Steven K.Lee gone

[adan]

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A couple of FACTS that will spoil a few of the beautiful theories here:

 

1. Steve Lee had ZERO to do with the design and introduction of the M8 (for better or worse) - they were well into production before he even joined the board in Sept. 06, let alone became CEO in Nov. 08.

 

He may (or may not) have played a significant role in the "recovery" from the introductory fiasco, in terms of setting policies RE free filters, discounted lenses for early adopters, etc.

 

Same for the Digilux 3 and all the other PanaLeica cameras introduced at PK 2006 - Lee was not on board for their development or purchase - that was all well underway as early as Spring 2006 under Dr. Spichtig.

 

2. Leica actually made a small profit in the 06-07 fiscal year, so from that point of view his tenure improved the financials.

 

3. Leica Camera AG, as mentioned, is 96% owned by Dr. Kauffman's investment group ACM, so there is only one "stockholder" or "investor" who has to be kept happy - Dr. K.

 

I doubt the AP interview regarding a possible FF rangefinder was the sole cause of Lee's dismissal - but it may have been the "straw that broke the camel's back" if there were already "creative differences" among Leica's managers.

 

My speculation - all of which may be proved wrong eventually:

 

1) that progress may be faltering on the development of whatever Leica has planned for PK 2008, and that Lee, as a marketer, didn't have the engineering "chops" to manage an engineering problem.

 

2) That there likely WAS a cultural clash of sorts - both on an immediate day-to-day problem-solving basis and in a strategic sense. Being a Steve-Jobs-style "dreamer" is great - IF you can actually produce products. If not, you just produce unrealistic and unrealizable expectations, and end up looking like an idiot.

 

I suspect that both the "full-frame" statement and the upgrade program as originally announced were - areas - where Lee just ended up at cross-purposes with Leica's top brass - and two such events in one month were enough to force a parting of the ways (and I don't even know who was on which side).

 

Personally, I found Lee, in his public persona (interviews, etc.) to appear open and rather refreshing. But in the end, that does not mean he was right.

[jaapv]

And as usual, Erwin is in the outer space. It starts by saying:

 

Of course. Leica did not invent the 35mm camera, a lot of major innovations in optics, was not one of the first company to offer a multi-automatism/multi-metering mode 24x36 SLR, was not designing AF enlargers, is not the only to offer a digital back to a film SLR...

 

It happened during the history of Leica that they stopped innovation indeed.

But "never been know for" is a nonsense.

 

Strangely he suggests Leica pays too much attention to Internet groups, which we know they don't, and goes on to repeat internet rumours for himself, like the hype about the shutter replacement/ refurbishing....

[masjah]

I've read the article and I guess it can be summarised as "I don't know why Lee has been sacked, but here's what I think...". In other words he's guessing just as we are. One thing he disagrees with is that it happened because he spoke of the hope for a full frame M9 - perhaps Damien and Guy could let us know what evidence they have that Erwin is wrong?

 

Steve

 

Couldn't agree more, except that I don't feel I'm in any position even to attempt an intelligent guess, so I won't! (Was it Wittgenstein who said something like "Whereof we cannot speak, thereof we must remain silent"?)

[stunsworth]

Strangely he suggests Leica pays too much attention to Internet groups, which we know they don't...

 

Which is exactly the point I made above. If they were so driven by people's opinions on the web why did they decide they no longer had a need for their own forum? A forum that was under their control and could have been exploited.

[stunsworth]

"Whereof we cannot speak, thereof we must remain silent"?)

 

He'd obviously never seen this place or any of the other web forums. Then again, maybe he had <grin>.

[plasticman]

Over the last 24 hours this thread has gone everywhere, including:

 

- racist remarks about Germans, Asians, Americans and pretty much everything in between. The only thing of interest there is how a small group of people on an internet forum can have such a wide range of racist prejudices.

 

- libellous judgements on Steven Lee - usually based on absolutely no evidence whatsoever. Interesting that everyone is suddenly such an expert on his management style. Interesting also to see the level of snobbery that emerges about his management background - related in some ways, I feel, to the racism above.

 

- attacks on those two old chestnuts - the PanaLeicas, and Erwin Putts (cue comments about Erwin simply being a 'nut' rather than a chestnut...)

 

I'm simply concerned that this is a death-knell - not the dismissal in itself, but what the broader picture may entail for the future of Leica. My own impression - mostly from interviews in LFI and elsewhere - is that I broadly agree with Adan: Lee was an interesting and OPEN person, who genuinely saw the need for Leica to adapt to modern marketing realities.

 

What happens now?

[Goldie]

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But you can only adapt to modern marketing realities if you have modern production processes, underpinned by a very clear company road map.

And that road map has to be adopted in spirit by all concerned.

[george_b]

 

What happens now?

 

Before I invest any more money in Leica I need to know there is a future for my cameras.

40 years ago I got a IIIb since I wanted a brand that gave good results and a company with support, new products, etc. Progressing via IIIg, M2, M6s with various accessories, R5 & R7 plus large variety of excellent lens. Since a few years ago Leica dSLRs were just a pipe dream it all went and have now invested in Canon, at least they have a continuing programme of innovation and availablilty of new equipment across the range.

 

What happens now? Come on Leica and get your act together, no more tales of half baked schemes and postings by the ton of backfocus, unreliability and wish lists of where the M8 will lead and an R10 . . . . . . .

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[jaapv]

Before I invest any more money in Leica I need to know there is a future for my cameras.

40 years ago I got a IIIb since I wanted a brand that gave good results and a company with support, new products, etc. Progressing via IIIg, M2, M6s with various accessories, R5 & R7 plus large variety of excellent lens. Since a few years ago Leica dSLRs were just a pipe dream it all went and have now invested in Canon, at least they have a continuing programme of innovation and availablilty of new equipment across the range.

 

What happens now? Come on Leica and get your act together, no more tales of half baked schemes and postings by the ton of backfocus, unreliability and wish lists of where the M8 will lead and an R10 . . . . . . .

 

Huh? I use my cameras to take photographs, the factory buildings don't do that too well, nor the board-room.

[glenerrolrd]

A couple of FACTS that will spoil a few of the beautiful theories here:

 

 

2. Leica actually made a small profit in the 06-07 fiscal year, so from that point of view his tenure improved the financials.

 

 

 

Adan The issue on the financial performance is that 2007 should have been a really great year. In 2006 Leica was working off the old product line and spending like crazy on R&D(cash only affect). In 2007 they shipped a lot of M8s , emptied the supply chain of lenses and introduced the summarits. That should have been a great year both from an earnings and from a cash viewpoint. My guess is that cost of quality and workforce transformation costs were much greater than expected. So earnings disappointed and cash was inadequate to retire debt and fund R&D. 2008 ..how can this be a good year financially..the "bloom is off the rose" with M8 sales. The entire R line is dead until the R10 materializes and it seems all the new products are planned for Photokina. Now the question would be .....who would be more upset about this....Mr Lee ....who s incentive compensation may have been reduced or Dr Kaufmann ....who would have to increase his investment and is seeing a forecast of a weak 2008,

[Goldie]

Yes indeed Leica did empty the supply chain of lenses, but mostly at a 30% discount, a price which I suspect left little or no profit. The scheme also stretched Leica's production capacity to the limit, leaving very little for dealers to sell in their shops to old and new customers interested in the M8.

From a customers point of view the discount scheme was very tasty, but from Leica's point of view it was crazy. Most companies would have simply issued a voucher worth X amount, which was redeemable through the dealer network on Leica goods. That way Leica would have known the cost from day one and not had such distortion of their lense production schedules. Whether Mr Lee actually made the final decision for the scheme I do not know, but he was certainly in the driving seat.

[stunsworth]

Yes indeed Leica did empty the supply chain of lenses, but mostly at a 30% discount, a price which I suspect left little or no profit.

 

But these were effectively being sold direct to the public without the dealer's mark up having to be applied. Also I wonder how many lenses they sold at the 30% off? It only applied to the people who paid for their cameras in full by the end of November 2006 from memory.

[earleygallery]

As has been said before a CEO rarely gets involved in the minutae of product issues so I really doubt that discounts, websites, etc., had any part to play in this.

 

In terms of the bigger picture, whilst I admire the strategy of 'continual upgrades' for a product such as the M8, I have to say if I was in the driving seat of a business like Leica I would want to see an M8v2, v3 etc., until an M9 was ready.

 

Offer support for existing products yes, but Leica customers are not generally short of a bob or two and the pro users are used to replacing their cameras on a regular basis so why not make the most of your potential income stream? The next best alternative for an existing M8 owner should be a new M8, not a relatively low cost upgrade that also stifles your dealers. It works perfectly well for most other manufacturers.

[Goldie]

But these were effectively being sold direct to the public without the dealer's mark up having to be applied. Also I wonder how many lenses they sold at the 30% off? It only applied to the people who paid for their cameras in full by the end of November 2006 from memory.

 

The scheme ended 31/12/06. Dealers get 15% of full retail price.

Yes that's my point the dealers were cut out of the scheme and not only that, they could not get stock to sell at normal prices; it grossly distorted the supply chain just at the time when there was an upsurge in new lense demand.

By the way the Summarits were a really good idea, probably from the customers' and Leica's point of view. This was very much Lee's baby.

[george_b]

Huh? I use my cameras to take photographs, the factory buildings don't do that too well, nor the board-room.

'invest' may not have been the most universal acceptance of the word, bought into a system may be more appropriate. I can assure all my cameras have been & are working tools, not objects in a showcase.

[Iron Flatline]

As has been said before a CEO rarely gets involved in the minutae of product issues so I really doubt that discounts, websites, etc., had any part to play in this.

I'm an investor in operating companies, and if one of my CEOs told me that products or marketing weren't his problem, he's be out faster than he can find his hat. I'm sure Lee had a very good idea about the products and its marketing. Leica doesn't have that many products.

[aXs]

LEICA CAMERA BERLIN... the art project/installation ... was a single photo, printed over and over again, and displayed... a bike courier in motion... the repeated print took the manager of the store by surprise... had been told to expect something much more varied, including drawings and different photos...

 

Carsten,

don't shoot the messager! but thanks for your personal observations.

 

Leica Berlin Gallery: I can't imagine the manager of the Leica Flagship-store was really 'surprised' by a Leica art project/installation in Berlin (single image/multiples) - since it was obviously sponsored and announced by Leica Camera AG Solms (see: LFI-magazine, Leica International Fotografie 2/2007). In 2007 Steven K. Lee personally approved all artistic/creative Leica-projects.

Mr Meister also used such projects to promote the Leica Flagship-concept (same in Tokyo and Paris).

 

Recently, Mr Martin Meister, sent an email letter to all customers of http://www.Leica-Camera-Berlin.com, and http://www.LeicaBeiMeister.com - bluntly explaining his pleasure that Steven K. Lee was sacked. There was a conflict of corporate cultures between Leica Camera AG and the newly branded Leica Flagship-stores.

 

I may add, that also luxury Hermes boutiques have also exhibited single images/multiples as art projects too.

 

Axel

 

Axel Sanders

[AlanG]

 

Of course. Leica did not invent the 35mm camera, a lot of major innovations in optics, was not one of the first company to offer a multi-automatism/multi-metering mode 24x36 SLR, was not designing AF enlargers, is not the only to offer a digital back to a film SLR...

 

It happened during the history of Leica that they stopped innovation indeed.

But "never been know for" is a nonsense.

 

I think there are a few things wrong here unless you are not using sarcasm.

 

I know it is a commonly held view that Leica invented 35mm cameras but that is not so. And if WWi had not occured, some of these and others may have been successful.

 

List of Early 35mm Cameras, from 1914 to 1932

 

In my opinion the biggest lack of innovation for Leica was not coming up with a 35mm SLR in the 50s when many of the Japanese companies saw the light. In the 60s, Leica and Nikon were not very far apart in price, so Leica might have dominated the SLR market, instead of Nikon, had Leica produced compelling products and marketed them agressively.

 

I can't find much about the invention of auto-focus enlargers but the optical theory was laid out in the 1800s and it seems that this might be the person who made the first one:

 

http://www.gravely.com/about_us/TheGravelyStory.pdf

 

Omega, Kodak, and Durst also made AF enlargers.

 

The early Kodak digital cameras from 1993-1994 were backs that simply attached to Nikon bodies. The DCS 460 was 6 megapixels so this was pretty great and very innovative in 1995!

 

"The DCS 400-series were based on the Nikon N90s 35 mm film camera (called F90x in Europe). The DCS 410 and some early versions of the DCS 420 were based on the Nikon N90/F90 body. After Nikon N90s/F90x was introduced in late 1994, Kodak started using that model as basis for the DCS 400-series.

 

The DCS 400 series used an unmodified Nikon camera where the detachable Nikon film back replaced by a Kodak digital back and lower body portion containing batteries, electronic components, and storage media. The camera can be converted back to a film camera by replacing the digital back with a standard back."

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Hallo,

Look here: Interesting Leica gear

[Richard.no]

I'd say the Leicas shareprice seems to have kept it's value pretty well considering the ruling market conditions and in correlation to the DAX.

 

Check out the shareprice over the past 12 months, this in combination with the other facts already mentioned here....