So, what kills companies?  What turns an otherwise stable company into a nightmare? No, it's not competition, not regulation, not even a pandemic. 

When a so-called expert says, "Most companies fail because they run out of money." That's like saying someone died because they stopped breathing. Many wrongly confuse cause with effect. 

Okay, let's get right to the point. The #1 reason companies, new and established, fail is poor management. PERIOD.

I have no idea why companies continue to confuse work ability with management capability. For some reason, they promote people into management positions solely based on their ability to do a specific task that is completely unrelated to the science of managing people, managing projects, and managing outcomes. It's seriously mind numbing. 

You see this in generational business all the time. Grandpa started the business and did great, Daddy screws it up and drains it, and then grandchild tries to revive it. What happened? The root cause is daddy had no management capability. Daddy got his "Boss" job because he was heir to the throne, not because he was qualified. If Grandpa was really smart, he'd have made sure the Daddy had the management education and skills necessary to run the company. If he didn't, then he should have hired someone who did. 

What is difficult about this?

I started out my career as a CPA. The profession requires technical proficiency first. If you can't achieve it, you're out. After you achieve it, the CPA firm grooms you for a management role.  As a part of your continuing professional education, you take a ton of management courses. They include time, project and people management. If you don't demonstrate the skillset, you don't get promoted. You don't move up just because you are there.  

For some reason, industry hasn't grasped this concept. 

Poor management kills an organization by 1000 cuts... slow, silent, and deadly. Poor management contributes to:

• Decreased Employee Morale and High Turnover
• Inefficiencies in Operations and Declining Productivity
• Failure to Achieve Goals
• Lack of Innovation
• Need I go on???

Companies and organizations need to recognize management as a bonified skill set, one that requires education and practice. Management isn't just telling people what to do. 

Okay, that's my rant for today. Thank you for reading. Please follow for more business insights that fall into the realm of "RI" aka "real Intelligence" vs AI. 

Jeff Richards
Think Deep Global
www.thinkdeepglobal.com