Friday, January 11, 2008
It is interesting to examine how companies communicate when in freefall. In this case, there is a new CEO who is free to tell bad news, and he is doing so. Without saying it, he is placing the failures of the firm on previous management. One wonders, however, if previous management was so bad, or was it partially a victim of events beyond control? The answer to that lies in the one investment banking firm on Wall Street that called it right -- Goldman Sachs. It wasn't that long ago Merrill Lynch was a powerhouse of Wall Street, but how quickly business turned. Today, it is a wounded elephant dragging itself to safety. If there is a lesson about the need for conservatism in communicating company successes, this is it. It is better to say less and do more.