- Company leadership is extremely disconnected from the field, incorporating a ‘top down’ approach to mgmt and directives
- Terrible leadership at the top in HR. Morale is very low in the field offices, turnover has been staggering…particularly over the last few years, the annual review process is tedious and convoluted, very little transparency in terms of company direction at the HR level, and the new hire on-boarding process has been an arduous work in process for years.
- Senior leadership is so disconnected and under qualified to make positive (or negative) change they had to engage Bain and subsequently RDO to work closely with field offices designated as focus offices. It’s common knowledge that these “consultants” would offer up criticism after criticism, and spreadsheet on top of spreadsheet, but rarely were there any concrete ideas on how to really improve a lever or process.
- Service to customers is virtually non-existent. Revenue through repair sales and the service base is priority #1 (as it should be), however, that comes at the complete expense of the customer. Hours per day in service is scrutinized under a microscope, non-billable repair is shelved as long as possible, response times to service calls continue to increase, very little “preventative maintenance” is performed and reactive “callback maintenance” is the precedent.
- Products are inferior to other OEMs in terms of quality and mean time between callbacks, especially their traction products. You likely won’t find a Schindler high-rise installation that isn’t plagued with issues
- Every department within Schindler is very ‘siloed.’ Doesn’t seem to be much collaboration between product lines, business segments, and ultimately the field offices. Each department has their own self interests, and it shows
- The incentive plan regularly changes, and the changes are generally not received well by incentive-eligible employees.
- The company’s service base is largely fed by their large new construction backlog. But the challenges start with construction as they have a history of overselling and not being able to meet schedules due to manpower constraints. Crews are pushed to get in and out of an install, often jeopardizing quality of install resulting in service issues. Schindler is very adept at submitting change notices to contractors for any little thing in an attempt to mitigate delays and profit degradation.
- Sales reps are bogged down with reports, internal meetings, and playing defense with their customers instead of trying to nourish relationships and sell organically
- Again, Schindler has lost a staggering number of seasoned, well-respected employees over the years. It’s quite amazing actually, as I’ve not witnessed such a mass exodus from any other company in the industry thus far in my career. And if you were to ask any of those former employees why they left they’d tell you that it’s because Schindler has changed for the worse and that it’s primarily the result of a handful of “leaders” in HQ making some very questionable decisions. They’d tell you that customer service (CX) is preached, but it’s rarely practiced. Or, they’d tell you they were one of the hundreds of folks that took a buyout to hang up their Schindler hard hat and years of expertise to save the company a bit of money.