Amid Recession, Avnet Replaces Technology Solutions PresidentBy Jessica Davis | Print
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Avnet has named a longtime Avnet Electronics veteran to lead its troubled Technology Solutions group in 2009. Phillip Gallagher will assume the role of Global President Technology Solutions in March, replacing John Paget, who has stepped down, effective immediately.
Longtime Avnet electronics division insider Phillip Gallagher will
switch to the Avnet's (NYSE:AVT) other division and assume the role of
global president for Avnet Technology Solutions in March, amid a global
recession that dogged the group's earnings last quarter.
Poised to announce its most recent quarter's earnings on Thursday, Avnet made the appointment of Gallagher public on Tuesday. Gallagher has spent his years at Avnet in the company's other division – the electronics group.
Current president of Avnet Technology Solutions John Paget will step down from his position, effective immediately, but will continue to assist during the transition period until Gallagher formally assumes his new role in March. Chief Operating Officer Rick Hamada will serve in the role during the interim. Paget joined Avnet from Synnex in February 2007 to assume the role of Technology Solutions Global President.
Gallagher has spent 26 years at Avnet and currently serves as president of Avnet Electronics Marketing, Americas, a job he assumed in 2004. Prior to that he served as senior vice president of global business development in Avnet's Electronics Marketing organization where he was responsible for global supplier relationships and bridging the gap among regions around the world.
Gallagher's only experience with the Technology Solutions side of the
business was 22 years ago, before the company split into the two
divisions – Electronics and Technology Solutions. However, he notes
that Avnet's current leaders – Roy Vallee, CEO and chairman; and Rick
Hamada, Chief Operating Officer -- have come out of the Electronics
division and into the Technology division before moving on to lead the
"Customers are no different anywhere," Gallagher tells Channel Insider in an interview. "They have increasing expectations about value provided. They want to be told the truth."
Gallagher says that he plans no dramatic changes as he transitions to his new role. Instead he will be talking to employees, customers, suppliers and other constituents about what is working and what is not working in the Technology Solutions division.
"We believe we have the right strategy at Technology Solutions. We believe the strategy is on the right course," Gallagher says. "We are going to focus on the execution of the strategies."
As the world enters 2009 in a recession, Gallagher's work is likely to be challenging. He says the biggest challenge that he faced in the last decade at the Electronics division was in coming out of the bust of 2001 – "the breakdown and what caused the bubble to burst was poor supply chain management and lack of accountability. We all played a role in that. We all learned a ton."
One of the biggest ongoing challenges for the Electronics group is the ongoing globalization of the industry.
"It's also one of the biggest values we bring," he said.
Gallagher, like Paget, will report directly to Hamada, who himself served in the Technology Solutions Global President role until February 2007.
"In addition to his breadth of experience, Phil also brings a strong track record of performance, personal adaptability, team development, relationship skills, cultural contributions and strategic thinking that provides him a strong platform upon which to continue to build success," Hamada says in a formal prepared statement issued by Avnet. "I am firmly convinced that Phil’s leadership skills, coupled with his experience and strong Avnet foundation, adds up to an excellent choice for the global leader for Avnet Technology Solutions."
According to Avnet, Gallagher was a recipient of Avnet’s Chairman’s Award in 2001, was named a corporate officer in November 1997 and was promoted to senior vice president of Avnet in November 2007.