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Orešković and HDZ: External Manager in a Family Business

When Tihomir Orešković first took office as the president of the new Croatian government, regular readers of Lider often began conversations with the same theme: ‘You wrote before the elections that you wanted a prime minister from the ranks of businessmen. What do you say now? Look, he can barely speak Croatian, he doesn’t understand anything about the relationships in domestic politics. Karamarko and Petrov are tailoring the list of ministers for him at the Sheraton, and he is nowhere near… He will be just a puppet on a string.’

At that moment, it truly seemed that the idea of a businessman at the head of the government would be forever compromised. The only (wobbly) defense was the customary call to give a new player one hundred days.
There is still a month and a half left until that deadline, but the picture has changed significantly. Orešković shows a surprisingly high degree of independence and stubbornness and manages to hold his own against other players. Primarily those from the Patriotic Coalition, which was his selection. From the delay in the decision to dismiss the head of the Security and Intelligence Agency, Dragan Lozančić, to the procrastination in appointing Milijan Brkić as Minister of Veterans to the appointment of Jakša Puljiz, an official from the SDP government, as his integrator advisor.

Games of Thrones Just as it was too early to declare Orešković a ‘lost cause’ after seven days, it is also too early to assert that he has definitively established himself as a strong prime minister before the hundred days are up. To follow his fate and moves, perhaps two perspectives can help.
The first relates to the advantage in competencies that someone who has survived and advanced in a multinational company like the pharmaceutical giant Teva, where Orešković worked, can capitalize on. Many are surprised at how he navigates the local political court games. Only the naive can imagine that there are no court games in multinationals. There are ‘players of someone’, there are alliances against each other, shifting from one camp to another, sabotage, sending trial or false signals, ‘greasing the board’ for the boss above or a competitor for a higher rung in the hierarchy. There are home gatherings where pacts are made over a barbecue in the garden…
However, there is an important difference: for a manager in a multinational to remain in a position to participate in court games, they must simultaneously do the basic job. Achieving measurable goals that bring profit to the company. And control is at least every three months. Those who, like Orešković, have advanced in a multinational had to simultaneously do the basic job and play the corporate games of thrones. Unlike local politicians, for whom it is enough to play court games. There has been no control of actual results for four years, and even then, the actual result is not looked at, but loyalty to the party president. Thus, for example, some of the most incompetent ministers of Milanović are today in the nice shade of parliamentary benches. The condition and skill of action that Orešković brought from Teva is a significant challenge for the first man of HDZ, Karamarko.

When an Ambitious CEO Arrives To follow and understand the relationship between HDZ and Prime Minister Tihomir Orešković, another parallel between business and politics may help. Orešković is a very similar variant for HDZ that is seen in family businesses when they decide (or are forced) to entrust the leadership of the company to an external manager.
In many family businesses, when the founders (or family) realize that they do not have a suitable candidate for CEO and that things are not going well, the decision is made to hire a professional manager. When this happens, chaos often ensues. The family has over the years intertwined internal family and business relationships, learning to make decisions (often detrimental to the company’s profit) outside of logic. With a family whose founder has been overtaken by age (or has already died), coalition partners in the form of sons-in-law or daughters-in-law enter the game… The family would change, but in such a way that nothing changes. If the hired external manager ambitiously starts the job, they encroach on the acquired rights of family members. It often happens that even though they are healing the family business and starting to bring profit, the family cannot stand them and ousts them. However, there are also cases where the family has enough wisdom to accept change and ultimately enjoy the benefits of professional management of the acquired family wealth.
What will be the fate of CEO Orešković in the ‘family business’ HDZ? The answer is again: let’s wait one hundred days. Oh, yes, there are also cases where bankers force a family that has brought the company to the brink of bankruptcy to take an external manager. And then they do not allow his dismissal because creditors thus increase the chances that their loans will not go bad.