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Wednesday January 28, 2009

Topic: Leadership  Challenges

Reference: Charan, Ram “CEOs in Tumultuous Times.” Chief Executive, December 12, 2008. http://www.chiefexecutive.net (Articles and Archives).

It is no secret that managing in these difficult times is far more difficult than at other points in the business cycle. Credit has been greatly reduced and securing adequate credit support has been difficult. Many have been forced to reduce staffing levels and terminate well intentioned and well meaning employees. Additionally, everyone is subject to higher levels of scrutiny and review from regulators, government agencies, boards of directors, and just about everyone else. Given the dismal and unethical actions of many business executives over the last several years, it is reasonable to expect heightened scrutiny to be with us for awhile. This means that far more time and energy will be used to defend, answer, and respond to inquiries and concerns than in recent times. 

Wednesday January 28, 2009

Topic: Leadership  Challenges

Reference: Charan, Ram “CEOs in Tumultuous Times.” Chief Executive, December 12, 2008. http://www.chiefexecutive.net (Articles and Archives).

It is no secret that managing in these difficult times is far more difficult than at other points in the business cycle. Credit has been greatly reduced and securing adequate credit support has been difficult. Many have been forced to reduce staffing levels and terminate well intentioned and well meaning employees. Additionally, everyone is subject to higher levels of scrutiny and review from regulators, government agencies, boards of directors, and just about everyone else. Given the dismal and unethical actions of many business executives over the last several years, it is reasonable to expect heightened scrutiny to be with us for awhile. This means that far more time and energy will be used to defend, answer, and respond to inquiries and concerns than in recent times.  Consequently, CEOs will be scrambling to keep up with the time constraints and the expanding demands placed on them. The commentator in the referenced article takes similar note of the demands and indicates that “[n]ot all chief executives have the temperament to deal with it”. Things are clearly more complex, require more thought, and a wider prism for analysis. “It’s up to the CEO to make sense of the complexity, provide the right focus and choose the right goals.” One way to deal with this to make sure that the organization is aligned to confront these issues head on. In the past many organizations have done this with a strong COO role and a reporting structure that allows the CEO to focus on strategic initiatives while the COO leads execution. The author also indicates that a variation has been successfully used at GE that has the CEO teamed with a CFO and HR specialist. It makes sense to me to have the people issues addressed at the highest levels along with financial and operational issues. However, this model places a burden on the personnel specialist to understand the business and be able to understand the required value proposition of each unit. Not everyone is capable of handling that role. That is why I like the team approach, but would also add value to the team through the addition of a technology specialist. The proper use of technology offers the leadership team the opportunity to leverage additional customer and employee value, as well as to push efficiencies and measurable results. This additional value can be the difference maker in this market. Either way, it is a good discussion and focuses the leadership on the need to process requirements using a broader skill set. Ultimately, the CEO has to get this right. Let me know your thoughts on addressing these important issues.