The accounting irregularities at Tesco have forced the company to move it’s Chairman out, without a successor in sight, suspend a handful of senior executives and bring in auditors to get to the bottom of the issues that have devastated their share price and credibility. The newly minted CEO must be wondering what he was thinking taking this job.
Now the focus turns to accounting practices, who did what and how did they do it. Root out the facts, apply consequences to those who were involved or the leaders under whose tenure the events took place. Close examination, dissection, diagnosis and treatment will cure it, right? Not by itself.
The new CEO, Dave Lewis, needs auditors with great technical expertise, no doubt. But he needs a telescope more than a microscope. His recent comments about paying attention to customers is a clue that he may be doing just that and his prior success at Unilever UK indicates that he’s willing to make moves to right the ship.
Now, what about the board? Telescope or microscope?