5150 Business Strategy

Life in the Corporate Fast Lane and Still Remaining Intelligent

Archive for the month “June, 2018”

Wiggling Toes in the Sand Update

DD5D4C6B-62D3-4AA3-B0D5-2825D035E219

D625F4B5-06E5-43AD-93DC-7199A904E9C7

What happens when you make the data fit a predefined conclusion. We will make a profit if we bid projects at 8% gross margin even though our overhead rate is 280%. What drugs are you on? No drugs, senior management was just not equipped to understand the difference between gross and net margin. Stupidity knows no bounds.

On the highway to hell…………….

This is a work of fiction. Names, characters, businesses, places, events, locales, and incidents are either the products of the author’s imagination or used in a fictitious manner. Any resemblance to actual persons, living or dead, or actual events is purely coincidental.

 

 

Advertisements

No More Wire Hangers

F6DDC309-6715-4721-9964-D28C9D6BC589

As things started to spiral out of control at one firm the powers to be became increasingly unhinged. The typical reaction was completely expected, lowering “business” decisions down to a personal vindictive level.

No more snack boxes for staff, let’s discontinue employee benefits, and meetings with all key outside relationships will involve the unhinged senior management. The refrain was in line with No More Wire Hangers – it was No Lunches without senior management involved. “You will involve me in all meetings, in all discussions, and in all your potty breaks, LOL”. It became a comedy of epic proportions starring senior management.

Devious management will many times concurrently have secret discussions with outside counsel to lay traps or to circumvent legally established agreements with staff and business partners. None of this should be unexpected and every move that this type of management takes can be anticipated. No more wire hangers, indeed.

These types of moves are completely vindictive for this type of management as they do not like continual questioning of large losses being incurred by the firm or questioning their inability to formulate a cohesive logical strategy. The outcome of years of bad decisions finally coming to a head eventually leads to erosion of support for  a senior management group which continually teeters on the brink of failure.  Dysfunctional behavior common for this type company becomes too great to be ignored and competent staff leave before the ship sinks. What is left behind are the “C” level players who have risen to their highest level of incompetence and have no other place to go. They stay with a mother ship which protects the incompetent as the bar used to measure competency is so low they are seen as superstars. As the song goes, “I have been down so long it looks like up to me”. Without a doubt Moe, Larry and Curly are not the sharpest knives in the drawer.

Let’s look a little closer at some of the actions these types of companies take:

  • Snack boxes delivered on a monthly basis get cut as an employee perk. All is well until senior management decides to halt the deliveries under the guise of cost cutting. The cost cutting is asinine in the context of the larger issues that should be addressed. Ignore million dollar losses due to failed strategies but let’s cut a $75/month benefit to staff. NO MORE WIRE HANGERS.
  • Likewise,  low cost term life insurance for employees is not seen as a benefit. It is the lowest cost benefit that can be included in a comprehensive benefit package. Senior management, for some ill conceived notion, believes these costs are unnecessary. Of course, when things become vindictive this is an area that senior management cuts. NO MORE WIRE HANGERS.
  • The finance department is pivotal in the formation of banking and bonding relationships. Of course, senior management is always involved in discussions and meetings with key institutions. In what can only be described as selective memory, senior management becomes delusional regarding these meetings. Paranoia sets in, “You must include us in all meetings and communications”. Not a big deal as they always are. NO MORE WIRE HANGERS.

Imagine a road trip with the bonding agents and this type of dysfunctional senior management. It would not be uncommon for things not to be disclosed to the financial or bonding agents regarding key projects and financial metrics heading in the wrong direction. The bonding agent might try to corner the finance guy repeatedly during these types of trips to get updates. The finance guy has to play the equivalent of hide and seek to avoid having a definitive conversation on the projects in question. The natural course of things transpire and with any luck the new bonding request will be rejected.  Not without justification, as firms like this that are not being forthright about bonded projects should not be allowed to continue with this bad behavior. Finance and Accounting should not be complicit in spinning a positive tale on projects that are being so poorly managed. NO MORE WIRE HANGERS

Recall from above that this type of senior management undertakes legal discussions and this necessitates radio silence over some period of time before they spring their trap.  This radio silence works against them in so many ways but is completely inline with the juvenile and vindictive manner in which this type of management acts.

Let’s say that the marketing person comes into your office wanting a signature for a new bid bond for a proposal in a far corner of the world. Would you not expect to ask the usual questions for these types of proposal bonds?  One, in particular, is whether the bonding agent is aware that the bond might be needed in this remote area by a certain date to meet a bid deadline. Let’s also say that the marketing person, being relatively new, is not able to answer the questions, and given radio silence by dysfunctional senior management,  up to date info on what was going on with the proposal is not available. Would it not make sense to go to the bonding broker and ask a question that is simple enough – are you aware of the need for this bond and could it be delivered on time? Second, are you up to date on the issues regarding the currently bonded projects? Let’s suppose the replies are Yes and No  – informing them that there were problems on projects that were being resolved is the proper thing to do, don’t you think? Not a big deal, or so one would think, but not when senior management has become completely unhinged.

Imagine the reaction of Joan Crawford to NO MORE WIRE HANGERS, LOL. Senior management can become so detached from reality that they regress even further into illogical and self defeating behavior. Cut off internet access, remove access to all company servers, there will be NO MORE WIRE HANGERS. Insanity can be unleashed and there is nothing to counterbalance the insanity. Senior management spun out of control. Paranoia reigns and what you might hear is – They are trying to get our bonding revoked, they are trying to destroy us, blah, blah, blah. Really? A simple call to make sure a bond will be delivered on time and clarify project status turns into collusion with the Russians, LOL. NO MORE WIRE HANGERS.

Needless to say, you should avoid getting to a last day at firms like this as they could be very eventful with the NO MORE WIRE HANGERS management – you could be taken out and shot. The repercussions could last over several months as further shenanigans by senior management takes place to prove Russian collusion, LOL. There must be NO MORE WIRE HANGERS – it is the height of groupthink and example of senior management not being in touch with reality.Stooges

Something learned over the years at these types of firms is that there is no such thing as transparency and, worse yet, honesty in how senior management deals with situations. Whatever you are told needs to be dissected to make sure there are no ulterior motive that are intended to serve only the select few at the expense of everyone else. This experience and knowledge will serve you well when leaving a firm like this. Being two steps ahead of your opponent and questioning their every move by not taking things at face value is the secret to success when dealing with these types.

Lesson learned: stay two steps ahead of those who are not transparent with their motives, it will serve you well in the final analysis. When management becomes unhinged you need to protect your ASSets by not taking anything at face value.

This is a work of fiction. Names, characters, businesses, places, events, locales, and incidents are either the products of the author’s imagination or used in a fictitious manner. Any resemblance to actual persons, living or dead, or actual events is purely coincidental.

Post Navigation