Abstracting the blogosphere

Abpost .n. Abstract of a post

Why Smart Companies Do Dumb Things by Guy Kawasaki

Posted by suntzu on September 15, 2006

Because of the following reasons:

  • You may have smart people that can tackle your problems. They may be useful probably but when consensus starts to build among them, it becomes harder to change it even when you know its not gonna work.
  • Out of consensus grows conviction. And if it is being made for the wrong thing, you would know only when wrong has happened or can be avoided only with huge cost.
  • When your people, rather than sticking to their arguments or thoughts, adjust their thoughts in the faith that CEO is right.
  • You got consultants who are supposed experts of their domain. Its good to have them but remember they aren’t good at accepting whats not in their comfort zone.
  • You crave for good news. And crave is so grave that you don’t want to hear bad news at all.
  • Lofty goals. E.g. you think profit is the key and you utilize all means to achieve it even keeping company ethics at bay. You just don’t care.
  • Greed. That is when your company wants it all leaving aside rules, regulations etc.

Author has also suggested his thoughts as to how to avoid doing dumb things by companies. Kind of ok post. Not a must read.


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