(PRWEB) May 20, 2005
Carole Symonds, CPA, MST, author and Partner with a Global Financial Advisory Firm, stated unequivocally in a current press release that General Electric's profit performance during Jack WelchÂs twenty-year tenure was dismal, at best.
Noting that GEÂs true profits fared its investors no better than the yield on long-term government bonds, Symonds points to Mr. WelchÂs current remarks in his book, ÂWinning,Â in which he claims that the Âdirtiest little secret in business is lack of candorÂ. ÂRidiculous,Â expert says emphatically. Â The dirtiest secret in business is that CEOÂs donÂt understand how to impact the bottom line.Â
Corporate profitability is about numbers, not candor. According to Ms. Symonds article, during the last 10 years of Mr. WelchÂs reign at GE, the return on invested capital averaged a mere 7.0% - barely keeping pace with the government bond yield for the same time period. It has since fallen to 5.4%.
That Jack Welch wants us to believe otherwise is a misnomer of the facts. Symonds wants to set the record straight. ÂThe facts are that GE is in worse shape now than itÂs ever been. Jeffrey Immelt and Jack Welch blaming the economy, 9/11, and lack of candor may be symptoms, but they are not the cause of GEÂs continuing poor financial performance. This ÂblameÂ approach represents exactly what is wrong with decision making in corporate boardrooms today,Â says Symonds. ÂThe truth is that over 80% of the reasons for poor corporate performance are within the CEOÂs control.Â
Corporate CEOÂs, Training Directors and business owners around the globe are clamoring in record numbers for SymondsÂ new book ÂMillionaire ManagerÂ, which explains the difference between profits and earnings to CEOÂs who still donÂt understand this important nuance. CEOÂs miss the critical points in financial measurements of their companies. They equate earnings with profits, which can hide the true financial health of the company and mislead investors.
Symonds is challenging Mr. Welch and Mr. Immelt to come forward to explain GEÂs unacceptable financial performance under their leadership. Gentlemen, are you ready?
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