STW chief Mike Connaghan says group ‘let down by a few’ as internal review continues
Connaghan
Senior management at STW Communications Group have delivered a withering assessment of its dismal 2014 performance with chief executive Mike Connaghan admitting the company was “let down” by some of its agencies.
And worryingly, STW admitted 2015 has not started well with its year-to-date trading hit by the continuing poor performance of a “small number of companies”.
Connaghan told shareholders at its annual general meeting today that its return last year was not good enough. “We were let down by a few, the leadership of those businesses has been changed,” he said.
Can someone please buy STW and run it properly.. always falling short of profit guidance, and now profits going backwards year on year. Very surprised WPP hasnt already made a play to mop them up (or maybe they are waiting for another year of missed earnings / share price to fall even further)
Why doesn’t the board start questioning Mr Chief Executive?
He’s the leader. That’s his job. To lead. He’s responsible. If things start to go south, he’s the one who’s paid to nip it in the bud. He’s the one who’s suppose to stop it all going south. Hello, that’s the price of being the leader.
Washing his hands of it and saying, ‘oh I was let down by a few’ is like a parent who’s got a few kids putting brick through windows saying ‘oh, I was let down by a few. But look at my other 3 kids. Look at those finger paintings!’
It’s an Australian thing, isn’t it? ‘Don’t question the boss, be afraid of the boss.’
But in the States, which is probably a little too strong the other way (always blaming the boss), throwing people you hired – and that you are responsible for – as a way to absolve yourself of any responsibility would be akin to handing in your resignation letter. Imagine the backlash if a CEO took this route in the States.
Why don’t we ask some obvious questions:
* Mike, are you the leader of this organisation?
* Mike, arn’t you responsible for their performance?
* Mike, isn’t it your job to hire leadership and manage the units that ‘let you down’?
* Mike, as leader would it be fair to say you let those units down?
* Mike, as leader of this organisation, what exactly do you think you are responsible for, in terms of managing everyone?
* Mike, how would you actually evaluate yourself on the handling of these individual units over the last 12 months?
Those a questions, if we we’re living in the USA, we would be asking and we would be getting answers to.
The directors are delusional. Connaghan says they’re “marginally behind” last year. His own press release confirms the share price has gone from $1.29 last year to 64.5 cents. On share price actual performance is down fifty per cent.
The business model of aggregated integrated marcomms agencies may have been sound twelve years back when Russell Tate started buying up business units. Sizeable share of market works in packaged goods, not in the game STW are in now. Their business model went past its use-by-date, they just won’t face it.
Tomas, those 70 odd companies in STW have well paid MDs to look after the nuts and bolts and keep the $ rolling in, all Mike can do is go on what they say and bin them if they don’t deliver – he’s not there to run 70 companies single-handedly.
You’re making an irrational switch.
No one suggested he should run 70 companies single-handedly.
No one suggested he should deliver a bouquet of bananas on the second Tuesday of every month.
His job is to run the company, which means managing the managers.
ps Ill take your tactic: his job isn’t too just sit in a chair and wait for his managers to report (you didn’t say that, did you? But see what I did there?)
Stevo, his job is to manage. Not the nuts & bolts. Just manage. He’s the leader.
He’s like the coach of a footy team – he’s got a few players who aren’t doing very well, other players who are doing great, the team is behind on the ladder and needs he to fix that and start winning matches.
If in time he doesn’t fix that and get results, the team owner (board) will review his position. But right now, he’s changing up the strategy and playing field and looking for wins.