Ram Charan, considered a guru in economics, was born in 1939 in Uttar Pradesh (India) and works now as a business consultant, speaker and writer. He earned a degree in engineering from Banaras Hindu University and later studied at harvard business school.Charan was elected a Fellow of the National Academy of Human Resources in 2000 and named a Distinguished Fellow in 2005. He is also a director of Austin Industries.

In one of his most recent books, "Leadership in the Era of Economic Uncertainty", he talks in the sample page from the book about how global crisis can affect from a major customer in Japan to DuPont CEO Chad Holliday in the United states in a few days.As he says, this first one told Holliday about his bad company's cash position and because of the financial contagion spread, Dupont CEO was having a meeting next morning with his six top leaders of the company touching present problems and looking forward in order to see how much worse they can become.As the answers weren't too good, Holliday decided to take action.

DuPont started what they called a corporate crisis plan based in bringing their senior's managers to evaluate the cause of the crisis and use appropriate "disaster-control procedures".The 17 standing teams had their normal crisis meeting and decided first of all that the crisis was only financial, reason why eight teams were stood down.The nine teams left decided what was needed to be done, then let the employees know it but obviously with a non technical language in order to make sure everybody understood what the crisis was about.Ten days passed after the corporate crisis plan began, every employee had had a face-to-face with a manager that explained him exactly how the crisis affected the company and what was his job from now to new order.Every task was aimed to reduce costs and conserve cash and the employees had a successful reaction to it.

However, Holliday didn't focus on what it was being done but how fast this was being done, reason why he had the next days a three-person team of top executives looking at longer terms actions and trying to predict what was coming.This was one of the most important decisions DuPont took.At this point, they could say all the employees were doing the right job and were not frightened needlessly.

As a conclusion, we can see that DuPont is ready to face nearly any problem that can appear in the years coming because of its quick reactions and of course its appropriate decisions.Chad Holliday is nowadays an example of leadership because he saw the change coming and immediately began to move on.His decisive actions and his properly way to face problems and get things done is exactly what a company leader must at least try, in difficult times.

Mark = 8

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