
Gilda Radner’s famous “Roseanne Rosannadanna” character was famous for the line “Oh never mind” after a long rambling rant on Saturday Night Live.
Richard Gonzalez, Chief Operating Officer of Abbott Laboratories (market cap $108 billion) has a Bachelors Degree from the University of Houston and a Graduate Degree in Biochemistry from the University of Miami. Except he really doesn’t.
Niaspan, Abbott’s potential blockbuster drug, was going to be the next big thing in cardiovascular care – except a study published after it hit the market showed it didn’t do anything to prevent heart attacks.
Is there a link between a COO who fudged his credentials and a drug his company over-hyped? Do we care if Harvard jocks cheated on tests or if Derrick Rose faked his ACT score to get into Memphis costing the school its NCAA trophy?
I’ve been grappling with these issues since I read Phil Rosenthal’s excellent column in last Sunday’s Chicago Tribune about Gonzalez’s reported degrees. Maybe I wouldn’t have cared as much if I hadn’t paid a lot of money for Niaspan pills and struggled with its side effects until I heard it was ineffective in its primary goal – to reduce the risk of heart attacks.
I have generally looked at resumés as plausible fictions. I care more about the tone and footnotes than the “credentials.” I am also very interested in what is omitted from a resumé – jail time, drug abuse history, ADD, illness and recovery, psychotherapy, religious observance, sports team preference, physical fitness, underwear preference. OK, laugh, but I care if a person has a sense of humor and a basic candor and honesty. I know Human Resources prefers the bland and measurable to the touchy feely stuff. I care about the person more than the credentials. So, my question is: If you fake the credentials do you necessarily disqualify yourself for a job – even if you are caught?
Richard Gonzalez, Abbott Board Member, is scheduled to be the CEO of AbbVie, Abbott Laboratories’ pharma division that is being spun off from the rest of the company. Gonzalez must be considered a topnotch executive to get this job after 30 years at Abbott. He made $5.5 million in compensation last year. His Board is not kicking him out because of the college degree flap like Yahoo! did with Scott Thomson and Bausch and Lomb did with Richard Zarrella. I see the point of forgiving a mistake. Like Gilda Radner’s Saturday Night Live character, Roseanne Roseannadanna, used to say – “Oh, never mind.”
But then there is that little Niaspan thing – the big drug that couldn’t. Can we draw a straight line between Gonzalez and Niaspan?
“Oh, never mind.”
Questions: Is embellishing a resumé a big deal?
If you found out your most valued employee had not divulged a drug abuse history what would you do?

By all accounts I have heard IMTS was a major success for the exhibitors. I am always skeptical about supposed pre-registration numbers at shows, but this year it appears that IMTS actually exceeded the 87,000 number that was floated before the show started. The 100,000 mark was probably reached. If you can generalize, buyers were even more schizophrenic than usual. With excellent cash flows the last couple of years, manufacturing migrating back to North America from China, and with favorable depreciation rules for the moment, this should have been a selling free-for-all. But I gather many buyers were drooling yet reluctant to place orders. The excuses were the usual suspects – the election, the “fiscal cliff,” European woes, and the possibility of war with Iran. What it boiled down to was a lack of visibility about cash flows for the next couple of years. Because companies these days are projecting two year paybacks or less on new purchases, this lack of visibility is a killer.



Today I get to celebrate the end of IMTS and the start of the Jewish New Year – Rosh Hashanah. For me these are surprisingly connected events to be treasured and assessed.
The NFL for 2012 began on Sunday and Monday. IMTS took the stage a short walk from the stadium where the Chicago Bears played the Colts. Both are big powerful institutions controlled by a small group of owners and run by a loyal staff of administrators on the East Coast. And both organizations face major challenges today.
The election is two months away. Polling data, which has been remarkably accurate during the primaries, is showing a close popular vote, but the electoral map favors President Obama. A Republican must win Florida and Ohio, most likely, to win the presidency because California and New York are solidly Democratic. If Pennsylvania goes Democratic, which is likely according the polls, and Illinois is probably not in play, Florida and Ohio become absolutely crucial for the Republicans to put enough electoral votes on the board to win.
The feedback on the Caterpillar piece I wrote a couple days ago was highly provocative. It appears that Cat may have overplayed its hand by playing hardball in Joliet, Illinois, at their hydraulics components plant. By locking in new workers at $12 per hour Caterpillar has made the calculation, I believe, that it is willing to let skills erode, and make up for the decline in talent with sophisticated machinery like robots and automated inspection machines. This is not so different from what you see in hospitals where very expensive equipment is simplified so technicians making $15 per hour can operate it. McDonalds uses this model with great success.
I wrote about the strike at the Caterpillar plant in Joliet, Illinois, three months ago. Cat was absorbing a strike of union workers who were being asked to accept a six-year wage freeze and a cut in health care benefits to keep their jobs at the hydraulic components plant one hour southwest of Chicago.





