit of confidence in each listener. The future would be different, but there was going to be a tomorrow. And for the next 18 months, as those who lost their jobs said their goodbyes monthly, there were hugs, tears, and yet not a single incident to disrupt operations. It was the culture that sustained the family during the times of transition.
After overseeing the move, and Mr. Rasmussen himself left Triconex after 18 years to join his old boss, Kevin McGlensey, at FMC corporation. Mr. McGlensey had been a former President of Triconex.
The History of a Safer World.
"Now Norm, whatever you do, don't touch the espresso maker" - Phil Huber
The people-centric cultures that drove the astounding success of Triconex and Wonderware officially ended in December, 1995 with the respective departures of CEO Bill Barkovitz (scheduled) and Wonderware founder Dennis Morin (not so scheduled).
Or did they? Unofficially, the culture still exists, and indeed thrives in Lake Forest, California and other global reaches that Mr. Barkovitz and Mr. Morin established during their picaresque reign.
One need look no further than the ubiquitous espresso machines in each breakroom at the Lake Forest campus as . Controllers come and go, and these companies have had good ones. Norm Farquhar was brought in by Wonderware in the early 1990's to become the new Vice-President of Finance as the company grew from startup status to being mentioned by Business Week as one of the most promising small companies in America. By 1994, it was rated by many analysts as a better by than Cisco Systems. Mr. Farquhar replaced Beccie Dawson, who moved to head the Human Resources deparment. Mr. Dawson had been hired by CEO Peter Pitsker in 1989 as the "Corporate Conscience" in 1989 and served as the company's first controller. Actually, Beccie did not become Mrs. Dawson until after she was hired. Founder Dennis Morin was building a company gym for Wonderware and asked a gentleman named Jim Dawson to install the equipment.
Mr. Farquhar, as was his duty, began looking for ways to cut costs immediately. He eyed the espresso machines as a candidate for making the list to er, take a look at. After all, who would notice save for a cult like staff of programmers working 24/7 on the leaded beverage? Phil Huber, already a legend as the chief technologist and co-founder of Wonderware (as well as playing a significant role at Triconex) stopped by Mr. Faquhar's office soon after he hired to offer encouragement. Phil offered to help the new controller in any way he could, and he would always be open to cost cutting ideas. There was one exception, however. As he left the office after offering his own thoughts, Phil turned to Norm with one foot already in the hallway (positioned so those outside would hear) and said:
"Now Norm, whatever you do, don't touch the espresso maker"
The sound of steaming espressos, lattes, and cappuccinos are still heard in the breakroom!
The History of a Safer World
Or did they? Unofficially, the culture still exists, and indeed thrives in Lake Forest, California and other global reaches that Mr. Barkovitz and Mr. Morin established during their picaresque reign.
One need look no further than the ubiquitous espresso machines in each breakroom at the Lake Forest campus as . Controllers come and go, and these companies have had good ones. Norm Farquhar was brought in by Wonderware in the early 1990's to become the new Vice-President of Finance as the company grew from startup status to being mentioned by Business Week as one of the most promising small companies in America. By 1994, it was rated by many analysts as a better by than Cisco Systems. Mr. Farquhar replaced Beccie Dawson, who moved to head the Human Resources deparment. Mr. Dawson had been hired by CEO Peter Pitsker in 1989 as the "Corporate Conscience" in 1989 and served as the company's first controller. Actually, Beccie did not become Mrs. Dawson until after she was hired. Founder Dennis Morin was building a company gym for Wonderware and asked a gentleman named Jim Dawson to install the equipment.
Mr. Farquhar, as was his duty, began looking for ways to cut costs immediately. He eyed the espresso machines as a candidate for making the list to er, take a look at. After all, who would notice save for a cult like staff of programmers working 24/7 on the leaded beverage? Phil Huber, already a legend as the chief technologist and co-founder of Wonderware (as well as playing a significant role at Triconex) stopped by Mr. Faquhar's office soon after he hired to offer encouragement. Phil offered to help the new controller in any way he could, and he would always be open to cost cutting ideas. There was one exception, however. As he left the office after offering his own thoughts, Phil turned to Norm with one foot already in the hallway (positioned so those outside would hear) and said:
"Now Norm, whatever you do, don't touch the espresso maker"
The sound of steaming espressos, lattes, and cappuccinos are still heard in the breakroom!
The History of a Safer World
Friday, February 24, 2012
History of a Safer World Goes Live Worldwide!
The History of a Safer World is a love story - about business! Its a tribute to the men and women of Triconex and Wonderware. A history from startup to the time to serve the wine (you'll have to read the book to find out which wine) that began in the evangelical sun culture of Orange County, California. The author was recently interviewed on a webcast hosted from Manhatten, New York City!
Here's the link for the show.
http://www.blogtalkradio.com/chattininmanhattan/2012/02/24/the-history-of-a-safer-world.mp3
http://www.chattininmanhattan.com/featured/guests
Gary L. Wilkinson has written the great American novel, volumes of picaresque verse, as well as several well-crafted short stories. None of which has ever been published. However, he has written many technical training manuals, user specifications, and engineering documents that describe the flow and configuration of industrial computers, and how to program the machines so they don’t catch fire and cause a ruckus. Nearly all of this output has been published by the high-tech and aerospace firms that have employed him over the years.
It is this fusion of art and machinery that has enabled him to bring to life The History of a Safer World – a love story about business. It is a beautiful story of men and machines that will inform and entertain you. He has been a witness to the space and time in which these events have occurred. He has recorded the voices of this stunning entrepreneurial triumph. In these times, their story is more relevant than ever as a legacy on how to build and grow businesses as the story takes place during the global recession that followed the collapse of the Berlin Wall and the end of the Cold War.
Mr. Wilkinson was born in the gritty river town of Chester, Pennsylvania, a few miles southeast of Philadelphia. After a non-descript academic career, he joined the army. During his military service, he continuously trained to defend his county, particularly if the expert application of mops and brooms were to be called upon.
During the mid-1980’s he arrived at Huntington Beach, California. At the time it was known as a center of the punk rock music scene, with skinheads and surfers warily skateboarding past each other on Main Street, which led to the pier. There were scores of shops to buy booze and corners to buy drugs, and there was no Starbucks.
Then, on January 17th, 1988, something happened. The pier collapsed into the ocean. The city fathers used the rebuilding of the pier as a fine reason to clear out the riff-raff, some still call it the character, from the city streets. When the pier re-opened four years later, there were designer shops, high-end condos, and upscale restaurants. And, of course, a Starbucks opened.
He began working for Triconex in December, 1995. It was a magical place to work. And, nearby, there was another magical destination called Wonderware. In the evangelical sun culture of Orange County, the History of a Safer World began.
Gary's Blog The History of a Safer World
Here's the link for the show.
http://www.blogtalkradio.com/chattininmanhattan/2012/02/24/the-history-of-a-safer-world.mp3
http://www.chattininmanhattan.com/featured/guests
Gary L. Wilkinson has written the great American novel, volumes of picaresque verse, as well as several well-crafted short stories. None of which has ever been published. However, he has written many technical training manuals, user specifications, and engineering documents that describe the flow and configuration of industrial computers, and how to program the machines so they don’t catch fire and cause a ruckus. Nearly all of this output has been published by the high-tech and aerospace firms that have employed him over the years.
It is this fusion of art and machinery that has enabled him to bring to life The History of a Safer World – a love story about business. It is a beautiful story of men and machines that will inform and entertain you. He has been a witness to the space and time in which these events have occurred. He has recorded the voices of this stunning entrepreneurial triumph. In these times, their story is more relevant than ever as a legacy on how to build and grow businesses as the story takes place during the global recession that followed the collapse of the Berlin Wall and the end of the Cold War.
Mr. Wilkinson was born in the gritty river town of Chester, Pennsylvania, a few miles southeast of Philadelphia. After a non-descript academic career, he joined the army. During his military service, he continuously trained to defend his county, particularly if the expert application of mops and brooms were to be called upon.
During the mid-1980’s he arrived at Huntington Beach, California. At the time it was known as a center of the punk rock music scene, with skinheads and surfers warily skateboarding past each other on Main Street, which led to the pier. There were scores of shops to buy booze and corners to buy drugs, and there was no Starbucks.
Then, on January 17th, 1988, something happened. The pier collapsed into the ocean. The city fathers used the rebuilding of the pier as a fine reason to clear out the riff-raff, some still call it the character, from the city streets. When the pier re-opened four years later, there were designer shops, high-end condos, and upscale restaurants. And, of course, a Starbucks opened.
He began working for Triconex in December, 1995. It was a magical place to work. And, nearby, there was another magical destination called Wonderware. In the evangelical sun culture of Orange County, the History of a Safer World began.
Gary's Blog The History of a Safer World
Sunday, February 19, 2012
The World before and after Bhopal and Chernobyl
A muscular optimism was stirring in the year 1984. The global economy was surging, and at the height of the cold war, Western governments held their ground during the ferocious debate in Western Europe over the deployment of the SS-20 missles. Within 5 years, the bricks fell at the Berlin Wall. In Southern California, a successful Summer Olympics was held, without the Soviet Union, and spirits were buoyed in time for Ronald Reagan to be easily re-elected. Investors wallets were opening also, Los Angeles venture capitalists Chuck Cole and Richard Riordan funded Triconex.
In December 1984, a catastrophic gas leak at a Union Carbide plant in Bhopal, India led to nearly 2,000 immediate casualties and lasting health and environmental issues that continue a generation later. Most of the lawsuits have been settled, but as the say, nothing is inevitable except death, taxes, and loopholes. Public revulsion caused governments to act with new regulations and petro-chemical companies to invest in updated safety systems for their plants and factories. Some safety analysts still believe that sabotage was involved in the Bhopal incident, but the magnitude of the disaster ameliorated any serious investigations into the cause and focus on the victims and community to recover.
In August, 1986, untrained personnel conducting an experiment during a scheduled maintenance period caused an explosion at a nuclear facility at Chernobyl, in the Ukraine. This time, the damage spread throughout Western Europe and once again focused world attention on plant safety. In American, construction of new nuclear plants had already ground to a halt due to the Three Mile Island incident in 1979. The Chernobyl nuclear disaster was real, caused serious long term damage, and provided foes of nuclear energy with a powerful new agenda.
Industry, which had increasingly put dangerous petro-chemical facilities in low-cost countries, now faced unwanted scrutiny by association with the disasters.
It was time to upgrade safety systems.
In December 1984, a catastrophic gas leak at a Union Carbide plant in Bhopal, India led to nearly 2,000 immediate casualties and lasting health and environmental issues that continue a generation later. Most of the lawsuits have been settled, but as the say, nothing is inevitable except death, taxes, and loopholes. Public revulsion caused governments to act with new regulations and petro-chemical companies to invest in updated safety systems for their plants and factories. Some safety analysts still believe that sabotage was involved in the Bhopal incident, but the magnitude of the disaster ameliorated any serious investigations into the cause and focus on the victims and community to recover.
In August, 1986, untrained personnel conducting an experiment during a scheduled maintenance period caused an explosion at a nuclear facility at Chernobyl, in the Ukraine. This time, the damage spread throughout Western Europe and once again focused world attention on plant safety. In American, construction of new nuclear plants had already ground to a halt due to the Three Mile Island incident in 1979. The Chernobyl nuclear disaster was real, caused serious long term damage, and provided foes of nuclear energy with a powerful new agenda.
Industry, which had increasingly put dangerous petro-chemical facilities in low-cost countries, now faced unwanted scrutiny by association with the disasters.
It was time to upgrade safety systems.
Saturday, February 18, 2012
"A Product that doesn't do much - But Customers Love it"
When Wonderware's InTouch was first introduced in 1989 and there were some initial sales, a competitor was quoted as saying: "InTouch really doesn't do much - but customers love it." 750,000 licenses around the world by 2012, customers are still lovin' it.
If only the search, social network and consumer entertainment companies could come up with such a product? Wow! They might learn some ideas from the early marketeers of Wonderware who implemented the founding vision, like Colleen Kelly and Vickie Stowe. Don Allen led early press tours. Vince Allen became known as the Wizard for his virtuoso demonstrations of Wonderware at trade shows.
Havard Business School may have a 'real world' case study to add to its curriculum. In fact, the Founder of Wonderware, Dennis Morin once spoke to a group of HBS students.
"Colleen Kelly was significantly involved in the promotional success of Wonderware, creating a "bigger than life" image for the company. Even in the early years customers, competitors and the press had the impression that we were a much larger company due to a great extent to the efforts of Colleen and the promotional team." Peter Pitsker, Wonderware CEO
Today's entrpreneur's takeaway from the Wonderware (continuing) legacy? Go big on the idea, not the product! If you know why you are building it, more customers will ask what you are selling.
History of a Safer World
If only the search, social network and consumer entertainment companies could come up with such a product? Wow! They might learn some ideas from the early marketeers of Wonderware who implemented the founding vision, like Colleen Kelly and Vickie Stowe. Don Allen led early press tours. Vince Allen became known as the Wizard for his virtuoso demonstrations of Wonderware at trade shows.
Havard Business School may have a 'real world' case study to add to its curriculum. In fact, the Founder of Wonderware, Dennis Morin once spoke to a group of HBS students.
"Colleen Kelly was significantly involved in the promotional success of Wonderware, creating a "bigger than life" image for the company. Even in the early years customers, competitors and the press had the impression that we were a much larger company due to a great extent to the efforts of Colleen and the promotional team." Peter Pitsker, Wonderware CEO
Today's entrpreneur's takeaway from the Wonderware (continuing) legacy? Go big on the idea, not the product! If you know why you are building it, more customers will ask what you are selling.
History of a Safer World
The French Connection Part ll - Triconex and Wonderware
As they say, the times were a changing. Moving backwards promised a brighter future. The world was at the height of the cold war in the early 1980's. Conservative governments were being elected in America, West Germany, and Great Britain. Popular support in those countries to respond to the Soviet Union meant massive increases in government spending for the defense industries, and corresponding policies to liberalize the economy and limit social spending.
One can see the obvious consequences in history of sustaining global armies that stretch empires, but it is less obvious what the price would be if strategies would be accomodation and appeasement. Generally, democratically elected leaders can retain public support for sharp policy turns for about the length of an election cycle at best, but government funding and tax policy tends to build alliances that last much longer.
At the end of the day, politicians will turn to the entrpreneur(s). From the Muslim Brotherhood today on the precipice of power in Cairo, to Francois Mitterwand's France in the mid-1980's, it is the builders and ideas that attract capital to fund their fancies.
When the Socialist Mitterwand was elected in France in 1981, he was not admitted to the club whose members were Ronald Reagan, Margaret Thatcher, and Helmut Kohl of West Germany. They winced, kept their distance, and barely contained publicly their private disdain for the determined and popularly elected new French leader. Of course, in France, Mr. Mitterwand gleefully used French disapproval at the sharp turn to the right of fellow NATO countries to his electoral advantage.
In November, 1982, American voters sent a sharp message of disapproval to the Reagan government. But by 1984, it was morning again, at least for a growing economy in the United States, and buoyed by a Democratic opponent who could have been from central casting, Mr. Reagan coasted to re-election. In West Germany, Mr. Kohl was challeged from the left, especially by media sensation Petra Kelly in May of 1983 who led Die Grune movement to seats in Parliment, setting the stage for confrontation with the deployment of SS-20 missiles in Germany a timely platform for both sides to exploit. The Generals in Argentina ensured the Iron Lady's re-election in Great Britain, with a clumsy attempt to seize the Falkland Isles in 1982.
In France, circumstances forced Mr. Mitterwand to change course shortly intro his first term. Initially he nationalized banks and for private companies into more direct cooperation with his socialist government. The French economy did not recover as did it's Western counterparts, and by 1986, Mr. Mitterwand had to share power with the right-leaning (for France) Jacque Chirac.
Where was French venture capital to turn for investment? The Silicon Valley was attractive, as Intel, Oracle, Sun Computer, and others were starting. Apple Computer had hired Jean Louis-Gassee to start its French entry into the European market. In Southern California, Jon Wimer was raising capital with help from Peter Pitsker in 1983. Mr. Wimer owned a house in Newport Beach, California, and was looking to nearby Irvine industrial park to start Triconex. When Los Angeles based investor Chuck Cole approved the business plan and invested, Triconex was funded and began operations in 1984.
Factory Systems was an automation distributor in France with a venture capital arm looking for the next big thing. By 1988, it owned 10% of Triconex and was distributing the safety system in France. During a visit by Factory Systems executives to meet with CEO Bill Barkovitz at the Irvine factory, Triconex QA engineer Jerry Cuckler told his friend Dennis Morin that it might be an opportunity to chat with potential investors for Wonderware. Among other talents, Mr. Morin had learned French during a New England childhood. There was a meeting and enthusiam on both sides for investment. Factory Systems could now distribute both Triconex and Wonderware in Europe, two exciting companies with "California cool" stamped on the label! The Southern California brand sold througout the world from fashion to automation products!
By the timeTriconex and Wonderware were sold in 1995 and 1998 respectively, French investors recouped at least 6 times their investment, according to investor Dominique Vomschied. Laurent Berns, another Factory Systems executive works for the parent company, Invensys, today. He played a key role managing the Triconex office in Paris in the mid-1990's.
For the movie 'French Connection ll - The Triconex-Wonderware Years" new actors will have to be found to play the roles Gene Hackman and Roy Scheider once immortalized. The script for the sequel is still being written, and will entertain and inform.
Where does The History of a Safer World travel to next?
One can see the obvious consequences in history of sustaining global armies that stretch empires, but it is less obvious what the price would be if strategies would be accomodation and appeasement. Generally, democratically elected leaders can retain public support for sharp policy turns for about the length of an election cycle at best, but government funding and tax policy tends to build alliances that last much longer.
At the end of the day, politicians will turn to the entrpreneur(s). From the Muslim Brotherhood today on the precipice of power in Cairo, to Francois Mitterwand's France in the mid-1980's, it is the builders and ideas that attract capital to fund their fancies.
When the Socialist Mitterwand was elected in France in 1981, he was not admitted to the club whose members were Ronald Reagan, Margaret Thatcher, and Helmut Kohl of West Germany. They winced, kept their distance, and barely contained publicly their private disdain for the determined and popularly elected new French leader. Of course, in France, Mr. Mitterwand gleefully used French disapproval at the sharp turn to the right of fellow NATO countries to his electoral advantage.
In November, 1982, American voters sent a sharp message of disapproval to the Reagan government. But by 1984, it was morning again, at least for a growing economy in the United States, and buoyed by a Democratic opponent who could have been from central casting, Mr. Reagan coasted to re-election. In West Germany, Mr. Kohl was challeged from the left, especially by media sensation Petra Kelly in May of 1983 who led Die Grune movement to seats in Parliment, setting the stage for confrontation with the deployment of SS-20 missiles in Germany a timely platform for both sides to exploit. The Generals in Argentina ensured the Iron Lady's re-election in Great Britain, with a clumsy attempt to seize the Falkland Isles in 1982.
In France, circumstances forced Mr. Mitterwand to change course shortly intro his first term. Initially he nationalized banks and for private companies into more direct cooperation with his socialist government. The French economy did not recover as did it's Western counterparts, and by 1986, Mr. Mitterwand had to share power with the right-leaning (for France) Jacque Chirac.
Where was French venture capital to turn for investment? The Silicon Valley was attractive, as Intel, Oracle, Sun Computer, and others were starting. Apple Computer had hired Jean Louis-Gassee to start its French entry into the European market. In Southern California, Jon Wimer was raising capital with help from Peter Pitsker in 1983. Mr. Wimer owned a house in Newport Beach, California, and was looking to nearby Irvine industrial park to start Triconex. When Los Angeles based investor Chuck Cole approved the business plan and invested, Triconex was funded and began operations in 1984.
Factory Systems was an automation distributor in France with a venture capital arm looking for the next big thing. By 1988, it owned 10% of Triconex and was distributing the safety system in France. During a visit by Factory Systems executives to meet with CEO Bill Barkovitz at the Irvine factory, Triconex QA engineer Jerry Cuckler told his friend Dennis Morin that it might be an opportunity to chat with potential investors for Wonderware. Among other talents, Mr. Morin had learned French during a New England childhood. There was a meeting and enthusiam on both sides for investment. Factory Systems could now distribute both Triconex and Wonderware in Europe, two exciting companies with "California cool" stamped on the label! The Southern California brand sold througout the world from fashion to automation products!
By the timeTriconex and Wonderware were sold in 1995 and 1998 respectively, French investors recouped at least 6 times their investment, according to investor Dominique Vomschied. Laurent Berns, another Factory Systems executive works for the parent company, Invensys, today. He played a key role managing the Triconex office in Paris in the mid-1990's.
For the movie 'French Connection ll - The Triconex-Wonderware Years" new actors will have to be found to play the roles Gene Hackman and Roy Scheider once immortalized. The script for the sequel is still being written, and will entertain and inform.
Where does The History of a Safer World travel to next?
Friday, February 17, 2012
The People who shall lead us
"Why are all the people who know how to run the country cutting hair or driving a cab?"
George Burns
One such former Boston cab driver, Dennis Morin, migrated out to Southern California by the late 1970's. He was joined in the Southland by long time friends Chet Tomsick and Hank Castignetti.
The taxi driver could took jobs at Hughes Aircraft and later Varco Oil Services. The later caught the attention of a struggling startup, Irvine based Triconex in 1984 when Dennis's resume surfaced. Triconex was looking for someone with oil services experience, as that was the market they were targeting. Most of the early engineers at Triconex barely had automation experience, let alone understood what it would take to sell their product to refineries.
Mr. Morin had a good run at Triconex, as a staff engineer he designed the early Ladder Logic based programming interface. He gained confidence in observing the meticulous committment of Triconex to relentless quality and also how adept the executive team was at raising venture capital. Mr. Morin did not leave Triconex in February, 1986 of his own volition. But he left with friends and and some ideas about a product concept and starting his own company. Founded April Fool's Day, 1987, Dennis whimsically gave the company a temporaty name, Wonderware. The name stuck, and the company grew so fast that it nearly missed the growing pains associated with any startup.
Next in the History of a Safer World - The French Connection
George Burns
One such former Boston cab driver, Dennis Morin, migrated out to Southern California by the late 1970's. He was joined in the Southland by long time friends Chet Tomsick and Hank Castignetti.
The taxi driver could took jobs at Hughes Aircraft and later Varco Oil Services. The later caught the attention of a struggling startup, Irvine based Triconex in 1984 when Dennis's resume surfaced. Triconex was looking for someone with oil services experience, as that was the market they were targeting. Most of the early engineers at Triconex barely had automation experience, let alone understood what it would take to sell their product to refineries.
Mr. Morin had a good run at Triconex, as a staff engineer he designed the early Ladder Logic based programming interface. He gained confidence in observing the meticulous committment of Triconex to relentless quality and also how adept the executive team was at raising venture capital. Mr. Morin did not leave Triconex in February, 1986 of his own volition. But he left with friends and and some ideas about a product concept and starting his own company. Founded April Fool's Day, 1987, Dennis whimsically gave the company a temporaty name, Wonderware. The name stuck, and the company grew so fast that it nearly missed the growing pains associated with any startup.
Next in the History of a Safer World - The French Connection
Thursday, February 16, 2012
Why Irvine?
Irvine, California became the home of Triconex and Wonderware because the original founder, Jon Wimer, owned a house in nearby Newport Beach and looked to the technology friendly Orange County as a place to start a business. Beginning operations in nearby Santa Ana in March, 1984, it soon moved to Irvine, a master planned community that only incorporated as a city in 1971. Irvine is today ranked among the most livable small cities in the country. It attracted most of the auto company design centers by the 1980's, each hoping to catch some of that mischevious 'California cool' in a bottle. By the 1990's, the Irvine Technology center was home to mighty Western Digital (Where Bill Clinton campaigned in 1992) and PC makers ALR and AST.
Low cost center - it's not - but home to a diverse, educated workforce? Check. And investor cash. Though the initial VC angel for Triconex lived up north in Malibu, Chuck Cole.
Jon Wimer invited Triconex employees in the early days to his home for gatherings. Manufacturing supervisor Vern Winger gleefully pulled up in his Red Corvette in the driveway during one such party in 1985. Mr. Wimer asked Vern how he could afford such an expensive car when the CEO drove an aging used one. "Because you live in Newport Beach and I live in an apartment" Vern deadpanned.
The History of a Safer World began with a business plan written by Jon Wimer with help from Peter Pitsker. The original plan had three product lines:
- Tricon safety controller
- Programming software
- Tri-View (HMI Interface)
The requirements of the Tricon controller were outlined in the business plan, including Triple Modular Redundancy (TMR) and hot swapping of modules. The key technical challenge for the hardware engineers was to prove reliable diagnostics and alarms were reported timely. Once this hurdle was overcome, and Exxon Safety Test Supervisor Troy Martel signed off on the Tricon in 1986, the company was then in a sales and marketing race it would winlargely because CEO Bill Barkovitz was able to keep raising money to build the infrastructure. The company had spent much of its original capital developing the Tricon.
Which of the three original product lines did the Triconex board choose not to fund? What were the consequences? What was the opportunity? And what were the choices?
Low cost center - it's not - but home to a diverse, educated workforce? Check. And investor cash. Though the initial VC angel for Triconex lived up north in Malibu, Chuck Cole.
Jon Wimer invited Triconex employees in the early days to his home for gatherings. Manufacturing supervisor Vern Winger gleefully pulled up in his Red Corvette in the driveway during one such party in 1985. Mr. Wimer asked Vern how he could afford such an expensive car when the CEO drove an aging used one. "Because you live in Newport Beach and I live in an apartment" Vern deadpanned.
The History of a Safer World began with a business plan written by Jon Wimer with help from Peter Pitsker. The original plan had three product lines:
- Tricon safety controller
- Programming software
- Tri-View (HMI Interface)
The requirements of the Tricon controller were outlined in the business plan, including Triple Modular Redundancy (TMR) and hot swapping of modules. The key technical challenge for the hardware engineers was to prove reliable diagnostics and alarms were reported timely. Once this hurdle was overcome, and Exxon Safety Test Supervisor Troy Martel signed off on the Tricon in 1986, the company was then in a sales and marketing race it would winlargely because CEO Bill Barkovitz was able to keep raising money to build the infrastructure. The company had spent much of its original capital developing the Tricon.
Which of the three original product lines did the Triconex board choose not to fund? What were the consequences? What was the opportunity? And what were the choices?
With IPO Cash, Triconex Goes Shopping
Triconex, with less than 100 employees worldwide (90 of them in Irvine), had its IPO in March, 1992. It was a great day for the employees that were hired from 1986-1989 after the re-organization. The IPO raised millions and was engineered by CEO William Barkovitz and CFO Charlie McBrayer. The company was now growing at a 20-25% annual rate, it had turned a profit less than 2 years earlier after beginning operations in March, 1984, an insufferably long time for impatient VC investors. Among those early Triconex employees who did not cash in on the Triconex IPO were Dennis Morin, Phil Huber, Cole Chevalier, Bill Urone, Jerry Cuckler, Linda Ellison and Diane Castignetti, but they more than made up for it a year later at the Wonderware IPO!
With some cash, Bill Barkovitz went shopping to expand the company. In June, 1993, he paid 8 million for Tri-Sen, a La Marque, Texas based manufacturer of turbo-machinery systems. Tri-Sen had been founded by Australian turned Texan Alan Johncock, with technical wizard John Mitchell becoming a partner later. Tri-Sen had already acquired a reputation of excellence in the turbo-machinery industry with reliable low cost systems and value added applications experts.
In January, 1994 , Mr. Barkovitz handed a one million dollar check to Kirk Clark and Phil Blanchard for their Premier Safety Systems company, based in Baton Rouge. Founded four years earlier, it was located in an industry sweet spot and had the right safety systems analysis expertise at the right time when industry demand for safety was rapidly expanding. Now, Triconex could add their market leading safety critical controller with applications expertise.
When Alan Johncock left Tri-Sen after the purchase to pursue riding motorcycles (later opening a museum dedicated to bikes), Triconex operations VP Lam Soon Ving asked Phil Blanchard to move to La Marque to run Tri-Sen. Phil and his wife Vicki reluctantly agreed to commute each week. The Tri-Sen product line was getting expensive to manufacture, and margins were low, especially in the mill industry which was beginning to whither by the late 1990's.
Triconex eventually made a strategic decision not to invest further in Tri-Sen product development, but the value added applications group kept growing as customers gained trust in the market leader. Competition for projects from integrators was not as fierce in the highly specialized field.
In 2007, Invensys, the corporate parent of Triconex, sold Tri-Sen to William Barkovitz Jr., a former Triconex VP of Sales and son of William Barkovitz, who had originally bought the company. The new Tri-Sen attracted some of the original employees and is expanding internationally, particularly in China.
The History of a Safer World has documented the rise, fall, and transformation of these companies, and recorded the best stories!
With some cash, Bill Barkovitz went shopping to expand the company. In June, 1993, he paid 8 million for Tri-Sen, a La Marque, Texas based manufacturer of turbo-machinery systems. Tri-Sen had been founded by Australian turned Texan Alan Johncock, with technical wizard John Mitchell becoming a partner later. Tri-Sen had already acquired a reputation of excellence in the turbo-machinery industry with reliable low cost systems and value added applications experts.
In January, 1994 , Mr. Barkovitz handed a one million dollar check to Kirk Clark and Phil Blanchard for their Premier Safety Systems company, based in Baton Rouge. Founded four years earlier, it was located in an industry sweet spot and had the right safety systems analysis expertise at the right time when industry demand for safety was rapidly expanding. Now, Triconex could add their market leading safety critical controller with applications expertise.
When Alan Johncock left Tri-Sen after the purchase to pursue riding motorcycles (later opening a museum dedicated to bikes), Triconex operations VP Lam Soon Ving asked Phil Blanchard to move to La Marque to run Tri-Sen. Phil and his wife Vicki reluctantly agreed to commute each week. The Tri-Sen product line was getting expensive to manufacture, and margins were low, especially in the mill industry which was beginning to whither by the late 1990's.
Triconex eventually made a strategic decision not to invest further in Tri-Sen product development, but the value added applications group kept growing as customers gained trust in the market leader. Competition for projects from integrators was not as fierce in the highly specialized field.
In 2007, Invensys, the corporate parent of Triconex, sold Tri-Sen to William Barkovitz Jr., a former Triconex VP of Sales and son of William Barkovitz, who had originally bought the company. The new Tri-Sen attracted some of the original employees and is expanding internationally, particularly in China.
The History of a Safer World has documented the rise, fall, and transformation of these companies, and recorded the best stories!
Entrepreneurs - Searching for Scottie Pippen
Scotty Pippen was undoubtedly the greatest straight man in the history of professional sports. He was a superstar - but with a Michael Jordan to lead the enterprise - his teams would be champions. Scottie Pippen was every bit the equal of Dean Martin (Martin & Lewis), George Burns (Burns and Allen). He was brilliant, restless, and people-centric. Mr. Pippen led three different NBA teams to the playoffs, but he would be remembered as MJ's straight man with the Chicago Bulls.
With due diligence, the History of a Safer World, a story of entrepreneurs, sought out the Scottie Pippen of Orange County startups. His name is Phil Huber. He excelled at a string of startups from co-founder to chief technologist. Like Benjamin Franklin, Mr. Huber can't seem to keep still. His present job is serving as straight man to Rick Bullotta, founder of Thingworx, a technology company based in Philadelphia. Phil was also co-founder of Alteer, working with Jim White. But, like Mr. Pippen, Phil will be known for the championship years at Wonderware - playing straight man to the mercurial Dennis Morin 1989-1995.
Phil is often referred to as the youngest guy in the room - for the past 30 years! Working with brilliant companies just after college (Bell Labs), he migrated to Southern California in the early 1980's, quickly assuming software development manager positions at Orange country startups. By 1984, he was managing the software team at Triconex. His team included a staff engineer named Dennis Morin, already known (and perhaps tolerated for the eccentricity) for tinkering on Apple inspired graphical interface machines. At the time, Triconex has a development path for a product called Tri-View. The product would later have a future - but not with hardware focused safety systems company.
"We were talking baseball statistics at the water cooler and Phil was holding up his end of the conversation - all the time he was at his PC typing about 146 wpm of Mozart-esque code that would be the centerpiece of our next release!" Mike McCulty
"Now Norm, whatever you do, don't touch those espresso machines!" Phil Huber to Wonderware Controller Norm Farquhar looking to cut costs
"We needed an program that would allow applications to be shared across networks - a few weeks later Phil delivered NetDDE - a key milestone in Wonderware's growth and solidified our relationship with Microsoft." Dennis Morin
With due diligence, the History of a Safer World, a story of entrepreneurs, sought out the Scottie Pippen of Orange County startups. His name is Phil Huber. He excelled at a string of startups from co-founder to chief technologist. Like Benjamin Franklin, Mr. Huber can't seem to keep still. His present job is serving as straight man to Rick Bullotta, founder of Thingworx, a technology company based in Philadelphia. Phil was also co-founder of Alteer, working with Jim White. But, like Mr. Pippen, Phil will be known for the championship years at Wonderware - playing straight man to the mercurial Dennis Morin 1989-1995.
Phil is often referred to as the youngest guy in the room - for the past 30 years! Working with brilliant companies just after college (Bell Labs), he migrated to Southern California in the early 1980's, quickly assuming software development manager positions at Orange country startups. By 1984, he was managing the software team at Triconex. His team included a staff engineer named Dennis Morin, already known (and perhaps tolerated for the eccentricity) for tinkering on Apple inspired graphical interface machines. At the time, Triconex has a development path for a product called Tri-View. The product would later have a future - but not with hardware focused safety systems company.
"We were talking baseball statistics at the water cooler and Phil was holding up his end of the conversation - all the time he was at his PC typing about 146 wpm of Mozart-esque code that would be the centerpiece of our next release!" Mike McCulty
"Now Norm, whatever you do, don't touch those espresso machines!" Phil Huber to Wonderware Controller Norm Farquhar looking to cut costs
"We needed an program that would allow applications to be shared across networks - a few weeks later Phil delivered NetDDE - a key milestone in Wonderware's growth and solidified our relationship with Microsoft." Dennis Morin
History of a Safer World - Webcast February 23rd!
http://www.chattininmanhattan.com/
Chattin In Manhattan, with Kim Ward the Chick Gab Chick and Garth Sandiford, Internet Talk Radio.
My Vacations in North Korea
My name is Kai Lee and I worked for Triconex for 20 years as a QA inspector in the manufacturing facility. There was great pride in our work, because we knew we were making the world's best safety system under the strictest quality assurance guidelines. We believed in the product, and the company. There was an IPO in March, 1992, and each of the employees (there were less than 100 of us then) had shares in the company. Over the years, I was called upon to serve as a translator for our Korean customers that were visiting the Triconex facility in Irvine.
I am originally from South Korea. When I arrived in Orange County, California, I joined an evangelical church that had many other Korean members. We decided on a charity mission, an attempt to go to North Korea and give aid to those who were handicapped in the country. When we made contact with North Korean officials, they told us that there were no handicapped people in the country, the government would never acknowledge this to the world.
However, our group was persistent, sincere, and very respectful of the North Korean government's concerns. Over time, we convinced them that we could help this group of people, and never exploit our mission so it could be used by others to make political points. We viewed this as simply our duty to our faith to perform charity work. We knew that the South Korean and American governments could not support us, so we acquired diplomatic skills to keep our mission active.
Over time, the North Korean government became convinced by our sincerity and finally granted us permission for our mission to visit in the early 1990's. We were overjoyed! Our first mission went very well, our North Korean minders kept close watch on us and we earned their trust by providing aid and most importantly to them, not drawing attention. I accompanied my church a total of 3 times on these missions.
I am now retired from Triconex but am still active in my church. I am 72 years old and run at least 20 miles a week, sometimes more.
Kai Lee
I am originally from South Korea. When I arrived in Orange County, California, I joined an evangelical church that had many other Korean members. We decided on a charity mission, an attempt to go to North Korea and give aid to those who were handicapped in the country. When we made contact with North Korean officials, they told us that there were no handicapped people in the country, the government would never acknowledge this to the world.
However, our group was persistent, sincere, and very respectful of the North Korean government's concerns. Over time, we convinced them that we could help this group of people, and never exploit our mission so it could be used by others to make political points. We viewed this as simply our duty to our faith to perform charity work. We knew that the South Korean and American governments could not support us, so we acquired diplomatic skills to keep our mission active.
Over time, the North Korean government became convinced by our sincerity and finally granted us permission for our mission to visit in the early 1990's. We were overjoyed! Our first mission went very well, our North Korean minders kept close watch on us and we earned their trust by providing aid and most importantly to them, not drawing attention. I accompanied my church a total of 3 times on these missions.
I am now retired from Triconex but am still active in my church. I am 72 years old and run at least 20 miles a week, sometimes more.
Kai Lee
Wednesday, February 15, 2012
Dick Morley and the Wizard of Wonderware
To write the astounding history of two automation companies, the author naturally called the father of PLC, Dick Morley. Legend and fact has it that Mr. Morley, at the time a skier with an engineering habit, scrawled out the standards of what was to become the workhorse of industrial applications, the Programmable Logic Controller (PLC) in 1968. A year later, he was leading a newly created company called Modicon and transformed factory control systems, starting with General Motors.
"Mr. Morley, I am writing a book about......"
"Writing a book? That’s a damn foolish to try, but go ahead, it keeps my mind active"
"I was wondering if you could comment on the two companies I am writing about, Triconex and Wonderware?"
"Who? Never heard of either one! Wait! I recall Wonderware. There was a fellow at a Trade Show demonstrating their product. They called him the Wizard. I watched his demonstration and said yes, that company is going somewhere!"
But, who was the Wizard of Wonderware? Was it Phil Huber, the Wonderware co-founder? Phil was contacted and said, no, he was called many names, but he was not the wizard. Wait, he had a suggestion. The author contacted the number Phil gave him and a very busy man responded. He was interested in the idea of telling Wonderware's history.
At a Huntington Beach coffee house, the Wizard drove up in his Harley. His name was Vince Allen. He worked for Wonderware in the early days, from 1989 to 1996, and then followed Wonderware executives Jerry Brooks, Phil Huber, and Jim White to other startups. But, Wonderware was a special experience.
Vince was born in Germany, son of a career military man who married a woman from Egypt. Vince was exposed to many cultures and lived in several countries growing up. How was he remembered as the Wizard by the founder of the PLC? He had no idea, but thought about it and remembered demonstrating Wonderware software at those early and Dennis Morin inspired spectacular trade shows. With an audience, his personality lit up and he became the wizard. The buzz of Wonderware was everywhere at the shows, inspired by Dennis's team. Jerry Brooks and Don Allen were there to balance some of Dennis more outrageous displays, and especially his insistence on spending to attain nothing less than the artistic purity of his vision. Chet Tomsick and Richard English set up many of the displays and technical configurations for the shows, but Vince was a natural speaker for a crowd.
More than one senior Wonderware executive has called Chet Tomsick the real MVP of Wonderware. The longtime colleague and Boston area friend of Dennis Morin's contributed his field and applications experience to the early installations. Chet himself deflects glory, merely saying that working for Wonderware in the early days was like working for a cult. Richard English, who worked for Chet, recalled Chet telling him that you will succeed in your job if you do 80% of the work for your boss, but try to find at least 20% that you enjoy doing.
Vince Allen was pleased at being remembered as the wizard by Dick Morley. Today, several startups later, Vince still lives in Huntington Beach with his wife Laurie, and their three teenagers.
"Mr. Morley, I am writing a book about......"
"Writing a book? That’s a damn foolish to try, but go ahead, it keeps my mind active"
"I was wondering if you could comment on the two companies I am writing about, Triconex and Wonderware?"
"Who? Never heard of either one! Wait! I recall Wonderware. There was a fellow at a Trade Show demonstrating their product. They called him the Wizard. I watched his demonstration and said yes, that company is going somewhere!"
But, who was the Wizard of Wonderware? Was it Phil Huber, the Wonderware co-founder? Phil was contacted and said, no, he was called many names, but he was not the wizard. Wait, he had a suggestion. The author contacted the number Phil gave him and a very busy man responded. He was interested in the idea of telling Wonderware's history.
At a Huntington Beach coffee house, the Wizard drove up in his Harley. His name was Vince Allen. He worked for Wonderware in the early days, from 1989 to 1996, and then followed Wonderware executives Jerry Brooks, Phil Huber, and Jim White to other startups. But, Wonderware was a special experience.
Vince was born in Germany, son of a career military man who married a woman from Egypt. Vince was exposed to many cultures and lived in several countries growing up. How was he remembered as the Wizard by the founder of the PLC? He had no idea, but thought about it and remembered demonstrating Wonderware software at those early and Dennis Morin inspired spectacular trade shows. With an audience, his personality lit up and he became the wizard. The buzz of Wonderware was everywhere at the shows, inspired by Dennis's team. Jerry Brooks and Don Allen were there to balance some of Dennis more outrageous displays, and especially his insistence on spending to attain nothing less than the artistic purity of his vision. Chet Tomsick and Richard English set up many of the displays and technical configurations for the shows, but Vince was a natural speaker for a crowd.
More than one senior Wonderware executive has called Chet Tomsick the real MVP of Wonderware. The longtime colleague and Boston area friend of Dennis Morin's contributed his field and applications experience to the early installations. Chet himself deflects glory, merely saying that working for Wonderware in the early days was like working for a cult. Richard English, who worked for Chet, recalled Chet telling him that you will succeed in your job if you do 80% of the work for your boss, but try to find at least 20% that you enjoy doing.
Vince Allen was pleased at being remembered as the wizard by Dick Morley. Today, several startups later, Vince still lives in Huntington Beach with his wife Laurie, and their three teenagers.
Monday, February 13, 2012
A Tale (Sale) of Two Companies
The sale of Triconex was announced in January, 1995. A year earlier, CEO Bill Barkovitz convinced the Board of Directors, led by Chuck Cole, that it was "Time to serve the wine." The market had factored the rapid growth and the acquisitions of Tri-Sen and Premier Systems into the stock price. The price had peaked, and it was time for a suitor(s). Mr. Barkovitz held an auction, and considered offers from Honeywell (low), Rockwell (distracted), and Tyco (commitment issues). Siebe, a London based controls firm which had purchased Foxboro in 1990, came calling with a newly installed CEO who was making his first major move. Siebe won the auction bid and paid 95 million to add the leader in safety systems to its portfolio. Foxboro executives Dr. Peter Martin and John Eva were among those tasked to evaluate Triconex, and they recommended the firm to compliment it's controls portfolio.
Like the Triconex safety critical controller itself, the sale was as orderly as the flagship product was reliable. Mr. Barkovitz had executed a vision that was not his, but a path that uniquely was.
Wonderware was not sold in 1995, Siebe would purchase them in 1998 for 375 million (including 80 million in cash). However, a transition began in 1995 with founder Dennis Morin and key members leaving, including uber-salesman Jerry Brooks. Co-Founder Phil Huber left the following January. Cole Chevalier joined Triconex founder Jon Wimer at Object Automation. Like the mercurial founder and the improbable rise of Wonderware itself, the transformation and change of leadership was anything but orderly. It was emotional, spectacular, and controversial, ending only after a bruising series of boardroom chess moves. Immediately after Mr. Morin's departure was announced, the stock price plunged.
But why?
The History of a Safer World examines the series of events as the future unfolds into the past.
Like the Triconex safety critical controller itself, the sale was as orderly as the flagship product was reliable. Mr. Barkovitz had executed a vision that was not his, but a path that uniquely was.
Wonderware was not sold in 1995, Siebe would purchase them in 1998 for 375 million (including 80 million in cash). However, a transition began in 1995 with founder Dennis Morin and key members leaving, including uber-salesman Jerry Brooks. Co-Founder Phil Huber left the following January. Cole Chevalier joined Triconex founder Jon Wimer at Object Automation. Like the mercurial founder and the improbable rise of Wonderware itself, the transformation and change of leadership was anything but orderly. It was emotional, spectacular, and controversial, ending only after a bruising series of boardroom chess moves. Immediately after Mr. Morin's departure was announced, the stock price plunged.
But why?
The History of a Safer World examines the series of events as the future unfolds into the past.
Sunday, February 12, 2012
From Startup to World Class Company - 6 Easy Steps!
- Establish who you are, what do you do best?
- Identify your market, what do you do different?
- Will you profit by offering value, or discounting?
- Focus remaining resources on core product
- Invest in people
- And the mission is - Growth!
When Bill Barkovitz became CEO of Triconex in February, 1986, investors were impatient with the new startup's prospects and plans for profitability. In fact, Triconex would not break even until the first quarter of 1990, nearly 6 years after the company's founding. For Venture Capitalists who have to deliver monthly numbers to investors, 6 years is a long time. They would have to wait a little longer. There was an IPO in 1992, and the sale of the company was announced in January, 1995, to Siebe (now renamed Invensys).Bill Barkovitz took immediate action in February 1986. Besides refocusing the company on its core mission, which included painful job cuts, he had to raise millions to continue operations, build an infrastructure, and fund growth. Some of those laid off from Triconex, or later left voluntarily, went on to found Wonderware, which was also purchased by Siebe in 1998.
Triconex was a hardware culture at its core, but the people it attracted as a startup were all risk takers who wanted to be part of something special and have a chance to make more money than they could anywhere else. The theme of the History of a Safer World is ego, people believed they had something to offer that could make a difference in the world.
The booming economy of Southern California of the early 1980's was driven by the massive increase in federal spending as a result of the cold war that dominated the political dialogue of the day. Young engineers flocked to aerospace giants like Hughes aircraft, which employed future Triconex and Wonderware employees like Gary Hufton, Dennis Morin, and Jerry Cuckler. Kontron was a German technology company with a base in Irvine that employed David Smith and Phil Huber, both of whom would play roles starting Triconex and Wonderware. Talented engineers recommended their friends.
The stories of Triconex and Wonderware is a cautionary tale in the age of globalization, with triumphs and consequences. The visionaries of both companies operated locally but defined themselves globally. It is a legacy and blueprint for entrepreneurs navigate and succeed in today's marketplace. To become companies that will attract investment, customers, and most importantly, become the company that people want to work for.
How to Pay Cash for a New Car!
In July, 1993, Wonderware made its Initial Public Offering. At the Pacific Stock Exchange in San Francisco, CEO Dennis Morin and Controller Norm Farqhaur represented the company to investors. Back at the Irvine office, Wonderware employees gathered around a live phone link to listen to the action, including VP of Human Resources, Beccie Dawson. Founding members Phil Huber, Cole Chevalier, Bill Urone, and Jerry Cuckler were in the room. They were the moonlighting former Triconex engineers who helped Dennis build the first release of InTouch. Peter Pitsker, the first Wonderware CEO was there, as were Diane Castignetti and Linda Ellison, who also worked at Triconex and followed Dennis to Wonderware. Back then, everyone at Wonderware was a key employee. Chet Tomsick, the applications engineer who started the service and training departments for Wonderware and Hank Castignetti (Diane's husband), the building coordinator, were long-time friends of Dennis Morin who helped him build Wonderware.
The excitement built with each trade during the live feed from the stock exchange. The share price....kept going.....up! At the end of the day the company had raised 32 million dollars from the market! It would raise another 17 million in a second offering that year.
Robin Zappavigna, hired in December 1991 as a QA engineer, tells the aftermath of the IPO in a story about how to pay cash for a new car. "You could tell from the Wonderware parking lot the following week that the IPO had been successful for employees, because the lot was full of new cars, paid for in cash, which was about the average cash payout for most of the non-executive employees." Training instructor Richard English, employee number 21, bought a Pontiac Aztek. Founding engineers Cole Chevalier and Bill Urone bought BMW's.
Wonderware was number one, an amazing perch from a startup that began operations only 4 years earlier at the start of a recession. In a survey of analysts the following year 1994, investors rated Wonderware ahead of Cisco systems as a buying opportunity.
The day of the IPO was the most exciting time to work for a startup. The hard work, long hours, now stood before investors worldwide. What would the shares they were granted be worth? Was the gamble going to pay off, or should they have stayed at their more comfortable and secure gigs prior to going to a startup?1995 would be a year of change for Wonderware. But the new cars bought and paid for with the IPO would be a sweet symbol of success for those who joined the Wonderware family early.
Not everyone who came early and contributed greatly to the success of Wonderware cashed in what they expected, mostly stock options granted and priced as part of compensation packages. The History of a Safer World tells their stories.
The excitement built with each trade during the live feed from the stock exchange. The share price....kept going.....up! At the end of the day the company had raised 32 million dollars from the market! It would raise another 17 million in a second offering that year.
Robin Zappavigna, hired in December 1991 as a QA engineer, tells the aftermath of the IPO in a story about how to pay cash for a new car. "You could tell from the Wonderware parking lot the following week that the IPO had been successful for employees, because the lot was full of new cars, paid for in cash, which was about the average cash payout for most of the non-executive employees." Training instructor Richard English, employee number 21, bought a Pontiac Aztek. Founding engineers Cole Chevalier and Bill Urone bought BMW's.
Wonderware was number one, an amazing perch from a startup that began operations only 4 years earlier at the start of a recession. In a survey of analysts the following year 1994, investors rated Wonderware ahead of Cisco systems as a buying opportunity.
The day of the IPO was the most exciting time to work for a startup. The hard work, long hours, now stood before investors worldwide. What would the shares they were granted be worth? Was the gamble going to pay off, or should they have stayed at their more comfortable and secure gigs prior to going to a startup?1995 would be a year of change for Wonderware. But the new cars bought and paid for with the IPO would be a sweet symbol of success for those who joined the Wonderware family early.
Not everyone who came early and contributed greatly to the success of Wonderware cashed in what they expected, mostly stock options granted and priced as part of compensation packages. The History of a Safer World tells their stories.
Sunday, February 5, 2012
Huntington Beach, California
Huntington Beach is the quintessential Southern California beach town - awash in oil. Incorporated in 1909, it was named after a 19th century railroad baron, Henry Huntington who never set foot in the town. He did agree however, to put a rail stop in the town and grateful city fathers renamed it from Pacific City. The city's first high school was built in 1906, and it stands today as an interesting architectural landmark on the way to downtown. From 1929 to 1986, it was home to the Golden Bear, an intimate nightclub that hosted performers like Janis Joplin, Steve Martin, Charles Bukowski, and BB King among others over the years.
It was a town of contrasts, as tourism met a steady spigot of crude and both provided the city's tax base. By the 1970's, it was acquiring more the reputation of a rough town, especially on Main Street that led to the pier. In 1979, Posh Boy, an English transplant who was waiting tables, released the album Beach Boulevard, an anthem to the punk rock movement. It solidified the town's reputation as a haven for punks, skinheads, and those with nothing better to do than surf. In the mid-1980's, there was no Starbucks in downtown, no boutiques, no trendy cafe's, no condos.
Then, something happened. On January 17th, 1988, a winter storm knocked down the Huntington Beach pier for the 4th time in the century. The inside joke was that the End Cafe, the eatery at the end of the pier became the Bottom Cafe and now resided at the ocean bottom. This time it stayed down, and there would be a price to pay for rebuilding it.
City fathers collaborated with interest groups, including industry, real estate developers, and the environmentalists among others to plan a rebuilding of downtown along with a newly refurbished pier. When it re-opened in July, 1992, to a crowd of nearly 300,000, downtown, and the city of Huntington Beach had been transformed. There were new boutiques and trendy cafes! Package stores to buy alcohol for those who were on the way to the beach or just hanging out were not replaced, just priced out of their rental space. And, on a busy corner three blocks from the pier, a Starbucks opened.
Huntington Beach had become family friendly and tourism boomed. It caught the wave of the rising international surfing and volleyball circuits and became a major stop on both tours. The riff-raff was gone, or at least their rent soared, and young couples moved into their space and new $250,000 townhouses.
Yes, the oil still flows, almost all of it hidden from view. The Bolsa Chica Wetlands provide a critical habitat for endangered species and contemplative paths for hikers. The real estate developers got their share, so did the surfers and local businesses.
In 1984, it was an open secret that a popular brothel was operating three blocks from the pier. It had been there for years. The proprietor was a former Huntington Beach official who had cordial connections with law enforcement. The brothel has since been closed. Let's not ask what now stands in its place.
It was a town of contrasts, as tourism met a steady spigot of crude and both provided the city's tax base. By the 1970's, it was acquiring more the reputation of a rough town, especially on Main Street that led to the pier. In 1979, Posh Boy, an English transplant who was waiting tables, released the album Beach Boulevard, an anthem to the punk rock movement. It solidified the town's reputation as a haven for punks, skinheads, and those with nothing better to do than surf. In the mid-1980's, there was no Starbucks in downtown, no boutiques, no trendy cafe's, no condos.
Then, something happened. On January 17th, 1988, a winter storm knocked down the Huntington Beach pier for the 4th time in the century. The inside joke was that the End Cafe, the eatery at the end of the pier became the Bottom Cafe and now resided at the ocean bottom. This time it stayed down, and there would be a price to pay for rebuilding it.
City fathers collaborated with interest groups, including industry, real estate developers, and the environmentalists among others to plan a rebuilding of downtown along with a newly refurbished pier. When it re-opened in July, 1992, to a crowd of nearly 300,000, downtown, and the city of Huntington Beach had been transformed. There were new boutiques and trendy cafes! Package stores to buy alcohol for those who were on the way to the beach or just hanging out were not replaced, just priced out of their rental space. And, on a busy corner three blocks from the pier, a Starbucks opened.
Huntington Beach had become family friendly and tourism boomed. It caught the wave of the rising international surfing and volleyball circuits and became a major stop on both tours. The riff-raff was gone, or at least their rent soared, and young couples moved into their space and new $250,000 townhouses.
Yes, the oil still flows, almost all of it hidden from view. The Bolsa Chica Wetlands provide a critical habitat for endangered species and contemplative paths for hikers. The real estate developers got their share, so did the surfers and local businesses.
In 1984, it was an open secret that a popular brothel was operating three blocks from the pier. It had been there for years. The proprietor was a former Huntington Beach official who had cordial connections with law enforcement. The brothel has since been closed. Let's not ask what now stands in its place.
Interview with Gary Hufton - The Architect of the Tricon
When did you come to Triconex?: I was hired in 1984, I was an EE and had experience in hardware development and control systems. A colleague at Computer Automation, David Smith, told me about Triconex. I was very interested because it was a challenge and an opportunity for stock options. I was appointed Director of Hardware Development in 1985. Vern Winger also worked at Computer Automation, Vern had worked for Apple Computer previously at a plant in Texas producing the LISA computer, the predecessor to the MAC, of course.
Tell us about the early development of the Tricon: Let's start with TSX, the core of the Main Processors. Victor Torres wrote the original TSX, the proprietary operating system of the Tricon controller. Jerry Cuckler took over TSX when Victor departed. When Jerry left for Wonderware in 1988, John Gabler assumed responsibility for the TSX. For the Communications modules, Dave Rasmussen, a brilliant engineer was largely responsible for development. I was primarily responsible for the Input/Output modules. On the software side, Glen Allerman and a very young Phil Huber were software development managers. Dennis Morin worked on the Ladder Logic programming module.
In the early days, I wore several hats, like everyone else in the company, there were only about 20 engineers back then. In 1985, I hired Sandy Larsen, to assist me with the technical manuals. Neither one of us wrote these kind of manuals before, but with Sandy's documentation skills and my knowledge of development, we wrote all the user documentation which was the company standard until the windows-TriStation came along in the mid-nineties, and the styles changed.
Another role I had was demonstrating the product for customers. Bill Barkovitz Sr., then Vice-President of Sales in 1985, asked Bill Chiles and me to take the Tricon prototype to shows and customer sites to demonstrate the produce. Bill was an applications engineer from Texas. He was hired before me, one of the early company hires that had direct automation experience. In 1985, we met Troy Martel, who was leading a testing effort for safety systems at the Exxon labs in New Jersey. Bill and I told Troy our product was not ready yet, and he told us to come back when it was. A year later, it was and we did. Troy's recommendation of the Tricon to Bob Adamski was a key moment for Triconex, the first major oil company to buy our system. We had sold one in 1986 to Union Carbide, Jerry Cuckler worked on that installation.
When the company began operations in March, 1984, the business plan called for three product lines: 1) The Tricon Controller 2) TriStation Programming Software and 3) Tri-View (an HMI concept). By 1986, the company had to focus its remaining resources on the Tricon controller, and the TriStation programming software was functional, so the Tri-View was not funded. The later concept was being worked on by Dennis Morin, who had been hired as a staff engineer in 1984 based on his experience with Varco, an oil services firm. Dennis was laid off in 1986, but history shows that he went on to do quite well with a company called Wonderware.
How did Triconex survive the early years? Probably because the venture capitalists lost interest in us for a period when we were losing money. Venture capitalists normally invest in 10 startups at a time with the risk assessment that three will make money, three will lose money, and the middle four could go either way. Triconex was in the middle, losing money but the safety market held promise. We had two other TMR competitors, August Systems and Triplex, but no one was making money yet, and the market was still forming.
The company re-organized in February, 1986, appointing a seasoned manager, Bill Barkovitz, as the CEO. One of the keys to our survival was an alliance with Honeywell, which agreed to be our distributor. Bill had very little time to save the company, we only had about 4 months operating cash left. He had to focus the remaining resources on the Tricon, lay off personnel who were not directly connected with the Tricon, and raise a lot more cash to fund our development. Denny Harris came on board in 1986 and helped organize our quality program.
As we moved into the late 1980's, we started selling more systems and our competitor's could not quite keep up with us. We made some bold moves that paid off. Another key alliance was with TUV Rheinland, a German based quality assurance and testing firm. Tony Frederickson, a Stanford PhD and our Vice-President of Engineering, took the lead in forming this relationship. It was mutually beneficial. Obtaining TUV certification was very expensive for Triconex, but the stamp of approval from TUV was a brilliant move as we could market the product as certified by an internationally respected quality organization. The TUV had been founded in 1872.
When did you know Triconex had made it, and your career hunch paid off? In 1991, we were listed by Business Week as one of the 250 fastest growing small companies in America. Our Orange County neighbor, Wonderware, was also on that list. Wonderware's co-founder, Phil Huber left Triconex in 1988, along with employees Cole Chevalier, Jerry Cuckler, and Bill Urone. Our office administrator, Diane Mackin also left to join Dennis. Other Triconex alumni, like David Smith and Linda Ellison also joined Wonderware.
Triconex had their IPO in 1992. Triconex acquired Tri-Sen, a Turbo-machinery vendor based in La Marque, Texas in 1993, and Premier Systems, a Baton Rouge based safety consulting firm in 1994. Bill Barkovitz and the board put the company up for sale and it was announced in January, 1995, that we were being bought by Siebe, a British holding company that also owned Foxboro. Three years later, Siebe also bought Wonderware.
Triconex kept its independence after being bought for several years, and it was a major source of profits for the corporation, renamed Invensys, throughout the next decade. In 2001, we released the Trident, which was a smaller version of upgraded Tricon technology that was designed to appeal to a wider market niche, as the Tricon was dominating 2/3 of a market projected to grow only modestly. This is the challenge for Triconex, to maintain its premium reputation for quality while providing product in a broader market range. Hardware margins are always under pressure in technology and usually give way to a strategy of providing more services.
What keeps you at Triconex? The job is still challenging, I now direct the hardware platform development for Invensys. I live as a gentleman farmer on 16 acres of land in Corbett, Oregon, happily living with my wife, Martha. I left Orange County about 5 years ago. Invensys allows me to work from home two weeks a month, I spend a one week a month at Triconex, at their new Lake Forest campus, and am open to traveling the other week of the month.
When I go to the Triconex-Wonderware campus in Lake Forest, I arrive Sunday night and depart Thursday evening to go back home. When I'm there, I have lunch with my colleagues each day, most of which have been working with me for nearly two decades. Naresh Desai, Les Powers, and Aad Faber, who I hired in 1991 when he applied for a job at Triconex while vacationing in Southern California from his native Holland. My old bosses, Scott Miller and Kevin Tock also show up sometimes. Each Wednesday evening, we go to King's Fish House in Lake Forest for happy hour. It’s well attended when people know I am in town, because I usually pick up the tab. Brian Grant, Ajay Mishra, and Dari Dadashi also join us frequently. It is great to keep the camaraderie going after all these years.
Lately, the Training Manager for Triconex has been showing up more often, but I've never seen him pick up the tab. Seems he is trying to write a book about the history of Triconex-Wonderware.
Tell us about the early development of the Tricon: Let's start with TSX, the core of the Main Processors. Victor Torres wrote the original TSX, the proprietary operating system of the Tricon controller. Jerry Cuckler took over TSX when Victor departed. When Jerry left for Wonderware in 1988, John Gabler assumed responsibility for the TSX. For the Communications modules, Dave Rasmussen, a brilliant engineer was largely responsible for development. I was primarily responsible for the Input/Output modules. On the software side, Glen Allerman and a very young Phil Huber were software development managers. Dennis Morin worked on the Ladder Logic programming module.
In the early days, I wore several hats, like everyone else in the company, there were only about 20 engineers back then. In 1985, I hired Sandy Larsen, to assist me with the technical manuals. Neither one of us wrote these kind of manuals before, but with Sandy's documentation skills and my knowledge of development, we wrote all the user documentation which was the company standard until the windows-TriStation came along in the mid-nineties, and the styles changed.
Another role I had was demonstrating the product for customers. Bill Barkovitz Sr., then Vice-President of Sales in 1985, asked Bill Chiles and me to take the Tricon prototype to shows and customer sites to demonstrate the produce. Bill was an applications engineer from Texas. He was hired before me, one of the early company hires that had direct automation experience. In 1985, we met Troy Martel, who was leading a testing effort for safety systems at the Exxon labs in New Jersey. Bill and I told Troy our product was not ready yet, and he told us to come back when it was. A year later, it was and we did. Troy's recommendation of the Tricon to Bob Adamski was a key moment for Triconex, the first major oil company to buy our system. We had sold one in 1986 to Union Carbide, Jerry Cuckler worked on that installation.
When the company began operations in March, 1984, the business plan called for three product lines: 1) The Tricon Controller 2) TriStation Programming Software and 3) Tri-View (an HMI concept). By 1986, the company had to focus its remaining resources on the Tricon controller, and the TriStation programming software was functional, so the Tri-View was not funded. The later concept was being worked on by Dennis Morin, who had been hired as a staff engineer in 1984 based on his experience with Varco, an oil services firm. Dennis was laid off in 1986, but history shows that he went on to do quite well with a company called Wonderware.
How did Triconex survive the early years? Probably because the venture capitalists lost interest in us for a period when we were losing money. Venture capitalists normally invest in 10 startups at a time with the risk assessment that three will make money, three will lose money, and the middle four could go either way. Triconex was in the middle, losing money but the safety market held promise. We had two other TMR competitors, August Systems and Triplex, but no one was making money yet, and the market was still forming.
The company re-organized in February, 1986, appointing a seasoned manager, Bill Barkovitz, as the CEO. One of the keys to our survival was an alliance with Honeywell, which agreed to be our distributor. Bill had very little time to save the company, we only had about 4 months operating cash left. He had to focus the remaining resources on the Tricon, lay off personnel who were not directly connected with the Tricon, and raise a lot more cash to fund our development. Denny Harris came on board in 1986 and helped organize our quality program.
As we moved into the late 1980's, we started selling more systems and our competitor's could not quite keep up with us. We made some bold moves that paid off. Another key alliance was with TUV Rheinland, a German based quality assurance and testing firm. Tony Frederickson, a Stanford PhD and our Vice-President of Engineering, took the lead in forming this relationship. It was mutually beneficial. Obtaining TUV certification was very expensive for Triconex, but the stamp of approval from TUV was a brilliant move as we could market the product as certified by an internationally respected quality organization. The TUV had been founded in 1872.
When did you know Triconex had made it, and your career hunch paid off? In 1991, we were listed by Business Week as one of the 250 fastest growing small companies in America. Our Orange County neighbor, Wonderware, was also on that list. Wonderware's co-founder, Phil Huber left Triconex in 1988, along with employees Cole Chevalier, Jerry Cuckler, and Bill Urone. Our office administrator, Diane Mackin also left to join Dennis. Other Triconex alumni, like David Smith and Linda Ellison also joined Wonderware.
Triconex had their IPO in 1992. Triconex acquired Tri-Sen, a Turbo-machinery vendor based in La Marque, Texas in 1993, and Premier Systems, a Baton Rouge based safety consulting firm in 1994. Bill Barkovitz and the board put the company up for sale and it was announced in January, 1995, that we were being bought by Siebe, a British holding company that also owned Foxboro. Three years later, Siebe also bought Wonderware.
Triconex kept its independence after being bought for several years, and it was a major source of profits for the corporation, renamed Invensys, throughout the next decade. In 2001, we released the Trident, which was a smaller version of upgraded Tricon technology that was designed to appeal to a wider market niche, as the Tricon was dominating 2/3 of a market projected to grow only modestly. This is the challenge for Triconex, to maintain its premium reputation for quality while providing product in a broader market range. Hardware margins are always under pressure in technology and usually give way to a strategy of providing more services.
What keeps you at Triconex? The job is still challenging, I now direct the hardware platform development for Invensys. I live as a gentleman farmer on 16 acres of land in Corbett, Oregon, happily living with my wife, Martha. I left Orange County about 5 years ago. Invensys allows me to work from home two weeks a month, I spend a one week a month at Triconex, at their new Lake Forest campus, and am open to traveling the other week of the month.
When I go to the Triconex-Wonderware campus in Lake Forest, I arrive Sunday night and depart Thursday evening to go back home. When I'm there, I have lunch with my colleagues each day, most of which have been working with me for nearly two decades. Naresh Desai, Les Powers, and Aad Faber, who I hired in 1991 when he applied for a job at Triconex while vacationing in Southern California from his native Holland. My old bosses, Scott Miller and Kevin Tock also show up sometimes. Each Wednesday evening, we go to King's Fish House in Lake Forest for happy hour. It’s well attended when people know I am in town, because I usually pick up the tab. Brian Grant, Ajay Mishra, and Dari Dadashi also join us frequently. It is great to keep the camaraderie going after all these years.
Lately, the Training Manager for Triconex has been showing up more often, but I've never seen him pick up the tab. Seems he is trying to write a book about the history of Triconex-Wonderware.
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