Penny wise, yet Pound foolish.

Only in the corporate world could something that makes no sense be rewarded.

We have heard a lot lately about how corporations have made bad decisions that have led ultimately to bankruptcy. The real problem is that the people who make decisions can not see and/or do not care how the impact of the corporate decision making process will affect the workers/sales force/customers. They forget they are part of a group and ultimately only care about themselves, how they can look good by cutting the budget and ultimately get a promotion on the stepping stone path to there retirement. Bravo people.

So take, oh I don’t know, a financial services company for example.

Now implement a program that make it harder for the sales force, alienates the customers, and increases the costs of product implementation… all to save a buck on one spreadsheet. Super dumb. Seriously you did not save any money; you just moved it from one page to another. Worse you just made thinks less efficient, smart thinking there Tex. But I bet you dollars to doughnuts that someone somewhere is getting rewarded for that great decision.

Throw in greater costs and you have a trifecta of awesomeness.

I have said it before and I will say it again… you need to look at things from the bottom up. When Honda America started selling motorcycles in the American market in the 50’s they started with bikes that weren’t selling. The noticed that the small scooters that the sales staff had shipped over for personal use were getting a lot of attention, and started selling them instead. They were an instant hit. That is because someone (likely Mr. Honda himself) at the top realized what was going on at the street level and reacted to that instead of some board decision. Who would have thought. In few short years later they had 50% of the American market motorcycle market. Why? Because they knew what was going on.

So what should be done?

Sure less is the new more, but implement stupid programs and labeling them a cost cutting measure is like cutting your nose to spite your face. Instead get off your ass and see what is really going on. See what your customers think, see what the sales force is going through. Find out WHY things are the way they are then implement programs that make things easier, more efficient, customer friendly. Then watch the magic happen. The results wont make the first quarterly report with the impact of : Johnson did this and that cut x% in this department, no instead you will see the company, your team, slowly and steadily produce, grow, and dare I say it THRIVE.

But that’s just my opinion, what do I know after all.
(photo cred to flicker user: kolix)