Extreme Ownership: How U.S. Navy SEALs Lead and Win

“It’s Mike,” he said solemnly.
“Mike, the CEO of the electrical division?” I asked.
“Yeah. He’s an old friend of Andy’s,” answered the CFO, “and a very
good friend that has stuck with him through thick and thin.”
“OK,” I replied, understanding what was being implied. Andy was
taking care of his friend.
“What are the consequences of keeping the electrical division open?”
I asked.
“If we keep it open, we will continue to bleed capital. That by itself
won’t kill us,” answered the CFO. “But if we are that tight on cash and
we encounter any unexpected cost, we would be extremely vulnerable. I
don’t mind risk, but this simply does not make sense.”
The next day I sat down with Andy. While I had worked with this
company for about a year, it was mostly with the middle managers. My
latest two-day workshop had been with the C-level executives. Andy had
brought me in to help with the other leaders but it turned out he too
could use some guidance.
Waiting for an opportunity to open the discussion, I sat with Andy to
review the strengths and weaknesses of his leadership team across
divisions. Eventually, we got to Mike.
“He’s a great guy,” said Andy. “Known him for years. He really
knows the business, inside and out.”
“That’s great,” I replied. “His division must be making a lot of
money for you.”
“Well you know, I saw some good opportunity on the electrical side,
and wanted to get into it,” Andy said, with obvious unease. “With Mike’s
experience, I knew he could run a good show.”
“So the division is profitable?” I asked.