The Effective Decision - The Function of the Chief Executive At 60, John Neyland, the company president, decided he would retire before the mandatory retirement age of 65. He did not reveal his decision to anyone until he reached 62, and at this time he confided to his best friend and the most powerful board member that he would retire imminently. Mr. Neyland proposed that Bill Strong, Vice President, Administration, a very able and experienced executive, succeed him as president. Mr. Neyland's friend vehemently opposed Bill Strong's candidacy, and forcefully argued that Margaret Wetherall, vice president of manufacturing, was the best qualified to be the new president.This case presents a situation where the decision-making process has completely failed. The selection of the president is one of the most important decisions a board of directors makes. Not only does a president have an enormous impact on the fortunes of a company, but the very process by which the executive is picked influences the way employees, investors, and other constituencies view the company and its leadership. One of the board's most critical roles is to ensure the presence of an effective management development program for the whole enterprise. While the CEO (in most firms, the president is also the CEO), is the person managing the program, the board needs to play an active oversight role to ensure that the program is in place and is working effectively. Considering that Mr. Neyland was approaching the mandatory retirement age, and that a significant difference in opinion between Mr. Neyland and the most powerful board member as to who should be the new president, it is clear that the board (the president is almost always a board member) was extremely derelict in its duties. The decision-making process was greatly undermined, with huge ramifications for the organization.In the Japanese way of decision-making, the single most important element in solv...
