Not the managers of Penton, per se. But any manager that says everyone is replaceable and uses this oft-quoted manager-speak to scare its employees into obedience and to encourage them to aspire to mediocrity. First off, if you plan on running a great business and besting the competition, not everyone is replaceable. See my old blog, theminsider, here for more on how this principle helped destroy a large part of Ascend Media’s business. Second, how does this apply to Penton?
The community marveled when Penton/ABRY turned its penny-stock, at-times-near-bankrupt, highly-leveraged business around and sold it to Prism/Wasserstein/et al for a nice little profit, and around a 60% premium above current stock prices (depending on what you consider current). That trick involved a lot of managerial wizzardry. What has happened since? Two things that I’d like to point out:
1. Most obviously, the economy has softened during an industry-wide (world-wide, really) revolution: One that changed the way the winning players did business; and one that allowed the introduction of many, many new players into a business with a traditionally impossibly high barrier to entry.
2. Much of the management team that turned Penton around is now elsewhere:
- At the top, Penton lost David Nussbaum, the CEO at the time. He is now at ABRY-owned F+W Publications as CEO.
- Eric Shanfelt, who headed up e-media for Penton, left the company soon after. He’s now at Aspire Media.
Much more after the jump.
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