Wednesday, December 15, 2010

The CEO Role

Studies have looked at the effect of top management changes and have found they account for only about 10% of added profitability.

Often it is other circumstances that result in a company’s doing better or worse. The economy, business or general industrial conditions may have much to do with any company’s near-term fortune.

There are business cycles. Moreover, the bigger the company, the harder it is for a CEO to turn operations around on his or her own.

The CEO is certainly important, but never to the extent the public, or the media, may believe.

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