Tyco: After The Scandal: Ed Breen

After the Scandal:
In July 2002, the board appointed Edward D. Breen, who was the former president and COO at Motorola, to replace Dennis Kozlowski. It soon became clear to Ed that the entire corporate management team needed to be changed. By the end of 2002 as the new CEO of Tyco, Ed Breen replaced the senior executives at Tyco, two of its five division presidents, and the former board. Existing leadership that had worked with Kozlowski were gutted and new managers were brought in. He changed the board members; many of the former board members had strong finance backgrounds, while the new board members had more operations-oriented background. He also shifted Tyco’s operating headquarters from New York to West Windsor, New Jersey [1]. With the new leadership in place, Tyco began a two way investigation into the troubled closet of their predecessors. As a result of the investigation, Tyco filed two federal lawsuits; one against Dennis Kozlowski and the other against Mark Swartz.
It had undergone a massive overhaul as they established new systems, hired new talent, and set up a strategy for the new direction the company was headed. It needed to change its global corporate image and right the wrongs that the previous regime had done. Ed Breen had encouraged more internal policing by installing an ombudsman at Tyco and giving workers an ethic guide called “Doing the Right Thing” [2]. In the Phase two review of the company, all the many acquisitions that had been conducted by the company were inspected to make sure that it did not have any