Charan_3000

Biography

Ram Charan he was borned in 1939 in Uttar Prades, India. He earned a degree in engineering from Banaras Hindu University and later studied at Harvard Business School, where he was awarded an MBA (1965) and a doctorate (1967). He provides advice for Business making strategic plans so that they achieve a profitable growth. He has worked for Business like GE, Bank of America, DuPont, Thomson Financial, Honeywell and Home Depot. Dr. Charan has captured his business insights in numerous books and articles.

Summary: “The almost perfect way to deal with the economic crisis”

The article written by Ram Charan tells the story of a DuPont’s CEO called Chad Holliday, whose reaction to the present crisis should be an example for other companies.

When Holliday noticed that things were not going okay, and what was happening was not just a daily plunge of Wall Street he decided to start with his contingency planning. In spite of the financial nature of the crisis, Holliday’s plan consists more in an improvement of the communication between DuPont’s staff rather than financial movements. According to this, the CEO decided to have face-to-face meeting with his manager, as well as asking every employee “to identify three things he or she could do immediatly to help conserve cash and reduce costs” and how did they understand the nature of the crisis. Holliday also asked the top DuPont leaders what were they doing to cope with this dramatic situation.

The aim of these measures was to conserve as much cash as possible as well as reducing their costs. Accomplishing this objective would obligate the directors to cut back the DuPont’s staff as much as possible.

Dupont’s initial reaction to economic crisis just only took 6 weeks, comparing to other companies or even to other countries, like Spain, this period of time can be considered like a blink. However, everyone can guess that there is still so much hard work to do, but the message that we are getting from DuPont is that they are ready to fight against the future.

As a way to conclude this essay, we have to notice the importance of communication inside a company. This example shows the problems that lots of companies are having in this aspect because they are considering communication a secondary skill when it is one of the most important keys of success for everything we do on life.

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