Daily Archives: March 11, 2014

Andrew Hill

Unless Euan Sutherland’s resignation letter is published in full, the context of his claim that the Co-operative Group, where he is chief executive, is “ungovernable” will remain unclear. But it is a strange declaration for any professional manager to make: cats are ungovernable; humans, however cussed and contrary, generally do respond to direction. How they are directed is another matter.

The Co-op is a strange beast, as the saga over Co-op Bank chairman Paul Flowers’ appointment and eventual disgrace revealed. But I think Mr Sutherland has been doing a decent job of taming it. He took some flak last month for appearing to ask Co-op members – and the general public – how the group should be run, rather than setting his own strategy. I read this, however, as a clever combination of an advertising campaign, an opinion poll, and a response to those insiders who disliked his management style. Read more >>

Denigrate, imitate, eliminate are the three steps that incumbents typically take to see off challengers using an unconventional business model. But there is a fourth – regulate.