Statements of Income, cash flows and balance sheets...All purport to financial success and good company health, so what's the problem? The huge cash outlay! Is it worth it? Well, sometimes not! Financial success is routinely followed by annual dispersement of leadership compensation for a job "well-done" and as a consequence, promotions are in place for the supportive staff. Of the many with their hands open, how many can we say have significant contributions to the bottom-line and are deserving of the grossly exaggerated bonuses? How granular is the evaluation of their respective contributions? Can we differentiate between improved results that may be influenced by factors other than the decisions of our leaders?
I say that we must analyze the data further, like most corporate investments. Let's incorporate proven analytics like the financial industry where professionals evaluate the skill of portfolio managers against an unmanaged fund where human intervention is absent. Or start the economic term by adding a pace setter like in horse and dog races. Let's stop fuzzing the numbers and really eliminate the easy, most common decision managers use that help create false profit like reductions in workforce! Come on that's the easiest trick in the business because all the company is going to do is hire them back! More than likely, leadership will get rid of some of the most talented, losing some to the competition. This just leads to more questions. Have we undersold proper (effective & accurate) leadership evaluation? How parasitic have we made the recipients of leadership compensation? How much do the rob the bottom-line? Obligate intracellular parasites or viruses...can this be applied?
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