how to create barcode in vb.net 2010 TWO The Sources of the Problem in Software

Maker Data Matrix 2d barcode in Software TWO The Sources of the Problem

CHAPTER TWO The Sources of the Problem
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zation an institution. All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services all great ideas eventually become obsolete. Indeed entire markets can become obsolete and disappear. Yet visionary companies prosper over long periods of time, through multiple product life cycles and multiple generations of active leaders. When a powerful and charismatic leader takes the helm, however, the tendency is to forget the legacy and over time give all the credit or sometimes all the blame for what transpires to the incoming CEO. Such is the legend that surrounded Welch, who became CEO of GE in 1981. To read the myriad articles on Welch s revolution, we might be tempted to picture him as a savior riding on a white horse to rescue a severely troubled company that had not changed significantly since the invention of electricity, state Built to Last authors James C. Collins and Jerry I. Porras, who undertook a six-year research project of visionary companies. Welch, however, was an insider, having spent 20 consecutive years at GE before becoming CEO. Further, his immediate predecessor, Reginald Jones, retired as the most admired business leader in America. As the book also notes, in terms of profit growth, return on equity, return on sales, and return on assets, GE performed as well under Jones s eight-year tenure as during Welch s first eight years. Clearly a talented and tough CEO like Welch was no more solely responsible for the success of GE than George W. Bush (or any one president or presidential candidate before him) is responsible for the United States being the No. 1 Superpower. Welch was the latest in a succession of strong CEOs at GE, which speaks volumes about the quality of the leadership and the grooming of executives at the company. When companies look to a corporate savior often an outsider brought in as a combination hired gun and miracle worker the serious problem of displaced responsibility can result. Everyone, from the board of directors through the ranks of employees, credits the CEO when things go well. When things go badly they point fingers and avoid responsibility. Inevitably this behavior leads companies to look externally for the next solution: another star CEO to recruit and retain.
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PART ONE The Stock Option Problem
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A far healthier corporate environment is created when the CEO even one with charisma recognizes the power of the organization. Bank One CEO Jamie Dimon fits this description. From my own experiences working with Bank One as well as stories related by executives there, Dimon continually challenges and empowers employees with a straightforward message. If you see something wrong in the organization and just complain about it, then you are part of the problem. If you do not speak up to solve that problem and bring it to someone s attention, you are only making things worse. And if you have spoken up and you re getting resistance or getting in trouble, or if you feel you are not being heard, then send me an e-mail. I will respond. As CEO, Dimon has made changes in the top executive tier, and eliminated many perks and giveaway bonuses, including rejecting a $2 million bonus guaranteed in his contract because he felt that the company s performance did not warrant it. Under his leadership Bank One s compensation system is based far more on performance. Bank One was also among the first three companies to announce in 2002 that it would elect to expense options. In many corporations, however, the cult of the CEO remains strong. This reinforces the belief that companies must pay anything to attract and retain superstar leaders. Since stock options have been free under current accounting, they became the currency of choice for executive compensation. Options became the magic dust needed to attract and retain the star CEO and his or her executive team. Overall there are some powerful cultural forces at work here. First there is the Protestant ethic that says vast wealth is evidence of heavenly benediction a concept that drives the United States more than other countries. The second is the uniquely American cult of the deified CEO and his entourage, making them worthy of vast sums of money to attract and retain them. That brings us to the next point: to provide large, lucrative rewards to executive talent, companies have increasingly used the stock option. In fact it has become the primary means to deliver wealth to CEOs and other executives. To understand this phenomenon we need to consider the recent history of executive compensation and in particular stock options.
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