Veolia’s terrible earnings results, coming on the back on substantial write-downs, have caused their share price to plunge again, and at time of writing their share price is down close to 50% over a year, and 71% over five years.
This is an opportunity for those pushing for a change of approach in the business to assert themselves.
In my previous post on the “power to the edge” organizational structure I suggested that a centralized and hierachical management approach is poorly suited to creating an adaptive business that can change rapidly in response to a rapidly changing external environment.
Veolia has a lot of excellent assets, both tangible and intangible, not least of which is the outstanding quality of their employees.
I believe they could they could create a lot more organizational bandwidth with the decentralization of authority in their business. Sure, manage your risk and protect your intellectual property, but don’t waste your most precious resource; your people.