Showing posts with label CEO. Show all posts
Showing posts with label CEO. Show all posts

Thursday, November 01, 2012

SARAH CORNALLY FOUNDER & MANAGING DIRECTOR, CORNALLY ENTERPRISES Learning lingua franca of the boardroom

With over 25 years as a leadership and management consultant, Ms. Sarah Cornally specialises in developing leaders to create culture that enables organisations to thrive. Ms. Cornally is a leading expert in organisational dynamics, examining culture and strategy of senior executives and leadership at the boardroom level. She has co-authored several books such as ‘Turning Strategic Intent into Real Results’.

Q. How do you see HR’s role as a strategic business partner?
A. Strategy is how you go about bringing a vision from an idea into existence. In business, it requires understanding all the forces at play in the marketplace, deciding how you will create value by mobilising resources that fulfill the purpose of an organisation. Consulting with organisations where there are co-creative relationships between the CEO, CFO, COO, CIO and CHRO gives a clear line of sight to the contribution each function plays in bringing the vision into being.

This requires the CHRO to understand the business strategy from a commercial perspective and all its implications for the organisational design, development and culture – both short and long term. CHRO should be able to demonstrate credible knowledge in understanding what the business strategy demands from various functions of the business and how HR can be a partner to enable this to work effectively.

Q. What does the leadership expect from HR?
A. The leadership needs a well-designed organisation that functions effectively to enable the business strategy to be implemented in the most effective and well-leveraged way that embodies their brand and strengthens their reputation. They need to be attractive to the kind of talent they need, recruit them well and be able to align them to deliver the results and retain them, while optimising their levels of engagement and contribution. They need to grow their future leaders to ensure continuity and evolution consistent with their long-term vision. Creating systems and processes which make sure that they meet all their responsibilities towards the employees and other stakeholder obligations is essential.

The board is concerned about organisational effectiveness and their stewardship responsibility regarding the health of the organisation and factors that impact on organisational performance. The directors need to have accurate picture of the organisation to exercise their responsibilities and work with management. The HR executives need to build understanding in the boardroom by speaking boardroom language and framing messages in meaningful ways. Click here to read full interview...

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Saturday, September 08, 2012

For the win!

This one, to the mother of all Blah-Blah forums: Twitter! The microblogging service that reminded us of brevity being the soul of wit, with its 140-character limit on messages, is where you get to witness ‘change’, in real time. Recently Twitter got itself a new CEO, Dick Costolo, and even primped up its interface to make for a richer media experience. #CheckItOut!


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face

Friday, July 27, 2012

One Dollar CEOs!

What is it About a One Dollar an Year Compensation that Attracts some of The Most Powerful CEOs in Corporate America? Unfortunately, The Answer isn’t what it is Perceived to be.

In a mad sprint towards the mirage of creating just about everything out of nothing, the US financial system managed to pull off a crisis, which cost the world more than $2 trillion in loses. The value of these losses keeps changing for the worse every month as more homes come under foreclosures and financial institutions around the world write down their holdings based on subprime assets. But what doesn’t change is the audacious phenomenon of hefty pay cheques that investment bank CEOs continue to take home. According to a research commissioned by The Wall Street Journal, total compensation of publicly listed Wall Street banks grew by 5.7% to hit a record $135 billion in 2010. Unfortunately, regulators and watchdogs are still quite listless.

During an interview, David McCormic, who was the Under Secretary of the Treasury to the Bush Administration went on record stating that he “would not support legal controls over executive pay”. As amusing as it may sound, Scott Talbott, Chief Lobbyist, Financial Services Roundtable, is comfortable with the level of compensation in the financial service industry because he believes that “Wall Street has earned it!” Availability of extensive literature on the subject doesn’t help disguise the disconcerting reality either – executive compensation continues to be one of the most debated and hallowed corporate issues in these contemporary times.

CEOs themselves need to realise the negative fallouts of an unjustifiably huge package on their performance and consequently on their careers ahead – a fact proven by various studies. A research undertaken by Graef Crystal in 2009 (a veteran in executive compensation consulting) shows that “there is no relationship between CEO compensation and shareholder returns”. In December 2009, three professors at the University of Utah and Purdue University commissioned a study titled Performance for pay? The relationship between CEO incentive compensation & stock price performance. The report analysed all NYSE, AMEX and NASDAQ firms listed on the Compustat Execucomp Database and Compustat Annual Industrial files from 1994-2006 and concluded that “industry and size adjusted CEO pay is negatively related to future shareholder wealth changes.” They proved that firms that overpay their CEOs earn negative abnormal returns over a five year period.

Amidst all the hue and cry over why these CEOs need to be paid so much, there are some top honchos who settle down for a mere dollar as their fixed annual compensation and are also referred to as one dollar CEOs. At hindsight, that comes across as the ultimate benchmark on accountability, commitment and sincerity. But on closer examination, matters are not really what they seem to be.