Wednesday, January 31, 2007

I've removed the original post to protect the innocent! Basically it gave a curious description about an interview with a company in Raleigh-Durham. The bizarre nature of the interview and the reaction to it was amazing. The reactions to that post remain here.

I have to believe that this is not unusual and that there are other similar companies running around treating their employees bad. Feel free to comment on this one or others. Perhaps, by illuminating the behavior of these companies it can bring about change.


Dr. Z said...

Anonymous said...

Count yourself lucky. Motricity pulled back from their IPO because they couldn't make the numbers work. They are spending money like it is 1999. I give them 18 months.

2:59 PM

Anonymous said...

6 months more likely

6:53 PM

Anonymous said...

Fran, trust me, you've been visited by angels... they're looking for corporate arrogance and once you've been dishonored the Motricity way, any shred of niceness in you will result in your spirit being broken.

I'm really sad for the good talented people that have been jettisoned... Been there, drunk the kool aid.

8:22 PM

Anonymous said...

why did they not have you meet at their new offices?

At least then you could say you had experienced time travel, seeing how the new digs are straight out of the dot-com "we got all this money so lets spend it on stupid stuff and look way cool" days.

you dodged a bullet...

5:43 AM

Anonymous said...

thank your lucky stars! nothing but bad, negative things at Motricity! They have also been known to fire folks within 3 months of hiring them

6:47 AM

Anonymous said...

I also drank the Kool Aid for over 2 yrs. No amount of hard work or loyalty seems to matter anymore. The company is definitely getting a bad rep in the area. Let's hope those options bring us some reward for our suffering...

Fran - you should send them a thank you letter and start checking out some real tech start-ups in the area.

5:44 PM

Fran said...

I'm sorry to hear that Motricity is really as bad as I thought they were. I was actually lucky to find a job a week after I had my interview.

I've been working for a couple of months now, and love it. I can't imagine what would have happened if the Motricity folkes actually liked me, YIKES!

I rode the dot com rollercoaster in the late 90's and it was great. My favoite part was the layoff package, I took the summer off to play volleyball at the beach afterwards.

Good luck to everyone who is still suffering under the angry management at Motricity. You can always hope for a layoff, or strike out on your own.

The job market is great in Raleigh!

7:38 PM

Anonymous said...

Add me to the list of disappointed ex-employees. The company had everything going for it, but the top management is all about image, not about substance. Now the company, predictably, is crashing around them.

7:50 AM

Anonymous said...

It's a sad, sad place. If you haven't already been fired (for no reason) then you are either:
1. Waiting to be fired (for no reason)
2. Looking for another job before you are fired (for no reason)
3. Have already left before you are fired (for no reason)

But hey, the offices are nice!

8:34 PM

Anonymous said...

I've also been there and I am glad that I left. The "meaness" comes from the top. Cool offices can't override the fact that it hostile dictatorship. It's too bad the Motricity culture sucks because the industry is pretty cool.

Having said that I am sure there are some people that have positive things to say...I mean not every hates the place.

5:47 AM

Anonymous said...

Ever heard of "The Fox and the Grapes"? I noticed only people who lost their jobs (or didn't get one) seem to have really strong opinions here...

11:16 AM

Anonymous said...

As far as sour grapes: if Motricity were a "great" company, many people would feel equally strong about the "goodness" of the company and come to their defense. Hmmmm....let me count those positive That should tell you something right there. And no, I've never worked for Motricity nor would I ever want to.

5:46 PM

Anonymous said...

Motricity is on a one way track down the toilet and they have only themselves and the invertebrate VPs working there to blame. They ran off 95% of the talent the company originally had and I feel sorry for what few talented people remain there. I'm sure they hate their lives.

If you want to work in a hollow environment (just like the new building) to become a highly trained specialist at backstabbing, brown-nosing and self-absorption, Motricity is the place for you. I wouldn't trust any VP there with painting my dog house, much less managing money and running an e-commerce business. The new headquarters is just like the company philosophy: all flash, no substance (or ethics).

Talented, honest, hard-working people will not fit in at Motricity because that contradicts the company's management style and "character." Consider yourself lucky if you've left there, gotten fired or don't get hired there.

1:35 PM

Anonymous said...

I worked there too for 2 years and hated it. If you think anything of your happiness, professional development and mental well-being, don't work there.

1:45 PM

Anonymous said...

Round the bowl, down the hole Go Motricity Go...

Yep you can take Motricity and probably fertilize your lawn with it. Run by the best snake oil salesman in the world. Proof that money does not buy class...or brains.

7:44 AM

Anonymous said...

Without a doubt some of the most unqualified, dumb and shockingly ignorant people I have ever worked with in my life. The few token smart people imported into the company from elsewhere either got canned or quit. Each day was a drama and I was shocked that some of them had enough sense to spell their own name.
Ever seen Deliverance?
Put mobile content in the hands of those guys from Deliverance, add a dash of shameless spending and enormous undeserved ego from their "CEO" (and yes thats a quote because he is no where near qualified for that title) and you have Motricity.
Banjo music anyone?

10:04 AM

Anonymous said...

It is a sad place to be sure. Many very good people committed their life and career only to be deceived and disrespected. There have been a couple of excellent senior leaders there, but they were run off as soon as the CEO recognized they were much more qualified than he was. I would like to have followed their past President & COO but I don't know where he ended up. Anyone know?

10:49 AM

Anonymous said...

First I think it's funny how Fran's Blog has turned into such a lightning rod against Motricity.

Second, I have never worked at Motricity and don't know that much about the place. I have worked in a couple start-ups however and I can say that one of the reasons they often fail is because of the laissez-faire culture that most of them have. Without a sense of urgency and lacking a warchest start-ups are doomed for failure. So then, who instills the culture required for a start-up to be successful? Sr. Mgmt of course, and sometimes (well, most times) that means being they must be a-holes. Without that strict discipline and focus that start-ups demand, they too often become more about 2 hour lunches, foosball, endless meaningless chat sessions, and a slow meandering death. While I might be generalizing a bit I think it's fair to say that Motricity has seen a fair bit of success. Does anyone know another company that has raised 150+ million, hired several hundred employees and is in a position to have a successul financial event?

So go ahead and bitch, but frankly if you don't like the place leave and get a job at IBM where you can do your 9-5 and work in relative obscurity. Motricity didn't choose you, you chose get out and quit yer bitchin'.

If it turns out that Motricty is successful and makes your stock options worth something, will you still complain or will you thank God that management didn't allow failure to happen. If on the other hand the place really is that bad then they will not be able to get the talent they need and they will die because of the culture they created.

From reading the posts I have no doubt it is a "difficult" place to work. but sometimes success is "difficult". If you are not up for it, then vote with your feet. As Fran said, there is a fair bit of work in the area for talented people. Go find a better place to work.


11:31 AM

Anonymous said...

So to follow up on the above comment, more people have quit then been laid off. People are exiting by their own choice in droves. So...people are not choosing Motricity and ask anyone familiar with the company how many people have quit in the last 12 months. And those that are there are all looking - including me!

5:52 AM

Anonymous said...

This thread has taken an interesting turn. Regarding the perception of 'bitching' by current and former employees, you really need to pick up the clue phone.

Motricity was able to leverage its market & position, funding and good PR to recruit talented people from all around the country. Very few folks who are or were there are on their first (or 2nd) startup. Many have achieved success and prospered elsewhere at respected, high growth companies. No one here bitches about working hard, the prospect of doing so and being on the vanguard of success in an emerging market is among the reasons we landed here. Sadly, the problems at Motricity are exactly as have been discussed here.

Motricity's most vexing problems start at the top. Some say they're manifested in its inability to deliver what's been promised on schedule. Some of this has to do with execution by its staff. But others are vocal that it's because the CEO makes promises his company can't (and sometimes shouldn't) keep. Worse is when these promises are made to customers that will never generate meaningful revenue, but adversely impact delivery to those who do.

Motricity is a story of conflicting goals from the top, and a blind mandate to do it all at any (unfunded) cost - a recipe for disaster. Despite Herculean
efforts, product quality suffers, schedules slip and people get run through a shredder. Senior management appears to act as though its people are disposable, but this is not SF, Seattle or Boston where talent is abundant - all of this could come back to haunt the company.

If you hear bitching, it's because this company, with the right leadership, could have been every bit as exciting and fun to work at as any startup in the Valley. Instead, Motricity will either be acquired soon (likely case) or its coming implosion will be as bad as any from the dot bomb days.

1:40 PM

Fran said...

Brilliant post, I couldn't have said it better. In fact, I don't feel like I have to say anything else.

I do think that they will have trouble getting anyone to buy them though. All the venture capital they have on loan to them has made them very, very expensive and I imagine their company is owned by many, many people at this point.

I would like to know if they are profitable, and if so, what is their money multiplier? If they are up for sale at 10x their yearly profit, plus the 150million debt to the venture capitalists, they could be very pricy indeed.

I dont know much about the valuation process, just what my husband's company is worth and how the VC's valued it. It was an interesting process for my husband and his partners and they chose not to go with VC money right now.

3:03 PM

Anonymous said...

there's been a lot of consolidation in this market recently, including jamba, mobilitec, mqube. I'm no expert, but I believe those deals were done at strikingly similar valuations of approximately $300M, which is 2x Motricity's VC funding. Not sure that they expected to get 2x when hey placed that bet.

3:13 PM

Anonymous said...

Guarantee that the VC's were looking for , MUCH more than 2x their investment. Could get that in much shorter order with less risk in real estate.

The overriding theme of the posts here is related not to Motricity's business model but the upper management. That is where the issue is. When you have upper management, read the CEO, making medium 6 figures, very generous perks, etc. while employees are being let go, well that tells the story. In short, they seem to be confusing activity with results. I do not wish them ill will, I only hope that those who own COMMON shares see a return. Based on the upper managements history you can bet they will get their payday, question is will anyone else? Doubtful

7:44 PM

Anonymous said...

Oh, the CEO is making far more than that. His wife is on the payroll, has been forever. Currently as Senior VP of Community Affairs, but the title just changes over time (to protect the innocent?). I've seen her in the office maybe 3 times in a couple of years. It's disgusting the way they've abused this promising company as their own play toy.

4:57 AM

Anonymous said...

Oh... the CEO also only travels by private jet or uber first class acommodations. (I have SEEN the Presidential Suite he has stayed in!) Additionally the lunches served on china and crystal glasses are legendary. I have seen it with my own eyes. The man has company employees pick up his dry-cleaning, do his grocery shopping and he never, EVER been a guy to roll up his sleeves or get his hands dirty.
He lives a very lush, plush life and reminds you at every turn almost daily that he is rich.
Ask HIM where the $160m went to.
Take a walk thru the "Taj Mahal" of his personal office suite in the new building and you can do the math pretty quick.

7:39 AM

Anonymous said...

Just a little background about Ryan Wuerch, the Motricity CEO, might provide perspective for those who think the comments about Motricity are "too harsh".

Before Motricity, Ryan was the CEO of PalmGear, the Internet's no. 2 retailer of Palm OS software, based in Brentwood, TN. He reached his lofty management position by purchasing the company from its financially distressed owner. Nothing wrong with that, but it serves to underscore his serious lack of any previous business management experience.

His management style then was pretty much the same as it has been described now. He was totally unable to set clear priorities or delegate responsibility to his subordinates. To work for Ryan, meant you had to be willing to put up with continual micro-management, verbal abuse, and threats.

Nepotism ran rampant. Not only did his wife ostensibly work for the company, but he also hired his brother-in-law for a "marketing" position he was no more qualified for than Ryan was to be the company's CEO.

Ironically, Ryan would tout the book "Good to Great" to his employees as his model for running PalmGear. Apparently, Ryan skipped all those chapters that talked about how the CEO's of great companies were modest, non-assuming individuals who gave most of the credit for their success to their subordinates, because he was just as egocentric then as he is now.

Ryan does have a great deal of charisma, so I have no doubt that his silver-tongued oratory has served him well to this point. But charisma wears thin quickly when the business continually fails to deliver a profit. I have little doubt that under Ryan's inept leadership that Motricity is eventually doomed to failure.

The true shame of it is that many decent people will end up going down on this ship with him.

3:00 PM

Anonymous said...

Amen to that! The way the ship is headed, it won't be long now.

6:35 AM

Anonymous said...

OMG...I work at Motricity and I think these people may be right

1:11 PM

Dr. Z said...

"Anonymous said...

Fran -

Oh dear I beleive we have gotten off on the wrong foot :P

Let me clarify my thoughts as I do believe we are not that far apart in thought.

1. Perhaps A-hole was the wrong term. What I was suggesting was that every company creates its own unique culture. That culture is dictated by Sr. Mgmt, and some Sr. Mgmt are A-holes and others as you've stated with SKG are respectful and generous. Most are somewhere in the middle. From all indications the culture at Motricity is more on the "a-hole" side of the ledger. In short, however, a company is what it is. Complaining about the culture is fruitless and the best recourse for any worker is to find a culture that best fits their needs, desires, and tolerance. And in turn a company will reap what it sows. I would much rather work in an SKG-like environment (and do) and you couldn't pay me to put up with a sucky environment - believe me I have worked in those places. If Motricity's culture can attract high quality talent who can thrive/tolerate that culture then great, otherwise that culture will come back and bite them in the ass. I would also say that a culture that doesn't provide leadership, direction, AND accountabilty is almost as bad as one that is dictatorial, and frankly are both short term plays.

2. I never meant to suggest that Motricty people are lazy. I never said that and certainly didn't mean to imply it. All I said that complaining about the place is a waste of time and energy.

3. I agree that the fact that they raised a bunch of money and hired (and layed off) a bunch of people is no measure of success. I did say that they are in a POSITION to be successful. Certainly more so than the start-up that is scraping to meet next week's payroll, let alone have the means to execute on those initiatives that will bring success. I was there in the dot-com age. Had the Herman Miller chair, catered lunches, and game room...and the wrecking ball that crushed it all when things came apart.

4. I actually do sense that Motricity does have focus and discipline, its just in an environment that seems mean-spirited and nasty. Does it have to be that way? No. Is it that way? Yes. Can the rank and file do anything to change it? No.

5. I am not crying sour grapes, just pointing out the obvious as an innocent bystander, and working from experience of where bitching and moaning about things get you - nowhere.

6. Comparing Motricity to SKG is kind of funny. Sort of like comparing Frankenstein to Brad Pitt in a beauty contest. But I recognize you were doing so from your experience.

7. As many have acknowledged, "not being good enough for them" sounds like a compliment. Take it as such. Frankly I don't know what all the emotion is about. I hardly know about them other than from this blog and the odd N&O article here and there. I do know that when a small company like this can generate such a negative response to a posting in a blog about moving from CA to NC then something is severely dysfunctional there. SEVERELY disfuntional.

8. It sure makes for great theater though doesn't it? I might even be willing to pay to just go there and watch what happens on a day to day basis. It sounds like a bad VH-1 Reality show.

Can we be friends again now :)

2:41 PM

Anonymous said...

Although I haven't worked there, you'll come to understand that this is a small town...especially in the start-up arena. I was sent your link from a former Motricity person who "got out" a few months ago and worked with me in a previous life. I also hope that they ultimately succeed as it will be good for the area, particularly for start-ups. At the same timme I am baffled by the comments your post brought forth. I can't say I have seen anything like it. I suspect there is some bitterness laced in with the comments but even with that there seems to be a clear concensus on the inner workings.

I would like to hear the other side of story as I have to beleive there are people that love it there. If not then that place is doomed.

Glad to hear you found a better position. I think you'll love it here.

7:44 PM

Anonymous said...

A-hole was not the wrong term in this case. You might want to throw in degenerate also. The fruits of Motricity's labor are starting to come into harvest and it's not the fruits they were hoping for. It serves them right.

9:26 AM

Anonymous said...

Some clarifying points:
-The folks here who have complained or voiced negatively about Motricity (and yes I worked there) are not doing so because they are mad they were let go (if that fits their situation). They are upset because they were sold a bill of goods by the snake oil salesman of a ceo.

-I would not classify them any of them as a-holes. There are indeed some very capable managers and employees. Frankly the only one that virtually any had any issues with as far as style, honesty, ethics (etc. etc.) is the CEO. This is because IMHO, that he spins everything so that it is about him. To see what I mean Google his name and look in the past. Hmmmmmm..... not a single success comes up. Oh wait, he is on the board for the Miss America pageant. Now look up the past of the original companies that made up motricity, i.e. Power by Hand (the company he led) and Pinpoint Networks. Two more steps; One: look up who started those companies, Two: Look at the pages and the ceo bio.... Fill in the blank XXXXXXX below from the bio page:

"Ryan Wuerch XXXXXXX Motricity in 2001 and has since served as chairman and chief executive officer of the company."

The point is that this company is all about feeding his ego, living the lifestyle of Larry Ellison but without the profits, etc.

For a profile of an accomplished, humble and more CEO, take a look at the founder and CEO of Costco. WOW.... Regular guy, makes barely $250k (may be less, do not recall from the article I read about him a while back) while running a company doing BILLIONS in revenue and MILLIONS in profits.

I am all for C-level types making big-bucks BUT not when goals have not been met AND not when they are the ONLY ones profiting. As far as valuation, certainly not a wall street type though with the funding and share prices that need to be seen before common stock holders see anyone the valuation would need to be in the $500 million range ON THE LOW SIDE. Realistically closer to $1BB. Lower than that and the common stock holders get little, probably nothing. No worries though, the ceo will already have his multi-million dollar house paid for with his and his wifes salary, perks, etc. Sad part is that if they do get the big buck valuation it will have been in spite of the leadership, it will be simply the market.

6:08 AM

Anonymous said...

From your local paper:

Ryan Wuerch, the 39-year-old CEO of Durham-based Motricity, dropped out of college after a year because he was frustrated that the curriculum was "book-related," rather then stressing real-world applications.

Motricity has prospered under Wuerch's leadership. The company -- whose technology helps people buy and receive games, graphics, ring tones and music on their mobile phones -- has raised $152 million from investors to date, likely the most venture capital ever raised by a North Carolina company. The company has about 400 employees worldwide -- including about 300 in Durham, up from 170 last summer.

Wuerch, the father of three sons, wants his boys to go to college. "I actually tell my sons to do as I say, not as I do," Wuerch said. "I want them to have the discipline."

9:15 PM

Anonymous said...

Wow! Imagine having to go to college and actually having to crack a book! Had he stayed in school long enough, someone might have told him that the business cases he refused to read in college actually come from real-world applications. Business case-studies blueprint both success and failure stories and all of the different components that went into those campaigns. Grounded, time-tested examples would have been helpful to Motricity 5 years ago.

Raising venture capital is one thing; delivering on what you promise to developers and partner companies is another. This company doesn't have the technology to do it and is reduced to being simply a paper tiger.

If there are two people in a race and you finish last, you can always make the public think more highly of you by saying you finished second. Motricity is straining to put a positive spin on its predicament because the News and Observer also mentioned the company is "trying to be profitable for the first time." If the true nature of its lack of profitability were known, VC funding would probably come to a screeching halt and the company would cease to exist. Either way, Wuerch would be the only one to profit from that debacle.

11:57 AM

Anonymous said...

To the blog that said:

"Ryan Wuerch, the 39-year-old CEO of Durham-based Motricity, dropped out of college after a year because he was frustrated that the curriculum was "book-related," rather then stressing real-world applications."

That is nothing more than a fancy way of saying he was too lazy and couldn't hack it in college.

12:08 PM

Anonymous said...

I have to disagree with the statement "he was too lazy and couldn't hack it in college." College isn't the be all to end all and lacking a college degree doesn't always classify someone as "lazy". While I think the majority of those without degrees probably hinder their success in life, I think college can stifle the entrepreneurially inclined. Who can argue that most of what is taught in business school is not applicable in most business environments. You really learn about business by working in business. Some of the smartest people I know do not have college degrees and some of the dumbest people I know have PhDs.

While I can't speak to this CEO, I wouldn't classify all college dropouts as failures. Something tells me that there are about 300 college graduates working for this CEO and earning a fraction of what he does. Perhaps if he had made it through college he'd be working at Motricity for another CEO prick. As for his style, ethics, ego, etc...the Board of the company ultimately measure his overall performance. If he is living this lavish lifestyle it's only because they allow him too. I have too assume they know about his extravagance and approve of it based on the results he delivering. If not, then maybe they need to go back to college.

As a side note if he is the person that is being described I can almost guarantee you that he doesn't give a crap about what people think.

2:20 PM

Anonymous said...

Ryan Wuerch also had a company called "The Nobility Group" that bought a magazine called "Success Magazine" in 2001 and then he fired everyone. The previos owner (Stanley Van Etton) is being investigated by the SEC for a pyramid scam.

"Frugone says Nobility's (Wuerch's Company) short involvement did some damage to Success in that Nobility didn't produce further funds after making a downpayment on the transaction, but closed the magazine in the interim. Frugone cited the pending litigation when asked about specifics regarding Van Etten and other parties. "

5:19 PM

Anonymous said...

I appreciate the point you're trying to make regarding the value of a college education being relative. But you're off base here, Ryan is no Bill Gates.

Ryan dropped out of college to whet his entrepreneurial spirit as a nutritional supplement salesman. He couldn't craft a vision or corp strategy to fight his way out of a paper bag. I've been in many meetings with him where it's apparent his credentials stem most from the fact that he has the best hair and a hot wife, a dimbulb former Miss America.

One minute, he's a megalomaniac, berating his staff, the next he's aw shucks, ingratiating and obsequious; waxing platitudes about the importance of Motricity employees and their families that allow them to make such a significant personal sacrifice and work such long hours.

Oh yeah, then he fires or lays them all off during Christmas.

5:37 PM

Anonymous said...

Ryan Wuerch was also VP of Sales at Natus Corporation - a multi level marketing firm. Multi level marketing is another name for pyramid scheme

(i) direct selling
(by virtue of multi-level marketing or otherwise) and distribution of skin-care
products, vitamins and related products, and (ii) the marketing and distribution
of Patches in the Exclusive Market, as such terms are defined in the
Distribution Agreement.

5:43 PM

Anonymous said...

hehe...this is like a freaky spy novel. I don't get it though, it doesn't mention any of this in his bio? What this about Miss America?

7:26 PM

Anonymous said...

She's a really sweet girl and a Miss America 1996. The perfect trophy wife that others that are enamored by the CEO want to emulate. Looking successful is part of the game.

9:27 PM

Anonymous said...

From personal experience, and not having a college degree myself, the lack of a degree is not the issue in this instance. I have managed a couple companies and founded a couple on top of that as well. All were successful, bringing in low 7 figures in revenues and were profitable. Were there things that might have been done better had I had a BS or Masters? Of course, but lack of did not lead to failure in my instances.

From reading the posts about Motricity here and the recent replies about the CEO, and other info I have heard and/or read about the CEO, the issues are his arrogance and never-ending need to feed his own ego. I actually heard him do a speech once which was littered with him extolling his own experiences though none were with substance. They were about how he rented a yacht to woo some Best Buy C-level folks, how his ethics and virtues were so high, etc. Reminded me of an old saying (though I cannot remember the exact wording) that went something like this: "Beware of the man who tells you how great he is over and over as he is in his words making himself to be a believer along with you."

5:40 AM

Fran said...
This comment has been removed by a blog administrator.
m()n| said...

It's a joke to work for Motricity. I'm one of the unhappy employee who drank the kool aid.

If you don't ride their bus, you will get thrown under the bus! Trust nobody!

Anonymous said...

Oh oh, here we go again.....
Motricity May Slash As Many As 200 Employees; May Move To Bellevue

Can I assume that Ryan is not one of the 200 slashed?

Anonymous said...

I was wondering if this thread would get some new action!

Anonymous said...

Should be interesting to watch this one play out. The lawsuit from Symphony has been quiet lately.

Anonymous said...

Another round of layoffs scheduled for Motricity. This blog has focused on Ryan, the investors and the sweatshop feel. But what about the coercion that Ryan gets his Senior Team to engage in? They are liars; disingenuous and conniving. Those who choose not to engage in this behavior are effectively castrated or ousted. Buyer beware!

Anonymous said...

I guess it is about time Ryan starts looking for another company to merge with to help sign his paycheck

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Respondents according to the Vertical Response survey appear to need some differentiation with the use of SE marketing and Social media Marketing

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