CNN: Transparency is the key to reverse the decline of the business
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Posted On :
Sep-16-2011
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Article Word Count :
889
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CEO they must develop the company little by little into the track. Their action as quickly as possible, especially in a rapidly changing era now.
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People are willing to see the revitalization of troubled companies, and executives are also quite willing to show their talents in the business critical moment, if successful, will always be on the resume of a glory.
However, the challenge of the CEO who may have never experienced such a tight deadline. Today's society people are already accustomed to immediate, return on investment is often very tight schedule, people better informed, the company's performance is also clear evidence of the parties under surveillance.
More recently, some shareholders have begun to CEO impatient. In early September, the board of directors to Yahoo's Carol Bartz (Carol Batrz) drive from the CEO position down. Because the shareholders had found that, despite her two years has been trying to revive Yahoo's past power and prestige, but she failed.
Similarly, shareholders begin to focus on Tim Armstrong (Tim Armstrong) for the decline of AOL's turnaround strategy for the design. AOL's recent quarterly financial reports embarrassing, and many insiders are waiting to profitability AOL news.
Losses how long it? Eight quarters, this is the search company president Mark Wyatt & Jaffe Jeff (Mark Jaffe) gives the answer. He said: "I remember this number was 16, but that is what happened before the Internet bubble. In the 1990s, people not so anxious now. When it is felt Eat Hot Tofu."
Northwestern University Kellogg School of Management Professor of Management, James Shein said eight quarters is actually a very well-off. He also said that the new CEO needs to come up with up to four quarters of significant results within the job. Not necessarily the company to profitability, but at least well-targeted program, in order to convince the experts, the Board of Directors and shareholders.
Of course, a CEO can effectively turn around time required for the enterprise, and the company is directly related to the funds on hand. About to bankrupt the company will not have time to do what repackaging strategies. Such as AOL, relatively stable cash flow, the old business model of companies, the choice before us will be more.
Transparency is the key.
in Ford's turnaround strategy has been supported by a large capital injection. When he took over Ford in 2006, it quickly raised more than 230 billion dollars. This gave him time to breathe, but the most eye-catching is that Mulally's strategy to make step by step to see that people do have their effect. Mulally said he would produce for the customers the products they want to get higher profits. To achieve this, Ford closed the plant performance is not high, but also began to design affordable and fuel-efficient cars, and stop the continued development of money-losing mark, including Jaguar and Land Rover.
In some sense, the CEO Mulally than other industries who have an advantage, because the car manufacturers to improve profits is relatively easy. Ford is selling physical products, investors can easily find product cost changes.
Armstrong, the CEO of this type of situation are not so good - the digital media company, success indicators are usually the number of visits and hits to rely on advertising revenue, but did not achieve the goal of ready-made model to follow. Armstrong not only to clarify AOL's financial condition, but also from a dial-up twilight transition to digital media, and digital media industry revenue model is very uncertain. His measure of success, for example, more people are concerned about a site, how much water is also hard to say.
The key is to develop practical strategies, not only to achieve the set targets, but also to convey the importance of achieving these targets. Announced the reorganization of the company's sales team and full supervision of the CEO may establish a little credibility, but if they can use real data to explain how their actions are in front of the opponent to gain advantage, shareholders will be more willing to believe that such a CEO.
Risks of failure
In fact, no real turnaround strategy is not to be limited by statistics. Strictly based on the revenue losses on the basis of strategy often means failure. Schein, published this year, "turn the tide" (Reversing the Slide), a book, describes a company called Electronic Data Systems (Electronic Data Systems) companies in the 1990s, the explosive growth of hard to follow the example of the technology industry. Despite the poor financial situation, but in order to coax investors happy, in 2000, its CEO is still barely get the value of $ 6.9 billion with the U.S. Navy, a big one. Unfortunately, orders huge amount of money does not mean that there will be profits. Because of its principles can not really bail out the company, who was eventually fired CEO.
Another problem often lead to losses fail, that is to blame outside their company. "All the world's retailers are to blame poor sales of the weather. Can not say wrong, but sometimes complaining is useless, it is important to find out the real reason." Turnaround Management Association (Turnaround Management Association) President, CRG managing partner Lishabolin (Lisa Poulin) said.
Next, CEO they must develop the company little by little into the track. Their action as quickly as possible, especially in a rapidly changing era now.
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Article Source :
http://www.articleseen.com/Article_CNN: Transparency is the key to reverse the decline of the business_82751.aspx
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Author Resource :
monster cable worker,Beats by dre canada CEO for online business.
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Keywords :
marketing,
Category :
Business
:
Business
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