THE GALEAZZI – SYDNEY FINKELSTEIN
AGREEMENT WILL SERVE LEADING CORPORATIONS

Galeazzi & Associados, Brazil's leading turnaround and performance improvement company introduces new methodology that will identify and prevent potential corporate collapse.  Galeazzi has closed an exclusive agreement with Sidney Finkelstein, an author and professor and researcher at the Tuck School of Business at Dartmouth College.

The new methodology, called SIA – Signals that Indicate Alert, enables in-depth investigation of the risks that exist in the most critical areas of any business: processes, strategy and people. This methodology allows organizations to anticipate future problems and hazards. 

It is the result of six years of research focusing on small, mid-sized and large companies in the US, France, Germany, UK, South Korea, Japan and Australia. A team of 45 researchers interviewed 200 executives.  This new diagnostic method has already been applied to over 150 companies; it is as universal concept that provides an early measure of values such as arrogance, over-confidence and delusion, among others.

Finkelstein brought together the results of his research in a book entitled “Why Smart Executives Fail: And What You Can Learn from Their Mistakes”, which has recently been translated into Portuguese.  This book describes some of the great corporate disasters of our time, such as those that affected Saatchi & Saatchi, Quaker, Motorola, Johnson & Johnson and Webvan. The author tells us how brilliant executives with faultless track records drove their companies to fail. 

The second part of the book provides an in-depth analysis of the behavioral standards common to executives, and their mistakes in terms of decisions and behaviors. Finkelstein claims that organizational failure is seen in different corporate cultures and is the result of standards of behavior such as an inability to come to grasp with reality, a biased mind-set resulting in mistaken strategies, failure in the communication systems designed to handle urgent data and a leadership pathology that makes it impossible for executives to review their decisions. All of these involve organizational processes, people and strategies - the three potentially problem areas.

Fortune called Finkelstein's book "one of the best books about business", and the Wall Street Journal called it "A marvel—a jargon-free business book based on serious research that offers genuine insights with clarity."

According to Galeazzi Director and Partner José Carlos Aguillera, companies must focus on preventing problems, rather than correcting them. “In today's global world making decisions has become even more complex. It is important to watch for the Signals that Indicate Alert (SIA). Finkelstein's methodology will allow us to implement a system to prevent potential problems, which will be effective in leading Brazilian organizations" added Aguillera.