As ProPrint goes to press the country's biggest paper business Paperlinx has just brutally sacked its CEO Andrew Price. You could say those who live by the sword fall by the sword, for Price himself instigated a two year battle to force out the former chairman of Paperlinx Harry Boon, before joining the board himself and then taking the top job.
Managing the biggest companies in this industry is a challenge for sure. Paperlinx has been in trouble for a decade now, and although Price was reducing the losses the company is still bleeding cash. Australia Post is another that is losing money hand over fist, although its CEO still seems safe in his job despite his strikingly unfathomable strategy, as far as print and mail goes, in pricing itself, and its customers, out of business, while pursuing parcels, a sector which has just got a whole lot harder now that Toll has been bought by Japan Post.
The dysfunctional Fairfax board has overseen years of massive losses and a collapsing share price at the once mighty media empire, as it arrogantly ignored the assault on its rivers of gold by the new media internet business that now dominate; realestate.com.au, carsales.com.au and seek.com.au, all of which Fairfax could easily have wiped out or bought for a song – if it had been awake at the time.
You may find this incredible but the Fairfax board that presided over the cataclysmic decisions from 1998 onwards – including investing $300m in the new print plant at Tullamarine which a decade later is now an empty shell – had no-one at all on it with any experience of newspapers. Even more amazing the CEO at the time, Fred Hilmer, had not only never been in newspapers but had never even run a business.
Similarly the AusPost board of nine has no less than five ex-NAB bankers in there, none of whom have the slightest knowledge of a logistics business. It is all well and good to have some outside-the-industry perspective on a business, but you do actually need some people with some knowledge of what is going on.
Contrast this unhappy trio with Amcor, another behemoth, but one which goes from strength to strength. The difference – Amcor's board is made up of people who know, nay are steeped in, the packaging business. Strategy is well considered, analysis accurate, focus clear, execution professional, succession orderly. Not many of us run massive businesses but the lessons for all are evident.
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