Capital sins committed in the business world



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Despite the ranks of executives and advisers with millionaire salaries, large corporations can make decisions that at best are disconcerting and, at worst, suicidal.

How is it that organizations, headed by well-paid executive directors with enough money to hire the best employees and advisers, face such problems?

An example of this is Carillion – a British multinational construction company whose collapse has left thousands of unemployed people

This large company has signed contracts with profit margins so narrow that the delays that it caused immense losses .

If we go back a bit, we have Nokia, which he then dominated the mobile phone market, until he does not recognize the competition that would come from him. iPhone.

There is a series of clbadic traps in which the big C is companies cen. Call them the "deadly sins" of the business world.

1. Stunning

In August 2008, Gary Hoffman entered the offices of Northern Rock, a credit bank based in Newcastle, in northern England.

He was appointed executive director of the mortgage institution, which had just been rescued by the government this year after being on the verge of collapse.

One of his first impressions was the "palace" offices of the place and the even more luxurious headquarters.

"The leaders had lost touch with the real world," says Hoffman

"They had large offices, separated from their colleagues, and it was physically difficult for their colleagues to talk to them. 19659003] Northern Rock had a rapid expansion offering attractive mortgage contracts and financing these contracts with short-term loans.

"They were motivated by their own personal and corporate ambitions,"

According to Hoffman: "The more you increase in your organization, the more important it is for you to have your feet on the ground."

"And, if you're not careful, people are not going.

Hoffman is now with the insurer Hastings, where he says the management spends a lot of time talking to staff and seeks to solve problems for them.

] "It may be just food in the cafeteria," he says.

2. Fear

Bill Grimsey is a veteran of retail sales who has witnessed the days when a big business got in trouble.

In 1996, he was appointed executive director of the channel. British warehouses of DIY Wickes, which could collapse due to accounting fraud .

He was able to obtain new financing for the company and change his corporate culture.

The techniques he found positive spent one week each year working in a different branch and learning more about staff issues.

"You should not underestimate the influence of the leader on the company," he says. 19659003] He came across the executive directors who govern instilling fear leaving their directors afraid of losing their jobs and only "doing what they were ordered to do".

Grimsey's Catalogs "" In these circumstances, Grimsey says the staff can take desperate measures, such as reporting false numbers to keep the boss happy. .

Gary Hoffman has a similar argument. Managers should be very careful when interacting with their staff, especially when they approach them with problems.

"When you hold the power of executive director and you close it aggressively, they often do not come back."

3 Self-Sufficiency

"Anyone can grow up quickly," says Hoffman.

"You should make sure that when you grow up too fast, you do not take too much risk," he recommends. Cheap airlines, where customers are delighted with low prices, but maybe even when some airlines do not charge enough to survive.

Last year, Monarch Airlines and Air Berlin both went bankrupt

Executives must make sure that everything they do is "anchored in the principles of profitability" , which seems obvious.

Worse still, Hoffman explains that there are bosses who can be blinded by 's obsession only to grow to grow .

In the sales sector, it is more common that it seems that retailers are forgetting something else that is obvious: the customer.

Ice Grimsey: "When they become carefree and self-reliant, they begin to offer the same things day and night, without realizing that consumers are changing in terms of style, interests and behavior." [19659003] 4. Greed

According to Grimsey, councils spend too much time on the salaries and bonuses of their senior leaders

"If you see the History of the last 15 years of the world of business in the UK, especially in the retail business, especially in public companies, these people have become greedy. "

" You must give up greed in high place and start sharing. "

Stresses that the John Lewis chain store is a better model of employee compensation.

Each year, factory employees receive their share of profits (although, In March of this year, the John Lewis Society announced that there would be no bonuses for the fifth year in a row.)

André Spicer, Professor of Organizational Behavior at the Cbad School of Business Administration , mani The fact that the way senior executives are paid can be part of the problem.

"Significant" parts of the payroll consist of shares, which can be billed too quickly, he says.

The term is often imposed on long-term survival, "he says.

5. Superficiality

In some companies, [traduction] "they focus a lot on creating a facade to make things look beautiful," says the professor Spicer

. Mark or the introduction modes of management and novelties .

All of these things can involve spending too much on consultants who, in some cases, "outsource responsibility," he says. The American energy giant, is a good example of a company that has built an impressive facade that has hidden their problems says Professor Spicer.

The company had been praised in the press for revolutionizing the energy industry, but it had hidden billions of dollars in debt and collapsed in 2001, being at the forefront. 39, the most resounding fall in the history of American business

. Spicer warns that it is "much easier" to change the image of a company than to make real changes.




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