Skip to main content

Rewarding Mediocrity

Organizations fail as a consequence of decisions taken by the collective intellect of the powers at the board. They are successful because of the same powers that make effective, efficient decisions and manage risk.

As an investor every individual looks at a number of parameters before investing. These rules of investing have over the years been honed and tuned to such a level that the health of an organization can be gleaned from the statistics and information available to the public.

Do any of the organizations that have got funding from the Government eligible as good Investments or Investment Grade? None of them would pass the muster, they are bleeding organizations which should have been asked to die or scale down become more efficient.

Well now that the funding has been secured, what is the guarantee that these funds are to be utilized properly and efficiently. Would the Government end up with another body to oversee governance of these Organizations. Are we ready and prime for bureaucratic red tape? Where would the Government stop when it comes to doling out money for these "super efficient!!! " organizations? Is my organization with 50 people big enough to get Government funding? or is the barber shop down the road eligible for the dole as he is suffering because of the Wall Street Dream Merchants?

A free country should not protect those that are inefficient or fit to die, that how the system works. The resources released by the eventual death of an organization (whatever be the size) is reallocated by a free economy to alternative wants that are more efficient and over time employ more.

To put it more in perspective, it works like this - a 800 billion grant may protect the automotive majors, some banks and an insurance giant, lets say that these organizations employ about 250,000 people. Because of the death of these organizations, these people may move out re-skill themselves and would be back in the market in a year and the same 800 billion would generate more than 250000 jobs and most likely would provide indirect employment to much larger number of people. The use of the funds for bailing out would eventually be less efficiently deployed than by letting then die and the resources getting moved to more efficient uses.

Comments

Post a Comment

Popular posts from this blog

Malware Damage - It is real and you need to be ready ...

  Malware, short for "malicious software," is any software intentionally designed to cause harm to computer systems, networks, or devices. Malware can take many forms, including viruses, trojan horses, worms, ransomware, spyware, and adware, among others. The dangers of malware are numerous, and it is crucial to protect yourself from malware to avoid serious consequences, such as: Data theft: Malware can be designed to steal personal information, such as bank account details, social security numbers, and login credentials. Once this information is stolen, it can be used for identity theft, financial fraud, and other malicious activities. System damage: Some malware can damage your computer system, causing it to crash or malfunction. This can result in lost data, system downtime, and costly repairs. Financial loss: Malware can also be used to extort money from victims. For example, ransomware can lock down a victim's computer and demand payment in exchange for the decrypti...
Post a Comment
Read more

HIPAA - What is that we need to know .... Cyberawareness for a Health Care Organization

  Here is a detailed cyber awareness training for HIPAA candidates: Introduction to HIPAA: Provide an overview of the Health Insurance Portability and Accountability Act (HIPAA) and the importance of protecting patient information. Understanding HIPAA regulations: Explain the different regulations under HIPAA, such as the Privacy Rule, Security Rule, and Breach Notification Rule. Identifying and reporting breaches: Teach employees how to identify a potential breach of patient information and the proper procedures for reporting it. Phishing and social engineering: Provide training on how to identify and avoid phishing emails and other social engineering tactics. Passwords and authentication: Teach employees about the importance of strong passwords and multi-factor authentication. Mobile device security: Discuss the risks of using mobile devices to access patient information and the measures employees can take to keep the information secure. Remote access security: Explain the risks ...
Post a Comment
Read more

Where are you on your Cybersecurity > Part 1 Evaluate your strenghts and weaknesses..

  here's a checklist to identify strengths and weaknesses in cybersecurity in a team. The user can score themselves against each item to identify gaps in their cybersecurity posture: Cybersecurity Policies and Procedures: Does your team have documented cybersecurity policies and procedures? Are they up-to-date and reviewed regularly? Are they communicated effectively to all team members? Access Controls: Do you have strong password policies in place? Do you enforce multi-factor authentication for sensitive accounts? Do you restrict access to sensitive information and systems on a need-to-know basis? Network Security: Do you have a secure network architecture that includes firewalls, intrusion detection and prevention, and security monitoring? Are your network devices, such as routers and switches, configured securely? Do you monitor and log network activity for potential security threats? Endpoint Security: Do you have antivirus and anti-malware software installed on all endpoints?...
Post a Comment
Read more