Peter Kritas Mailpost

Do Leaders affect organisational outcomes in all situations?

For instance, the Global Financial Crisis (GFC) resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. In many areas, the housing market has also suffered, resulting in numerous evictions, foreclosures and prolonged vacancies. It is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It contributed to the failure of key businesses, declines in consumer wealth, substantial financial commitments incurred by governments, and a significant decline in economic activity. Many causes have been proposed, with varying weight assigned by experts. Both market-based and regulatory solutions have been implemented or are under consideration, while significant risks remain for the world economy over the 2010–2011 periods.

National business’s like MailPost (franchised delivery Network) and many others in a start up phase launched their services during the GFC. In this case a high growth cycle practically came to a standstill. Mr Peter Kritas, the CEO and founder of MailPost Australia Limited from July 2006 till March 2009, was asked to step aside and allow new management to take over the Leadership of MailPost during a very critical period. During difficult situations, it is not uncommon to lose confidence in the Leadership and change management to try and fix the situation. This sort of behaviour should always be exercised with caution as it can do more harm than good. There are clearly some business situations that are beyond any Leaders ability to rectify and wasting time and resource in a change of management is not the best option. In many cases Leaders need more support during a crisis from their management Team to maintain confidence.

The case of MailPost is a clear example of an innovative business model, whereby its Unique Selling Proposition (USP) was actually a franchisee investing and having a stake in the MailPost business, thus offering a higher level of guaranteed service than what was available through an employee or contractor model that was the norm. This USP during a GFC also became the “Achilles Heel” as recruitment of franchisees practically came to a standstill. MailPost relied on a recruitment schedule to establish the mailpost letterbox distribution service on a National basis. Whilst the CEO had a track record of positive growth and profits prior to the GFC and maintained a positive attitude towards a solution to get through the crisis, this leader was not supported but was rather asked to step aside.