“It feels like a train crash happening in slow motion…”: One of Tesco’s top 10 shareholders.

by Julia Evans on April 4, 2012

Reasons for circulating:

I have oft declared that, without evidence or impact surveys or establishing what is going on now, the Government is inserting a Tesco-like system for managing the diagnosis and treatment of mental health, wellbeing or happiness.  The following is what happens when you over-centralise and forget that customers are human beings, in a relationship with you.


Tesco under fire from uneasy investors: by Andrea Felsted and Kate Burgess: Financial Times: April 4th 2012: Available here

Quotes from the article:

Some of Tesco’s biggest shareholders are calling on the retailer’s newly-appointed chairman to address their concerns about the culture and strategy of the group, which is set to unveil a blueprint for its future in 10 days’ time.

In meetings with Sir Richard Broadbent, the new chairman, shareholders have sought reassurance that he will seek to reform the culture of Tesco, which they claim became over-centralised during Sir Terry Leahy’s 14-year reign as chief executive. The shareholders believe this culture could hinder … efforts by the new chief executive, to boost the company’s performance.

But one top 10 shareholder said: “It is a hospital pass. Turning the group around will take at least three years. And the culture is not that of a world-class business. Tesco is defensive, inward-looking and doesn’t have a clear strategy.”

Another top 10 shareholder said: “It feels like a train crash happening in slow motion… Everyone is watching it very closely now. [There is] a lot to do.”

Sir Richard declined to comment.

End quote.


One of the problems with the central use of control, as in the Privy Council, who regulates most health professionals, is that information about where it is going wrong cannot get into the closed system and there is no use of the third party to question. It is a monochrome culture. There are no shareholders, as in the above two comments, within the system as it has been set up. This leads to the imposition of Government-devised systems which do not work.

Remember: “Tesco is defensive, inward-looking and doesn’t have a clear strategy.” Sounds like HPC, NICE, CHRE, Skills for Health, and so on…. possibly the Government…