HTC has revamped its management model under which its chairperson Cher Wang and CEO Peter Chou will co-govern the company, instead of the previous policy of allowing the CEO to handle the operations of the entire company. While the new arrangement may help stabilize the company's management team temporarily, it remains to be seen whether the new policy could help HTC tide over its current doldrums.
Under the new arrangement, Wang will oversee the company's daily operations, sales and marketing, while Chou will be in charge of product development in his CEO role.
HTC has seen its sales fall below expectations for almost two consecutive years since 2012, with Chou taking the blame for the downturn. But Wang has insisted on retaining Chou as CEO.
Having been CEO for years, Chou has taken reins of product development, sales and marketing and client relationships. But he has also been criticized for his management style and execution capability in terms of product strategy, supply chain management and inventory control.
Wang's involvement in daily operations and marketing may strengthen internal management and overall competitiveness, but the co-governance between chairperson and CEO may force HTC's employees to begin to choose sides, and worsen internal management problems.
Wang's takeover of part of the management may be a temporary move only. Chou may be able to regain its control should his R&D team be able to come out with new successful devices fast. Otherwise, he may have to step down eventually.
Article translated by Steve Shen
