Charan1504

Biography:

Ram Charan is a very well recognised speaker and writer. He has written and co written several books, such as “Execution” or “What the CEO Wants You to Know” among many others. As a famous expert on business strategy as he is, he has taught many important CEOs and has also worked for companies like GE, Bank of America, DuPont etc., helping them to form and carry out their strategic direction.

Summary:

This excerpt of “Leadership In The Era Of Economic Uncertainty”, by Ram Charan, explains how Chad Holliday, DuPont’s CEO, reacted when he became aware of how bad the situation was (he had met a customer in Japan, who told him that he feared for his company’s financial position, and therefore requested from his employees not to squander money).
As soon as Holliday arrived in the US, he arranged a meeting with his team to know how bad the situation was. As DuPont’s situation was getting worse and worse Holliday decided to take measures.
After meditating whether the “Corporate Crisis” plan should be applied or not, he decided that even though implementing this plan could arise fear among the company’s employees, the dramatic economic situation required the application of this emergency plan.
Holliday made sure that each employee at DuPont knew about the critical financial situation, and what every one of these employees needed to do. Holliday was very concerned about the company’s cash position and cut costs in many fields, such as travel, consultants and contractors. Nevertheless, as workers were reassured that there would be a solution to this problem, they did not feel the need to urge in taking measures.
Not only did Holliday plan measures in the short run, but also in the medium run. He knew that actions had to be taken immediately, but he had people working on medium run issues, too, such as which production facilities could be completely cut so as to reduce costs. However, the most important action held was to reduce outside contractors the company had.
To sum up, what Chad Holliday did best, was to accept the fact that an economic crisis was going to hurt his company and did not fear to take extreme actions, which is what every CEO should do.

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