Maintaining the strategic direction

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Reference no: EM132989901

A chemical company needed to fire a CFO and hire a new one. The original CFO had a bad track record of poor decision making. Technically, that CFO was good. But he was a bad people person and managed people with a hammer. As a result, a bad culture had developed. People hated working for the CFO and in turn, hated the company. Finally, the Board of Directors insisted that the CEO fire the CFO.

The CFO was fired, but the company's moral was terrible. The worst part is that the CEO was shy on making a decision to hire the replacement CFO. The CFO position was left open for almost one year. As a result, the company suffered due to the lack of leadership. During that time, the company loosened its internal controls, and the budgeting process became a mess. The lack of decision making by the CEO caused the Board of Directors to lose confidence in the CEO. There was a lack of direction in the entire organization.

Question 1:

In my opinion, how should difficult decisions such as hiring and firing of employees be taken?

Question 2:

How would I explain the role of decision making in setting & maintaining the strategic direction?

Reference no: EM132989901

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