Nielsen isn't just playing defense against attacks from, say, benign outlets like ourselves. Rather the clients who fund its operations – and its rumored IPO hopes – are lashing out at the problem-plagued ratings service.
"Nielsen is in a fight for its relevant life," says Tracy Scheppach, SVP of ad giant Starcom Worldwide.
Which is why its chief, David Calhoun – Fortune "Rising Star," former GE vice chairman, and Jack Welch protege – is on the defense.
While he's pleasing his private equity bosses – revenues are up 11 percent from 2006, operating income up 19%, and he's on track to double Nielsen's profits in five years – clients, who range from TV networks to Coca-Cola (who use Nielsen's services to measure product reach and marketing effectiveness), aren't thrilled with the direction things are going, as Richard Siklos reports.
Calhoun, who has "injected energy and competitive fire into Nielsen," also slashed budgets; he's outsourced tech operations, for instance. Which might explain why Nielsen is having a hard ass time delivering on its promises.
He's also carrying a debt load that commands $700 million in interest each year, leading to speculation he might pawn the publishing (Hollywood Reporter, Mediaweek) and tradeshow units. (Calhoun denies it.)
At the close of Nielsen's second annual leadership retreat last month, in Ft. Lauderdale, Calhoun reminded his minions "that Arthur Nielsen and his son built their business on integrity - a 'Nielsen code' of impartiality, thoroughness, and accuracy. And in their role as caretakers of that legacy, nothing less than the future of honest commerce is at stake."
The search is on to find one part of that sentiment still alive.
Editorial Director
Outsourcing tech operations to TCS is the real reason why there has been delays. Outsourcing was Mitchell Habib's call, but since Calhoun hired the guy he's just as culpable. The delays have been going on for 20 weeks which takes you to the last week of September 2007 which is when Nielsen gave pink slips to a large number of employees and at the same time announced its partnership with TCS. Nielsen lost a large amount of subject matter experts due to the layoffs. You have TCS consultants trying to do the job of key subject matter experts. These subject matter experts have been on the job for years before Calhoun and his right-hand man Habib came in and let them go in favor of Indian consultants. Nielsen's clients did not complain about delays prior to the mass layoffs.
I am baffled that no one has figured out the game that is going on at Nielsen. It is simply a game of how much can they drain Nielsen to reap financial rewards for Calhoun and his private equity goombas.
Does anyone really think Calhoun is in this to make Nielsen a better service for those of us that are clients?
Any thoughts on dumping the Company Car contract with Lease Plan USA and bringing on GE when in fact GE owns one of Nielsen's Top Clients? NBC.
Nielsen is doomed. The morale is in the toilet. Remaining subject matter experts are resigning in disgust. Young inexperienced Indians have overrun the place. The cafeteria has Indian entrees. Forced Ranking, deeper job cuts, and training our replacements is killing our spirits. This company has lost all momentum, leadership and creativity. Do not buy the new stock IPO unless you are a daring day trader!
Disgruntled–things aren't quite as bad in NY as they are in Florida, but I'm definitely hearing that morale has been shredded to pieces there. I agree that forced rankings suck. I get the logic, but it's very unfair to solid departments.
I'm seeing the beginnings of a voluntary stampede out the door. It will be interesting to see how things shake out in the next several months.
Two more things–Jacob–I don't know why you think "no one has figured out the game." EVERYONE has figured out the game, from the second VNU was taken over.
Oh and Disgruntled–if it gives you a laugh, I found this site by googling "Mitchell Habib is an ass."
David Calhoun will save Nielsen?? What a load of crap! Ever since they hired him and Mitchell Habib, we've had nothing but problems, from poor leadership, lies, hiring their friends in 6 figure positions to the TCS money making scheme. Someone needs to seriously look into the ruination of a fine company by these greedy corporate ghouls. Google Topix Habib and read about these creeps. It'll make you puke!
One more thing…Calhoun has "injected competitiveness and fire into Nielsen"…the only competitiveness is the non-sharing of information by employees to one another now and the backstabbing of people in order not to be the next one laid off. The only fire I see is the word "fire" meaning job elimination and fired employees due to falsified performance reviews by management due to a forced employee ranking program now implemented that does not provide documentation as to why the employee is being ranked below average.
Here's a new one. Inside sources say Mitchell Habib got the Florida management to "force hire" his nephew in Florida. Neptism anyone? I wonder if he will make the "forced ranking" cut when it comes time. Rumor has it he was not qualified for the position in Orlando, FL Local People Meter. Why didn't he get him a job at Tata?
The answer is simple for those of us that our clients….It is time for a new ratings service..
Put Nielsen in the grave where they belong and send Calhoun packing…
Hey Insider:
Nielsen has been in the grave for the last ten years. All that is missing is nails for the coffin and a new ratings service
I work as an analyst in NY and my experience here has been great. Lots of opportunity, great bosses, good client relationships. I'm sorry to learn about the dissatisfaction among the others that have posted here.
David Calhoun send me an e-mail saying that he will consider me for the better opportunity but instead laid me off.