Executive Decision - March/April 2008 - (Page 24)

MANAGEMENT Whether dealing with a crisis or implementing short- and long-term strategies, having the right team is paramount, says Noel M. Tichy, professor of management and operations at the University of Michigan and co-author of up with a lot of back biting and the team can’t wait to see the emperor stumble.” Merrill Lynch posted its worst-ever quarterly loss, amid sharp devaluations of mortgage-related securities in the fourth quarter, according to the company. The brokerage firm posted a $9.8 billion fourth-quarter loss; the loss included a $9.9 billion write-down on collateralized debt obligations. Citigroup, the nation’s largest bank, also reported a substantial loss of $9.83 billion. The bank’s record loss was caused by write-downs of mortgage-related securities. The fallout from the losses cost the chief executive officers of Citigroup and Merrill Lynch their jobs, including Charles Prince, III, and Stan O’Neal, re s p e c t i ve l y. Me r r i l l Ly n c h announced O’Neal’s immediate retirement in October 2007, while Citigroup released the news of Prince’s resignation on . Nov. 5, 2007 How companies manage over the long haul and how successful they are navigating the ups and downs in a global market will depend on how much they invested in the developing capital, says Mark Anderson, president of the Norwalk, Conn.-based ExecuNet, which brings C-level executives together online and in face-to-face meetings to discuss business challenges. ExecuNet recently surveyed executives about having enough qualified talent: About two-thirds of the respondents said there was a shortage, up from 50% in 2006, says Anderson. In addition, the skills executives need today have shifted dramatically, he adds, largely as a result of Judgment: How Winning Leaders Make Great Calls. Tichy, who has worked with many executive teams Noel M. Tichy Professor at multinationals, says building a great team is the difference between success and failure. “People come first, then strategy and then you can deal with a crisis.” Some leaders are probably unnerved as a result of the sub-prime mortgage crisis, volatile global markets and a looming global recession. But you won’t see corporations such as General Electric Co. or Goldman Sachs become unhinged, Tichy says. “Both have done a good job of putting good leaders in place and they are good building teams.” Among those corporations that are having problems weathering the crisis, such as Merrill Lynch & Co. and Citibank, Tichy says, it is because the leaders failed to build the right team. “As a result, you end University of Michigan The skills executives need today have shifted dramatically largely as a result of globalization and the Internet. Mark Anderson President globalization and the Internet. “Executives need to know the markets and we’re beginning to see this reflected in seeing more diversity at the top.” In February last year, PepsiCo appointed Indra Nooyi as its CEO. She is the company’s first female CEO, but perhaps even more significant is that Nooyi was born in India, Anderson says, and more and more companies are seeking leaders that know emerging markets. About 53% of ExecuNet 24 EXECUTIVE DECISION I execdecision.com http://execdecision.com

Table of Contents Feed for the Digital Edition of Executive Decision - March/April 2008

Executive Decision - March/April 2008 Contents Index of Advertisers Contributing Editors From the Editor's Desk Publisher's Note You Be the Judge - Unionization Thought Leader - Pitney Bowes Management - Flying High for Long-Term Results Strategies - Sovereign Wealth Funds Cover Story - In Whom Do We Trust? The Movement for Greater Accountability & Disclosure Finance/Legal - The New Boycott Model Green At Work - Transforming for Sustainability Technology - Embracing Risk Leadership - Executive Reputation Management The Global Village - China Moves to Curb Prices Economic Profile - California Gold Rush Transformations - I Can See Clearly Now, The Brain Is Gone Marketing - Effectively Using Market Research The Bottom Line - Brands: A Shrinking Advantage or Shifting Advantage? Pulse - Pandemic: Not If But When SPECIAL SECTION - Living On the Green: Luxury Golf Destinations

Executive Decision - March/April 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.