May 22, 2001

                    Your Career Matters

                    When Projects Are Shelved or Killed, Businesses Risk Losing Creative Staffers

                    By JOANN S. LUBLIN
                    Staff Reporter of THE WALL STREET JOURNAL

                    SCOTTSDALE, Ariz. -- In late March, Dial Corp. senior
                    scientist Nancy Weinmaster proudly marched into her boss's
                    cubicle at its windowless research center here, carrying a jar
                    of body butter for moisturizing skin after bathing. She had
                    spent five months crafting the prototype.

                    Now, all Ms. Weinmaster needed to move forward was
                    $20,000 for safety and consumer-acceptance tests on the
                    body butter and a related facial moisturizer. But the specialty
                    personal-care division where she works, beset by losses and
                    up for sale, lacked enough testing funds.

                    "Let's find the money! Let's rob Peter to pay Paul!" the
                    40-year-old scientist recalls begging her supervisor Mary J.
                    Conway. Hours later, Ms. Conway told her: "The project is on
                    hold because of the things going on with the business."

                    Similar scenes take place nowadays in countless cubicles
                    across America. Amid a gloomy economy, more companies
                    are suspending or killing promising projects to conserve cash
                    and reduce risk. Though they may reap short-term gains and
                    a stock-price boost with cost cutting, it's a dicey strategy in
                    other ways. Businesses risk demoralizing creative staffers
                    with bright ideas that might later revive corporate fortunes.
                    Sometimes, they lose discouraged employees altogether.
                    "Putting a project on hold is like putting a person's dream on
                    life support." suggests Susan Gebelein, an executive of
                    Personnel Decisions International, a Minneapolis-based
                    consulting firm. She estimates at least 75% of creative
                    wunderkinds with shelved or killed projects quit "unless that
                    company finds them something to get engaged in quickly,"
                    and with a well-defined new role.

                    That's easier said than done. Sunbeam
                    Corp. lost a vice president soon after
                    October budget cuts eliminated a major
                    project he had championed. His
                    complicated system for tracking retailers'
                    order history could have "become too
                    much of a financial burden for us," says Jerry Levin, chairman
                    and CEO of the struggling consumer-goods manufacturer in
                    Boca Raton, Fla.

                    The Sunbeam leader unsuccessfully tried to find an
                    alternative assignment for his lieutenant. Reassigned to his
                    old area, the VP lost enthusiasm. He quit in February, the
                    same month his employer filed for bankruptcy protection.
                    Once a key project gets killed, innovators "tend to move
                    before they recover," Mr. Levin says.

                    Dial could ill afford to lose project managers like Ms.
                    Weinmaster, even after putting her division on the block last
                    September in order to focus on core low-priced lines such as
                    soap. The division peddles higher-priced bath, body, skin and
                    hair-care products. Hurt by the slowing economy, too many
                    narrowly distributed items and high development costs, the
                    unit racked up 2000 pretax losses of $25 million, says
                    general manager Mark Whitehouse.

                    "We can't keep losing this kind of money," he told his troops
                    when he inaugurated the search for a buyer. But he soon
                    realized the division wouldn't fetch an attractive price unless
                    he simultaneously stoked key staffers' creativity to keep the
                    division running smoothly. "That's why we've tried to keep
                    everybody plugged in." So he hastened the launch of certain
                    items last fall -- while killing hundreds of existing ones and
                    halving the pace of new-product introductions this year.

                    In this uncertain atmosphere, Ms. Weinmaster began taking
                    frequent trips late last year to create the body butter and
                    facial moisturizer with an outside Los Angeles laboratory.
                    Developing products "is really like giving birth," Ms.
                    Weinmaster explains. "You're there at the conception and
                    you're there when they come into the world." Along the way,
                    "we get so attached to our work," she continues, spreading
                    her palms over six bottles of newly reformulated scrubs and
                    lotions.

                    For example, when Sno Bol Thick, the first
                    Dial product she helped create, hit grocers'
                    shelves in early 1994, the chemist
                    embarrassed her two young daughters by
                    imploring fellow shoppers at a local store to
                    buy the toilet cleanser. "That's Mommy's
                    product and Mommy's proud of it," she told
                    the girls.

                    Equally fierce pride about her latest
                    products made it hard for Ms. Weinmaster
                    to accept their arrested development. The
                    suspension "goes counter to what I'm
                    trained to do," she says. During an intense career-planning
                    chat with her boss last month, she said: "I want to stay
                    creative." Ms. Conway assured her distressed associate that
                    "all the work she did was very valuable and you can't take
                    that away."

                    One result: Ms. Weinmaster plunged deeper into financial
                    analysis, a well-funded project where she compares
                    new-product manufacturing costs against forecasts. "It's a
                    different kind of creative challenge," she says. Meanwhile,
                    the unit's general manager, Mr. Whitehouse, intends to ask
                    another Dial division to test the body butter. He also hopes
                    to create a company-wide product innovator post for Ms.
                    Weinmaster. "There's a strong need for people like Nancy,"
                    he says.

                    Like Ms. Weinmaster, Unisys Corp.'s Russ Dobbins is a
                    trained chemist and respected by his bosses as a creative
                    dynamo. But he handled a suspended project differently -- by
                    devising a cheaper approach.

                    Two years ago, the 58-year-old senior engineer seized on the
                    idea of adding streaming video to Unisys's intranet so the
                    computer services and hardware concern could expand speedy
                    visual communications among 37,000 employees in 54
                    countries. He staged a $50,000 pilot viewed by 600
                    colleagues world-wide, conducted a follow-up survey and got
                    a green light from two of his superiors.

                    In January 2000, Mr. Dobbins sought final approval of his
                    three-year, $7 million plan from Chief Information Officer
                    John Carrow. He made his pitch shortly before Blue Bell,
                    Pa.-based Unisys cut first-quarter revenue predictions and its
                    turnaround started to stall. Though Mr. Carrow liked the
                    concept of live video communication, "our capital budget
                    doesn't include video streaming," he told Mr. Dobbins. "Go
                    back and see if you can find a way to reach all of our people
                    instantly but for a lot less."

                    Disappointed, Mr. Dobbins says he "went through a few days
                    where I wasn't at my peak performance." He then hammered
                    out a five-year scheme with a $5-million tab, which he
                    offered to the chief information officer last June, but Mr.
                    Carrow still balked at the price tag. A subsequent proposal to
                    use streaming video as a means to slash travel costs got
                    shot down too.

                    Eventually Mr. Dobbins scaled down his plan by offering to
                    pursue a streaming-audio alternative. He persuaded Unisys's
                    satellite TV network to air its programs' sound portion over
                    PCs. And without pictures, he promised Mr. Carrow, "we can
                    do this free." Staff time would be the sole expense. That sold
                    the idea.

                    One recent afternoon, Mr. Dobbins hunched over a colleague's
                    PC to hear a replay of today's first full-fledged use of
                    streaming audio. A vice president outlined Unisys's
                    e-commerce efforts. Crackly music followed. "When we get to
                    video, [the sound] will be better," Mr. Dobbins vowed.

                    How can he be so sure his stalled project will ever
                    materialize? "I've been called a junkyard dog sometimes
                    because I don't let go of things that I think are a good idea,"
                    the Santa Claus look-alike says, blushing. Someday, he
                    predicts, "this project will be more important than something
                    else."

                    Write to Joann S. Lublin at joann.lublin@wsj.com