Wednesday, March 11, 2020

Dilemma of a CEO!!!

I have been meaning to write this for so long.

A new CEO was appointed for a 70 years old company. The company had always been a very profitable venture. 

However, off late, several troubles had been brewing. The year on year growth in the revenue has been below the estimated numbers. Management decisions have been questionable at best. Different employee unions were always at war with each other. Several departments have started to operate as an independent entity with no concern whatsoever to the well being of the parent company. Some employees have also been rumored to sell confidential internal information to competitive companies for various incentives. One particular manager even had the audacity to have his wife fill in for him, while he was incarcerated on a scam.

The past three CEOs have been from the same family. Hence, a lot of key management personnel were from within their family. In fact, a lot of subsidiaries were being held by various persons loyal to the previous CEOs. Various key decision-making persons from different departments were appointed by, and hence loyal to them. Several loss-making companies were inorganically absorbed, and the corrupt officers taken in good position or offered a hefty severance package!

The stakeholders, several lakhs, were ill-informed about the internal politics but displeased with the general state of the affairs of the company.

Furthermore, the structure of the company was indecipherable with no accounting for who is responsible for whom. In addition to the direct reporting structure, because of different loyalties, there were several indirect reporting structures as well.

And the best part? Nothing properly documented. Blatant scams going on in different subsidiaries, in different departments, across various levels of management. Several fake employee IDs withdrawing salaries for several decades. Some fake IDs even collected their retirements benefits as well. :)

Now the task facing the new CEO was:

A) How to put a new structure in place?

B) How to get everyone to accept the proposed new changes?

C) How to trim the un-necessary manpower placed by the previous CEOs without creating a mass hysteria? How to let go of Non-Performing Assets?

D) How to reduce the dependence on the majority of components being outsourced and how to inculcate internal problem-solving abilities?

E) How to combat the internal friction between the different departments and unions and to impress on them the need to follow a similar set of rules and regulations?

The major challenge being, how to do all of that when the internal structure has become so corrupt. Any new change introduced is met with a vehement disapproval from the employee unions, even if it were a change for their benefit. All because, the loyalists to previous CEOs were so deeply interspersed within the ranks.

The choices with the new CEO are simple:

A) Brave all the odds and the shouts from the unions. Be prepared to get hated but take the moral high road and think of the benefits to the company masses and shareholders.

B) Let the things continue as before, and accept own kickbacks.

If you were in the shoes of the new CEO, what would you have done?

Monday, February 18, 2019

Long time no see

It has been quite a long time.

In fact around four and a half years that I posted anything on the blog.

Time has been very very tight these days but as a part of my new year resolution decided that I'll give however less or more time I can to the blog. Because writing was one thing which I really really cherished and I would like to continue to do so hopefully be able to provide you with some good content.

A lot has happened over these 4 years. I switched career. Was in consulting before. Loved the work. Didn't love the tere and conditions applied.

Am in education now. Still a work in progress but at least I am loving what I do...

Saturday, August 23, 2014

Have you taken your Ice Bucket Challenge yet?

The Ice Bucket Challenge, basically, is dumping a bucket of ice water on one's head. In case, it has been associated with some diseases to promote donations to research.

The current version of the challenge dares nominated folks to be filmed having a bucket of ice water poured on their heads and challenging others to do the same. The nominated person has 24 hours to complete the challenge or make a donation to a charitable foundation. If they complete the challenge, the can call out a challenge to other people.

There can be various versions of the challenge:
  1. If participant completed the challenge, they can donate amount; if they don’t, a multiple of x
  2. Donate only if challenge not completed
  3. Donate without attempting the challenge
  4. Donate as well as complete the challenge

Off lately, challenge has gone viral with Hollywood and Bollywood celebrities, politicians, athletes, and public in general are going through this and challenging others to do the same.

My peeve with all this is:
  1. All the hoopla around the challenge seems to be taking the seriousness of the diseases out of it. While researchers might be grateful for the inflow of funds; would it not be having a negative impact on people suffering from the diseases? Samsung has taken this opportunity to promote the waterproof feature of S5. View the video here
  2. Where has the good old anonymous donation gone? Why the race to claim the glory and prove that you did donate?
  3. Whether you donate or not, what’s the point of wasting so much water and ice, all the energy went into making potable water and cooling water sufficiently for it to become ice?

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