RAM CHARAN biography:
Ram Charan is a much respected economist looked upon by senior managers as he has been able to find intelligent solutions to all kinds of business problems. He is also a prolific writer and teacher.
His first contact with business was in a small shoe shop in India, as soon as he found out about his natural talent for business, he decided to chase his dreams, graduated in engineering, and got an MBA at Harvard where he later taught.
Dr. Charan gives coherent and useful advises that take in consideration the actual components of business.
Ram Charan has also published many books on business, and is well known for being an excellent manager teacher, and therefore has won numerous awards.
The summary is about how DuPont CEO Chad Holliday, found out and dealt with the economic recession.
Chad Holliday was dealing with an important client in Japan when the man, who was CEO of a very important company in its global position, showed holliday his concerns on controlling his cash reserves, and spend the least possible.
Mr. Holliday figured that was a clear symptom that the crisis was indeed real and had to be dealt with. As soon as he arrived in the US he had a meeting with the company’s six top leaders to see what should be done.
He wanted to know how bad the recession was, and if it could get worse. The answers he got were not to appealing, the crisis was expanding and loans were shutting down leaving companies to cover their investments or money needs on their own.
The recession was in fact so bad, even in DuPont’s HQ town, where large company lawsuits took place, companies were settling there problems by negotiating to avoid legal fees, and a hotel owned by DuPont, noticed that when the reservations went down considerably.
DuPont has an emergency plan for cases like this, which is to get the senior managers together, and face the problems and find solutions. Of course such a plan would scare the employees who would then fear the recession. Holliday was in charge of making that decision, and he did make it.
He immediately ordered the company’s chief economist and the head of its pension fund to explain to the staff what the crisis was about and how it could affect the company in a language they could understand. Within ten days every employee had had a meeting with a manager to talk about how to cut costs and how well they understood the crisis. The employees understood the concept, in fact they seemed to comfortable taking for granted the companies strategies would work wonders.
As those short term measures were taking place the company began set up a three-member team to create long-term solutions. One of the most important things DuPont did was to finish working with outside contractors, mainly because these can be cut off without really affecting the company’s structure.
DuPont’s initial reaction happened in less than six weeks, there still is more measures and actions to take, depending on how the recession unfolds over the next years.
Chad Holliday was the one with the possibility to react to the downfall, and he did it, proving he could answer to the calls of leadership, especially when most needed, that is, in times of problems.

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