SBS 2003 and beyond

Dec 24 2011   10:12PM GMT

Why Companies Die or fade away



Posted by: Roger Crawford
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Why Companies Die or fade away

I was reading an article about Steve Jobs and why Big companies die and really it is any company that can do this big or small. Bottom line is if you forget the ones who really got you where you are in the end that will bite you in the butt. You can read the article I was reading Here but some of the points that stuck out to me from this article are and this one is from Steve Jobs He has a theory about “why decline happens” at great companies:

“The company does a great job, innovates and becomes a monopoly or close to it in some field, and then the quality of the product becomes less important. The company starts valuing the great salesman, because they’re the ones who can move the needle on revenues.” So salesmen are put in charge, and product engineers and designers feel demoted: Their efforts are no longer at the white-hot center of the company’s daily life. They “turn off.” IBM [IBM] and Xerox [XRX], Jobs said, faltered in precisely this way. The salesmen who led the companies were smart and eloquent, but “they didn’t know anything about the product.” In the end this can doom a great company, because what consumers want is good products.

Another snippet from the article was this one here “This isn’t quite the whole story. It’s not just the salesmen. It’s also the accountants and the money men who search the firm high and low to find new and ingenious ways to cut costs or even eliminate paying taxes. The activities of these people further dispirit the creators, the product engineers and designers, and also crimp the firm’s ability to add value to its customers. But because the accountants appear to be adding to the firm’s short-term profitability, as a class they are also celebrated and well-rewarded, even as their activities systematically kill the firm’s future.”

You can see that this can be translated to whatever situation you are in and have been through but the idea or framework is the same to fit whatever situation you was or are in. What it says to me is you forget the ones who made your company great and turn the company over to ones who make the bottom line look great and forget the ones who got you there in the first place your just hanging out and waiting for something to happen and not pushing the envelope like you use to then your treading water and looking for a place to sink. That’s my opinion anyways.

 

Til later just Roger

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