Everybody looked great when world economies were great. Now that they’ve turned, we can see all the blemishes of both top CEO’s and top world leaders.
New York, NY (PRWEB) January 28, 2011
As the world watches events unfold in Egypt, world leaders are probably discussing what to do if the Egyptian government falls. Leadership expert Jeff Christian, founder of executive search firm CTPartners, and CEO of Revenue Beast gives his take on what will happen next.
Christian notes that, “Shareholders and Boards of corporations have far less patience than do countries. I did the CEO search for Hewlett Packard to replace Lou Platt. Last year, it took only a small loss of confidence in Mark Hurd for him to be fired.”
Christian continues, “What’s happening in Egypt is all about leadership. This is similar to what happens in the corporate world. When enough bad things happen, people lose confidence in their leader and, as soon as that occurs, things begin to unravel quickly.”
Egypt is in chaos. The country is under curfew. According to The New York Times, most Internet access and cell phone service has been cut off.
Christian remarks, “When trouble arises in corporations, we see a disastrous fall in stock prices and usually, the CEO is fired. In the world of government leadership, when the populace is in revolt as it is in Egypt, political coups, military coups, or, in fewer cases, even assassinations ensue. Basically, the leader is removed.”
“As with corporations, once this momentum takes off, it’s almost impossible to stop. It’s obvious to all that the Egyptian government is rapidly deteriorating; almost anything can happen at that point.” said Christian.
“Depending upon their own interests, ideals, or beliefs, world governments will be acting as board members to either push for Mubarak’s resignation or to support and strengthen his government. If we continue this corporate analogy, the US is like a board member to the government of Egypt and in corporations, when a board member backs the ‘wrong guy’, the board member ends up on the wrong side and usually, is also removed,” notes Christian.
He observes, “So, it appears that the US government may have backed the wrong leader and this leader’s results have been poor.”
Christian explains that the recent economic downturn has afforded us the opportunity to, “see who the good CEO’s were and who the bad CEO’s were.” He continues, “Everybody looked great when world economies were great. Now that they’ve turned, we can see all the blemishes of both top CEO’s and top world leaders. As with the ‘activist shareholders’ of today, it appears that there is little patience amongst the populations of poorly run countries.”
Christian concludes, “When a corporation is run poorly, performance is weak, and the stock price falls, it is ripe for a takeover, just as is Egypt.”