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An Insider's Take (Mark Tucker) on NAIM's recent events

davidavdavid

davidavdavid
Submitted for your perusal: (OUCH alert)

Mark Tucker posting on the Naim Forum here:

“As someone who worked for Naim, much of the time at a senior level, starting in the eighties days of the early single-box extruded case and ending just a few years ago, having been a Naim retailer for six years before this, I have been reading this thread with interest.

You good people are discussing a product that I’ve loved and used since 1979 and a company that I devoted myself to and helped to build over a span of four decades.

That a poorly worded, deliberately obfuscating and self-serving statement from one of the company’s newbie, non-audiophile directors has caused a level of confusion and angst amongst Naim’s loyal customers, plus a degree of ridicule and cynicism amongst the rest of the high-end audio industry and former Naim employees alike, is very sad and has prompted me to add my twopenn’orth.

There was never any doubt amongst those of us who worked for Naim primarily and fundamentally because we loved the product and the music it produced (the money was always very poor unless you were MD) that, having maintained its integrity by the skin of its teeth in the ten years following the death of Julian Vereker, when the majority share was sold to another audio manufacturer in 2011 the writing was on the wall for changes in ethos and company structure that may not best serve the Naim that we had all loved and invested so much time and money into.

A new owner with no acclaimed experience in manufacturing high-end audio electronics and an unenviable reputation for having lost its own way when it came to build-quality, customer service and delivery times was always going to struggle to comprehend and integrate Naim’s driving forces and legendary skill set.

Add to this too many inept new managers and ‘power players’ with no audio or hi-fi background meant the company found itself running headlong into divisions of loyalties and the destruction of very successful teams of enthusiastic, long-experienced, dedicated and world class employees.

These bungling, double-dealing new managers were, astonishingly, given even more power and were made ‘Directors’, the additional leverage allowing them to further ruin the previously successful culture that had elevated the company to almost mythical status and achievements.

Soon after, the Focal/Naim company was sold again (personal profit being the sole motive), to a venture capital group with absolutely no history in audio or anything related. More changes and misunderstandings of Naim’s market and core principles ensued.

Despite all of this, at least initially, a tiny collective of people remained in place that understood what Naim was all about; how best to run the company and keep designing, manufacturing and distributing exceptional audio products that thrilled hundreds of thousands of music lovers world-wide, whilst retaining enough profit to enable the company to invest sufficiently to remain on the leading edge of multiple new technologies and set audio standards that most others could only dream of.

Fortunately, to this day, despite the forced resignations, redundancies and retirements of many of the most valuable and lauded people, there is still, for the moment, a very small number of the ‘original’ lights, the dedicated, music-loving, quality-over-quantity minded engineers and expert, customer-oriented, sound quality driven company diplomats.

This can’t last forever if Naim continues to dance to the drums of the avaricious venture capitalists and continues to place more and more power and influence into the hands of the rapacious new breed of executive directors.

The number of people that have joined Naim, often at a senior level with new and fancy titles, especially in the sales management, brand management, marketing, distribution and customer service departments, whom have since left within a very short period of time, is literally staggering – easily more within the last four years alone than in the entire previous forty year plus history of the company. This is a sure tell that the wrong people are doing the hiring.

Dr Trevor Wilson’s departure is just another example of an otherwise clever and skilful person being selected for a job that most knew, and warned, that he wasn’t suitable for finding himself unceremoniously ejected, though all done within the boundaries of employment law, of course.

This is a man that was almost universally disliked and distrusted within the company anyway, but the knee surgeries, new projects, etc, are just a pathetically concocted smoke screen and for those of us in the know this typifies the duplicitous and mendacious nature of the current board. The ‘stand in’ MD is, allegedly, a friend of the French CEO, by the way, not a recommendation or the choice of Dr Wilson.

We can only hope that those few left with the necessary skills and integrity remain able to influence the structure and direction of the company, and that those more recent additions who lack understanding, compassion and real-world ability find themselves looking for employment elsewhere – surely such an iconic, beloved, admired and desired brand deserves better?”

(Thread edited by pfm moderation team to add full citation and out-link to source content)
 
Last edited by a moderator:
Wow.

I've not been privy to the comings and goings at Naim/Focal but having experience with the private equity industry, I am not at all surprised with the developments. Private equity is short-term oriented and are in the game purely to buy and then sell businesses on for profits. It is all in the plan to "rationalize" the business and operations, downsize "non-productive" employees, parachute in aggressive managers, extend the brand, perform financial "optimization", etc. It's done to make the numbers look good so they can sell on or list the company and it is usually a bad outcome for longstanding customers. Unlike industry groups, there is absolutely no intention to hold and develop the business for the long term.

I was big fanboy of Naim until Julian left this world. I am still a user of the old products mostly from the olive era and consider them to be very fine gear. This is very sad but for me it was all to be expected post the Naim sale (or, the "merger" as they chose to call it). There were many Naim fanboys who disagreed with my views on the sale then, claiming that Naim can only get better since they were now part of a bigger group and had the resources to grow.

Hmm, perhaps it is time for me to send my Nait 2 back to Naim for a full refurbish before they decide that this service is a total waste of the company's resources.
 
Interesting thread over on the green forum about the announcement of MD Trevor Wilson's departure from Naim.
 
Hi,

A similar story to what I went through and I am sure a few on this forum, was with a company for nearly 18 years, got taken over, then sold again some four years later for loads of cash to some global concern and now there is nothing left, all taken out to the far east and some 1000 people are no longer in the industry. A few managed to get into similar jobs, but only a few.

Once money becomes the main object of a business and new people are brought in who know Sweet F*** All about the the business/product/marketing/clients then it's only a matter of time before the brand/company/product disappears or is replaced by a cheaper or similar styled product. Just look at modern banking as a prime example, try finding a real bank manager to talk to.

So not an unexpected story about Naim, very sad that such a great brand could be heading into more troubled times.

I wonder how Linn is, maybe a slighty different management there with Ivor's son being in charge.

Cheers

John
 
I feel very sorry for all the ex-Naim engineers that (for various reasons) left during the new investor ownership, as well as for current employees

I am not surpriced if they move parts of UK manufacturing, perhaps entrylevel amplication, to the far east and build up facilities in France if Brexit dictates anything custom related

Certainly they will, with new MD, continue their focus highest on profit
The Co. could very well be done ready for sale within nex few years when they have "milked the cow finally" so to speak

Looking at the various threads re new Uniti range on the green forum, the list of issues are long and supreme complicated
I believe this will put many potential buyers away from purchase, they have to solve this problem

I hope they will have a smoother introduction with their new streaming platform
It seem as people actually are buying the new top-of-the line 555 streamer with multiple powersupplies, there must be a market for a Statement.
 
<moderating>

Please can I ask that the OP cite a source and ideally present a link to the quoted material? Where is it from? Content such as this really needs to be contextualised.
 
If this was Private Eye I think the lawyers would have wanted to read the copy before it was printed. I’m not a libel lawyer, but to the uneducated eye it seems to sail pretty close to wind.
 
I’ve located it; it is a screen-scrape of a post on the Naim Forum here posted by Mark Tucker. As it is openly posted in the public domain I have no issue with this thread as long as it remains within the AUP. I’ll add a citation to the OP for further clarity.
 
Reeks of a disgruntled ex-employee who's been given the push. So let's go back to the "good old days" of Naim, run out of a small shop with a trusty group of enthusiasts at the wheel. When they inevitably go down the tubes we can reminisce, dewy-eyed, at length about how wonderful they were.

Seems to me Naim are doing very nicely thank you, and have successfully diversified with the help no doubt of considerable investment from the parent company. Can't see any signs of them neglecting their old, and rapidly shrinking, numbers of nerdy hi-fi types. If that small part of their market ceases to be viable they'll ditch it, but there really is no place for much sentimentality in the increasingly difficult market they're in. Companies that don't make a profit and continue to grow do the other thing.
 
Reeks of a disgruntled ex-employee...

... but there really is no place for much sentimentality in the increasingly difficult market they're in. Companies that don't make a profit and continue to grow do the other thing.


I have no info on how Naim has been run over the years, and haven't taken any special interest in their products. But they have clearly found a good market audience.

I know that the standard briefing for MBA courses, etc, is to trot out the "no sentiment" line. But that's a large part of what has done the UK economy so much damage in recent years. A lot of the 'profit' produced by that approach had been asset stripping, playing money games with people, etc. The result is nice fat cheques for some as buisnesses actually cease continuing except perhaps as a badge on something made elsewhere. You only have to look at examples from Cadbury to Carillion to see what I mean. 'Growth' can be a pyramid scheme as it outgrows the actual reliable market, and thus looks good until it crashes. Leaving others to pick up the tab for the 'profit' the men in suits took out just before the crash.

The key "sentiment" a company needs to be worthwhile is:

a) To care about making products that the customers will find they like very much

b) to ensure the workforce also feels (a) and that they do good work because it is appreciated.

Not that the customers will be exploited for a bigger 'profit', or the workers treated badly for a bigger 'profit'. That just boost temporary profit at the expense of the company future.
 
I've never been on an MBA course, but I did start and own a pretty successful company. The lack of sentimentality is pretty endemic in businesses if they're going to survive these days, but that doesn't mean you don't care about what you do. Quite the contrary - your staff depend on you for their employment, your customers for your expertise and integrity, and it should be pretty obvious that those companies who don't treat their employees and customers well aren't going to stick around for long. We can all trot out the usual examples of companies who've got things wrong, and those who haven't.
 
<moderating>

Please can I ask that the OP cite a source and ideally present a link to the quoted material? Where is it from? Content such as this really needs to be contextualised.

Sorry about that, it was late over here, and i was sent the text of the post. Should have included the link to the NAIM forum. Glad that my post was indeed moderated and the link was inserted. Context is everything. Must stop the late night posting :)
 
The only thing I find surprising is that the post hasn't been deleted by the Naim moderators. Sadly once companies have been identified as having a strong brand and potential value to venture capitalists the agenda and culture is changed to reflect the new objectives which are very often a long way from the original core business. Normally a bloody and difficult period ensues until the right people start to get to grips with turning the ship on to the new course, sometimes it works, other times it doesn't.
 
Reeks of a disgruntled ex-employee who's been given the push. So let's go back to the "good old days" of Naim, run out of a small shop with a trusty group of enthusiasts at the wheel. When they inevitably go down the tubes we can reminisce, dewy-eyed, at length about how wonderful they were.

Seems to me Naim are doing very nicely thank you, and have successfully diversified with the help no doubt of considerable investment from the parent company. Can't see any signs of them neglecting their old, and rapidly shrinking, numbers of nerdy hi-fi types. If that small part of their market ceases to be viable they'll ditch it, but there really is no place for much sentimentality in the increasingly difficult market they're in. Companies that don't make a profit and continue to grow do the other thing.
Mark is anything but a disgruntled employee who's been pushed. He left of his own accord years ago but remains an industry insider. Like many who work in the hifi industry he is dismayed by a number of things that have happened at the company.
 
Mark is anything but a disgruntled employee who's been pushed. He left of his own accord years ago but remains an industry insider. Like many who work in the hifi industry he is dismayed by a number of things that have happened at the company.
What, you mean become more successful? So he left years ago - bound to have his finger on Naim's pulse then.
 


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