IIPM Ranking

Thursday, October 12, 2006

Can’t fire him guys, even if he is ‘Bush’ed!

Que: Forgetting politics, how long would you continue to employ US Defense Secretary Donald Rumsfeld? He appears to have done a poor job planning and executing the war’s strategy, and he’s evidently lost the respect of the people who work for him. How do you view this from a management perspective? (Jeff Moskow, Las Vegas, Nev.)

Ans: You can’t forget politics in this case as senior White House appointments are all about politics. One can’t really evaluate this situation from a strict management perspective. Government is just not business, especially with respect to dealing with performance issues. To elaborate, consider the recent spate of high-profile corporate departures. William Clay Ford Jr. basically fired himself as CEO, stepping down from the family company he had run for five years. After over two decades of close collaboration, Viacom founder & Executive Chairman Sumner Redstone asked CEO Thomas E. Freston to move on. In contrast, David L. Calhoun, Vice Chairman at GE, was lured into the private equity world by an offer to run privately-held Dutch firm VNU Group. All three departures caused reactions from surprise to disappointment – Freston’s was quite unexpected. But the transitions were swift and smooth. Ford, who will continue as Chairman, announced his resignation as CEO at the same time as he named his successor, Boeing Executive Alan R. Mulally. Freston was immediately replaced by longtime Redstone adviser, Philippe P. Dauman. Calhoun’s job was taken up by GE Executive John G. Rice.

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