Selection of the ‘correct’ CEO important to success of an organisation
The overall success of an organisation depends on getting the right person as its CEO, the one who is in a commanding position with adequate, trusted and delegated power. However the wrong selection of a self-serving person would destroy the organisation.
This was stated by Prof. Errol D’Souza, Director-in-Charge, Indian Institute of Management, Ahmadabad while delivering the keynote address at the inauguration of the CPM (Chartered Professional Managers) Regional Management Conference 2017 held this week at the BMICH. Chief Guest at the event was Dr. Sarath Amunugama, Minister of Special Assignment while Prof. Lakshman R. Watawala, President, CPM made the opening remarks.
Prof. D’Souza continuing his address gave an example of how a company which was on the top 50 companies in the world collapsed due to selecting a ‘self-serving CEO where he was even provided with an aircraft ‘to discharge his duties swiftly and efficiently’ but it was found the aircraft was used even to carry his dog.
Discussing this year’s Conference theme ‘Transformational Leadership: Turning Ideas into Action’, he indicated that every person in the commanding position also is accountable along with the owners of the firm who appoint this person and wants him to follow the objectives – for instance to earn profit – that are laid down. He said that once the trust is built, responsibilities have to be delegated, rather than monitoring all his actions. He said: “If there is no delegation you cannot get leadership.”
Responsibility should be fully delegated so that the CEO could assume responsibility and leadership, but if his decisions are evaluated and changed by the owners, the CEO would cut a sorry figure among his subordinates, Prof. D’Souza asserted. “Only with trust and freedom can someone deliver” he said.
One of the paradoxes, he said is that if leadership is to emerge one has to trust that something would happen and people are motivated within the organization towards a particular goal and when they motivate people, things move rather smoothly, he indicated.
Shathif Ali, President, Association of Management Development Institutions in South Asia (AMDISA), and Dean, Maldives National University said that in South Asia there are lots of people with talents and skills which could be harnessed for the development of the region. Yet there are lots of mouths to be fed and thus these resources have to be utilised to the optimum, in the most efficient way.
Today, he said organisations operate in a very volatile environment that requires strong leadership to enable it move to a higher level from the current status and to use human and other resources efficiently for the betterment of the organisation. In any case with this competition, he said that they cannot be complacent of what they have been doing and the results achieved. Prof. G Raguram, Director, Indian Institute of Management, Bangalore said that on tourism Sri Lanka has done well, especially with India.
He said that with regard to shipping the Colombo port is servicing Indian shipping largely because foreign shipping lines under regulations cannot move containers from one Indian port to another. Therefore, he said that foreign shipping lines get the service of the Colombo Port.
Dr. Hasan Sohaib Murad, Vice President, AMDISA and Chairman, Board of Management, University of Management and Technology, Pakistan also addressed the conference delegates.