Ram Charan's article

LEADERSHIP IN THE ERA OF ECONOMIC UNCERTAINTY
The New Rules for Getting the Right Things Done in Difficult Times

we could put as a title of this article:"wake-up call!"

This article shows us the representative situacion of DuPont,a company of the financial industry,ti means that this is the real situation of many companies.
Chad Holliday is the DuPont CEO and is the person who represents DuPont in this article,we see how he and his company work.

We see in this article the financial situacion of many companies,not only in USA,because of Globalization the difficult situation is happening around the world.
USA is the more powerful country,and if is a crisis of confidence in Wall Street had the potential to become a global crisis as Western Europe, Russia, and most of Asia.

People are worried about his companys' cash position,leaving companies struggling to finance their operations.We have to understand that financial industry is in a difficult situation and this bad news make a lost of confidence in the other economic sectors and in the global economy.

This company is are worried about his companys' cash position.The evidence of how serious the problems were becoming appeared in different places.More telling was the rate at which production at many companies was slowing.

The automobile companies share their production schedules with DuPont. Suddenly there weren’t any production schedules. The automakers didn’t know what they were going to produce in the face of collapsing sales.This is a huge problem,sales are running down.

DuPonthas a plan dubbed the Corporate Crisis plan,the plan seldom is called up.
DuPont’s senior managers had to weigh whether the gathering financial storm was serious enough to warrant implementing it or whether declaring a crisis might frighten the company’s employees.Finally they decided that “Corporate Crisis” was right and necessary

It became clear that the nature of the crisis was only financial,they had determined what needed to be done to ensure DuPont’s viability.The beginning of this, is the financial situacion of such many companies like this.9 of the 17 senior managers had determined what needed to be done to ensure DuPont’s viability.

Communications with employees took several forms. Holliday enlisted the company’s chief economist and the head of its pension fund, both of whom are highly regarded in the company, to explain in nontechnical language the roots of the crisis and the way it was affecting the company.Each employee was asked to identify three things he or she could do immediately to help conserve cash and reduce costs. Within a few days after the communications program was rolled out, the company conducted polling to see how well employees understood the nature of the crisis, determine their psychological reactionand see whether they actually were doing what they needed to be doing.
All of this have been done to test the employees and to do they understand the real situation and their oportunities.The actions aimed at conserving cash were taking hold quickly.

Holliday said:“In hindsight, maybe we were too good at giving them the reassurance and confidence that we could come through this,”. “We gave them so much confidence that they just weren’t responding as fast as the slowdown demanded.”

Together with his CEO and CFO, Holliday took the time to spend an hour and a half with each of the company’s top 14 leaders. They were asked to explain what they were doing to cope with the crisis. They all brought long lists and seemed to feel confident that they were doing a lot. But the problem was how fast it was getting done.Those sentences shows the urgency of the solutions and of the real situation
ways to reduce: internal meetings were canceled, and consultants and contractors were eliminated where possible.

the phrase that sums up the work of Chad Holliday is:"There will be much more to do"
Now,we see how a leader does the work,proposes solutions and see the way to solve a crisis.

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