日志
Family Business and Management Board
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115 reads until Aug. 16, 129-Dec-31, 2018. 148-24, Mar. 2019
Family Business and Management Board
----- Frank Nov. 4, 2013, In Waterloo, Ontario, Canada
Updated in Nov. 6, 2015. Updated in Jan. 21, 2020
http://www.kwcg.ca/bbs/home.php?mod=space&uid=61910&do=blog&quickforward=1&id=3730
The death of the business owner of my first job in Canada shocked me very much, because he was in prime age and the cause of the death was simply due to psychological pressure from business operation, especially a supervisor who has been deliberately making trouble in workplace. Due to the concern of the troublemaker has made significant contribution to the business, the business owner cannot do anything besides had to hire extra supervisor on the same position and continuously suffered psychological torture.
I has been deeply in thinking, how to avoid such tragedy.
The way out is at that hires a manager to co-manage with boss in consultation. The hired manager do not have the fetters of the friendship with the existing staff, so that they are less concern when dealing with inevitable personnel issue. More importantly, in this roundabout way, it will be less causing hostility and unrest.
Contents
1.. Introduction
2.. Hired professional manager saved a family business of China.
3.. A supervisor makes trouble for family business of Canada
3.1.. The death of a Canadian family business owner
4.. The significant of introduce management from outside of family
5.. Incompetent board of directors killed listed company RIM
5.1.. An RIM senior exec has to express opinion by Open Letter
5.2.. A RIM scientist has similar experience of the Open Letter
5.3.. Extreme behavior of middle management in former RIM
5.4.. The fruits of the proposals were seized by the management staff
5.5.. The management staff boldly played with own accord in ignoring regulations
6.. To unify
business Branches by unified regulations
7.. Workplace
trouble makers must be kicked out
7.1..Workplace
trouble makers are brain defectives
7.2…Mindless
management staffs are good at psychological torture
8.. Management
Board must play its role
9.. Deal
with thorny issue by hire management guru
1.. Introduction
Here, the Family Business is referring to those ventures by the single family, or those joint-ventures, but by one investor takes full controlling power. Management Board is referring to that optimizes the management by copying the model of the Board of Directors of those listed Company.
As the essential cells of the society, Family Businesses provide employment, revenue, and even the potential rudiment to be world class business giant. Therefore, the Family Business should be put on big concern.
Days ago, I read a report that, in China, there are more than 3 million Family Businesses, but only 10% of them have run more than 10 years. The typical characteristics of those Family Businesses are that business life cannot last longer, and the business size cannot grow bigger.
Currently, in worldwide, the legal protections for employees are much, too much; to have given good courage for those irrational or mindless people to freely play misbehavior in workplace, and no one dared stop them, because of the worries of conflicting with the law. In contrast, the protection for entrepreneurs is few, too few. It caused business difficult for managing.
The wrongful practice urgently needs to be reversed, but, it is impossible under populist kidnapped democratic politics. As a way in no way, I would like to provide some alternative methods for business owner.
There are many factors that constrain the growth of Family Businesses, however, according to my observations; the model of the management was the main factor.
We may optimize the top management structure with the purpose of improving the corporate management to reduce or avoid the bad influence of emotional factors between the business owner and employees.
2.. Hired professional manager saved a family business of China.
Years ago, there was a TV program from China to have introduced a story about the crisis and the smart improvement in management of a family business. The smart practice touched me deeply, so that after many years, I did not forget.
The second brother was as the president. His brothers, sister-in-laws and relatives took the executive position of the different departments.
The president felt that he was difficult to proper running the business due to those executives were tending to do according to their own will in ignoring the interest of the whole business, because of those executives all had greatly contributed to the foundation of the business, and the most of them thought that they were qualified as the president.
On other hand, as the members of same family, the brothers and sisters are with friendship in kinship, so that it is difficult to deal impartially with some problems that happened in business operation due to worry of harming the normal relation. In particular, the embarrass that produced when pointing out the shortcomings of others in face to face.
The business was declining, as a way in no way, the president had to step down as vice president and to hire a professional manager as the president to form a Management Board.
New president established comprehensive management regulations with discussion and agreement of the former president – the owner. He put his will into the written regulations to conduct the owner’s families and all of staff rather than face to face conducting orally.
By the regulations in documents form, the new president was able to control the business smoothly. Suppose that they did not establish the regulations, new president would face more difficulties in business management than that of former president.
At the time of TV interviewing, new president only managed about one year time, the business had a brand new look. Only the procurement cost for raw material saved more than 4 million Yuan of Chinese currency a year.
The executive of responsible for procurement is the wife of former president. An audience in site of TV interview asked that: where did so much money went? The wife of former president was in site also, but no answer with an embarrassed facial expression under the camera.
Business procurement is a hotbed for nourish corruption, which is not only the matter in China, but also is common world widely.
It is worth specifically pointing out that even if hired general manager from outside of family, that fires incompetent staff is also very difficult, for example, to fire the wife of former president.
The feasible way is to pre-set conditions for dismissing unqualified employees as an important and indispensable clause in the regulations document, which may need to be updated according to new emerged problems, such as, the wife of former president, this time was not fired due to no corresponding terms for dismissing her, but, management board must set corresponding terms for preventing next time. .
I guessed from the perspective of the inborn instincts in emotional reactions and social behaviors of human beings, above crisis in management would be common in majority of the family business of China, even if listed companies. As my personal experiences from working in different type of Canadian enterprises, it is same in Canada.
3.. A supervisor makes trouble for
family business of Canada
Some employee, though，are not the family member, but, because of there is merit or great contribution for the business, will be produced in the same trouble as that of the family members.
In Canada, my first job was in an Auto Parts Company in Toronto. The founders were three friends that escaped from Armenia, Soviet Union in the period of the reign of Stalin, the main investor who was as the top president to fully control the business.
There was a supervisor John who worked in the company from the business’ starting on his 15 years old in 30 years ago. He took charge of shipping, receiving and a group of people of packaging.
He came to work at around 10:30 - 11:00 am every day, sometimes did not show up. Some operators had to do his job temporally.
The reason for John dared do so, I thought, it was that he thought himself to have contributed too much for the foundation of the Company, so he should enjoy the treatment as that of the father of the owners’.
Maybe, as the same reason, for the preposterous behavior of John, the owner dared say nothing besides had to hire another supervisor - Albert to take part of his job, especially for some important jobs, such as, the shipping and receiving when John did not come.
At that time, I worked with Albert. John told me that he was big supervisor, and all people there should follow what that he said. He always made trouble for Albert. Such as:
He often placed the received auto parts on the walkways of the area that was Albert taking the responsibility. Of course, that had badly affected the normal work of many others. They mis-complained that it was the faults of Albert. Sometimes, Albert was even tearful.
Finally, John was fired due to that he sold auto parts privately on the way for delivering.
An old employee told me that, in the co-found business Canada, who invested more, who would take full power to manage the business. It meant that it is one person to decide the fortune of co-owned business.
3.1.. The death of a Canadian
family business owner
In May 2010, I went back to see my supervisor Albert. The company has only 6 people left from around 60 people in 9 years ago and the area of warehouse was very small. I was surprised very much.
My supervisor Albert told me that the big boss Jerry died years ago. Due to the business decline helplessly, Jerry’s health condition also declined. Finally he was ill and on an operation bed never stands up.
I
will never forget the scene of that day my Supervisor told me that Jerry has
died; he was pointing a big photo of Jerry and the president of Armenia that
hangs on the wall facing entrance where was the office and a retail store also.
His red eyes with moist, we kept silent for many minutes with watching the
photo.
Two people were smiling with closely
holding the hands of each other.
The President of Armenia
might only know that his compatriot successfully run a business in Canada, but
he might never know that what hardships of his countrymen has experienced - physical
disorders and pain that caused by long-term physical fatigue, especially the mental
suffering in long-term psychological fatigue......
I knew that the death of Jerry was a huge psychological blow for Albert - years of friendship, peer’s Farewell Forever....
It said that, the death is a kind of relief, due to that there is no suffering of worry and sadness any more. The most sadness, perhaps, is that a healthy and sane person who is willing to make a living for survival with owns hands and talent, but no chance.
Albert would naturally worry about the company's prospects for survival, and the risk of losing own job.
The death of Jerry was not fully because of the bad behavior of the supervisor John, but, his mindless behavior caused the boss in the depressed state for a long time, which is one of the important causes of his illness and death.
Too much sadness, this is a true Les Misérables.
……
4.. The significant of introduce management out of
family
On other hand, as the members of same family, the brothers and sisters are with friendship in kinship, so that it is difficult to deal impartially with some problems that happened in business operation due to worry of harming the normal relation.
Above, I have said that, within the business, because of the members are familiar each other with friendship, even kinship, so that it is difficult to deal impartially with some problems that happened in business operation due to the worry of harming friendship or losing friends. In particular, the embarrass that produced when pointing out the shortcomings of others in face to face. By establishing the Management Board and collectively make decision in document form, that some thorny problems may much easily be handled.
To hire some professional people outside of the family to establish a management board has unique advantage, because of those new comers have no former relations in vital interest with those original employees, they will be able to relieve or resolve down the conflict that may originally exist between the employees and bosses. Such conflicts are hardly to handle. The harm for the enterprise is fatal.
Suppose that Jerry had hired a people from outside of family to form a management board to control company, the collective decision of board members in document form would easily deal with the mischievous behavior of supervisor John, and thus, Jerry would not be died.
Feb. 02 2013, the article Canada's Mid-Sized Firms in Decline, BDC Study Shows said that: "Mid-sized firms with a board of directors or an advisory board are most likely to say they expect sales to go up."
In the article of My view on Entrepreneur and Enterprise inspired by Peter Shoore, I have mentioned the Sunrise Farms, it has a Board of Directors with a hired president, and the owner Peter Shoore is as a vice executive. I think that it is not only conducive to the management, but more important is to get more wisdom to promote the business fast development. The achievements are there, the rapid increase of the branches.
The Management Board is a magic approach for running a business smoothly.
5.. Incompetent board of directors killed listed
company RIM
However, for Canadian companies, there management board is not enough.
Such as the former RIM, now is the Blackberry, once was a listed company, but failed in operation. For this concern, I once wrote The Fatal DNA of RIM & Canadian Enterprises to indicate that Stifling intellectual work environment destroyed RIM.
It is not only the problem in RIM, but also the problem of Canadian businesses, which is that suppresses the free exertion of intelligence of the employees without a proper channel for employees expressing their ideas freely to have damaged the driving force for continuously self-revolution to fit the market that increasingly rapid changes.
Here, I will excerpt some paragraph of The Fatal DNA of RIM & Canadian Enterprises, to review that how an incompetent board of directors killed listed company RIM and how a Canadians proud enterprise exuded odor as that of rot body in the process of decline.
5.1.. An RIM senior exec has to express opinion by Open Letter
Two years ago, I read an article Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around him Jun 30, 2011. The writer is Jonathan S. Geller who is the founder of BGR - the biggest mobile news destination in the world. He currently acts as President and General Manager of the newly formed BGR Media, Inc., and Editor-in-chief of the BGR website.
In the article he said that: “We have received an open letter to Mike and Jim from a high-level RIM employee (whose identity we have verified), and in an amazingly honest and passionate plea, this letter gives fascinating insights into what RIM must fix, and fast. RIM did not immediately respond to a request for comment.”
The start of the open letter and the 8 suggestions as follow:
“To the RIM Senior Management Team:”
“I have lost confidence.”
“While I hide it at work, my passion has been sapped. I know I am not alone — the sentiment is widespread and it includes people within your own teams.”
“Mike and Jim, please take the time to really absorb and digest the content of this letter because it reflects the feeling across a huge percentage of your employee base. You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.”
The 8 suggestions:
1) Focus on the End User experience.
2) Recruit Senior SW Leaders & enable decision-making.
3) Cut projects to the bone.
4) Developers, not Carriers can now make or break us.
5) Need for serious marketing punch to create end user desire.
6) No Accountability – Canadians are too nice.
7) The press and analysts are pissing you off. Don’t snap. Now is the time for humility with a dash of paranoia.
8) Democratise. Engage and interact with your employees — please!
Obviously, the open letter is a thoughtful practical recommendations with concrete steps, which is only result that can be derived after long-term observation and thinking. Any rational people would feel that this is a heartfelt cry of a rational and responsible staff. Any rational people would be moved deeply besides irrational managements of former RIM.
Jun 30, 2011, RIM responds to open letter published by BGR, the first paragraph is as follow:
“An “Open Letter” to RIM’s senior management was published anonymously on the web today and it was attributed to an unnamed person described as a ‘high level employee”. It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a “high level employee” in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company’s challenges and its opportunities.”
Obviously, for the touching recommendations in open letter, the management of RIM had not be touched at all. So they had no thanks besides fully hatred. As the comment of C3vsThWorld followed RIM responds: "Its WAS NOT a good response...the letter from the employee was one of honesty and true concern for his company. All this response did was throw numbers around as if that made anything the person said false."
Why the managements of RIM, especially the Board of Directors were so mindless, the open letter had provided reason: No Accountability – Canadians are too nice.
5.2.. A RIM scientist has similar experience of
the Open Letter
After reading the open letters, RIM's responds, the emails of RIM's employee and the readers' comments, I once talked with an employee who is working in the lab of RIM as a material scientist. She said that she once wrote a suggestions’ letter to the management of RIM, but without any response. She felt that the corporate culture of RIM is not worthy for appreciation.
Besides above, I once called my friends who were working in RIM at that time.
The one who works in the service department said that their work efficiency has a lot of room for improvement.
I personally survey also proved that, in RIM, it has no normal channels for facilitating the communication between subordinates and superiors to promote the development with the wisdoms of all employees. Furthermore, the management was very confusing to cause low efficiency.
I call this phenomenon as the obstruction
of enterprise. It also is fatal, and it is the main cause of RIM's decline, and
the main cause of RIM did a dirty job with the outstanding employee.
5.3.. Extreme behavior of middle management in former RIM
Jul 1, 2011, BGR published More letters to RIM; employees rally alongside anonymous exec with the comments emails that followed RIM responds to open letter.
The writer Jonathan S. Geller said that: “BGR published an open letter to Research In Motion yesterday.” “RIM responded. It wasn’t pretty, and it really didn’t address a single point that was made by the original plea. It wasn’t just RIM that responded, however — we received dozens of emails from current and former RIM employees detailing their stories, and essentially all agreeing with the open letter that was published on BGR.”
BGR has made a announcement with that: “Among the correspondence were several new “open letters” written by RIM employees, and the BGR team has gone through them at length. There were nearly a dozen gems amid the emails we received, and while we may address various highlights in the coming weeks, we can’t publish them all at this time. We thank each and every person who took the time to email us with their thoughts, but there were two in particular that stood out from the crowd.”
Following is the part of an email from a former RIM employee.
“I was an employee at RIM for a year and a half. I worked in the legal and business affairs departments, and despite having originally thought I’d landed the jackpot job-wise, it took no time for me to begin planning my exodus.”
“My first week started with a complete change in my title and duties without anyone telling me, and when I dared ask what was happening, the director (my boss) and her BFF the OD business partner ganged up on me and threatened to let me go, setting the tone for the remainder of my time there.”
“Over a year an a half, the four of us in the same position dwindled to just me and yet I was responsible for getting all four jobs done for the better part of a year, since this is how long it took the department to hire other entry-level people. Two individuals who had less education and experience (not to mention drive or intelligence) than me were promoted several times while my boss continued to tell me up and down that I had reached my ceiling at RIM due to my lack of education (two degrees!) and experience (5 years!)–as an administrative assistant. Rather than attempt to fight this system I figured I could transfer departments, only the company policy requires the supervisor to act as a liaison and reference for internal applicants. The insanely high turnover rate meant the department head wouldn’t let anyone go, in addition to refusing to promote from within (pets excepted). People were pitted against each other and an incredibly tense and hostile work environment was fostered. People around the office started referring to the office politics as “Survivor: RIM edition.” And we all remember the great movement to make recycling physically impossible across the entire company because one person let some confidential information slip.”
“Then, as I was saving up to return to school and make a better life for myself, I received a series of nasty emails from HR letting me know that since my boss had failed to log my vacation time a year earlier on SAP (despite my insistence on her doing it at three different times), I would have two full paycheques deducted to “pay back” the company for what was being portrayed as my mistake. I never received an apology and almost had to drop out of school due to the loss of a full month’s pay. On my last day my boss deliberately avoided me at all cost. The best part is that I recently heard that my boss just got promoted to the VP of the business affairs department.”
From the behavior of the director of legal and business affairs departments of Former RIM, we can feel that the extreme behavior of middle managements in RIM.
5.4.. The fruits of the
achievements of the proposals were seized by the management staff
Some former RIM employees tell me that in former RIM had also the management for the rationalization proposals; however, the fruits of the achievements of the proposals were seized by the management staff, so the technical personnel of the main body for the rationalization proposals stopped their efforts.
Such behavior is just opposite that of smart doing in IBM and German Companies. This is one of important lethal gene fragment in Canadian enterprises.
5.5.. The management staff boldly played
with own accord
Some former RIM employee tell me that in former RIM there were also comprehensive regulations as that of other well managed world class companies, but, the regulations cannot function effectively, due to that managements play with own preferred accord.
For this point, the behavior of the director of legal and business affairs departments of Former RIM was a good example.
As my personal experiences from working in many different businesses, in the eyes most management staff of the locals, there are no sense for that what are the regulations, even, no sense of what is law? Some management staff got a right for fart once; they dared casually put the atomic bomb endlessly.
Indeed, the topic of this article may take as the discussion of the issue of Corporate Culture, at least in the most of. From the experiences of world class successful enterprises, no one would doubt that, a healthy corporate culture is a prerequisite for their healthy development.
The entire absurd phenomenon in former RIM was caused by a lack of effective management. So I say that it was Incompetent board of directors killed listed company RIM.
6.. To unify business Branches by
unified regulations.
Some companies acquired many
businesses as branches that keep in running in different locations and to be
managed by old management without improvement.
For such company, it is better to improve the management of the branches by new regulations.
It is no doubt that, in any branches, the old management system would accumulate many thorny issues that urgently need to be solved, especially the replacement of some management staff who are in low quality and have been playing a negative role.
Due to that Management Board is in distance, so it may easily solve such issue by document form with the opinions of all board members collectively according to the reports of board directly appointed investigators without the fear and hesitate of embarrassing of face to face.
In any possible way, the top management board must positively play its role to make the poor management improved, rather than acting as that of the shepherds to take business branches as the sheep to free graze, or by that simply appoints an executive with the hope to deal with difficult issues by a person's ability under the embarrassing of face to face.
7...Workplace trouble makers must be kicked
out
Workplace trouble makers are including of general operator and management staff.
7.1.. Workplace trouble makers are brain
defectives
Feb. 09, 2014, in the article Management is the Art of Playing Human Nature, I once indicate that human brain's maturity determines the level of intelligence and behaviour by citing an report Criminal Minds Are Different from Yours, Brain Scans Reveal: “The latest neuroscience research is presenting intriguing evidence that the brains of certain kinds of criminals are different from those of the rest of the population.” “While these findings could improve our understanding of criminal behavior, they also raise moral quandaries about whether and how society should use this knowledge to combat crime.”
Above studies show that development degree of the human brain determines the brain’s working state; the brain's working state determines human behavior. We may infer that even if people have no significant behavioral problems as that of the criminals, but, the character of each individual is also a big difference. Some people can do anything rationally; some people are prone to impulse and radical, and cannot do a work properly.
Those workplace troublemakers may also likely have problems of inadequate brain development. One such a mindless person, in the environment of large scale production, may play a role of greatly reducing the production efficiency, even make a good business have to be closed.
Although, the absurd behavior of workplace troublemaker is not to be considered as crime yet, but, with the amplifying-effect of Crowd Psychology, its harm may be much severe than that of criminal, because of it may make businesses closure and thereby cause more people jobless.
Currently, there are no corresponding legal provisions for inhibiting or punishing them yet.
This point, we must seriously take measures.
Those findings on human brains provide us a new potential for improving the management of Canadian corporate, since that corporate management, essentially say, it is to select a certain group of people to rule certain group of people to finish purposeful tasks. In this process, no matter for the rulers or being ruled, to select a brain well matured one is important.
But, in the practical recruitment process, we cannot scan any candidates by MRI machine. Even, some questions would be too sensitive to be asked. Although we cannot use MRI scan to identify the quality of management staff in the time of hiring, however, after long time practical work can also provide a more powerful proof.
Workplace trouble makers must be kicked out
7.2…Mindless management staffs are good
at psychological torture
Mindless management staff would show with very extreme behaviors. They have no mind for what are the interests of business, and even ignoring the law.
According to my experiences in Canada, the mindless management staff would take production place as play yard. Such as, they will organize those people who compliment them by lure of overtime pay, wage increasing or promotion arbitrarily. And then, by the use of these gainers to psychologically torture others according to own preferences, such as, the deduction of payment, oral abuse and insulting in the work place.
Such management staffs are mental defectives; they would never stop the mindless behaviors and the harm of such people for business operation is huge.
As same as that of workplace trouble makers, those mindless management staffs take stupid as smart, they would play dirty tricks and backstab as that of drug addiction, by use of every bit of chance to make trouble and hard to detect, endless.
The best example is above mentioned director of legal and business affairs department in former RIM. She was not only threatening employee, but also, arbitrarily withheld the wages of employees.
It was obvious that as the director of legal and business affairs department of listed company RIM, there was no essential sense of what is law.
Such people must be kicked out immediately.
The facts shows that the board of directors in former RIM was incompetent without well play its role.
8.. Management
Board must play its role
However, no matter is in West or East, no matter is in which country, and no matter is in which race, that dismissal of an unqualified management staff is the thorniest issue.
However, once again, as mentioned above, for Canadian business, the thorniest issue is those inhuman management staff. They are no sense for what are the regulations, even, no sense of what is law? Some management staff got a right for fart once; they dared casually put the atomic bomb endlessly with the criminal nature.
Such inhuman management staff, even if they do not be able to anger business owner to death, they would persecute business owner to have to give up the business or ruin the business.
Once again, as same as that of workplace trouble makers, those mindless management staff must be kicked out immediately.
The Management Board has unique advantage, it is that collectively make decision for dismissal of some unqualified management staff, by which way, it can largely dilute the hatred mentality of dismissed people toward specific decision maker.
It is wrong that management board do not solve problem directly, but just simply appoints another executive without disable the power of mindless one, it will be less chance to success besides cause of management overlap, to lead the mindless continue their mindless, and instructions from more offices, and more confusion. As that of Auto Parts Company, two supervisors on same position, old one continues making trouble, and even more crazy to make more headaches.
Suppose Management Board simply appoints a person to solve thorny dismissal issue, it is not only irresponsible, but, as my view, it is cruel, in nature, it is to put the appointed person on fire to be roasted.
The management board must positively play its role to kick out mindless management staff directly.
9.. Deal with thorny issue by hire management guru
ZTE Corporation is a multinational telecommunications equipment and systems company founded in 1985 and headquartered in Shenzhen, China. It is one of the top ten largest smartphone manufacturers worldwide. Around the world, a total of 18 research institutions, nearly 30,000 domestic and foreign researchers.
For such a big business, the effective management is thorny issue. As a listed company, of course, it has a board of director. However, the company is still to hire world-renowned business advisor Ram Charan as consultant to help solving thorny issue. Such as: strategic planning, organizational restructuring, execution strengthening, especially personnel dismissal and appointment.
Follow photo is a video capture from May. 2, 2015, CCTV Finance Official Channel: Decryption ZTE- Searching for changes.
The standing gentleman is Mr. Ram Charan. He came to ZTE Corporation once quarterly with paid of $20,000 hourly.
According to Video commentary, this time, he will touch thorniest issue - personnel dismissal and appointment.
As worldwide renowned management Guru, any decision of Mr. Ram Charan would induce lesser objection.
On other hand, the practice of ZTE Corporation has a great extra gains, it is that Mr. Ram Charan has been working as consultant for many world class corporations. He is able to integrate the best experiences of many others into the operation of ZTE Corporation.
Mr. Ram Charan is renowned with his book: Execution: The Discipline of Getting Things Done: The book that shows how to get the job done and deliver results . . . whether you’re running an entire company or in your first management job.
The successful management is the consistent practice of the discipline of execution: understanding how to link together people, strategy, and operations, the three core processes of every business.
Leading these processes is the real job of running a business, not formulating a “vision” and leaving the work of carrying it out to others. Bossidy and Charan show the importance of being deeply and passionately engaged in an organization and why robust dialogues about people, strategy, and operations result in a business based on intellectual honesty and realism.
The leader’s most important job—selecting and appraising people—is one that should never be delegated. As a CEO, Larry Bossidy personally makes the calls to check references for key hires. Why? With the right people in the right jobs, there’s a leadership gene pool that conceives and selects strategies that can be executed. People then work together to create a strategy building block by building block, a strategy in sync with the realities of the marketplace, the economy, and the competition.
Once the right people and strategy are in place, they are then linked to an operating process that results in the implementation of specific programs and actions and that assigns accountability. This kind of effective operating process goes way beyond the typical budget exercise that looks into a rearview mirror to set its goals. It puts reality behind the numbers and is where the rubber meets the road.
Putting an execution culture in place is hard, but losing it is easy. In July 2001 Larry Bossidy was asked by the board of directors of Honeywell International (it had merged with AlliedSignal) to return and get the company back on track. He’s been putting the ideas he writes about in Execution to work in real time.
