Piron Smart Technology: Parachuting a CEO from a Western Multinational (A)
(9 pages of text)
Piron Smart Technologies Co. Ltd., a private enterprise located in an underdeveloped region of China, was transitioning from being a founder-centered to a professionally managed firm. In the summer of 2010, the founder and chairman of Piron attempted to hire a senior executive from a Western multinational firm as chief operating officer, with the promise of a later promotion to chief executive officer (CEO). The candidate turned down the offer and demanded to be appointed CEO from the onset, leading to a conflict between the newly arrived CEO and the insiders passed over in Piron’s search for a CEO. See supplement 9B15M016.
This is a series of two cases on CEO succession in China. The cases allow students to explore the challenges of CEO succession from the perspectives of both the entrepreneur founder and the professional CEO candidate. It can be used in strategic management courses to enable discussion on change management, in strategic HR courses to discuss succession planning or in corporate governance courses to highlight governance and CEO selection. This case series allows program participants to explore the following key issues: the key factors private Chinese companies should consider when evaluating outside CEO candidates, the key factors professional executives should consider when evaluating the opportunity to become a CEO of a private Chinese firm and the key challenges facing executives after they have accepted the role.
China, Medium, 2012
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