Disclosure

Disclosure Page 9

`Jesus, Tom, you're the division head."

"I know. Let me check with Cork, see what the accountants did there. They were out there last week."

"I already talked to Colin an hour ago. Operations sent two people out there. For one day. Very polite. Not like this at all."

"No inventory?"

"No inventory."

"Okay," Sanders said. He sighed. "Let me get into it."

"Tommy boy," Eddie said. "I got to tell you right out. I'm concerned you don't already know."

"Me, too," Sanders said. "Me, too."

He hung up the phone. Sanders pushed K-A-P for Stephanie Kaplan. She would know what was going on in Austin, and he thought she would tell him. But her assistant said Kaplan was out of the office for the rest of the morning. He called Mary Anne, but she was gore, too. Then he dialed the Four Seasons Hotel, and asked for Max Dorfman. The operator said Mr. Dorfman's lines were busy. He made a mental note to see Max later in the day. Because if Eddie was right, then Sanders was out of the loop. And that wasn't good.

In the meantime, he could bring up the plant closing with Meredith at the conclusion of the morning meeting with Conley-White. That was the best he could do, for the moment. The prospect of talking to her made him uneasy. But he'd get through it somehow. He didn't really have a choice.

When he got to the fourth-floor conference room, nobody was there. At the far end, a wall board showed a cutaway of the Twinkle drive and a schematic for the Malaysia assembly line. There were notes scribbled on some of the pads, open briefcases beside some of the chairs. The meeting was already under way. Sanders had a sense of panic. He started to sweat. At the far end of the room, an assistant came in, and began moving around the table, setting out glasses and water. "Where is everybody?" he asked. "Oh, they left about fifteen minutes ago," she said. "Fifteen minutes ago? When did they start?" "The meeting started at eight." "Eight?" Sanders said. "I thought it was supposed to be eight-thirty." "No, the meeting started at eight." Damn. "Where are they now?" "Meredith took everybody down to VIE, to demo the Corridor."

Entering VIE, the first thing Sanders heard was laughter. When he walked into the equipment room, he saw that Don Cherry's team had two of the Conley-White executives up on the system. John Conley, the young lawyer, and Jim Daly, the investment banker, were both wearing headsets while they walked on the rolling walker pads. The two men were grinning wildly. Everyone else in the room was laughing too, including the normally sour-faced CFO of Conley-White, Ed Nichols, who was standing beside a monitor which showed an image of the virtual corridor that the users were seeing. Nichols had red marks on his forehead from wearing the headset.

Nichols looked over as Sanders came up. "This is fantastic."

Sanders said, "Yes, it's pretty spectacular."

"Simply fantastic. It's going to wipe out all the criticism in New York, once they see this. We've been asking Don if he can run this on our own corporate database."

"No problem," Cherry said. `Just get us the programming hooks for your DB, and we'll plug you right in. Take us about an hour."

Nichols pointed to the headset. "And we can get one of these contraptions in New York?"

"Easy," Cherry said. "We can ship it out later today. It'll be there Thursday. I'll send one of our people to set it up for you."

"This is going to be a great selling point," Nichols said. `Just great." He took out his half-frame glasses. They were a complicated kind of glasses that folded up very small. Nichols unfolded them carefully and put them on his nose.

On the walker pad, John Conley was laughing. "Angel," he said. "How do I open this drawer?" Then he cocked his head, listening.

"He's talking to the help angel," Cherry said. "He hears the angel through his earphones."

"What's the angel telling him?" Nichols said.

"That's between him and his angel," Cherry laughed.

On the walker pad, Conley nodded as he listened, then reached forward into the air with his hand. He closed his fingers, as if gripping something, and pulled back, pantomiming someone opening a file drawer.

On the monitor, Sanders saw a virtual file drawer slide out from the wall of the corridor. Inside the drawer he saw neatly arranged files.

"Wow," Conley said. "This is amazing. Angel: can I see a file? . . . Oh. Okay."

Conley reached out and touched one of the file labels with his fingertip. Immediately the file popped out of the drawer and opened up, apparently hanging in midair.

"We have to break the physical metaphor sometimes," Cherry said. "Because users have only one hand. And you can't open a regular file with one hand."

Standing on the black walker pad, Conley moved his hand through the air in short arcs, mimicking someone turning pages with his hand. On the monitor, Sanders saw Conley was actually looking at a series of spreadsheets. "Hey," Conley said, "you people ought to be more careful. I have all your financial records here."

"Let me see that," Daly said, turning around on the walker pad to look.

"You guys look all you want," Cherry laughed. "Enjoy it while you can. In the final system, we'll have safeguards built in to control access. But for now, we bypass the entire system. Do you notice that some of the numbers are red? That means they have more detail stored away. Touch one."

Conley touched a red number. The number zoomed out, creating a new plane of information that hung in the air above the previous spreadsheet.

"Wow!"

"Kind of a hypertext thing," Cherry said, with a shrug. "Sort of neat, if I say so myself."

Conley and Daly were giggling, poking rapidly at numbers on the spreadsheet, zooming out dozens of detail sheets that now hung in the air all around them.

"Hey, how do you get rid of all this stuff?"

"Can you find the original spreadsheet?"

"It's hidden behind all this other stuff"

"Bend over, and look. See if you can get it."

Conley bent at the waist, and appeared to look under something. He reached out and pinched air. "I got it."

"Okay, now you see a green arrow in the right corner. Touch it."

Conley touched it. All the papers zoomed back into the original spreadsheet.

"Fabulous!"

"I want to do it," Daly said.

"No, you can't. I'm going to do it."

"No, me!"

"Me"

They were laughing like delighted kids.

Blackburn came up. "I know this is enjoyable for everyone," he said to Nichols, "but we're falling behind our schedule and perhaps we ought to go back to the conference room."

"All right," Nichols said, with obvious reluctance. He turned to Cherry. "You sure you can get us one of these things?"

"Count on it," Cherry said. "Count on it."

Walking back to the conference room, the Conley-White executives were in a giddy mood; they talked rapidly, laughing about the experience. The DigiCom people walked quietly beside them, not wanting to disrupt the good mood. It was at that point that Mark Lewyn fell into step alongside Sanders and whispered, "Hey, why didn't you call me last night?"

"I did," Sanders said.

Lewyn shook his head. "There wasn't any message when I got home," he said.

"I talked to your answering machine, about six-fifteen."

"I never got a message," Lewyn said. "And then when I came in this morning, you weren't here." He lowered his voice. "Christ. What a mess. I had to go into the meeting on Twinkle with no idea what the approach was going to be."

"I'm sorry," Sanders said. "I don't know what happened."

"Fortunately, Meredith took over the discussion," Lewyn said. "Otherwise I would have been in deepest shit. In fact, I-We'll do this later," he said, seeing Johnson drop back to talk to Sanders. Lewyn stepped away.

"Where the hell were you?"Johnson said.

"I thought the meeting was for eight-thirty."

"I called your house last night, specifically because it was changed to eight. They're trying to catch a plane to Austin for the afternoon. So we moved everything up."

"I didn't get that message."

"I talked to your wife. Didn't she tell you?"

"I thought it was eight-thirty."

Johnson shook her head, as if dismissing the whole thing. "Anyway," she said, "in the eight o'clock session, I had to take another approach to Twinkle, and it's very important that we have some coordination in the light of-"

"Meredith?" Up at the front of the group, Garvin was looking back at her. "Meredith, John has a question for you."

"Be right there," she said. With a final angry frown at Sanders, she hurried up to the head of the group.

Back in the conference room, the mood was light. They were all still joking as they took their seats. Ed Nichols began the meeting by turning to Sanders. "Meredith's been bringing us up to date on the Twinkle drive. Now that you're here, we'd like your assessment as well."

I had to take another approach to Twinkle, Meredith had said. Sanders hesitated. "My assessment?"

"Yes," Nichols said. "You're in charge of Twinkle, aren't you?"

Sanders looked at the faces around the table, turned expectantly toward him. He glanced at Johnson, but she had opened her briefcase and was rummaging through her papers, taking out several bulging manila envelopes.

"Well," Sanders said. "We built several prototypes and tested them thoroughly. There's no doubt that the prototypes performed flawlessly. They're the best drives in the world."

"I understand that," Nichols said. "But now you are in production, isn't that right?"

"That's right."

"I think we're more interested in your assessment of the production."

Sanders hesitated. What had she told them? At the other end of the room, Meredith Johnson closed her briefcase, folded her hands under her chin, and stared steadily at him. He could not read her expression.

What had she told them?

"Mr. Sanders?"

"Well," Sanders began, "we've been shaking out the lines, dealing with the problems as they arise. It's a pretty standard start-up experience for us. We're still in the early stages."

"I'm sorry," Nichols said. "I thought you've been in production for two months."

"Yes, that's true."

"Two months doesn't sound like `the early stages' to me."

"Well-"

"Some of your product cycles are as short as nine months, isn't that right?"

"Nine to eighteen months, yes."

"Then after two months, you must be in full production. How do you assess that, as the principal person in charge?"

"Well, I'd say the problems are of the order of magnitude we generally experience at this point."

"I'm interested to hear that," Nichols said, "because earlier today, Meredith indicated to us that the problems were actually quite serious. She said you might even have to go back to the drawing board."

Shit.

How should he play it now? He'd already said that the problems were not so bad. He couldn't back down. Sanders took a breath and said, "I hope I haven't conveyed the wrong impression to Meredith. Because I have full confidence in our ability to manufacture the Twinkle drive."

"I'm sure you do," Nichols said. "But we're looking down the barrel at competition from Sony and Philips, and I'm not sure that a simple expression of your confidence is adequate. How many of the drives coming off the line meet specifications?"

"I don't have that information."

"Just approximately."

"I wouldn't want to say, without precise figures."

"Are precise figures available?"

"Yes. I just don't have them at hand."

Nichols frowned. His expression said: why don't you have them when you knew this is what the meeting was about?

Conley cleared his throat. "Meredith indicated that the line is running at twenty-nine percent capacity, and that only five percent of the drives meet specifications. Is that your understanding?"

"That's more or less how it has been. Yes."

There was a brief silence around the table. Abruptly, Nichols sat forward. "I'm afraid I need some help here," he said. "With figures like that, on what do you base your confidence in the Twinkle drive?"

"The reason is that we've seen all this before," Sanders replied. "We've seen production problems that look insurmountable but then get resolved quickly."

"I see. So you think your past experience will hold true here."

"Yes, I do."

Nichols sat back in his seat and crossed his arms over his chest. He looked extremely dissatisfied.

Jim Daly, the thin investment banker, sat forward and said, "Please don't misunderstand, Tom. We're not trying to put you on the spot," he said. "We have long ago identified several reasons for acquisition of this company, irrespective of any specific problem with Twinkle. So I don't think Twinkle is a critical issue today. We just want to know where we stand on it. And we'd like you to be as frank as possible."

"Well, there are problems," Sanders said. "We're in the midst of assessing them now. We have some ideas. But some of the problems may go back to design."

Daly said, "Give us worst case."

"Worst case? We pull the line, rework the housings and perhaps the controller chips, and then go back on."

"Causing a delay of?"

Nine to twelve months. "Up to six months," Sanders said.

`Jesus," somebody whispered.

Daly said, `Johnson suggested that the maximum delay would be six weeks."

"I hope that's right. But you asked for worst case."

"Do you really think it will take six months?"

"You asked for worst case. I think it's unlikely."

"But possible?"

"Yes, possible."

Nichols sat forward again and gave a big sigh. "Let me see if I understand this right. If there are design problems with the drive, they occurred under your stewardship, is that correct?"

"Yes, it is."

Nichols shook his head. "Well. Having gotten us into this mess, do you really think you're the person to clean it up?"

Sanders suppressed a surge of anger. "Yes I do," he said. "In fact, I think I'm the best possible person to do it. As I said, we've seen this kind of situation before. And we've handled it before. I'm close to all the people involved. And I am sure we can resolve it." He wondered how he could explain to these people in suits the reality of how products were made. "When you're working the cycles," he said, "it's sometimes not so serious to go back to the boards. Nobody likes to do it, but it may have advantages. In the old days, we made a complete generation of new products every year or so. Now, more and more, we also make incremental changes within generations. If we have to redo the chips, we may be able to code in the video compression algorithms, which weren't available when we started. That will enhance the end-user perception of speed by more than the simple drive specs. We won't go back to build a hundred-millisecond drive. We'll go back to build an eighty-millisecond drive."

"But," Nichols said, "in the meantime, you won't have entered the market."

"No, that's true."

"You won't have established your brand name, or established market share for your product stream. You won't have your dealerships, or your OEMs, or your ad campaign, because you won't have a product line to support it. You may have a better drive, but it'll be an unknown drive. You'll be starting from scratch."

"All true. But the market responds fast."

"And so does the competition. Where will Sony be by the time you get to market? Will they be at eighty milliseconds, too?"

"I don't know," Sanders said.

Nichols sighed. "I wish I had more confidence about where we are on this thing. To say nothing of whether we're properly staffed to fix it."

Meredith spoke for the first time. "I may be a little bit at fault here," she said. "When you and I spoke about Twinkle, Tom, I understood you to say that the problems were quite serious."

"They are, yes."

"Well, I don't think we want to be covering anything up here."

He said quickly, "I'm not covering anything up." The words came out almost before he realized it. He heard his voice, high-pitched, tight.

"No, no," Meredith said soothingly. "I didn't mean to suggest you were. It's just that these technical issues are hard for some of us to grasp. We're looking for a translation into layman's terms of just where we are. If you can do that for us."

"I've been trying to do that," he said. He knew he sounded defensive. But he couldn't help it.

"Yes, Tom, I know you have," Meredith said, her voice still soothing. "But for example: if the laser read-write heads are cut of sync with the m-subset instructions off the controller chip, what is that going to mean for us, in terms of down time?"

She was just grandstanding, demonstrating her facility with techtalk, but her words threw him off balance anyway. Because the laser heads were read-only, not readwrite, and they had nothing to do with the m-subset off the controller chip. The position controls all came off the x-subset. And the x-subset was licensed code from Sony, part of the driver code that every company used in their CD drives.

To answer without embarrassing her, he had to move into fantasy, where nothing he could say was true. "Well," he said, "you raise a good point, Meredith. But I think the m-subset should be a relatively simple problem, assuming the laser heads are tracking to tolerance. Perhaps three or four days to fix."

He glanced quickly at Cherry and Lewyn, the only people in the room who would know that Sanders had just spoken gibberish. Both men nodded sagely as they listened. Cherry even rubbed his chin.

Johnson said, "And do you anticipate a problem with the asynchronous tracking signals from the mother board?"

Again, she was mixing everything up. The tracking signals came from the power source, and were regulated by the controller chip. There wasn't a mother board in the drive units. But by now he was in the swing. He answered quickly: "That's certainly a consideration, Meredith, and we should check it thoroughly. I expect we'll find that the asynchronous signals may be phase-shifted, but nothing more than that."

"A phase-shift is easy to repair?"

"Yes, I think so."

Nichols cleared his throat. "I feel this is an in-house technical issue," he said. "Perhaps we should move on to other matters. What's next on the agenda?"

Garvin said, "We've scheduled a demo of the video compression just down the hall."

"Fine. Let's do that."

Chairs scraped back. Everyone stood up, and they filed out of the room. Meredith was slower to close up her files. Sanders stayed behind for a moment, too.

When they were alone he said, "What the hell was all that about?"

"All what?"

"All that gobbledygook about controller chips and read heads. You don't know what you were talking about."

"Oh Yes I do," she said angrily. "I was fixing the mess that you made." She leaned over the table and glared at him. "Look, Tom. I decided to take your advice last night, and tell the truth about the drive. This morning I said there were severe problems with it, that you were very knowledgeable, and you would tell them what the problems were. I set it up, for you to say what you told me you wanted to say. But then you came in and announced there were no problems of significance."

"But I thought we agreed last night-"

"These men aren't fools, and we're not going to be able to fool them." She snapped her briefcase shut. "I reported in good faith what you told me. And then you said I didn't know what I was talking about."

He bit his lip, trying to control his anger.

"I don't know what you think is going on here," she said. "These men don't care about technical details. They wouldn't know a drive head from a dildo. They're just looking to see if anybody's in charge, if anybody has a handle on the problems. They want reassurance. And you didn't reassure them. So I had to jump in and fix it with a lot of techno-bullshit. I had to clean up after you. I did the best I could. But let's face it: you didn't inspire confidence today, Tom. Not at all."

"Goddamn it," he said. "You're just talking about appearances. Corporate appearances in a corporate meeting. But in the end somebody has to actually build the damn drive-"

"I'll say-"

"And I've been running this division for eight years, and running it damn well-"

"Meredith." Garvin stuck his head in the door. They both stopped talking.

"We're waiting, Meredith," he said. He turned and looked coldly at Sanders.

She picked up her briefcase and swept out of the room.

Sanders went immediately downstairs to Blackburn's office. "I need to see Phil."

Sandra, his assistant, sighed. "He's pretty busy today."

"I need to see him now."

"Let me check, Tom." She buzzed the inner office. "Phil? It's Tom Sanders." She listened a moment. "He says go right in."

Sanders went into Blackburn's office and closed the door. Blackburn stood up behind his desk and ran his hands down his chest. "Tom. I'm glad you came down."

They shook hands briefly. "It isn't working out with Meredith," Sanders said at once. He was still angry from his encounter with her.

"Yes, I know."

"I don't think I can work with her."

Blackburn nodded. "I know. She already told me."

"Oh? What'd she tell you?"

"She told me about the meeting last night, Tom."

Sanders frowned. He couldn't imagine that she had discussed that meeting. "Last night?"

"She told me that you sexually harassed her."

"I what."

"Now, Tom, don't get excited. Meredith's assured me she's not going to press charges. We can handle it quietly, in house. That will be best for everyone. In fact, I've just been going over the organization charts, and-"

"Wait a minute," Sanders said. "She's saying I harassed her?"

Blackburn stared at him. "Tom. We've been friends a long time. I can assure you, this doesn't have to be a problem. It doesn't have to get around the company. Your wife doesn't need to know. As I said, we can handle this quietly. To the satisfaction of everyone involved."

"Wait a minute, it's not true-"

"Tom, just give me a minute here, please. The most important thing now is for us to separate the two of you. So you aren't reporting to her. I think a lateral promotion for you would be ideal."

"Lateral promotion?"

"Yes. There's an opening for technical vice president in the cellular division in Austin. I want to transfer you there. You'll go with the same seniority, salary, and benefit package. Everything the same, except you'll be in Austin and you won't have to have any direct contact with her. How does that sound?"

"Austin."

"Yes."

"Cellular."

"Yes. Beautiful weather, nice working conditions . . . university town . . . chance to get your family out of this rain . . ."

Sanders said, "But Conley's going to sell off Austin."

Blackburn sat down behind his desk. "I can't imagine where you heard that, Tom," he said calmly. "It's completely untrue."

"You sure about that?"

"Absolutely. Believe me, selling Austin is the last thing they'd do. Why, it makes no sense at all."

"They why are they inventorying the plant?"

"I'm sure they're going over the whole operation with a fine-tooth comb. Look, Tom. Conley's worried about cash flow after the acquisition, and the Austin plant is, as you know, very profitable. We've given them the figures. Now they're verifying them, making sure they're real. But there's no chance they would sell it. Cellular is only going to grow, Tom. You know that. And that's why I think a vice presidency there in Austin is an excellent career opportunity for you to consider."

"But I'd be leaving the Advanced Products Division?"

"Well, yes. The whole point would be to move you out of this division."

"And then I wouldn't be in the new company when it spins off."

"That's true."

Sanders paced back and forth. "That's completely unacceptable."

"Well, let's not be hasty," Blackburn said. "Let's consider all the ramifications."

"Phil," he said. "I don't know what she told you, but-"

"She told me the whole story-"