Monday, January 28, 2008

A visionary optimist & a shrewd general, who’s witnessed the worst and prepares for the best!

Born on February 19, 1956 in Cicinnati, Ohio, the six-foot-four-inch Jeff had in some way been seasoned with GE’s value right since his childhood days as his father was an aircraft engines manager at GE’s Aviation unit. He met his wife Anrea at GE Plastics & has a daughter named Sarah. He holds Bachelor of Science degrees in Economics & Mathematics from Dartmouth College & topped it all up with an MBA degree from Harvard.

Th e highlight of his tenure at GE has remained the revival of the stagnant medical-products unit, transforming the company into being more consumer-oriented & his effective handling of the ‘environmental’ approach of GE called ‘Ecomagination’. However, challenges remain & the primary one being giving smiles to GE shareholders around the globe, amongst whom Jeff unlike many legendary CEOs, is not quite a hero.

For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Friday, January 18, 2008

Don’t worry pop, i’ll blow it all up!

Perhaps the most dramatic paper that electrifyingly shook age-old perceptions was the one presented in 2004 by stalwart professors Belen Villalonga (Harvard Business School) and Raphael Amit (Wharton), who analysed “all” Fortune 500 firms and proved unequivocally that not only do the stock returns of family firms consistently show higher levels of risk, but also that “when ‘descendants’ (of founders or founding families) serve as CEOs, firm value ‘is’ destroyed!” If one presumed that modern corporate governance norms were enough to mitigate the damage caused by family successors, Villalonga and Raphael prove further that descendant CEOs “destroy value whether or not the family has control-enhancing mechanisms.” While the most noted 2003 research by London Business School proffered that family businesses “risk their growth potential if they fail to recruit from outside,” most amusing was the Economist research at the turn of the century that commented how the death of a significant inside shareholder resulted in a shareholders’ wealth increase (“the larger the deceased’s shareholding, the bigger the subsequent rise!” ) Strangely, this finding gets humungous support from the subsequent benchmark 2005 research paper titled ‘Firm Performance...In Family Managed Firms’ by David Hillier (Leeds) and Patrick McColgan (Aberdeen), which documents positive stock price increases to the “announcement of the sudden death of a company’s founder executive.” But more seriously, they also indisputably brought out how family CEO successions are almost always followed by dramatic declines in not only stock performance, but most dangerously, even operating performance! Not surprisingly, the exits of family CEOs from family owned firms led to increases in operating performance, revenues, employment, stock value, but only if the new CEO being appointed was from outside the family! A fact vindicated a few years before in 2003 by the radical Pérez-González of Columbia Business School; and even by Professor Borokhovich of Cleveland University; and by Bath, Trygve, Schone of Institute of Social Research (Journal of Corporate Finance, 2005); Slovin (Louisiana University) and Sushka (Arizona University)... the list is so endless that it seems stupid to keep on repeating the same fact.

For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Thursday, January 10, 2008

Commodity called child…

The dark ages have arrived & the testimony to that is the increasing trafficking of children & the perpetrators are going Scott Commodity called child…free for want of substantial evidence. It is an irony that while many powerful nations boast of an arsenal good enough to blow over their adversaries many times over, when it comes to protecting their progeny, they seem to be woefully short of ideas, means & efforts.

When Tulasi Das, a Nepali child, was sold to a trafficker & sent to brothels in Mumbai, she didn’t have an iota of idea that she was about to enter a society devoid of dreams, hopes, future & ecstasy. She didn’t know that her only cohort for the rest of her life would be relentless agony. Yet she can take solace in the fact that she would have company in this journey into darkness.
For Complete IIPM Article, Click here

Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
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