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There
have been many recent examples of companies falling
apart because the top executives were either greedy,
incompetent, or ignorant. What do you do to keep
these folks away from your company - and what do you do
if they are already in place?
Considering
the amount of trouble that a chief officer can get their
company into, you would think that boards would be
paying a little more attention to corporate governance
and a little less to their golf game.
While
Ken Lay is getting heat for the Enron foul-up, where was
the board of directors? Just as he insists that he
didn't know what was going on (no excuse), they stick to
the same story. The time for excuses is over.
In
too many cases, basic human resource functions are
bypassed when a top officer comes on board. It is
amazing that the lowest ranking employee may be
subjected to polygraphs, blood tests and extreme
scrutiny while the top people running the joint are
basically invited (or begged) to join the company
without so much as a real interview.
Sure,
you can say that their resume and performance to date
shows what they can do. But what about basic
traits, such as honesty, altruism, and morality?
Those should be taken into account as well.
How
do you protect your company? Simple. Perform
the same due diligence on your executives as you do on
the rest of your staff. Have a board of directors
with the nerve and dedication that is required to
properly police the people running your business.
If
you don't have the board that can do the job, it's high
time to vote one in.
Now,
if you already have a skunk in the works, things can get
tricky. You need to seek counsel (preferably
outside the corporation) to determine what legal
remedies are available to oust the rascal. Poll
your board to see what kind of support you can expect
from that area. Be proactive and try to nip any
future problems in the bud.
The
bottom line is that the people who run our businesses
today have a huge impact on your bottom line, both today
and for years to come. It is vital that they are
the best you can find - and if they aren't, replace
them!
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