Vikram Pandit Under Fire

With Citibank sinking into quagmire, Vikram Pandit's leadership qualities are being questioned. He is believed to be a technocrat not fit to lead people ... his strong point is analysis not leadership ... doesn't take tough decisions ... and all the usual crap that nasty people reserve for people at the top.

But then can you blame people from pointing fingers at him. The Indian press lauded him when he took over as the CEO. But he has not delivered. No major decision has been taken so far that has inspired the Wall Street. He lost out Wachovia to Well Fargo. And now his job is on line.

But is he really to blame. Let us turn to my favourite management book: Hard Facts, Dangerous Half-Truths And Total Nonsense by Pfeffer and Sutton. In an very interesting titled chapter, 'Are Great Leaders in Control of Their Companies?', the say:

"Even the most powerful executives have little influence over macroeconomic trends, the price of international currency and oil, wars and terrorism, organizational history, and the weather. That is why although stock prices sometimes dramatically in the short term when a CEO is fired or hired, there are seldom long-term effects on market value.

Those who have studied the investment impact contend that the replacement of a corporate boss is often like that of a baseball team manager: after a knee-jerk sense of relief comes a realization that it won't do much good if the new guy has to lead the same bunch of bums whose losing streak got the previous manager axed."

Take your call.

Note: Do you want to read more about my views on leadership. You need to visit my other blog.

Words of Wisdom from Wall Street

Why do the MBA's command such high salaries. I believe the pick of the pick are the financial chaps. I wonder what explanation would they come up with to explain the Wall Street meltdown, in layman's language, I mean.

Anyway, sample this:

"It seems perfectly clear leverage is going down, that banks will be more careful who they do business with, and that there is a desire to be more of an agent that a principal."

And this:

"There will be a trend toward specialization. It's hard to be in too many places. Firms will concentrate on their strengths."

And this:

"There is a new way coming, but the old way is gone. I think the old model have been destroyed, or at least cyclically challenged. We'll have to figure out when the dust settles."

Does anyone know what new words of wisdom are being offered?

Will anyone tell me why is the dollar appreciating?

Wall Street is in a state of turmoil.
Unemployment rates in US are on the rise (HP has today announced a downsizing of 25,000 odd employees).
And if the value of currency is determined in open market, will someone tell me who is upbeat about the US economy? And why?

PS: I did get the answer to this one. See Why is Dollar Appreciating?
Later on, the main stream media caught up. What fun!