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Posts Tagged ‘financial crisis’

A ‘Generalist’ or a ‘specialist’ who performs better?

In Uncategorized on July 14, 2013 at 5:53 am

A Generalist is the person who has worked in almost each area and then become an overall expert like Chief Executive Officer (CEO) of the company while a specialist is the person who excels in particular area and get professional qualification and experience in the same area over the period of time like Chief Risk Officer (CRO). A few days back, I travelled  to attend ‘World Entrepreneur Forum’ held at Hotel Trident, Mumbai which gave me an opportunity to discuss the debate with Mr Chandrashekaran at General Insurance Council (GIC). 

The debate started when a generalist can do almost all the work eg; 90% of work with good efficiency why we need specialist? The other aspect of debate is about specialist which emphasize upon the excellence that provides so called last 10% of quality assurance which a generalist is not able to provide. The problem arise where there are limited funds available or during the financial crisis when organization wants to cut the cost – who should be sacrificed on altar at such situation? Is it worthwhile to keep expert in each area in comparison to cost involved? For example: Salary of CEO is almost equivalent to CRO however, most of the job can be done by CEO.

If we observe the recent financial crisis, the insolvencies of the companies are not due to bad credit rating, not even not following regular procedures rather due to bad risk management or due to ignorance of care of rest 10% factors which were overlooked by the generalist management. It can be seen that generalist provides the good product/service but to get the best out of it, specialist services are needed.