Charan4445

Ram Charan’s biography:

Ram Charan was born in 1939 in India. When he was yong he worked in his family shoe shop. He obtained a dgree in engineering and later studied at Harvard Business School where he earned an MBA and later a doctorate.

He is the author of many books like “What the CEO Wants You to Know”, “Every Business Is a Growth Business” and the coauthor of “Execution”. Other articles have appeared in the Financial Times or Harvard Business Review.

He is a noted management writer who has been working and giving very good advices for many well-known companies Such GE, KLM, Bank of America etc, helping them to develop.

Ha has received many important awards for his great work, we can stand out best teacher award at Northwestern.

Summary:

How the CEO of DuPont reacted to the current economic crisis?

Chad Holliday (DuPont’s CEO) noticed the economical crisis was globally when a major japanese customer told him that he was also worried about his company’s postion. So when he arrived to USA he dicided to act inmediatly.
Firstly he met the six top leaders to discuss about how bad was the crisis now, and how bad could it get.
They realised that the problem was bigger than what they thought. On one hand what seemed to be a crisis in Wall Street it could become a global crisis in Europe and Russia and on the other hand their production was slowing.
Therefore they took action.

Holliday dicided to use a Corporate crisis plan. These type of plans are used when there are important reasons, it was used for exaple in the wake of the 9/11 attacks.
The plan immediatly brought together the 17 teams that always assemble when a crisis is declareted, 4 days later they had determinated what needed to be done.
Comunications with employers took different ways.The pension fund manager took time to develop some material advising employees about investment options for the retirement funds,all employers were asked to identify three things he or she could do immediately to conserve cash, they had to pass a sociological test, and see what would be their answer in some situations. The actions aimed at conserving cash were taking hold quickly. But Holliday wanted the solution was faster. Also Holliday talked with 14 leaders of others companies about the crisis.

DuPont had a three-person team of top executives that were thinking about which production facilities could be closed to reduce costs, however they came to the conclusion that the faster way was to reduce the cost of the outside contractor.
DuPont’s took place in less than six weeks but there will be much more to do.
He did what a leader must do putting people together and taking decisions.

Mark = 6

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