Employees think leaders lack the experience to handle crisis
15 October 2008
More than eight in 10 workers surveyed for a snapshot poll think their bosses won’t be able to deal with the economic downturn.
Out of 200 people surveyed by consultancy the Aziz Corporation, 162 felt that the economy has been booming for so long that senior bosses have little or no experience of how to deal with a major slowdown.
The research also uncovered a widespread perception that business leaders are reluctant to come clean over their financial problems. Almost three-quarters (74 per cent) think that many companies are reluctant to communicate the full extent of the financial downturn they are facing.
Khalid Aziz, chairman of the Aziz Corporation, said: “It is perhaps not a matter of chance that the recently-humbled HBOS had the youngest management team in the banking sector – with its youthful chief executive never having been through a recession in banking – and is now selling out to a bank with much more experienced leadership.
“In having to deal with and communicate bad news, a downturn exposes leaders who are muddling through without a plan. In the absence of full information, markets will assume the worst. Companies that refuse to come clean risk a steady and persistent drip of bad news.
“Businesses in difficulty should disclose their position early and in full. That way they can often allay the worst fears of the market, while demonstrating that they are on top of the problem and have a plan to deal with it.”