Wednesday, May 13, 2009
Pay cuts!
"House Financial Services Committee Chairman Barney Frank (D., Mass.) is working on legislation that could strengthen the government's ability both to monitor compensation and to curb incentives that threaten a company's viability or pose a systemic risk to the economy." WSJ 5-13-09.
Healthcare next? Its only a matter of time.....???
And by the way where do you think the $2 Trillion in cuts is coming from?
Healthcare next? Its only a matter of time.....???
And by the way where do you think the $2 Trillion in cuts is coming from?
The role of the CEO is to tie the external to the internal
But many CEOs are drawn into the internal...the domain of costs and crisis and don't spend time in the external or bridging the two.
According to Harvard Business Reviews interview with AG Lafley Ceo of Proctor and Gamble http://hbr.harvardbusiness.org/2009/05/what-only-the-ceo-can-do/ar/1. Influenced greatly by Drucker he quotes Drucker “The CEO is the link between the Inside that is ‘the organization,’ and the Outside of society, economy, technology, markets, and customers. Inside there are only costs. Results are only on the outside.”
"But it has become clear to me that the CEO’s real and unique work draws on a uniquely external perspective that is inaccessible to the rest of the organization unless the CEO makes it accessible through choices and actions every day." P&G's CEO A. G. Lafley.
According to Lafley how does he focus on the external stakeholders: "drawn from Drucker’s observations:
1. Defining and interpreting the meaningful outside
2. Answering, time and again, the two-part question, What business are we in and what business are we not in?
3. Balancing sufficient yield in the present with necessary investment in the future
4. Shaping the values and standards of the organization"
P&Gs growth goals annually are very respectable if not daunting....given the stagnation of "customer value" in healthcare this may be the focus we are needing.
Lafley's trips are spent in customers homes and stores....How much real hands on time are healthcare CEOs spending in defining and interpreting the "meaningful outside"? Do you understand your meaningful outside.
According to Harvard Business Reviews interview with AG Lafley Ceo of Proctor and Gamble http://hbr.harvardbusiness.org/2009/05/what-only-the-ceo-can-do/ar/1. Influenced greatly by Drucker he quotes Drucker “The CEO is the link between the Inside that is ‘the organization,’ and the Outside of society, economy, technology, markets, and customers. Inside there are only costs. Results are only on the outside.”
"But it has become clear to me that the CEO’s real and unique work draws on a uniquely external perspective that is inaccessible to the rest of the organization unless the CEO makes it accessible through choices and actions every day." P&G's CEO A. G. Lafley.
According to Lafley how does he focus on the external stakeholders: "drawn from Drucker’s observations:
1. Defining and interpreting the meaningful outside
2. Answering, time and again, the two-part question, What business are we in and what business are we not in?
3. Balancing sufficient yield in the present with necessary investment in the future
4. Shaping the values and standards of the organization"
P&Gs growth goals annually are very respectable if not daunting....given the stagnation of "customer value" in healthcare this may be the focus we are needing.
Lafley's trips are spent in customers homes and stores....How much real hands on time are healthcare CEOs spending in defining and interpreting the "meaningful outside"? Do you understand your meaningful outside.
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