When to dismiss Chief Executive Officer?
Examples from Shukra Niti for Chief executive Officer)
Guidelines for CEOs for Appointing and Training the Employees – 35
Successful Strategies for successful Chief executive Officer – 135
Guidelines for Chief Executive Officers (CEO) series – 135
(Guiding Lessons for CEOs based on Shukra Niti)
(Refreshing notes for Chief Executive Officers (CEOs) based on Shukra Niti)
By: Bhishma Kukreti (Sales and Marketing Consultant)
गुणनीतिबलद्वेषी कुलभू अप्यधार्मिक: I I274
नृपो यदि भवेत्तं तु त्यजते राष्ट्रविनाशकम् I
तत्पदे तस्य कुलजं गुणयुक्तं पुरोहित: II 275
प्रकृत्यनुमतिं कृत्वा स्थापयेत राज्यगुप्तये I
(Shukra Niti Second Chapter Yuvrajadi Lakshan, 274 -275)
Translation-
If by help of his characteristics and (good) qualities, the King starts following wrong paths (destructive and very harmful to the nation, even though, he might be from elite family /genes, such a king should be dismissed. The Purohit Priest should select a capable king among ministers and crown the said person as king.
(Shukra Niti Second Chapter Yuvrajadi Lakshan, 274 -275)
There is no need to explain that many times, it is necessary to replace the Chief executive officer or to dismiss the CEO.
For example, today (September 2020) it is necessary for the Congress Working Committee to dismiss Congress President Sonia Gandhi immediately as Congress did in the past by dismissing Sitarm Kesari from President post.
Before dismissing the CEO, it is not to be seen that the person belongs to an elite family but it is analysed how much the present CEO damages the organization and the image.
The authorities of the organization should fire /dismiss the CEO on following situations-
CEO does not fit with the present requirement –
Many times, due to passing the time, the CEO becomes irrelevant for the present competitive situation and should be fired. For example, in the 1914 General Election, Bhartiya Janta Party chose Narendra Modi as Prime Minister Candidate by discarding Lal Krishna Advani. The reason was obvious that Advani was irrelevant in the new circumstances.
The CEO must have the right package of ‘skill, values, and capabilities’ for building the leadership team for the organization.
If the CEO does not fit in the right package, the CEO must be terminated that is CEO does not deliver -
Required performances
Relationship issues
Lack of key skills
Alienating management system
Mismanaging Changes
Denying reality /ignoring customers
Does not fulfil promises
Scandal
When the CEO fails to support the values of the Organization-
When the CEO does not care about the care values of the organization and follows the wrong path that might be dangerous for the image and survival of the organization .In those circumstances, the CEO must be dismissed.
However, it is tough to dismiss CEO especially family run business or family run organizations as in Political circles Congress, Samajvadi parties etc.
Before dismissing the present CEO the organization should have the option for appointing the new CEO.
References -
1-Shukra Niti, Manoj Pocket Books Delhi, page -100
Copyright@ Bhishma Kukreti 2020
Guidelines for Dismissing the Chief Executive Officer; Guidelines for Dismissing the Managing Director; Guidelines for Dismissing the Chief Operating officer (COO); Guidelines for Dismissing the General Manager; Guidelines for Dismissing the Chief Financial Officer (CFO) ; Guidelines for Dismissing the Executive Director ; Refreshing Guidelines for Dismissing the CEO; Refreshing Guidelines for Dismissing the COO ; Refreshing Guidelines for Dismissing the CFO ; Refreshing Guidelines for Dismissing the Manager; Refreshing Guidelines for Dismissing the Executive Director; Refreshing Guidelines for Dismissing the MD ; Refreshing Guidelines for Dismissing the Chairman ; Refreshing Guidelines for Dismissing the President