Zimpapers Logo

Shelter Chieza Change Management
SO it’s official Mr Nigel Chanakira, the founder of Kingdom Bank, has left the bank that he founded, after selling his 30 percent stake in AfrAsia Kingdom Zimbabwe Limited (AKZL) to Mauritius-based AfrAsia Bank Limited (AfrAsia) in an equity swap deal. He also stepped down as director of all AKZL entities with immediate effect. Last week, we also heard the news that three top investors in Microsoft have been putting pressure on founder Mr Bill Gates to step down as chairman of the company he founded nearly 40 years ago.

It is reported that the mystery backers are understood to be lobbying the company’s board of directors for Mr Gates to be replaced. So the question then is, how good or bad is it for the founder of the company to quit the company he created?
Most founders normally want to stay at the helm of the company for one major reason: “I worked hard for this company to get it to where it is.”

Have you noticed how the names of founders has become synonymous with the organisations or companies that they founded, Mr Gates with Microsoft, Mr Chanakira with Kingdom, Econet with Mr Strive Masiyiwa, Apple with the late Mr Steve Jobs.

It must be one of the hardest things to let go of a company you founded. Microsoft investors are said to be of the view that Mr Gates’ presence on the board is “blocking the adoption of new development strategies making it hard for the chief executive to make substantial changes”.

Let’s face it, history has shown that slowdown of a company is inevitable, even if the company is really solid, you can’t avoid these periodic lulls in income. Therefore, the reintroduction or shuffling of chief executives may be a non event.

The call for Mr Gates to step down was prompted by an announcement that was made by American businessman and Microsoft chief executive, Mr Steve Ballmer to retire from his position.

Microsoft has been struggling to reposition themselves in one of the most competitive sectors of all time. Basic appreciation of business will tell you that as the company grows, each adjustment on incremental revenue must be supported by the earnings.

I was arguing one day with my unschooled mate on why Coca-Cola still advertises more than most companies these days.
It’s simple, the bigger your company gets, the more aggressive, you need to increase your marketing efforts.

To quote an old age adage, “companies do not advertise because they are big, they advertise because they want to be big.”
They should be asking themselves the following questions. Could we do it differently? How are some competitors doing it?
Do we need to do some pruning of the old branches, to allow for new shots to come through? Business is the same, the more compact and small a business is, the more manageable it is.

It is believed that although Microsoft is still one of the world’s most valuable technology companies, its shares have remained static for 10 years and it has struggled against competition from Apple and Google.

I particularly like Mr Chanakira’s parting shot, which should have meaning to all other founder members: “I have been particularly delighted to have been part of this group which has and continues to be a respected player in the financial sector in Zimbabwe.

“However, in life sometimes one is confronted with major decisions that shape your future, and for me, this is that one moment.”
So go on Mr Chanakira, walk out with your head high. Till next week, may God richly bless you.

• Shelter Chieza is an advisor in management issues. She can be contacted at [email protected]