Cash can hide the failings of poorly run companies. Since the goal is to make money, everyone is happy as long as the cash is rolling in. It acts as an aphrodisiac. Leaders and investors do not ask if performance could be better.
A prime example is Emdeon, i.e. WebMD. Finance leaders sold Wall Street on the ideals of synergies. Unfortunately, cash blinded everyone and operational efficiencies were never achieved.
In the capitalistic system, competitors improve their positions and ultimately overtake the poorly run company. The downside is the displaced employees of the poorly run company.
The solution is well defined performance measures and cutting underperforming products and services.
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