MANAGEMENT STRATEGIES THAT CEO'S KEEP USING THAT DON'T WORK

EWERS, JUSTIN (2006) U.S. NEWS & WORLD REPORT/ 3/27/ EE2

There are rational maxims in business that appear to need updating. Pfeffer and Sutton analyze numerous major companies and the history of the outcomes of their traditions. The main point here is that what is it that works for the health of a corporation so that it can produce a good or service and maintain morale. They found that these strategies discussed for the most part generally don't work. They are:

*Financial Incentives increase performance! The money helps but it can also contradict. Workers speed up but the product or service is lousy. Others  jimmy or cook the books to look successful.

They do not say then lower pay. They say increase pay for really good performance.

*First movers have the advantage .If you are first in the marketplace, you are likely to be successful. Well, no not necessarily. Seconds and Thirds can profit from your mistakes.

*Layoffs are a good way to save money. No, it may come to that but if you lay off service and repair go down and the morale for others that remain goes into the toilet.

*Mergers are good idea. Well, not necessarily. You can expand too fast. You can mix two company cultures that don't fit well with each other. Then there is the possible destruction through de merging.

*Life and work should be separate. No some workers would like to date and marry each other or if possible bring their kids and/or dogs to work. When you allow those things to happen, workers start thinking of ways to improve the company or profit.

My own opinion is the following. All of the above come from a new book by Pfeffer and Sutton titled HARD FACTS (2006) If I was a CEO and wanted to make short term growth and improve my salary, benefits, and golden parachute, I would do the above.  The stock market would like me and then I would bail before the aftermath hits .I would be richer for it.