Quote:
Originally Posted by murg
I ran into this in the real world.
The new CEO managed to alienate ALL of the customers (not that they had many to begin with), and run the business into the ground.
I was amazed that both this sort of thing could happen and that the board allowed it.
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It is incredible but I have seen it so many times. I guess I should not have been surprised by also seeing it with very large corporations. B&N and Nokia come to mind immediately for a series of bad decisions. Apple, I think, from memory, went through a similar period pre-Ipod before Steve Jobs returned to save them.
I think it usually goes on for far too long because people are reluctant to speak up, and it is, to put things mildly, not encouraged. Boards, at least of larger companies, consist of representatives of vested interests, some of them with superficial knowledge of the actual business and company. And they move slowly. Once they have appointed someone, they seem to back them by default. By the time they realise the problem it is often too late.