4 ms·
When your CEO makes stupid crucial decisions. What to do?
I am a VP at a global startup (operations), high tech applied to low-tech industry.
We have 1 very charismatic person in charge of sales who ofter persuades the CEO (and founder) to make stupid decisions.
The latest is to amend a multi-million dollar contract with a supplier by means os "a phone conversation" between said Director or Sales and the Director of Sale of the supplier; unbeknown to the CFO/CEO? and legal department of this supplier.
My pleads to amend the existing contract in writing, as called for by the original contract have been ignored and I am now effectively been cut off from the discussion.
So, what is the proper:
* response
* reaction
* behavior
going forward?
- rawtxapp 5y agoVote with your feet?
- SMAAART 5y agoLOL, interesting comment.
- bigiain 5y agoIf this were me, I'd start with a cover-your-ass paper trail making sure you can (even if cut off from all company email/comms) prove that you reported the contract violation up your chain of command. Then I'd have a serious think about whether lack of compliance here could blow back on your career, and another serious think about whether this poses an existential risk to the company. The outcomes of that will probably reveal if it's time to suck it up and say "He's the CEO, he gets to make stupid looking choices - maybe I just don't have all the information needed to understand why its the right choice?" or whether it's time to start polishing up the resume before Bad Shit(tm) starts happening. It sounds from your post that you've exhausted the options as VPOps to influence the decision, possibly overstepping things if "effectively cut off" is read in the least favourable light. Now you get to choose whether to stay VPOps here waiting for the anvil to fall on the company, or move on.
- SMAAART 5y agoAwesome comment: Covering my ass is the least of my worries, should thing go sour the CEO wouldn't turn against me, and yes there's a very solid paper trail of this decision, and a history of similar events. > The outcomes of that will probably reveal if it's time to suck it up and say "He's the CEO, he gets to make stupid looking choices ... Yip, I agree. I was hoping that the wisdom of this great crowd would provide me with some better insights. > maybe I just don't have all the information needed to understand why its the right choice?" The root is incompetence + playing with family money > or whether it's time to start polishing up the resume before Bad Shit(tm) starts happening. I'm actually consulting part-time here, COVID took a toll to the business and I left for another (better) full-time job elsewhere. The CEO asked me to remain on a part-time consulting basis; I do enjoy the $ Thank you for taking the time to comment.
- taurath 5y agoCan you expand on the term incompetence? That can mean many things to many people. Big difference between 1+1=5 and “they don’t have the experience I’ve had in what I think is a similar situation”.
- ggm 5y agoDocument everything. If you can't come at the "cover your own risk" side, it's because it will help whoever comes after. Sometimes, risky behaviour in a CEO can be managed by getting other people to ask the right questions. Contract amendment demands three players minimum. The two parties, and the lawyer(s). The lawyers should be risk averse to unexpected change, you might find them tractable. Short-term gain often comes at long-term pain. If the revision isn't sufficiently balanced, one-time win (and KPI bonus for the sales director) is actually hurting the company. Has the CFO actually seen the model? whats the 2/5 year prognosis? Going to the investors is terminal to your future in this specific enterprise, but it's possible implying they need to be told, or the SEC need to be told (does it materially alter risk in that regulated space?) might cause second-thoughts. You could also just try being blunt: "this is a really bad idea"
- apohn 5y ago>Short-term gain often comes at long-term pain. One of the ways I've tried to used in the past is to put down some concrete losses that will come from bad decisions. It just has a be a reasonable guesstimate. Either a dollar amount, scheduling issues, additional resources needed, disruption to obligations to other customers, etc. Pick the one that seems to have the most impact and present it to the CEO or CFO. Hopefully that will push relevant parties to at least pause and think about things beyond whatever the sales director is promising.
- mindcrime 5y agoDecision tree time: 1. Are you, personally, going to Get Fucked if this whole thing goes sideways and turns into a legal shit-show? If YES: 1a. start CYA activities immediately, while beginning to look for another situation. Or, if SHTF status appears imminent, just quit now. If NO: 2. Are you so morally offended by the situation that you just can't take it? If YES: 2a. Quit now. If NO: 2b. Do nothing, except for any strategic positioning you might need to do to ensure yourself the best possible landing if/when the SHTF. Otherwise, drop the subject, keep doing what you do, enjoy your pay, and don't worry about it. Go fishing, or golfing, or play with your kids, or whatever is important to you outside of work. Live for today and if the situation changes, "adapt and overcome."
- AnimalMuppet 5y ago3. Is this behavior going to continue happening? If YES: Sooner or later it will happen in a way where the answer to either 1 or 2 is YES. So get your resume together and start looking - not in a panic, because you still have time, but look in a somewhat steady, deliberate fashion. If NO: Go to 2b.
- Gustomaximus 5y agoNaturally there going to be a bunch of detail beyond your quick writeup but it feels to me your not as upset with this change, as the way the change has been handled? It may be too late now you are cut from the discussion, but would a good approach been along the lines of "hey guys after the phone call are you happen for me to have legal document this to make sure we're all aligned and the contract is updated?" Not sure if it was originally approached too strongly as I dont see why they would resist updating the contact. Also if you document the summary point in that email it does give legal weight and record if they dont follow-up anyway (obviously lawyers are better but its something). Generally I've found when you see a shitfest arriving, see if you can suggest alternate push it a couple times if really serious but ultimately some people will follow their course and it only makes things worse to fight a brick wall. Once you see the course is set document your resistance in a friendly email and move away from said decision. And if you are going to have the fight, do it in person (or phone at least) as text is too easily taken the wrong way (tone or meaning of a word) if people feel criticised. After the chat follow-up with an email summary in a nice/helpful way but really 'for the record'. So to circle back, Id pick the right person to talk to be it CEO or Director or Sales and have an in person chat if you feel its that important. And go in with the view maybe Im wrong and there are good reasons I dont yet know and dont try to fight a brick wall if thats what there is.