December 12, 2011
What's Wrong with American Business
My husband works for a company that manufactures nickel products including sheets, wires, rolls...etc for everything from airplane parts to generators. Each week they have a Thursday meeting, where they set up goals and check on their progress, which sounds really nice and I am sure there is some book that tells management that this is how it is done. The problem is the goals have nothing to do with reality. One meeting they were told they had to ship 50x of one of the products, when one of them mentioned that they only had orders for 25x of this product, it didn't matter they had to ship 50x. Which left half the meeting scratching their head trying to figure out how they were going to show that they shipped 50x, when the order was for only 25x. Then one week, the upper management was mad because they weren't meeting a quota. One of the reasons they weren't meeting their quota was because the presses and furnaces kept breaking down. The punishment for not meeting the quota, was the company wasn't going to fix their machines, until they met their quota. So the company answer to them not meeting their quota was not to fix the very problem that caused them not to meet their quota. The reason for all these quotas, has nothing to do with what there customers want, it has to do with what Wall Street wants and the upper managements stock portfolio. The company is not serving their customers it is serving Wall Street and that is the problem with much of American Business today.
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