Thread by @hariiyengaar

A short fictional corporate story, no resemblance to nor attributable to anyone.

There was a failing company and company wanted turn around. It had all the material gimmicks but needed a face. Old known or new one

The corportate communication guy propped up his famous regional marketing magager and convinced the board about need for agressive selling

The board realised they can’t do much and the regional marketing guy became the appointed-CEO.

Having won the board battle, the appointed CEO became actual CEO and the Corp Communication guy became COO- Chief Operating Officer,powerful

Regional marketing manager thought all markets are same and made the erstwhile board as advisory board with no executive powers

The all powerful COO then began bad policies and proceeded from one fix to another fix - spend more, continue old methods and all the same

Projections after projections showed positive but the actual realisation was less. The markets cheered projection and turnaround.

CEO decided they need new products because old was not good. He stopped making old products but made the new as old in bigger size and shape

The logistics suffered because their lorries cannot pack this size and shape and stores cannot stock because they were not getting new soon

Sales plummeted but markets were told this is just a change phase. The profits came down but still future earnings were projected high.

Then the regional collections were changed to pan-company collections. Receivables took a hit because regional accountants were confused

Regional marketing was trying to recover sales with new product when the receivables policy was changed.

Customers started asking why the low raw material costs are not reflected in new products. They were promised that product now is better

The sales continued to plummet. Customers slowly reduced the purchase and the receivables were unclear at any time.

CEO then realised he needed a consulting firm and hired a consulting firm who were supportive of all the above.

The advisory board now realised that they cannot be party to it and had to speak out. They put their thoughts to the market’s notice

They said with less input cost, the cost of the product must be less and hence more profit. They don’t know why this didn’t happen.

They laid the blame at the doors of COO who was just a communications guy but overgrew with no experience. This, they thought is the problem

But the COO still has audit and oversees HR. He can change the Office timings, shift timings and can do internal audit.

The CEO looks at COO and COO looks at his team and orders - “now go and collect all receivables. Every one of them.”

The team goes to all regional markets of this company and the regional employees are busy explaining what they are collecting.

When regional sales guys ask their regional accounting they are replied -“wait guys. We are now complying. This is important.Let sales wait”

The sales continue to struggle, the profits come down and the people who push products are in circle of new products,high price n compliance

Meanwhile the company takes another product and changes the wrapper calls it Product+

The market realised that the future earnings are questionable, suppliers seek relief because they made investment based on promises

The company balance sheet is weak, it’s revenue from actual sales reducing but trying to increase by collecting receivables.

Meanwhile the forward guidance of two years moved by further three years with company spending on all things unnecessary.

Competitors take note and come up with their own products. The markets wait but slowly realise their folly.

People goto old CEO for advice and he, retired to private, sits in his library immersed in Kotler, Keynes, Smith and IFRS manuals.

The COO is clueless and CEO anxious.

Shareholders are jittery of less valuation.

But audit men are still at regional offices, checking.

End.