Publications
Publications
- April 1998
- HBS Case Collection
Jim Lyons and GenRad
Abstract
Lyons, currently CEO of Harry Gray Associates, a consulting and investment firm, had just been approached by an executive recruiter representing GenRad, a 78-year-old electronics company headquartered in Concord, MA. The company, which manufactured integrated software and test systems for electronics equipment, was one of Massachusetts's oldest technology firms. By the early 1980s, it had become a leading supplier of ATE and related software. However, in the middle of that decade, GenRad began to suffer massive losses. By late 1992, GenRad was continuing to bleed and the company had blown through $185 million of shareholders' equity, leaving it with a negative net worth. The stock price had tanked and stockholders threatened a lawsuit. As Jim Lyons considered the possibility of accepting the CEO assignment at GenRad in June, 1993, he mulled over several questions about the company and his personal priorities. Was this just a "lousy business," as many analysts believed, or did it possess strong growth and profit potential? Even if the industry offered potential, after nearly a decade of mismanagement and debilitating results, could GenRad be saved? Having no experience in this kind of business, would Lyons be right for the job? Did the job make sense for him at this point in his life and career? If he accepted the CEO assignment, could he envision an action plan for his first months on the job?
Keywords
Technology; Management Succession; Personal Development and Career; Consulting Industry; Massachusetts
Citation
Zschau, Ed, and Matt Verlinden. "Jim Lyons and GenRad." Harvard Business School Case 698-095, April 1998.