By Alec Hogg
As a very wise man from Omaha put it, when a good manager meets a bad business, the reputation of the business prevails. But not always vice versa. Like with thoroughbreds, no matter how brilliant the trainer, he cannot make a slow horse into a Champion. But incompetence of bad trainers can destroy the career of a great athlete.
I am reminded of this often during my interviews with business leaders. From the outside, running a company looks ever so easy. It isn’t. Unfortunately, the power that comes with pots of money can sometimes blinker this reality.
The Abil disaster is a case in point. The money managers demanded CEO Leon Kirkinis’s head, instantly, before they’d put in any fresh capital. Had they given the man the opportunity to leave with dignity, with perhaps a three month hand-over period, things could have been very different. But with Kirkinis shown the door, the few remaining cigar-butt investors also rushed for the exit. And everyone, including the taxpayer, has ended up a loser.
Abil now has a curator. The well regarded Tom Winterboer of PWC is sure to be looking for a new CEO. He could do worse than an old colleague from my ABSA stint, Bert Griesel. The softly spoken Freestater was given the hospital pass of Unifer, Absa’s disastrous foray into unsecured lending. Griesel bore his cross stoically, slowly and methodically extracting value from the wreck. He has the scars, the experience and the constitution to do the same for Abil. Hopefully there’s someone around that disaster zone with a long memory.
Yesterday’s top stories:
SARB Governor Marcus’s full address on Abil – “good bank” to be re-listed on JSE
Ruda Landman: Starting over. Brilliant insights on reinventing yourself
Meet Abil’s new curator, PWC’s Tom Winterboer
Boys and their toys – Drones more popular than Harley’s
Louis Group property syndicates: SA masterminds accused of “prolonged deception” of investors
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