WHEN captains of industries converged at this years Talking Business, a summit organised by Tom Associates in Lagos last week, a worrisome issue that featured prominently was the die-with-founder tradition that is prevalent in the countrys business community.The corporate leaders, drawn from different sectors of the economy, took turns to analyse how cling-on attitude of owners and undue interference in management decisions stunt the growth of Nigerian companies. Except the two key speakers and a few others, every participant recalled how board involvement in the day-to-day running of companies frustrated efforts to discharge responsibilities in the best interest of the establishment.Managing Director, Xerox HS Limited, Femi Okunade, detailed how was able to move Xerox from total collapse to a profitable and leading brand everybody wants to do business with, starting from 2006 when he assumed its management.Okunade left the company for Tantalizers in 2003 when it became obvious that the corporation was to collapse; when incentives and staff morale was at zero level. But he was recalled three year later as managing director to salvage the company.According to him, the situation was so terrible that the white man he succeeded could not wait for his resumption date before he called it off. Hence, he resumed duty a week ahead the agreed date, with friends and relations wondering why he accepted to manage a literally dead company.Before resumption, according to him, he gave a condition that he would not entertain any excesses from the board. This, he said, was granted with the board members allowing him absolute control over hiring, firing, promotion, incentives/ rewards, finance and other operational matters.Less than a year Okunade took over the management of Xerox, the hitherto failing company with zero credit rating made remarkable progress, in terms of staff motivation, turnover, profit and facility management. He encapsulated his wining principle in his ability to exercise independent control in the running of the company without any fear that somebody could raise an eyebrow. This, he said, also helped him to take decisive and timely decisions without unnecessary consultation with board members.With mere N60 million fresh capital injection since 2006, the management has paid its inherited N350 million non-performing loans, re-launched suspended products, replaced obsolete assets, opened new five offices and received ISO recertification.The Xerox boss pegged the turn-around strategy that changed the fate of the company on precise objectives, clear understanding about the business model, creating new culture of hard work reward and recognition in an open/honest manner and creating ethical work culture from leadership. Others, he said, are going to battlefront with staff, leading by example, taking decisive decisions even when it hurts and creating an atmosphere for unbroken/timely communication.With the posting of the best first quarter result in 37 years, the man at the helm of Xerox, said the firm is poised to repose its market leadership and give impressive returns to its shareholders on consistent basis in coming years.The experience of the second speaker, Mrs. Peju Adebajo, managing director of Mouka Nigeria Limited, was also a case study of how unguided managers could turn around the fortunes of corporate entities they manage. Adebajos responsibilities are coded in transforming the Lebanese family business into a more liberal privately-driven equity company.Adebajo, a Harvard alumnus and former Chief Executive Officer of UTC Nigeria Plc, said unlike what obtains in some other firms with similar history she had enjoyed an unfettered control since she assumed her current position.She observed that most business founders would leave their businesses to strangers to manage without some level of control because of the high level of mistrust in the corporate world. It is difficult to let go when the owners manage the company for a long time. The attitude is that we know far more than he does in the line, she added.According to her, it is easy to have independent management if the right corporate governance is put in place. She said companies are better placed to out-live their founders if the companies are institutionalised with board responsibilities clearly separated from that of the management..The seasoned manager said institutionalising helps to build an idea succession process that ensures there is always somebody with adequate competences to take over every management position when the occupant quits. Adebajo said she grooms somebody she could hand over to right from the day she assumes a position.There was a consensus that over-bearing boards are created by managers who tolerate any antics played by employers because of fear of losing their jobs if they protest. Speakers tasked employees to be courageous enough to quit their jobs when owners becomes clog to the smooth running of the companies they are entrusted.Though she admitted that she enjoys enormous support from the union members of her company, Managing Director of Tranex, a logistics company, Chidinma Iheme, demanded to know the appropriate strategies on question managers of highly unionised industry could adopt to get desirable internal cohesion.Okunade observed that union members are supportive when management gives answers before questions are raised. He canvassed open-communication, saying the strongest union could be rendered inactive if management addresses welfare issues as at when due instead of waiting for employees to go aggressive before attending to them.
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