Over the past few years many have wondered when, and if, Rexel could be turned around and some have expressed surprise that Chris Hartmann remained the Rexel’s North American leader given the shorter tenures of some of his predecessors.
Chris, according to many, is an accomplished executive who is well-thought of and has a strong pedigree within the electrical industry having been with companies like Thomas and Betts, Affiliated Distributors and Rockwell.
As many know, Rexel has been “challenged” for many years experiencing subpar growth, extensive turnover, having issues with acquisition integrations as well as software deployment. Now the company is working on implementing an RDC model and, according to many, is going through a supplier rationalization process which has been “rocky”.
These operational challenges were exacerbated by the recent economic challenges and a greater reliance on the resi / commercial construction market (even though they do have some Rockwell APRs).
The announcement, which went to employees and the trade today stated:
Christopher Hartmann, EVP and CEO of Rexel Holdings USA and Rexel Executive Committee member, has announced his intention to leave Rexel towards the end of the year. Chris Hartmann’s decision to leave Rexel after more than six years with the company is a personal one, but he remains in charge and committed to ensure business continuity and a smooth transition until a successor is in place. The process of selecting his successor is underway. I want to thank Chris for his strong contribution during his tenure at the helm of Rexel’s U.S. operations and wish him every success for the future. Rudy ProvoostCEO and Chairman of the Management Board
Some feedback we’ve heard:
- Many changes there and a lot of unhappy people.
- Rationalization reportedly is not going smoothly.
- You will probably hear more in the days ahead.
- About 28 people let go in late April. Some people came in from Paris to make the changes. Marketing people, planning people, accounting and more. Thought it was strange that Paris had to come in to make the changes and Chris couldn’t / didn’t make the decisions.
- Seems to support ongoing restructuring and pressure to perform.
- The year got off to a rough start as well and I’m sure that didn’t help.
- A lot of closed doors over the past few days, knew it was coming and finally it came out as a personal reason.
- Dealing with the French is no fun.
- Where Rexel goes next?
- is the next person someone currently in the North American operation? Someone whom Rexel will promote from somewhere else in their network? An import from Paris? Or will they pursue someone from a manufacturer? Or perhaps go to someone outside the industry but with distribution experience?
- What do Rexel employees think? Will this increase departures or will they hold the fort, continue the turnaround efforts and work to improve the company?
15 Comments
if we get another frenchman, we’re screwed asthey are clueless about our market
Finally someone woke up… There are too few relationships front or back end
Finally someone woke up… There are too few relationships front or back end
Huge gap between executive staff and the keys to making our business click and grow. lot of IQ does not replace savvy and respect!
I smell coverup but the French are the French.
We shouldn’t bash them too much. We saved their butts in two wars.
As your blog reflects, Rexel’s issues are legion. Chris is a smart guy, but from my sources, the bureaucracy at Rexel is stifling to anyone who actually wants to get something done and the corporate office culture is “ivory tower”. Chris himself told me how much time dealing with his French masters required. The French have a long standing love affair with bureaucracy and it is unlikely that will change when Chris is gone. There have been a number of long tenured Rexel/Gexpro people moving on in recent years and I think it is likely we will see more. As a side note, if you are a believer in the statement that the past is prelude to the future, don’t be surprised when similar issues arise with the other French consolidator. The patterns are strikingly similar. The other company is just behind Rexel by 10-15 years. Don’t be surprised when the fiefdoms start skirmishing and the branding becomes centralized and the wheels start coming off. The French roots will eventually show.
Given the competitive nature of the industry today, at some point those responsible for the bottom line of any organization need to have an in depth understanding of the business they are trying run.
It matters if you have walked in the shoes of the people you are trying to lead. A little humility also goes a long way in our business.
Consolidators typically lack both items… where the rubber hits the road and humility.
One would think that the actions taken with Chirs would have a negative effect of remaining employees. So long for good morale.
Rexel just doesn’t understand the market place here in the US.
Sonepar is a much different breed of cat……some of their branches really get it and are hard to compete with.
“I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.”
— Charles Maurice de Talleyrand-Perigord
At least one Frenchman got it..
This is probably not the last misstep for Rexel. Their drive to commodize or put their name on most all products puts then in City Sales Group in Texas.
A number of the companies they have rolled up were really good companies. The results speak for them selves.
I personally wish Chris and his family the very best. Chris is one smart fellow.
I formerly had a lot of good personal friends and competitors at Rexel over the years. Most are gone though business decisions on their part. Some were asked to leave under clouded circumstances maybe of not their own doing. Some wanted to retire or just move on.
Up to this point it sounds like any other company. Right?
Some of those really bright people went on to start their own companies and are today very successful.
Sonepar doesn’t seem to have the same set of problems. They compete and have turn over, but very few missteps.
What is it about Rexel’s French corporate structure that so enrages most?
For starters they fire people in mid-flight over the Atlantic Ocean. Do not honor promises. Manage to run companies into the ground.
Why do you think their corporate management in France is so screwed up?
I bet they do not get it right. I watched them hire a DC manager who’s only logistics and warehouse experience was that he was a driver for them for six months. He spearheaded a move to a new DC that was such a disaster it cost him and a regional operations manager their jobs.
While some of the replies blames the French ownership, I think a deeper look into the US leadership team explains why there is little organic growth and a high number of people leaving. The senior executive rarely talk to each other and there is not any commercial strategy. Gexpro leadership focuses more on competing with Rexel Inc than the hundreds of other distributors. The two main commercial leaders have NEVER had a commercial strategy as to how to leverage a two banner approach, instead the ignore and dislike each other. Bottom line is we can look at many reasons for the issues, but to me it seems a lack of leadership and teamwork will stagnate this business until there is a change.
Dear Sirs
I would like to know if anyone else has fallen foul of Rexel integrating their accounting system? We have had a variety of invoices for future goods and payments that have gone missing or payments that we have not submitted. Goods we have been invoiced for and never received and adjustments on invoices. Thank you
Caroline
Can you tell me where did Chris Hartman is now he is and was a good leader
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