Monday, February 16, 2015

How to Kill Your Company: Peavey’s Appalling Performance on National TV


My wife is a big fan of the TV show ‘Undercover Boss’.  This is because the show generally portrays the human side of executives, who work in disguise alongside regular employees and later praise and reward their people with bonuses, promotions, and process improvements.  Sometimes the show strains to present the business in a favorable light, but at least the owners and bosses understand that the show is a great opportunity to build the brand and improve the health of their company culture.

Until last night.

Last night’s episode focused on Courtland Gray, Chief Operating Officer and heir-to-the-throne of Peavey Electronics.   It started off with the nominal premise – Courtland was being groomed to take over the top job from Hartley Peavey, who planned to retire, and he wanted to get a sense of how things were really going in his company.  Courtland put on a disguise and took a fake name, and visited several locations to check his employees’ work quality and morale.

There were warning signs early on, that Courtland was not the right guy for the job.  Courtland enjoys hobbies in his free time which include beekeeping.  This was telling, since Courtland remarked to the crew filming him how much better he thought things would be, if his company ran like a beehive, not realizing the elitist and condescending arrogance his comment displayed.  Sadly, by the time the show ended that remark would be reinforced by Courtland’s other statements and actions.   He really is that arrogant.

At Courtland’s first stop, he discovered that Peavey equipment – pretty much all of it – had quality issues.  He was offended by the crowd’s consensus that Peavey products were shoddy, but he made no note to establish better Quality Control.  Since the introduction noted that Peavey was suffering in the market, the discovery of his brand’s unpopularity could have been an opportunity to regain market share and customer support by focusing on better quality, but Courtland paid no attention at all to this possibility.  He focused only on marketing the brand, not improving the product.
At his next stop, Teresa - a veteran employee with over two decades with excellent skills and whose work is praised by Courtland - complained about worries about job security and the fact that she had not received a raise in eight years.   Michael, another employee whose work Courtland praised noted that he had turned in two-week notice because he had received a better offer – he loved working at Peavey but needed more money to take care of his family.  Courtland made sympathetic noises to the employees, but to the camera complained that the employees ‘did not see the big picture’.  It should also be noted that manufacturing resources and processes were far behind the times and insufficient to the targeted goals.  Even a casual observation showed that Peavey was not providing the necessary tools and resources for employees to accomplish the work targets set for them.  Even in 2015, Peavey had employees hand-soldering circuit boards and manually building boxes made from cheap particle board.  

There is a point in every episode of ‘Undercover Boss’, where the boss reveals his identity to the employees and rewards the good guys.  Courtland certainly goes through the motions, promising raises and money to help the family and vacation time.  But CBS revealed that this episode was different.  In the follow-up section, the show notes that Courtland is ‘trying’ to get the bonuses and rewards he promised … meaning he has not kept his promise for four months and may never come through on his word.  Worse, more layoffs have been made, including Teresa and Michael.   Courtland actually smiles about giving 60 days to the employees, as if he had not assured the employees that this would not happen.  Teresa coldly observes that when the layoff notices came, Courtland and Hartley were nowhere to be found – it was just someone sent down from HR.  While layoffs are a sad fact of life in the modern world, the manner and timing of this one suggests that the executives at Peavey have no real sympathy for the pain caused by their decision, and what’s more they are too cowardly to at least deliver that bad news in person.  The episode reeked of executive arrogance, incompetence, cowardice, and greed, especially since Hartley’s comments and appearances indicated he fully supported Courtland’s behavior. 
     
Any one element of this episode would have been bad enough.   But the total episode was practically a guide of things to avoid in running a business:

  •         Executives had no interest in improving quality issues;
  •         Executives did not value the individual skills and experience of their employees;
  •         Executives would not provide adequate resources, even when doing so would increase both productivity and morale;
  •         Executives made promises they did not keep;
  •         Executives made assurances knowing layoffs were coming;
  •         Executives went into hiding when bad news was delivered; and
  •         Executives displayed all of these faults on national television.


There were, I suspect, some people who greatly enjoyed this episode of ‘Undercover Boss’.  Namely, the competitors of Peavey Electronics, who should expect a benefit as potential customers flee the disgraced Peavey name.  Skimming through the Internet this morning, I found several forums where outrage among guitar, microphone, and electronic accessories users is already strong.  It almost seems as if Courtland was trying to tank the company, since every statement and behavior seemed to be the worst choice when selling the brand.  Sadly, I believe he was simply that far from reality.  

There is a grim lesson there for any boss who believes he or she knows everything necessary to make their company succeed, and it starts with the need to be humble and respect the people who make the actual product.  One final comment I have about Courtland, is that he showed no aptitude whatsoever in actually making the product.  He can’t make the product, he can’t improve the product, and he can’t take care of the people who do make and improve the product.  Courtland Gray is worse than useless, and we should all seek to avoid that fate by making sure we learn from, listen to, and respect the people in our teams. 

82 comments:

Anonymous said...

You got it right Peavey turned a PR free lunch into a shit sandwich!

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Anonymous said...

Hilarious and tragic. Lying bastards convinced the one dumb bastard to turn down a better new job to hang around another 4 months, then Hartley and his boyfriend decide to hide the salami up the guys shorts and fire him.

Unknown said...

In the end Michael stayed with peavey and all promises were kept as far as monetary value

Unknown said...

In the end Michael stayed with peavey and all promises were kept as far as monetary value

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Anonymous said...

Watched this the other day -- you definitely have it right. His arrogance was off-the-charts.

Unknown said...

Peavy sucks now. At least gibson and fender retained american workers for there higher quility products

Unknown said...

These asses who run this company knew what was coming they had to yet still conned this man who had a better job li ed up to stay and in the end screwed him just goes to show"corporate doesn't care bout any employee just themselves"and their own pay I'd never buy peavy

Unknown said...

These asses who run this company knew what was coming they had to yet still conned this man who had a better job li ed up to stay and in the end screwed him just goes to show"corporate doesn't care bout any employee just themselves"and their own pay I'd never buy peavy

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Robert Gurneholtz said...

As a former German now living in the states of America, I find Peavy not as good as German instruments. When I was in a band in Muenster, Germany, I tested many different instruments by bashing it against a wall or hitting something like a guitar hard on the floor. They would hold up well against the instruments of this company

Unknown said...

Peavey, who has consistently brought sub par products to market has Dug thier own grave. Does anyone out there own any piece of Peavey gear that they like? All of it in my opinion sucks. The COO should know what’s going on with the future of each facility that company owns. What happened on the show is unacceptable and I’m sorry to the loyal employee’s who were affected. I’ll never buy Peavey gear again period. Sound quality sucks, company is weak.

Unknown said...

I have been playing professionally for 50+ years and own many Peavey products. I have no complaints about any of them. All my instruments are Fender & Martin but most amps, PA, mixing board, etc is Peavey.

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Why are half the posts on this blog completely unrelated to the Peavey article?

Unknown said...

I also have been playing professionally for 50+ years and have many Peavy products and would not trade any of them. No one makes a better amp for a steel guitar than Peavey. I have two great Peavey PA systems and never had a problem with either of them. I do not have any Peavey instruments but amps, PA systems mixing boards both powered and unpowered I am completely satisfied with, my band members all have Peavey gear also, all are well satisfied with performance.

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Unknown said...

I was a Peavey dealer for 30 yrs and for 30 yrs all I heard from the company (mainly Hartley's directives) was "don't buy foreign products" or "we are proud to make our gear in America and that's how it will always be!"

As it turns out it was all a bunch of bullshit, just jibberish from just one more double talking executive named Hartley Peavey.

When his first wife Melia, who was the real brains of the company, died I can understand how that would affect the husband Hartley in this case. The company continued to do just fine until he met his new wife. In order to please her he most likely decided to give the reigns of his company to the step-son-in-law Courtland who doesn't know shit for shinola about running a company. He had no skin in the game so he could have cared less about the loyal employees, the loyal dealers or especially the loyal customers of Peavey.

Do not blame Courtland, however, the blame lies squarely on the shoulders of Hartley Peavey because only he could have prevented this catastrophe from happening. It was he who turned his company over to a know-nothing kid who's only concern was bee-hives. It was Hartley Peavey who didn't think about the consequences, about his employees who were the ones who put him AND his company in the real drivers seat but why should Hartley Peavey care after all, he's made his fortunes.

All of the times Hartley Peavey used to say "don't buy foreign, buy American!" meant absolutely nothing, it was all hyperbole, it was all cheap talk, it was baldface lying and deception at it's best.

I believed in Hartley and his company, I used to brag about what a stellar company it was because of the great products, the wonderful customer service and the willingness to stand behind their products. I am sorry I ever felt that way. I feel as if I've been raped, I feel that it was nothing more than a giant hoax, I feel used and frankly, abused.

Hartley Peavey if you ever read this by some chance, you ought to be ashamed of yourself, I hope you never have a good nights rest again but then again you will because you have no conscience.

Signed,
A sickened and very depressed ex Peavey dealer
Rest in Peace Peavey Electronics because you are now part of the ages.

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Funny too that Courtland Gray and Hartley Peavey are not cognizant of the optics of drinking alcohol throughout the work day. Many people like a cold one after a hard days work, but these guys are blatant alcoholics - which likely does not help their (lack of) ability to communicate with tact. I haven't bought Peavey since the 90's, and never would again. But not because of this episode, but rather simple because Peavey gears sucks the big one.

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FYI: Dumbass Courtland is Hartley Peavey's STEPSON! I worked in the Foley, Alabama plant from 1993-2004 when they shut is down. The games they TRIED to play with us would have been much worse, if not for our clever plant manager and Peavey's innate stupidity for publicizing their plans to move operations overseas. It must have cost them a bundle to have to pay for re-education of the employees thru ADECCO, lol! Peavey fought it tooth and nail, but thanks to our plant for, the State ruled in our favor. Dishonesty, it seems, is the operational word for Hartley Peavey, and anyone directly in his personal and "professional" orbit.

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