VietNamNet
Bridge – Hiring CEOs is now in fashion.
However, a lot breakup cases reported recently have made businessmen rethink.
In mind
of many people, hiring a CEO is the best solution for a rapidly developing
business, because the CEOs are professional who have better experience and
corporate governance skills. However, in most of cases, the “marriage” between
business owners and hired CEOs do not last for long time.
Businesses need consultancy
Robert
Tran, General Director of Robenny Asia Pacific, a consultancy firm specializing
in leasing CEOs to businesses, related that one day, he was invited by the
director of a veterinary medicine company to the company’s head office to consult
with him about high ranking personnel.
The
director said to Robert Tran that he wanted to hire a CEO, because he feared
that the too rapidly developing company would go beyond his control, while he
is just a veterinary doctor and he had never experienced the training courses
on corporate administration.
Finally,
Robert Tran advised the director to continue managing the company with the
assistance of an advisor, because the director himself has a good management
method already.
According
to Robert Tran, the fee to hire a CEO at Robenny would be no less than 10,000
dollars a month, while the fee for a consultant would be just 1/5 of 10,000
dollars.
In
fact, there are many problems existing that may hinder the cooperation between
CEOs and businesses. Tran Sy Chuong, a Viet Kieu consultant, who spent 20 years
working in Asia and 20 years in the US, said that most Vietnamese businesses
want to hire CEOs, but they do not have the high enough confidence in the CEOs
to assign all the works to them. This is one of the most important reasons that
make the cooperation finish soon.
Chuong
said that an advisor could be seen as an employee, but CEO needs to be
considered as a fellow passenger of business owner. The owner of an information
technology business said at a seminar on business strategies that in the
current economic difficulties, businesses need to consult with advisors who can
help improve the situation. Meanwhile, Chuong believes that businesses need
advices even at the moments when they perform well.
Human
resource experts believe that one should think of hiring CEOs only when he has
three conditions. First, his enterprise is not strong enough and still does not
have good management capability. Second, he is ready to share information with
the CEOs to be hired. And third, enterprises need to have long term vision.
Tran
emphasized that when company witnesses big personnel changes and follow a
strategy to expand business, the owner should think of hiring a good CEO to
manage the business for at least two years.
Tran
said that business owners need to be very cautious with their decisions to hire
CEOs. Many Vietnamese companies follow the “nepotism style,” while business
owners do not trust “outsiders.”
In
Vietnam, Tran Bao Minh, who is now the Managing Director of Asia Food Joint
Stock Company, is considered a “star” at many big Vietnamese enterprises
(Vinamilk, TH Milk). Minh leaves the businesses just after one or two years of
holding high ranking positions and achieved some successes.
Robert
Tran has warned that Vietnamese enterprises should not expect too much on
hiring CEOs for a long time, because this is unrealistic. Robenny Vietnam only
signs the contracts on leasing CEOs for one or two years, while it refuses
longer term contracts.
Source:
Dien dan DN
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment