Business philosophy

[fbhjr]

Over the years I have worked for both large companies and small. For
public companies and private.
Where I am now is a small to medium private company. And, one of the
things that I keep hearing from management really rubs me the wrong way.

It has been said several different ways, but the upshot is: “we can do what
we want, because it is our money.”

It comes up when we’re trying to order parts and need authorization.
It comes up when we try and buy tools or software.
It comes up when we want to develop product a certain way.
It comes up when we want to hire people.

The owner, or his son the division head, enforce their view under the “it’s
our money” clause.

Maybe I wouldn’t mind so much if the decisions were based on experience, or
skill or knowledge.
But, more often they are just based on emotion.

This time last year we were trying to hire a designer to help finish up the
giant robot freezer design.
There was one person who applied who my boss and I had both worked with
before at another company, we knew he was good, we knew he was skilled and
we knew he had just the kind of experience we were after.
“I don’t want you to hire him because I don’t like the employment agency he
is with,” the head of the division said.
“But, he’s the perfect person for this opening, and we don’t have anyone
else who is even close to as good a fit for this.”
“It’s my money and I don’t want it to go to that agency.”

He didn’t want to use the agency because someone we had hired from there
before quit on us 6 months later. My boss and I showed him an analysis of
everyone we had hired for the last three years and proved that more people
stayed from that agency than any other.
Didn’t matter.
Couldn’t hire him.
It was his money and he was going to say how it got spent.

My problem with this is that I find a fundamental flaw in this way of
thinking.
The purpose of this business is not supposed to be selling money. It is
supposed to be selling giant robot freezers.

Does it take money to do that?
Yes.

It also takes a parts, labor, direction, design, software, testing,
shipping, sales and support people.

Without those other things, you’ve got nothing to sell.
And, if you’ve got nothing to sell, you don’t have a business.

So, I get very tired of this attitude from the powers that be that can be
summed up as:
“If I bring the money, it doesn’t matter what you do.”

The falsehood of that can be seen every time they talk about needing to
meet customer target dates or their requests for people to work extra hours
and weekends.
If money was all it took, they wouldn’t need that.

If you are interested in actually creating something, you have to look at
it in a different way.
You need all sorts of things to add.
You put them together and get a good product.
You can’t make it without any of the critical things.

Yes, some of the things are less common that others.
But, money isn’t one of them.
There are lots of folks, banks, investors, grants, funds, etc that will
give/loan money to new projects.
I’m not saying it is as easy as holding out your hand and someone will put
money into it.
But, there are only 5 companies in the world making giant robot freezers.
I bet there are more banks giving business loans in this town than that.

Making a product to sell is like making a soup or stew.
The money is like the pot in which you make it.
Needed? Totally.
But, it alone is not enough.

I tire of being told it is. And, that the person who has the pot is the
cause for the stew.
A lot of other things went into it.
It would be nice if they got credit too.

Comments

[perrin-o-ravnos.livejournal.com]

This sort of thinking is a direct result of how the head of the division got his job. He did not earn his job. He did not put the time in as a manager at different levels allowing him to see what truly makes a company run well. He simply sees that investment often leads to profit. His inability to make decisions on real and measurable criteria are why the division was facing the ax so recently. It is why the next product will not save anything. You noted it yourself when recognizing that your old boss was fired because he was the scapegoat, those truly at fault are not taking the blame. The head of division keeps his job because of his last name and is in no danger of taking blame for poor decisions. I hope your job hunt goes well by the way.

[palusbuteo.livejournal.com]

I totally agree with you.

[ravena-kade.livejournal.com]

I really like the stew analogy.

[cissa.livejournal.com]

"It's MY money" is guaranteed to alienate everyone who encounters the attitude. And alienated employees are not as likely to give the company their best work. I sure wouldn't. So, stupid.

To a point, if one makes others feel worthless they MIGHT redouble their efforts to gain approval... but only to a point- and if that doesn't work, then why bother?

I guess I'm wondering if they're not trying to sneakily lay off your division is because they keep doing things that will naturally lead to that end, and NOT doing things that would make it productive. I don't think it's got anything to do with what you guys are doing; I think it's politics or something higher up.

[evrgreen.livejournal.com]

Your analysis is completely accurate, and it does illuminate the severe flaw in the ability of the company leaders to think critically/analytically. If it is always a matter of money and emotion that trumps all the logical input from people with the skills and experience, those leaders clearly should not be running a company that requires any knowledge or skills that they themselves don't have on their own. Maybe they should go be investment people, or hedge fund managers, but do not actually try to make a technically oriented product and run a company for a profit.

This problem sometimes does come up with very bright people who started their own company on their own and managed to grow it, to a point. But, after a point, it still becomes a theocracy - anyone who doesn't follow their same brand of ideas/priorities gets axed in short order. Occasionally, there are enough "yes men" to make it work well in spite of this (think Steve Jobs), but >90% of the time, it results in a total collapse of the company, unless it is bought up by a larger company with a board of directors who kick those poor leaders out..

[charliemc.livejournal.com]

This is extremely disturbing, Frank.

It's natural to hope that whomever heads a company will be reasonable and at least somewhat logical about the goals of said company -- and how these goals can be achieved. Money is certainly important, but it's far from the only thing!

I feel for your frustration. Nothing is more annoying than to point out logic to someone who refuses to even try and see what you're getting at.

I don't like the way these people handle things. They don't really deserve to have people like YOU working for them...

Hang in there, Frank. They might only want to think about pushing people around and how it's their money, but they NEED skilled people to do the work, after all!

(hugs)

[hotclaws.livejournal.com]

It's a grand way to lose money and have a business fail.

[pallid-regina.livejournal.com]

Great analogy.

[endlessblush.livejournal.com]

Your analogy works for me.