Satyam Board in Sleep Mode
While Satyam board is expected to work in a fire-fighting mode, it’s
moving at snail’s pace. Though two board meetings – including one
today – have taken place, the board has not yet taken any significant
decision. Ordinary steps like appointment of internal auditors are
taken.
As
My Techbox Online
had raised this
issue in its previous report on Satyam today, the big question is:
With almost no exposure in the infotech business operations, can these
government-appointed board members take any worthwhile decision to
bring Satyam back to a normal state?
In
the past one week or so, government of India has appointed 6 board
directors. It’s being expressed that they’ll work to ensure continued
service to customers and will restore confidence of stakeholders and
employees of the company.
However, they’re taking some ordinary
steps while the situation demands an extraordinary approach. Today,
for example, they announced the appointment of internal
auditors and the legal advisors. This may be required but this
decision can’t have any immediate positive impact on the business
operations of the company.
It’s
stated that efforts are being made to pay employee salaries on time,
but no firm commitment has come from the company.
In
today’s meeting, the board was expected to come out with a clear-cut
strategy that could ensure retention of Satyam’s customers because at
this stage business continuity holds extreme importance.
And
if customers are not willing to continue with Satyam, then staff
expenses will add to the already mounting financial burden.
It’s
okay if the government has taken these directors. However, today the
need is to appoint a hardcore technology industry professional at the
top who could take some quick and productive decisions at the business
front.
For
example, the current need is to understand and redefine the
development and implementation processes for customer projects so that
they could be made more efficient at reduced costs. A team can be
deputed to create some consumer software products, which can bring
continuous revenues for the company. Focused groups can be formed to
explore new market segments, and so on.
The
board must realize that it’s not a business-as-usual climate at the
troubled company. An out-of-the-box thinking is required to pull off
some constructive results.
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