Pelco Head Out, Diesel Exec In as Pelco CEO

By: John Honovich, Published on Oct 21, 2015

The head of Pelco is out.

This is a major shakeup with a surprising replacement. In this note, we examine Pelco's issues and the concerns with their new head.

*** **** ** ***** is ***.

**** ** * ***** shakeup **** * ********** replacement. ** **** ****, we ******* *****'* ****** and *** ******** **** their *** ****.

[***************]

Herve ***** ***

***** ***** [**** ** longer *********] *** *** Pelco ***** **** ** the "****** **** ********* Video (***) - ******** Division", ******* *** *** up ** ***** / Schneider *** **** **** a ******.

***********, ***** ** *** CEO ** *********'* [**** no ****** *********] ********* VSaaS ******************, ****** **** ** clearly *** ** *********** as ******* *** ** Pelco.

Outsider ***********

*** *** **** ** Pelco ** ****** ******* [link ** ****** *********], who ****** ********* ********* *** **** ** years, **** ******** ******* the $*.** ******* ************** ********, and ***** ** ****, the ***** ********** ******* ******* business. ** *** ** security *** ** ******** experience.

Pelco's ********

***** *********:

"*** ********* ****** *** a ************* *** – ** **** executives **** *** ******* industry ********** **** **********. In *** ***, ******’* leadership ** ******* ****** teams, ******* ** ******* under *********** ****** **********/********** timelines ** **** ** his ********** ** ***********, marketing, ****** ****** ********** and ****** ***** *** him ***** **** ******** else ** **********. ** not **** *** ********* international **********  *** * ****** track ****** ** ******* and ******* ****** ** extremely *********** *** ************ commoditized *******, *** ** understands *****, ****** *************, the *********** **** ******* and **** ** ******** to **** ********** ************.

*** **** ***** **** *** ** ****** himself ****** ****** ****** – ***** ** *** ** a ********** **** ********* both ***** *** ******** tailored ***** **** *** experiences **** ********** *** another. *** ************ ** excited ***** *** **** and *** *** **** performance *** *******-****** ************, due ** ** ***** measure ** *** *** VMS *** ********* ****** lineup. ******** ** ********* confident ** *** ********* we *** ******* *** the ******** ** ********** that ** ********* ** place ** ******* **."

**** ** * ****** standard ********* *********, ****** our ******** ****** ** hiring ** ******** ** lead. ****** *** ******'* experienced ************ ***** ** industry ****** ****** ** a ****** *** ********.

Pelco's **********

********* ****** ***** ***** at *** *** ** the *** ****** *** (similar ** *****'* **** deal *** **). ** that ****, ********* **** ~$1.5 ******* *** *****, who *** **** ~$*** million ******* ** ****.

***, ****** * ****** later *** **** *** industry ****** * ** 3 ***** ** *****, Pelco's ******* ** ************* lower, ** *** $*** million *****, ******* *** they **** *** **** up.

Product **********

***** *** **** ** IP. **** *** *** even **** ** **** IP ********* ***** **** / ****, ***** ***** their **** ******** ****** started ******** ** ** in *******.

***** *** *** **** pace ** **. ** the ****-*** ****, **** (like ****** ******** ****) do *** **** *** R&D ********* ********* ** match **** ********* ** niche ****** *********. ** the *** ** *** side, ********* *** ***** has **** ** ********** difficult *** *** ************ to *******.

***** ** **** ******* multiple *****. * ****** ago **** ****** ******* Sentry (********* ***** ****** Exacq) *** **** *** not ******* ** ******. At *** **** ****, they ******* **** ** Endura *** **** *** beset **** ********** **** in *** ****-*** ****** it ********. ***, **** are ********* ** ******** new *** -**********, * ******* *********** for ******, **** **** harder ***** *** ****** is ** ****** ***.

*******, ***** ** ******* on *** **** ** can ***, **** **** we *** ****, ****** diligently ** ***** ** / ******* ********.

*******

*******, ***** *** **** the ****** ****** *** changed ***** ****, *** with ***** **** ** product *********** **** ******* with, ** ** *** clear *** *** ********* can ******** *****.

** ******* *********, ** such * *********, ***** even **** **********. **** the ******** ** ******** people **** ****************** ****** ********** *** ******** and ******* ** ** industry, **** **** ***** does *** **** ** wait / *****.

Comments (31)

Motorola, Vicon, Pelco... I see a trend. (And I am showing my age)

Well, we all know how well outsider CEOs have performed in the past in this industry.

Giving Sharad the standard IPVM 'Welcome to the Industry', eh? ;)

They way that they have run that company into the ground, one would think that they were without a leader all this time.

Ouch...

In fairness, what could any of us have done if we started in 2012 and given how the industry has evolved over the last few years? Sometimes issues are structural and the options / power of leaders are limited.

To everyone, what would you do to make Pelco better?

But Pelco has been MIA since the moment that they were purchased. Pelco never had the best products; however, they had an unstopable marketing machine and customer service on par or maybe even better than American Espress or Ritz Carlton. They made good not great products, but they were so easy to do business with, people loved them. They lost all of that and I don't belive that they have the ability to recover...especially with thier lackluster offerings.

I couldn't say that, had I headed Pelco for the past three years, that I would have done a better job.

I can say, however, that I wouldn't have gotten rid of what made Pelco what it was, which is their world-class customer service and tech support.

I'd also say that any company with little or no R&D is a company that's chosen to die.

"since the moment that they were purchased"

So I definitely agree that things could have been done differently back in 2007. Indeed, Fages / Pelco admitted as such here: Pelco Is Back?

I think they have been trying on the service side, but hard to come back.

That is such an accurate statement -

I transferred to this industry from another technology sector in 2002. Even then, when everyone else was still in love with Pelco, my personal encounters with them were not as universally stellar as their reputation indicated they should have been. I think the old guards in security industry tend to be very nostalgic, and Pelco's customer service in 2002 was already fading from what it was in the '90s. By the time they were sold, their tech support amounted to a lackey reading the manual to you, unless you knew how to navigate the bureaucracy.

That said, the thing that made Pelco great (at one time, IMO) was their aggressive customer service that no one would match. They need to simplify and narrow their lines, choose their battles carefully, then focus relentlessly on those with unparalleled customer service.

Note to Schneider: You'll have to spend money without an immediately obvious ROI, and have a top down culture change to get that done. Undoing all the damage you've done will be expensive.

That may be what "hiring an outsider" is all about. It would be good for the industry if that were the case.

Pelco should be competing in the HDCCTV market and leverage their existing base of coax installations. They could also provide "drop in" solutions to replace DVR's and Matrix Switchers that reuse existing ASCII integration with Detention Control system.

HD analog is an interesting option for Pelco, and all the old school manufacturers.

However, it took them years to go to IP, so not optimistic about a quick switch / openness to HD analog.

The other thing is how well HD analog will play for the bigger, larger customers who might be going to IP anyway at this point.

It's interesting. I don't think the outlook is good for enterprise clients. The opportunity for the Endura Gaming market may also be gone. Midrange and below would welcome HDCCTV from Pelco.

Pelco would likely need to OEM the technology to reduce the develoment time. But again, too late for that?

Wouldn't be surprised if one of the Asian companies buys the name for a ridiculous price.

Just the name.

[Mod note: Poster is from Pelco]

Hi Jon,

A couple of comments:

1. Schneider Electric typically makes changes at the SVP level and above every 3-4 years. This is typical in many large companies.

2. Under Herve’s leadership, Pelco’s focus returned to our core roots: fanatical customer service, with the introduction of our 24/7 logistics offer; implementation of our Technical Account Manager ITAM) team for Product Support, and improvements in product quality. We significantly expanded our IP Camera offering and introduced innovative products in VideoXpert, our new VMS platform, and our panomersive Optera camera. Additionally, Herve supported undertaking some major changes with our field sales organization in the North American market, which has resulted in a re-energized sales team both with our new direct teams and our new and existing reps.

3. MultiSight has been an offshoot of Pelco that has been building momentum but needs additional focus and energy. I am confident Herve will make an immediate impact leading this innovative product line.

Not to pick on you or Herve as i am certain that you have worked hard to achive what you feel that you have achieved; but i would suggest that it has been lost on the industry and in speaking with peers, no one is aware of these changes.

You haven't disclosed your company information so I can't contact you personally. If you would like more information on our Back To Blue efforts over the past 3 years, please feel free to contact me at 800-289-9100. Or if you will be attending Securing New Ground or ISC East in the coming weeks, I'd be delighted to chat with you in person.

The simple fact is i have been in the industry a long time; I work for a large successful integrator; and we have heard nothing about your "Back to Blue" efforts.

Stephanie,

Thanks. Any comment or clarification on the pick of Shekhar? How well an industry outsider help Pelco? What is Shekhar's plan for pelco?

...Cummins Diesel for the past 15 years, most recently running the $1.7B Exhaust Aftertreatment business...

So he knows a lot about blowing smoke; that can't hurt!

He took the Pelco gig after a better one at VW suddenly went cold. ;)

Came here for this, wasn't disappointed.

***gazes sadly out the window at his diesel Passat***

I've been hearing about Pelco since the 80's but then they dropped off my radar screen. Endura made the company dead to me; But i started seeing them a lot in the past year or so and the booth was pretty packed at ASIS a couple of weeks ago. I have also had the reps (yes reps) meet with me and think both the Optera and their new VMS looks pretty good. Time will tell, but I say welcome back to my approved bidder list.

"Endura made the company dead to me"

What happened?

Too expensive; too propriatary; Good for integrators, not good for owners. I think Endura was the reason they could not practically enter the VMS world.

Pelco responded:

"The candidate search was a comprehensive one – as both executives with and without industry experience were considered. In the end, Sharad’s leadership of complex global teams, ability to execute under challenging market conditions/aggressive timelines as well as his experience in engineering, marketing, global export operations and supply chain set him apart from everyone else we considered. He not only has extensive international experience and a proven track record of success and revenue growth in extremely competitive and increasingly commoditized markets, but he understands large, global organizations, the intricacies they involve and what is required to meet aggressive expectations.

All that being said – and as Sharad himself cannot stress enough – Pelco is run by a leadership team featuring both broad and uniquely tailored skill sets and experiences that complement one another. The organization is excited about the hire and has set high performance and revenue-growth expectations, due in no small measure to our new VMS and panoramic camera lineup. Everyone is extremely confident in the direction we are heading and the totality of leadership that is currently in place to realize it."

This is a fairly standard corporate statement, though our concerns remain on hiring an outsider to lead.

As for the team rejoinder, having the leader's industry experienced subordinates coach an industry novice leader is a recipe for disaster.

...and as Sharad himself cannot stress enough – Pelco is run by a leadership team featuring both broad and uniquely tailored skill sets and experiences that complement one another.

How would he know that?

He just got there, he hasn't even updated his LinkedIn profile yet...

Easy now. It's a marketing statement...

What I do not understand is why they did not do their own formal announcement of Shekhar first. Instead, they announce Ferges going to Multisight (meaning leaving Pelco) and somehow thought that no one would notice? That's the weird part to me. Manufacturers should make sure they control their own news.

Perhaps...this gentlemen is coming in to clean up the bottom line and unload Pelco? Seen this before...especially if you are not an industry insider.

If Schneider was planning to unload Pelco, hiring an exec who has deep operational experience but none in sell-offs would be a weird choice.

That said, I do wonder how long Schneider will keep Pelco. It clearly has not lived up to their expectations, and as discussed above, a lot of the blame has to go on them but, at some point they might give up.

8 days after we first reported it, Schenieder formally announced that Shekhar is the new Pelco CEO.

The most interesting detail shared in the release was about Shekhar's experience in China:

"As part of this effort he played a leadership role in the negotiation and establishment of one of Asia’s largest Joint Venture Engine plants in Beijing and was involved in establishing export operations out of China to serve the sale of products to over 21 OEMs in 35 countries."

We will see if that comes into play in any way at Pelco.

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