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

CIO Questions answered - Your comments welcome - The reflections of the inner self

Briefly describe the typical size and organization of an IT team that you have managed. Include the division of responsibilities, how you track progress, etc. My experience ranges from me working independently, mainly to maintain my independence when I perform audits to managing a team of more than 25 - 100 consultants in various roles. I have handled multiple projects simultaneously where we have multiple consultants (typically from five to ten) working on multiple projects. We have used a set of tools to specifically monitor progress as well as the milestones. The projects involved were simple roll out of products (Microsoft Active Directory Domain Builds, Log Consolidation, Vulnerability Management) in line with product specifications to complex integration of systems that involves building multiple SoA interfaces for healthcare applications. For a successful project there needs to be proper delegation, personally I believe a person can deliver if he is not micromanaged, identifyi...
Post a Comment
Read more

A Roadmap to move from Cloud to In premise - The reverse migration -- Is Cloudflation at myth?

 Cloudflation as a term is being used and talks on the spiralling cost of cloud bills for an organization. The easily available and provisioning options leads to workloads that run for no reasons, orphaned accounts and a gamut of costs that are accrued by multiple departments without much of an oversight. There is a trend to reduce the workloads and have a semblance of order. It is imperative that we have plans that helps to reverse the migration to cloud and bring back some of the workloads that might work cheaper to run local. Is there a roadmap to achieve this goal? A few pointers in this direction A roadmap for moving from the cloud to in-premise computing should include the following steps: Assess current workloads: Assess the current workloads that are running on the cloud and determine which workloads would be most suitable for in-premise computing. Identify in-premise infrastructure: Identify the in-premise infrastructure that will be needed to run the identified workloads....
Post a Comment
Read more