Outsiders question whether experts dealing in search fast food nutrition facts and the internal problems at Karman International. For 50 years, the company was run single-handedly by Shakarian, a charismatic entrepreneur who built the Karman empire out of his father's yogurt factory. But he never instituted the controls a large corporation needs and in fact, tried to integrate the most desired search fast food nutrition facts.
The day he arrived he was inundated with statistical minutiae, reports that Shakarian demanded. Yet there was little formal management structure, and marketing department was in its infancy. "The No. 1 task is organizational structure," he explains, "clarifying what everyone's role is and assigning accountability." Horn has taken executives on a retreat to examine Karman's strengths and weaknesses. Insiders say they came away impressed with his willingness to listen and build a consensus -- and his commitment to change.
He is also trying to stay on the good side of the Shakarian family, which owns nearly 80% of stock, worth $143 million. Son-in-law Lucas, 37, is the power: He engineered the ouster of Daum and Shakarian's brother, Bart, whose term as vice-chairman ends on July 18. Lucas defends the actions: "The company was directionless. Daum was well suited for putting David's ideas into motion, but he wasn't a leader and didn't have the marketing background." But Horn, says Robert D. Buzzell, a board member and marketing professor at Harvard business school, "sends a clear signal that we're committed to turning Karman around.
The new boss is also better suited to distance Karman from its legal problems. In recent years the company has settled two lawsuits charging it with false or misleading advertising -- by withdrawing products or changing product descriptions. In a pending case, Daum and four others were indicted for promoting Evening Primrose Oil as a prevention, treatment, and cure for hypertension, arthritis, and multiple sclerosis. If convicted, each man could face a maximum penalty of $16,000 and 11 years in prison. Explains Watts: "With the former management, we tended to push things right up to the edge without crossing the line." Horn responds: "I can't do much about the past. [But] in a few years, I hope to have such good relations with the Food and Drug Administration they come to us for advice."
Despite his good intentions, he will need more than leadership and creative marketing to revitalize Karman. "It takes a year just to figure out what the problems are," says Lucas.
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