As we said in Have You Failed Successfully? Part 1; Everyone wants results and the results come from failing fast then changing methods to fail even faster. It is learning from others failures as well as your own that enables you to reach any definition of success.
Failing successfully doesn’t mean failing on the back of employees, suppliers and your own reputation for the sake of satisfying investors needs for a short term ROI. However, creating consistent returns on investment requires accurate predictions and ongoing value enhancement as well as adjustments to the markets that create the returns. The “markets” are more than just buyers but include the people whom perform “services and create the products” that create the value that influence end buyers to buy.
Management is the Key to Successfully Failing
Management in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organizing, resourcing, leading or directing, and controlling an organizations effort for the purpose of accomplishing a goal. The goal of any organization is to succeed by satisfying all stakeholders, the market of people.
If an organization is not accomplishing the goals then the likely problem is not the people whom create the products or services rather the problem is more likely one of management methods or lack of methods. Think about it, if you reflect on the definition of Management and the results are bad who is ultimately at fault?
Management tends to blame the market, other middle management decisions, suppliers, the economy or whatever they can find to deflect the blame from themselves. When results are bad management reactions are to cut expenses, a fifth grader can add and subtract, which usually means layoffs aimed at fixing the numbers rather than fixing the management methods or changing management. Successfully failing means changing methods so you don’t repeat past failures.
Were They Listening to the Market?
Businesses are laying people off across all industries. The credit crunch is pinching personal finances. Companies are restricting new developments and reducing resources. It seems that businesses are retreating as confirmation that the markets are bad… Employees are being thrown aside as cost cutting results continue.
Now the “good old boys” are cutting out the guts of the company (the guts are the people who created the value) and calling it reorganization so they can satisfy their short term returns for investors. Management failed to see changes in the market. Management then failed to change with the markets. Management then decided the answer was to cut the guts out of the company. Management is now holding an empty shell of any promise to make gains.
The domino effect of failing to manage has long term rippling effects The rippling effect of conversations from all those people affected has a very long tail, from one to one to millions. People have long memories especially when they feel management is at fault.
This is not a case of failing successfully. And there are tons of stories like this one for businesses in every industry. These are stories of management failing over and over unsuccessfully and now being told by the people.
What say you?