Crozier or Benitez: You Decide

October 31, 2009

I have been wrestling with the big leadership question of the week. Who is likely to be in his job longer, Adam Crozier of the Royal Mail, or Rafa Benitez of Liverpool Football club?

Mr Benitez’s team has suffered from injuries, losses on the field, and departure of key players. Worse, he has received a formal endorsement from his employers that his job is safe. It is part of football black humour to assume that any leader offered such an endorsement is far from safe in the job. His team faced one of those crunch matches over the weekend. We will never know what might have happened to Rafa if Liverpool had lost their sixth successive game. The players rose to the challenge and defeated their bitter rivals Manchester United.

Earlier in the day, the CEO of Liverpool FC gave Rafa that dreaded endorsement

Liverpool boss Rafael Benitez has been handed long-term job assurances by the club’s managing director Pressure has been mounting following a miserable run of four successive defeats. But Christian Purslow told Sportsweek: “Liverpool are on a long-term journey and you do not do that by worrying about short term results. Rafa Benitez is absolutely central to that long-term plan.”

Meanwhile

Mr Crozier has appeared to be slumbering while his company sank into irretrievable strategic trouble and imminent industrial relations conflicts. His management team also seemed to be facing a crunch match with the rampant forces of the Workers Communication Union.

The fate of these leaders way be settled by factors outside their control. But there may be indicators of the strength of the limpet factor in each case. Rafa is believed to have a high Limpet factor in the penalty clauses which would be triggered on his dismissal. Adam Crozier’s financial arrangements are unlikely to be such a consideration for his employers, which arguably include the Government (which claims not to want to interfere).

What do you think?


How Long Will Adam Crozier Keep His Job?

October 22, 2009

AdamCrozier

The first day of the Postal Strike saw the question raised. How long will Royal Mail CEO Adam Crozier keep his job?

During the 2007 strike I suggested that the Royal Mail issue was too hot to handle for Prime Minister Gordon Brown, or the opposition’s David Cameron. I went in for gloom and doom, muttering about lions led by donkeys and the horsemen of the economic apocalypse.

Little seems to have changed since then. The battle lines are now drawn up over implementation of the fragile agreement reached after the last dispute. The various players in leadership roles appear to be digging in for a fight with few obvious winners. Billy Hayes of the Communications Union (CWD) provides the rhetoric of Trade Union leaders of two or three decades ago. It is unclear whether there is much to be gained, beyond keeping faith with the anger and frustration of his membership.

According to The Communications Union (CWU) [Oct 13th 2009]

Royal Mail is rolling out those changes with little or no concern for the views or interests of our members, the hard-working postal staff .. Worse still, we have seen an alarming rise in bullying and harassment cases with managers using the flimsiest of reasons to sack postal workers with long service. The CWU has offered a three-month no-strike deal in return for negotiations and a suspension of the current changes which are forcing postal workers into industrial action.

The combined challenge of competition, pensions and the need to adapt to a rapidly changing world of communications makes change necessary. Royal Mail’s current approach clearly isn’t working so we’re seeking intensive talks to establish a national agreement that will pave the way for rolling out the change that the company desperately needs.

The Leadership of the Royal Mail

Nor is Royal Mail demonstrating convincing leadership in this matter. If there is a strategy, it is about keeping a low profile. A colleague charitably suggested to me that its CEO Adam Crozier may be deploying a do-nothing strategy, letting the Union self-destruct. It must be a very subtle strategy. It flies in the face of conventional wisdom which suggests it important to demonstrate that corporate leaders are pursuing a sound plan.

Mr Crozier is regarded by many as asmooth but ruthless business operator. His initial appointment might have been over-influenced by his bravura display in his previous job at the Football Association. There seemed little to justify the Royal Mail appoitment in a CV showing time at Saatchi & Saatchi, and Pedigree Petfoods.

At the time that it may have made sense as part of a tough double act of Leighton and Crozier. One tough and abrasive, one tough and smooth.

In an earlier blog I suggested that

Allan Leighton has an appetite for self-publicity as inspection of the Royal Mail website reveals. He presents himself as a dynamic (and somewhat terrifying) leader. In public he attempts to soften the image by implying he is very much one of a team, operating closely with CEO Adam Crozier.

Maybe Leighton saw in Crozier a promising sidekick in a double act. But those skills become less valued when a leader has to act as solitary lightening conductor for political storms…

Which might be the position Mr Cozier finds himself in, now that Allan Leighton has been has replaced by the equally decisive Don Brydon.

Adam Crozier, Royal Mail’s chief executive, could be forgiven if he were a little apprehensive about the Government’s appointment of Donald Brydon as chairman of the state-run postal service. Mr Brydon, who becomes a non-executive director of Royal Mail immediately and is to take over the chairmanship from Allan Leighton at the end of March [2009], has a history of disposing of chief executives. In a recent interview, Mr Brydon, 63, pointed to three examples: the chief executive of Allied “got chopped”; the chief executive of ScottishPower “got chopped”; and he “changed” the chief executive at Smiths, the engineering company, of which he remains chairman

What Next?

Mr Crozier will sooner or later make an appearance above the battlements. One influential commentator, Kevin Maguire of The Mirror, is already calling for his head.

There will be other losers in and outside Royal Mail. It adds up to a potentially gory tale of leadership and its challenges.