'Really Bad Managers'

While purging some old files on the weekend, I came across a quote from a Business News Network anchor (bnn.ca) whom said 'ABC company failed because they have really bad managers.'

(Let's keep the name of the company in question under the guise of 'ABC Co.' for the purposes of this blog. Also, these failed managers probably feel bad enough without needing more dragging through the mud.)

Is it really that simple? Obviously there many factors that lead to the demise of a company and every outsider looking in would certainly be happy to provide their own reasons. The accountants might identify anemic cash flow, the marketing people would chime in with 'out of date brands' and the engineers could site poor product design.

Let's explore it from another angle, a fundamental and consistent theme one hears from stock analysts and fund managers. When they recommend investments to clients or they are buying shares of a company, one of their mantra's is 'we love the management team.' (see www.bnn.ca/blog/11726.html)

But as you know, there are many more elements they must 'love' before risking Ma and Pa's money from the said fund for their next investment. Cash flow, long term contracts, PE ratio's, cost containment, effective business model etc. are all just as, if not more important than the management team.

I probably know what you are thinking, 'Yes, but success in all these considerations are the result of really good management.' Especially if we illustrate the vital functions of management which are defined as: Planning, Organizing, Staffing, Delegating, Supervising, Measuring and Reporting. If you are a 'drill down' kind of thinker you can definitely make these connections and therefor agree with the BNN anchor and his statement.

I certainly do because I see it everyday in the productivity improvement work Clear Moves does with our clients. And it is evident in the organizations large or small, that have never or don't take any kind of management training. Bias aside, this phenomena still amazes me.


Have a great week,

Kevin