The new Board of Directors has been appointed by Govt Of India which includes Bankers Mr Deepak Parekh, Mr Kiran Karnik, Ex Nasscom and Mr. Achuttan ,Ex SEBI, The new board is in look out for a CEO of Satyam Computers who will in a day to day charge of running the company.
What should be the Strategic Action Plan of the newly appointed CEO of Satyam Computers.?
1.Should he go to all the customers and confess the misdoing of Satyam earlier management and retain those customers especially the overseas. Should he go for aggressive marketing and take major accounts in the West European market and in the North American market.
2.Should he meet physically or through social media with all his internal customers, the employees and tell them the truth giving a clear picture and try to hold them back by restoring confidence in the mind of all his colleagues. Even request them for a pay cut or downward revision of salaries which will be a temporary phenomenon as a tool for financial emergency.
3.Should he talk with all the existing Bankers both domestic and international, and the domestic Financial Institutions and borrow some additional funds of nearly Rs 5000 Crores(approx US$ 1 Bn) with a minimum rate of interest officially cleared by RBI which will fend it for next 8-10 months in the first phase of the turnaround management. This is the most important part as Satyam is having serious liquidity problem, and the monthly wage bill is around Rs 522 Crores( Approx US$110).
4.Should he pick up an efficient CFO who can be transparent with all the stakeholders of the company and a financial wiz kids.
5.Should he appoint a CEO (Chief Ethics Officer) by creating a new post or if needed a new departments whose task is to keep a close vigil on the day to day activities and should have parallel reporting to the Board Of Directors, along with the CEO.
6.Should he call an EGM where he can take all the retail investors into confidence by showing them that it can be nursed back to profits in a shorter period of time? which may give a sentimental boost to the BSE and NSE, and turn retail investors starts coming back.
7.Should he appoint the new Auditors, who have got a clear track record along with good solicitors.
8.Should he go for a monthly un audited P&L A/C and Balance sheet instead of quarterly Balance sheet and P&L A/C to be more transparent to all the stake holders.
9.Should he keep his communication channels open and regularly communicate with the press both electronic and print media both national and international, in order to improve the public relations and image make over.
10.Last but the least and the most difficult part how he will be managing the ADR and the NYSE?
The above are the points that ha come to my mind, I am sure this can be a very interesting topic for all management students and practicing managers. This can be a real case study in the TURN AROUND management topic.
The problem is peculiar and unique as it has got 52000 employees who are cerebral workers and has made good for the company and also for India they were the brand ambassador for Indian and the jewel in the crown of Indian Industry; it’s all about diversion of fund and cooking up the books of account for last seven years.
Many ideas and suggestions can come forward which can be forwarded on this particular topic, but undoubtedly this is the most challenging assignment in Indian corporate world.
1 comment:
The decision of the GOI appointed new BOD is definitely going to be observed with various diverse interset by different people from all parts of the world particularly those related, concerned or interested ones in Satyam from the Indian Business Community...
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