Corporate Madness: Follow the herd (part one)
The cyclical nature of our global economy is reflected in the cyclical nature of human behaviour. Take your average company in a recession, and you’ll witness the effect of mass consciousness, the impact of the frenzied media engine intoxicating the minds of some of the most intellectually gifted business leaders.
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Conventional thinking in a downturn leads to a common over-reaction in business leaders who switch their thinking from creating growth to the reduction of cost in the name of survival. Whilst sensible business practice attempts to eliminate any inefficiencies and slack established in periods of economic expansion, the danger is when the focus on cost reduction becomes the primary intention of the leadership team, so often the default setting in organisations led by economists. Cuts are often made far to near the bone, often severing newly formed muscle of great potential, and the very first ‘cost’ to be eliminated is that of developing talent within the business. dark half the dvdrip
One thing is for sure, companies that choose to follow the herd by still operating within the industrial-age paradigm where capital equipment is listed as an asset and people as cost will find business increasingly difficult in the modern economy.
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December 10th, 2008 at 6:00 pm
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December 11th, 2008 at 4:44 am
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