Charan 4672

Biography:

Ram Charan is a recognized and well known speaker and advisor.Expert on business strategy, he treated with important CEOs over the world and has worked lots of years for transcendent and known companies like KLM, Bank of America, DuPont, Novartis, Dell and others, helping them improving and making better their strategic direction. Ram Charan in the past five years sold more than 2 million copies of his books and he is the coauthor of the bestseller Execution and the author of many books such as What the CEO Wants to Know and Leadership in the Era of Economic Uncertainly. He loves to give the best help that he can to the companies, solving their problems, and he is very acclaimed by them. Finally, Ram Charan won the Bell Ringer award at GE´s famous Crotonville Institute and best teacher award at Northwestern.

Summary:

The CEO of the DuPont painting company Chad Holliday took immediate action to the big economic problem he saw coming. He was put into warning when one of the company’s major customer told him in a meeting that he was worried about his finances and had order his executives to conserve cash in case the financial contagion spread.Shortly after he was told that he arranged a meeting with six of the company’s top leaders to start taking actions.He suddenly realized the financial problems of the company were affecting businesses at home and abroad and he saw a global crisis coming and credit was disappearing, leaving a lot of businesses struggling and without any kind of financial support.

DuPont owns a hotel in Delaware, where in just 10 days booking 30 percent of them were lost and car companies started slowing their production (which also affected the company as it paints over 30 percent of American automobiles). DuPont usually paints the cars just 48 hours after it has been manufactured, so it also became a problem as suddenly there weren’t production schedules because there was no manufacture at all since automakers were afraid of collapsing sales.

Holliday needed to decide if a contingency planning was worth it (as it was seldom used), specifically a “Corporate Crisis” plan that when invoked, DuPont’s senior managers meet in order to take appropriate disaster control procedures. He finally decided it was a wise decision to make as there was evidence that a deepening economic downturn was raising. After summoning the 17 standing teams that are always present when a crisis is declared, they came to the conclusion that the crisis was just financial and the team was reduced to 9 which determined what they needed to focus on for the sake of the company. Employees were finally told about how the crisis was affecting the company and what they need to be doing in order to help conserve cash and reduce costs by having a face-to-face meeting with a manager. After doing so, polls were done to know the effect that caused in their employees and to see if they were actually doing right their jobs by doing what the company needed them to be doing and it was apparently going well.

Holliday suddenly realized that even though people got the idea, they weren’t acting as fast as he needed them to be acting and deciding which production facilities could be closed would take too much time so the best way of reducing costs fast was to cut back as much as possible on the over 20000 outside contractors the company had hired.This took place in just 6 weeks and there’s more to do because it depends on the global economy fares over the next 1 or 2 years and Holliday predicts that the inflation that will preced is going to reassert themselves. He is going to be ready and prepared for whatever comes up as he is a leader that know how to take charge of things and not afraid of any challenge.

Mark = 7

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License