The Chairman’s Lounge
The Chairman's Lounge
Simon & Schuster Australia
2024
359
This is the story of the downfall of an Australian business hero, the destruction of an iconic Australian brand, and hubris. In a mere four years Alan Joyce when from hero status in Australia, to literally hiding out with his mother in Dublin while being hounded by the press. Truly his downfall was impressive.
However, I think it’s also another example of Welshian management ultimately failing, as seen with General Electric in The Man Who Broke Capitalism and Lights Out. This includes: publishing accounting results that while inline with the definition of the accounting standards appear to have redefined expenses in a manner convenient to management with little rationale provided; misleading customers on their refund rights at a time when those same customers were trapped at home suffering and Qantas was sitting on massive cash stockpiles; illegal union busting; and shedding large numbers of highly skilled staff which simply couldn’t be replaced in a timely manner when travel ramped back up again. That is, optimizing for this quarter’s numbers by completely ignoring the longer term impact of the decisions being made.