You are probably as fed up, and frustrated, as I am with corporations to whom you entrusted your hard earnt money, and who are not returning solid results, but instead trying to confuse you with beautifully scripted results and announcements that portray a positive future and a one time exceptional (usually poor) result. These promises for a bright future though, never seem to materialize with funds in your dividend account, except in the good times, do they?
How often are the questions asked: WHY are there ongoing one time exceptions? Who just one quarter ago did not expect what should have been expected? Why are there redundancy round after redundancy round in some large companies? Why were all those people employed in the first place? Can someone in a very senior position not plan more than three months ahead? Where is the holistic leadership, the sound planning, and the real understanding of what contribution the human resource is making, or could make? Does anyone senior in that organization touch, and really listen to the people who are in the trenches of commerce, or do they only consult their trusted circle?
In the preparation of a recent proposal, I learnt that an entire division had been laid off redundant due to lack of profitability. In that division there was a core of lower level managers who had the solution to a return to profitability for more than a year, but nobody in the Executive was prepared to take the time to listen. Their plan was so effective that a staff buyout has already seen a fast return to profit!
Any CEO can look good in boom markets, it is not hard when the market is growing rapidly and the customers cannot get enough of whatever it is you have. Some CEOs manage to retain their roles, whilst even in good times still bringing in very average results!
What differentiates the top leaders from the masses is the results they can consistently deliver, even in recessionary economies. The planning they undertake with a full understanding of exactly how their businesses operate, and what talent they have on board. The effective people management where the best are retained, and the weakest quickly identified and moved on. The inspiration and passion with which they infuse their organisation every single day. The sense of identity they encourage.
If you look at the history of companies with exceptional leadership, then you will see organizations that perform consistently well and have minimum redundancies. These organizations are unfortunately very rare, and are often privately held where the owners personal funds are directly impacted. He or she cannot just resign and walk away with their last bonuses, into a new life. These private entrepreneurs lives are inextricably interwoven with their companies, but sadly we rarely get the chance to invest in these leaders.
There are some examples in todays public company sector that stand out as beacons in a bleak economy, these companies have had minimal lay offs of employees and yet are still returning forecasted positive results, even in the so called global recession. They are just quietly going about doing what they are supposed to be doing, focusing on selling their goods and services and responsibly utilizing their funds for the growth, and long term future, of the organisation. They planned for recession, identified the impact early and adjusted or reorganized accordingly. They likely grew, without merger or acquisition, in the gloom.
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