Page 264 - Executive Warfare

EXECUTIVE W ARF ARE

If you are thrown on that fire, you may not rise from it like a phoenix
because the entire organizational world is so much less forgiving than it
used to be—and less forgiving because of fright.
None of this should make you risk-averse, however. It should just make
you a little more careful not to overpromise, not to carry dead weight in
your operation, and not to go near anything that might embarrass your
directors.

THE NEW OWNERS—DELIVER FOR
THESE PEOPLE OR PREPARE TO VACATE
In this new climate, the people who invest in your organization, whether
as owners or as donors, are much more active and aggressive than they
used to be. We’ve become a culture of people who expect and demand
high returns—boomers saving for their retirements, Gen-Xers ready to
move to a bigger house, and billionaires trying to lead a green revolution
or eradicate a disease.
To be successful, executives have to
BOARDS ARE NOW
listen to these demands. But they also
BOGGED DOWN IN
have to draw the line at certain kinds of
MINUTIAE. IF YOU
interference from their investors and do
WANT TO RISE IN
what’s best for the organization.
THIS NEW
In my opinion, former Home Depot
ENVIRONMENT, YOU
CEO Bob Nardelli clearly drew the line in
HAVE TO BE
the wrong place in 2006, at an annual
REASSURING TO
meeting where the shareholders had lots
THESE NERVOUS
of questions for the board about the stag-
NELLIES.
nating stock price and Nardelli’s com-
pensation. Only there were no other
board members present besides Nardelli, and according to New York Times
reporter Joe Nocera, who attended, “the now-deposed Home Depot chief
executive refused to answer so much as a single question from shareholders.”

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