Monday, 9 September 2013

Avoiding ostrich management


The result of management and shareholders ignoring obvious problems usually ends up with the plaintive cry “why did that go wrong?”

 

The reality is simple, a large number of companies fail to address problem issues early enough to avoid an oncoming crisis.

 

The signs of a troubled business are usually apparent – these include lack of controls, lack of strategic vision, a demotivated workforce and obsolete or valueless stocks etc.

However for a variety of reasons these problem areas are not tackled.

Instead of grasping these nettles, often the preferred option is to engage in a totally pointless course of action such as a rebranding exercise or the launch of another product range destined to fail for the above reasons.

 

Problems ignored rarely go away. Timely intervention can avoid the need to conduct a messy post mortem

 

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