Sunday, January 24, 2010

How Important is the CEO?

Studies have looked at the fact that new top management. changes have accounted for only about 10% of added profitability.

Often it is other circumstances that account for a company doing better or worse. The economy and business or general industrial conditions may have lots to do with any individual company’s near-term fortune.

There are business cycles as there are financial. Moreover, the bigger the company, the harder for any CEO to turn things around on his or her own.

Yes, the CEO is important. But never to the extent the public, or the media, may think.

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