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According to BusinessCoach.com -here is a complete list of reasons why companies succeed. See how many of these you have in your own business! (They aren't in any particular order)...

• The leaders are very clear about their commitment to the future of their business and use outside professionals for advice.
• They have a well written strategic plan.
• They have a written down mission, vision, or purpose statement clearly defined and over-communicate it to employees.
• They have clear communication of company goals and Company commitments (or Core Values).
• They have an up-to-date procedures manual for employees to follow.
• They operate by the philosophy that no one person is more valuable to the company than another.
• They have a written down marketing plan or marketing strategy.
• They have a complete understanding of the market and competition.
• They have adequate capitalization.
• The leaders of the organization are committed to being powerful (NOT forceful).

Companies don’t need a great leader! from Mary Mershein

Great leaders maximize their own personal goals.

There is nothing wrong with this. However, if the goals of these leaders are not in line with the goals of their company, these great leaders become bad for their company. 
Consider the British newspaper “News of the World” established in 1843. It was the biggest selling English newspaper in the world with a circulation of over 8 million at its peak compared to the Wall Street Journal which had a peak circulation of just over 2 million. 

 In 2007 the editor of News of the World, Clive Goodman, admitted to publishing articles obtained by phone hacking and went to jail. In 2011 the newspaper paid fines to the victims and shut down. The parent company News Corp. made 20% return on investment in 2011. The executives, including CEO Rupert Murdoch, profited while the newspaper was destroyed.

So how does an organization ensure management and the company both want the same thing?

The answer is communication. Rupert Murdoch and the other executives at News Corp. testified before a parliamentary select committee in November 2011 that they were unaware of any wrongdoings.

The higher up a manager is in the organization, the less connection there is with staff. Once you reach the Executive and Board level decision makers receive almost all of their information funneled through a few individuals. Sometimes they employ analyses which cannot show the entire picture of what is truly going on. This is how situations are created where those in charge benefit from the demise of the company.

However, when people talk to people, face-to-face, on a regular basis it is much harder to disguise the truth. There are no numbers to manipulate. There are no one-sided stories. Any deviations between what the company wants and what the individual wants become evident and can be corrected before harm is done.

Companies don’t need a great leader. Great leaders are individuals working towards their own goals.

Companies need fraternities. These fraternities are groups of leaders all working together for a common cause.

And the next time you attend a leadership training course, don’t go alone! Take the Board of Directors and the CEO with you.

©2012

Mary Mershein is a Chartered Accountant with a master’s degree in management who believes common sense is our greatest financial analysis. Additional common sense can be found at www.moosemoney.wordpress.com.

 

Is this the end of the Internet?  By Mary Mershein

Companies are in business to make money.

Nowhere in financial records is there a place for ethics, morality, law abiding or decency.  Income statements recognize only financial gains and losses.  As a result, corporations are encouraged to maximize profits with actions that may not always be in the best interests of the public. 

This may include dumping pollution in the environment (Feb 2011 Chevron fined $8 billion for damage to the Amazon), hiring labor at slave wages in poor countries (July 2011 Nike employees in Taiwan earn 50 cents an hour) or treating staff so ruthlessly they want to commit suicide. (Jan 2012 Foxconn employees in China) 

Leaders of such companies include the richest people on earth who are frequently admired and respected despite these seemingly immoral transgressions.  In their situation, the end justifies the means.  So why do leadership courses continue to preach ethical behavior?  Why would companies, bent on profit, want ethical leaders? 

The answer is sustainability.  History proves over and over that a single minded pursuit of profit eventually leads to downfall. 

Google’s “Don’t be Evil” philosophy was created in 2004. It was challenged when it went up against China’s censorship policies.  When Google threatened to leave China in 2009 rather than comply with China’s censorship demands, Google’s share price fell by 8%.  

Google backed down and complied with China’s demands.  Later in 2009 Google dropped its “Don’t be Evil” motto.    

In 2011 Google faced censorship demands by India but this time there were no threats by Google to leave the country and no drop in share price.  Now, in January 2012 South Korea is considering adding its own censorship demands.   What country is next?  In the pursuit of profit how far will Google go?  When does this result in a censored internet? 

Will a censored internet even be viable?

Ironically the end of an open internet would mean the end of Google.  

We still need ethics and leadership courses to prevent decisions that result in short-term profits at the expense of the long-term viability of the company. 

What kind of decisions does your company make?

 

What kind of decisions do you make?

 

©2012  

 

Mary Mershein is a Chartered Accountant with a master’s degree in management who believes common sense is our greatest financial analysis.  Additional common sense can be found at www.moosemoney.wordpress.com.