10-29-2015: Avi (Abe) Reichental departed from 3D Systems
The company’s founder, Charles Hull, once again took the reins of the crisis-stricken company
On October 29, 2015, Avi Reichental—the then-CEO and the face of 3D Systems—'resigned' from his position, and the company’s legendary founder, and creator of SLA technology, Charles Hull, took over. Reichental (who introduced himself as Abe in his early years) had held the role for 12 years. During his tenure, the company transformed from a small 3D printer manufacturer into a large, publicly-traded, high-profile enterprise. Unfortunately, the last two years (especially the last six months) saw a steep decline. To save the company from a drastic end, the board of directors 'accepted' Reichental’s resignation and returned control to the old, conservative guard.
After Reichental’s departure, 3D Systems underwent major restructuring and adopted a new (old) development strategy. Under Avi/Abe’s leadership, the strategy primarily revolved around acquiring everything possible, spending lavishly on investments and executive salaries, and engaging in countless costly projects that seemed never-ending…
Avi Reichental had two major flaws for the role he held. First, his skills were perfect when 3D Systems was a much smaller company focused on developing its own technologies (SLA). Reichental was a 'micromanager' who created a macro enterprise. Second, he was a highly public-facing figure, with a strong drive for media attention. He generated massive hype around 3D Systems and 3D printing technology, raising people’s expectations to such a level that it became impossible to meet them. He was also a co-creator of the concept of a '3D printer in every home' under the Cubify brand.
Ironically, all the work Reichental put into promoting 3D printing technology worldwide ultimately turned against him, as those to whom he sold his vision so energetically began to scrutinize and verify it. If he had promoted it more slowly and hadn’t overpromised in areas where 3D printing wasn’t yet fully capable, things might have turned out differently.
The way he developed 3D Systems was also flawed. He created a corporate Frankenstein, pieced together from numerous smaller companies acquired over the years. Reichental failed to establish a unified organizational culture, especially since some people brought into 3D Systems through acquisitions were simply overpaid.
Another issue was the countless projects initiated and never completed. Besides flagship technologies like SLA, MJM, SLS, DMLS, and CJP, the company got bogged down in 3D printing with ceramics, sugar, chocolate, full-color FDM, and a high-speed 3D printing line project with Google. Additionally, there was software (Geomagic) and a line of 3D scanners.
To manage all of this, what was needed was a truly exceptional manager, which unfortunately, Avi Reichental was not. However, he was a great salesperson… He sold 3D Systems and 3D printing technology to the public for much more than they were worth.
Eventually, the old guard led by Hull shut down all unprofitable projects, and the company finally started to stabilize under Vyomesh Joshi, who joined in April 2016.
READ MORE: Hype hangover - the rise and fall of Avi Reichental
Source: www.3dsystems.com