Share This:

Bad-economy
Okay, I don’t want to review the rants that are out there regarding AIG, I’m not the news reporter, but I do want to review good/bad business principles. 

Maybe like me, you’ve had enough of excuses and incompetent people running things. Corporate jets for companies that are in the poor house and salaries so high I can’t even count. AIG United Guaranty posted an operating loss of $485 million in the fourth quarter of 2008. For all of 2008, losses at the private mortgage insurer totaled $2.48 billion. Wow.

Me, I always thought that businesses should be run like businesses — and this includes government. I always wondered why New York state could never pass a state budget on time, which cost us hundreds of thousands of dollars over the years, maybe more. I wondered why we pay these people or don’t penalize them for “over runs” or not meeting completion schedules. It was even brought to my attention recently that our governor just bought a $200 toaster. He must make alot of toast! In addition, the governor has also just replaced the historic carpet in the Mansion. Really? Now?

Can we reduce the bonuses, please? The general public just seems to be generous benefactors to the high-end welfare cheats. I like that  Attorney General Andrew Cuomo is investigating those getting the bonuses. It might be a little late to back track but we will all take heed.

We all know in business what happens when you have one big customer and they dump you. What about when you have one big customer and they don’t perform? Do you pay them for work not done or shoddy work?

Do you follow up on your contracts, or read the fine print? I remember an associate who didn’t count the number of items in an order one day. He signed the bill and then found himself short. Luckily the manufacturer realized that they had unintentionally shorted the customer.

Who reads your contracts and do they know what they are doing? Wasn’t it the federal government’s responsibility to read the contract and be clear of the terms before advancing the money to the big companies? Now I’m wondering about our responsibilities. Should I have read the fine print or insisted that the federal government conduct due diligence? Isn’t that why we elected them? Whose job is it to see that everyone does their job?

What's Google and the social networking sites saying about your new contractors and business partners? Would you pay commission if you found out that the people you hired to do the work were partially responsible for the downfall of your company? I don’t care what the contract stated; wouldn’t you examine what you had done?
Now let’s get to the part where if you had “earned” the commissions, and I use that word loosely, would you give it back? I wonder how long these people have been paid for non-production.

Now let’s talk about “talent.” I’m listening to NPR and there is someone defending what they call "talent.” That is: those who are getting the bonuses, the ones who if they're not paid will put the final nail in the company's coffin. Hm, ok, so maybe the talent quits. Where would they go? Would they make the same income? Me, I would overhaul my human resources department and look at their hiring practices. Next I would head to the training department and take a look at their "talent." They must not be getting paid on output.

If they’re incompetent, let’s hope they go to your competitors and maybe you can start all over with some new talent.

There is plenty of blame to go around; it certainly is a lesson in accountability.
Resources:

Share This: