Managers who avoid cutting costs are first to go

The emotional relationship with the team they created prevented many general managers from applying drastic cost-cutting measures.

“Generally, managers who built are attached to the people with whom they raised things up. Somebody from outside can do Tthings better. Especially if he or she is from the mother-company and understands the firm’s strategy,” said Alexandru Talmazan, Managing Partner of Wrightson Romania.

Since the beginning of the crisis, most top managers of numerous sectors have been replaced. According to a recent study by London School of Business and the Kellogg School of Management, a restructuring process is better managed by someone brought in from outside the company. Even if it takes longer for the new manager to understand the problems, the official has the advantage of no emotional relationship with the patient-firm. “A manager from outside the firm can bring a new vision to the company,” said Silviana Boian, Head of Research within the Alexander Hughes executive search company. Furthermore, due to the economic crisis, management deficiencies, which were not visible in times of growth, have now surfaced.

One of the most recent top management changes was Marian Alecu of McDonald’s Romania, replaced by Karen Bishop, COO of McDonald’s Russia and Eastern Europe.