Charan3ROA

BIOGRAPHY

Ram Charan was born in 1939 in Uttar Pradesh, a small town in India. He studied engineering there and soon left the country to work abroad in Australia and Hawaii. Charan graduated from Harvard Business School with several doctorates and an MBA.
Currently, he is a very demanded business consultant. Ram Charan is known for giving very insightful advice that several multinationals have used to keep their companies afloat. He is a published author, and his books have sold millions of copies across the world, all related to business. Charan is known for helping companies and CEOs and in a way teach them and show them where they go wrong. Charan is very respected in his field and highly valued in the business world.

SUMMARY

From the sample page of Leadership In The Era Of Economic Uncertainty by Ram Charan, we read about how the CEO of DuPont, Chad Holliday, reacted to the current economic crisis. As soon as he analyzed the problem, Holliday knew that his company needed to cut costs and conserve as much cash as possible, since the problem was financial.
Holliday noticed the lack of confidence coming from Wall Street, and predicted that it could possibly spread to Western Europe and Asia, meaning to say, that it could be very damaging. The problem was obtaining credit, and how companies were soon going to be on their own.
DuPont was directly affected when automakers, who collaborate with the company, suddenly did not know about their future production. Everything became susceptible and unpredictable. The production of companies overall was reduced, and it was time for Holliday to action.
Holliday declared a “Corporate Crisis” and gathered his team so plan and then implement a plan. The economic crisis was said to only be financial, and the solution to keep afloat was to conserve cash and reduce costs. Every employee of DuPont was asked to pitch in and contribute.
Employees seemed to respond well to what they had been told, although Holliday feels that they were given so much support that they didn’t fully understand the importance of it.
An effective strategy Holliday came up in order to save cash was to fire some of the many contractors DuPont had outside the company. The notice was short, and the severance low. It was a good way to cut costs.
DuPont reacted quick to the crisis, although there is much more to do, especially with the predicted upcoming inflation that the financial sector will leave.

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