With the economic downturn forcing many boards to re-evaluate the performance of their General Managers, it is interesting to note the competencies that they are searching.  For the more seasoned consultants who have been around the industry since the '87 crash, the difference is dramatic.  In 1987 boards replaced CEO's with accountants and aggressive managers who were cost cutters.  At the time many companies were "fat" with large wage and cost structures that needed addressing.  The situation in 2008 could not be more dramatically different.  Most organisations if not "lean" are certainly "slim" and the opportunity to take large amounts of cost out of business is simply not available.

Therefore boards are now looking to their CEO's to create opportunities in a market where competitors are often struggling or where a well resourced and structured company can initiate dramatic market moves.  This pressure has come about as boards also recognise that some General Managers have simply "ridden the curve".  They have gained bonuses on the basis of increased profits when in fact they have not added significant value above the increasing growth that was happening in the market.  Therefore, boards are now looking to reward managers who genuinely initiate opportunities and create added value.

This change also creates opportunities for General Managers to be remunerated in a way that is both realistic and rewards the right behavior.  Increasing emphasis on bonuses that are based on excellent performance rather than achievement of mediocre results will be the norm. The good news is that many companies are in a position to take advantage of the weaker competitors!