Archived post

This is an archived post. Please click here to see the latest entries.

« All In for Money? | Home | Is There Hope for Dartmouth? »


Kim Watch: “a kind of restructuring hell”

The Financial Times has a certain authority, so when it runs a piece on the chaos that is engulfing Jim Kim’s World Bank, readers should take notice, and Dartmouth readers might allow themselves a brief “I told you so” smile:

Jim Kim5.jpg… According to interviews with about 20 current and former staff, however, the bank has descended into a kind of restructuring hell, as Mr Kim undertakes $400m in cost cuts, a complete financial rethink and a structural overhaul - all at the same time.

Mr Kim has brought in expensive consultants, forced 48 top managers to reapply for their own jobs - pushing out three of the most senior without explanation - and upset staff by travelling in private jets at a time when he is proposing deep cost cuts.

What is more, there are doubts about whether internal change should be Mr Kim’s top priority for the bank, which is increasingly battling for relevance. While it remains a pillar of the international financial system, it often finds itself in competition with countries that are its own biggest clients, such as China, when lending to developing countries.

“Does [the restructuring] really go to the heart of the bank’s problem?” said Uri Dadush, a former bank official, now at the Carnegie Endowment for International Peace. “I think it’s a step in the right direction but the bank’s strategic issue is the relevance it retains in middle income countries.”

At stake is not just the success of Mr Kim’s presidency but the world’s collective effort to help developing countries. If the World Bank fades, the alternative is a future of individual countries jockeying for influence via bilateral aid, with less regard for the needs of the poor.

A senior G20 official from one of the bank’s largest client countries questioned Mr Kim’s strategy and the manner in which he was carrying it out.

“We didn’t ask for these changes. We are willing to give them a chance, but we’re worried about the way they’re being done,” says the official. “Nobody wants to tell the emperor he has no clothes on.”

Expensive consultants, personnel chaos, smoke-and-mirrors cost reduction — all this from a man who has no experience at all in the business that he is leading. We can say with absolute certainty that Jim Kim will leave yet another institution weakened at the end of his tenure. Read the entire article here.

Addendum: Anyone offering odds that Kim, who is still less than two years into his five-year term, will make it to the end?

Featured posts

  • October 18, 2009
    When Love Beckoned in 52nd Street
    We were at San Francisco’s BIX last evening, enjoying prosecco, cheese, and a bit of music. A full year of inhabitation in Northern California has unraveled to me no decent venue for proper lounging, but…
  • October 9, 2009
    D Afraid of a Little Competish
    So our colleague and Dartblog writer Joe Asch informed me that the D has rejected our cunning advertising campaign. Uh-oh. The Dartmouth is widely known as a breeding ground for instant New York Times successes,…
  • September 4, 2009
    How Regents Should Reign
    As Dartmouth alumni proceed through the legal hoops necessary to defuse a Board-packing plan—which put in unhappy desuetude an historic 1891 Agreement between alumni and the College guaranteeing a half-democratically-elected Board of Trustees—it strikes one…
  • August 29, 2009
    Election Reform Study Committee
    If you are an alum of the College on the Hill, you may have received a number of e-mails of late beseeching your input for a new arm of the College’s Alumni Control Apparatus called…
  • August 23, 2009
    Fare Thee Well, Tom Crady
    And now Dean Tom Crady has precipitously announced his departure from the College after only 20 months on the job. How to read this? By way of background, prior to coming to Dartmouth, Crady had…
  • May 31, 2009
    Kangaroo Court, Indeed
    In an interview with The Dartmouth, alumni-elected trustee T.J. Rodgers ‘70 explained his reasons for declining to participate in future evaluations of trustees up for “re-election,” namely the “kangaroo court” nature of such discussion in…

Dartblog Specials

Subscribe by Email

Enter your email address:

Help, Pecuniarily

Please note

This website reflects the personal opinions of its authors. Any e-mails received may be published along with the full name of the sender. If you wish otherwise, please say so.

All content appearing at Dartblog.com should be presumed copyright 2004-2014 its respective bylined author unless otherwise noted or unless linked to original source.

Advertisement

admin

Calendar

April 2014
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30

Search

Archives

Links