CHARAN 4444

Biography

Ram Charan is a well recognised speaker and advisor and the author of What the CEO Wants to Know.
One of the most prestigious expert on bussiness strategy, Ram Charan executed one of the most successful CEO’s.
He has also worked for companies like GE, KLM, Bank of America trying to develop their strategic direction.

Summary

In the book “ Leadership in the Era of Economic Uncertainty” Ram Charan using as an example the DuPont CEO Chad Holliday explains how to face an economic crisis.

Chad holliday went to Japan to visit an important customer and the CEO of the japanese companie told Chad he was concerned about the cash position of his companie.When Chad landed in the USA he convoked a meeting, and asked his top leadres two questions: How bad is it now? How bad could it get?
What seemed a crisis in Wall Street could became a global crisis.
There is a plan called the Corporate Crisis plan, plan wich is rarely accepted. Holliday had to weigh wether the crisis was enough grim for justifying his aplplication or not.
In the first four days it came through that the nature of the crisis was just finantial. At the end of the four days, the remaining nine had determined what needed to be done to guarantee DuPont´s viability.
Hollidays companie resort to the companie’s chief economist and the head of it´s pension fund to explain the roots of the crisis to their employees. All employees had a face-to-face with a manager whom explained what the enterprise needed to do. Few days after the company made some inquirys to see if the employees were doing what they were suppossed to do or not. In general the employees were doing fine, but Holliday had the sensation that people did not understand the urgency with wich they needed to act. Within his CEO and CFO, Holliday spent an hour and a half with the 14 principal companies leaders. They were ask to explain what were they doing to face the crisis.
Dupond had a team that was in charge of looking afetr longer-term actions that his company needed to buy. But the quickest cash save was to reduce outside contractor overhead from over 20000. There will be more work to do if the global economy fares over the next years. Even when everything return normal, Holliday thought that the inflationary trends will reassert themselves.

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