1 / 6

Business Maxims in Need of Make Over

Business Maxims in Need of Make Over. by Pfeffer and Sutton. Failed Concept 1: Financial Incentives Drive Good Performance. Concept: Tie pay to performance Provide stock options Big Problems: People tend to focus NOT what is best for the organization – but what is BEST FOR THEM

micheal
Download Presentation

Business Maxims in Need of Make Over

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Maxims in Need of Make Over by Pfeffer and Sutton

  2. Failed Concept 1:Financial Incentives Drive Good Performance • Concept: • Tie pay to performance • Provide stock options • Big Problems: • People tend to focus NOT what is best for the organization – but what is BEST FOR THEM • They focus on what it takes to get the incentive • Incentives inspire bad or unethical behavior • Long laundry list of crooked executives and managers…

  3. Failed Concept 2:First Movers Have the Advantage • Concept: • Be the first to move into a market and you’ll have it all to yourself • Market victory is assured • This concept appeals to the entrepreneur in every executive • Big Problems: • Success stories that support the first mover advantage turn out to be false • First movers often times fail: • Xerox invented the PC • Netscape came up with the first dominant browser • Ampex produced the first VCR • Microsoft has made a living coming in second • Operating systems • Excel • Often times coming in second (or even third) may be the most cost effective way to be the best • Products and services are refined to the end users needs • Technical and distributions problems are resolved

  4. Failed Concept 3:Layoffs are a Good Way to Cut Costs • Concept: • A business most expensive items are its people • Cut people and this will reflect positively on the bottom line • Big Problems: • Most research shows that lay offs have no lasting effect on the long term growth potential of a company • However, they do increase executive pay and bonuses in the short term • Many laid off employees come back as costly contractors • Many laid off employees end up working for the competition • Many laid off employees represent the corporate memory of the firm in terms of customer care, technology & sales continuity • Large lay offs crush the moral of survivors • Often times there are costs associated with termination packages and law suits

  5. Failed Concept 4:Mergers are a Good Idea • Concept: • By merging there will be an efficiency of scale heretofore unrealized • By merging the customer base is instantly increased • Big Problems: • Over 70% of mergers and an even higher percentage of alliances fail • Companies of similar sizes have huge political problems • Companies that are geographically distant actually increase overall costs • Corporate culture of competition vs. cooperation is too difficult to outrun

  6. Failed Concept 5:Life and Work Should be Kept Separate • Concept: • Coworkers compete and can be your enemy • Jobs are not offered to people who smile too much • Intra office dating and marriage are no-nos • Big Problems: • People are social beings • Google asks employees to spend 70% of their time on the company’s core business and 30% on things that relate to new business (or fun items) • Southwest Airlines extols the idea of “one big family” • The idea of separating life and work is simply impossible … so, just accept it…

More Related