Page 8 - Stakis B Case Study

accepted the necessity of radical change and the
installing of Sir Lewis Robertson with total executive

power.

Although nearing bankruptcy Stakis was still nevertheless,

a good company. Instigated by Sir Lewis Stakis followed a

strategy of recovery. He stopped the rot and set the

company on the path to recovery. Initially, this addressed
the question of survival. He achieved this by keeping the

lending Banks in place whilst heeding what he terms:

“THE SEVEN PILLARS OF CORPORATE WISDOM.”

• GOVERNANCE the control of the management of the

company
• THE BOARD and its key role and functions

• FINANCIAL CONTROLS their responsibilities and

importance

• ADVISORS and the need to select and heed them
• ACQUISITIONS and the risks

• CASH AND BORROWINGS

• N0 BOOM IS FOREVER

This meant finding the right man to take the executive

reins and run the company on a long term basis. It was

never Sir Lewis’ objective to run the organisation long-
term. He was the trouble-shooter, whose job should only

last two or three years. In fact Sir Lewis stood down on

March 1st. 1995 after Stakis had recorded an increase in

profit to £20 million.