One of my early business mentors once remarked to me that there’s no such thing as a bad business merely badly run businesses. At first sight it would appear to be rather a glib statement but when you analyse the performance of many companies it becomes a self evident truth.
In many organisations the management of the company are so far removed from the day to day working that they have little or no comprehension of the workings and therefore the potential problem areas for the business.
It is a problem common to both the Private& Public sectors. Take for example the UK Government Department who paid more than £3.2m to an aid agency which has ceased operations in the Afghan capital Kabul, amid fraud allegations. Documents show officials were aware of problems in 2009 but continued to pay the German agency until April this year.
As the list of companies heading towards administration / liquidation in the UK is rapidly accelerating it is a clear illustration of the lack of effective management common to many businesses/ organisations.
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