From the Editor’s desk, comes to you seven rocking ways in which global CEOs have destroyed their companies...
Lousy CEO Habit #4: Being proud of not being an MBA
I’ve seen many such CEOs, boasting to the world how an MBA is plain rubbish. Apart from innumerable researches, Sloan MIT’s spectacular research (Managing With Style) of 7,500 of the world’s top firms proved conclusively how companies with MBA CEOs perform fantastically better than those having non-MBA CEOs.
Lousy CEO Habit #5: Believing CSR (Corporate Social Responsibility) adds to profits
Umpteen reports, like Stanford’s definitive Social Innovation Review, have year after year vindicated that CSR investments are particularly unlikely to pay off. Michael Porter, the father of modern strategy, blasted CSR as being just “a PR game!” The most respected Peter F. Drucker historically documented his statement in the documentary The Corporation, “If you find an executive who wants to take on social responsibilities, fire him... Fast!”
Lousy CEO Habit #6: Wanting to convert his ‘privately held’ company into a ‘public’ one
University of Michigan, Chicago University, London Business School and many other top researches have beyond doubt proved how public ownership is clearly disadvantageous for firms, not only in terms of control, but also in terms of business volatility.
Lousy CEO Habit #7: Believing in the ridiculous concept of core competencies
BCG showed at the start of 2007 (after a ten year in-depth study of hundreds of firms) that being diversified was thunderingly better than sticking to the ‘core’. They also showed how “there is no statistical correlation” between a core focus and shareholders’ wealth. There, that was simple, wasn’t it? Strangely, India Inc. seems to be getting none the better, with a growing majority of those CEOs stupidly indulging in almost all the above mentioned 7 lousy habits bang on... which brings me to my junior’s most disturbing statement, that I had completely missed out on.
Lousy CEO Habit #4: Being proud of not being an MBA
I’ve seen many such CEOs, boasting to the world how an MBA is plain rubbish. Apart from innumerable researches, Sloan MIT’s spectacular research (Managing With Style) of 7,500 of the world’s top firms proved conclusively how companies with MBA CEOs perform fantastically better than those having non-MBA CEOs.
Lousy CEO Habit #5: Believing CSR (Corporate Social Responsibility) adds to profits
Umpteen reports, like Stanford’s definitive Social Innovation Review, have year after year vindicated that CSR investments are particularly unlikely to pay off. Michael Porter, the father of modern strategy, blasted CSR as being just “a PR game!” The most respected Peter F. Drucker historically documented his statement in the documentary The Corporation, “If you find an executive who wants to take on social responsibilities, fire him... Fast!”
Lousy CEO Habit #6: Wanting to convert his ‘privately held’ company into a ‘public’ one
University of Michigan, Chicago University, London Business School and many other top researches have beyond doubt proved how public ownership is clearly disadvantageous for firms, not only in terms of control, but also in terms of business volatility.
Lousy CEO Habit #7: Believing in the ridiculous concept of core competencies
BCG showed at the start of 2007 (after a ten year in-depth study of hundreds of firms) that being diversified was thunderingly better than sticking to the ‘core’. They also showed how “there is no statistical correlation” between a core focus and shareholders’ wealth. There, that was simple, wasn’t it? Strangely, India Inc. seems to be getting none the better, with a growing majority of those CEOs stupidly indulging in almost all the above mentioned 7 lousy habits bang on... which brings me to my junior’s most disturbing statement, that I had completely missed out on.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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