Why Poor Management Practices are like Viruses
Now we’ve all worked for companies that exhibit poor or bad management practices. Many of us find these practices a great source of frustration. But why do these practices exist? Why do the managers and executives that purport these practices not only continue to survive but thrive?
In this short YouTube video, London Business School Professor, Freek Vermeulen, outlines why bad management practices continue to thrive rather than die out with competitive pressure and ‘progress’.
Interestingly the reasons are similar to the continuance of viruses in nature and therefore Vermeulen calls these bad management practices, corporate viruses.
The three conditions that allow them to continue to exist are:
- There are short term benefits and therefore they are associated with success;
- The gestation period may be many years and there is an inability to understand the relationship between cause and effect; and
- The practice is easy to imitate and therefore spreads faster than it kills.
There is however one thing companies, particularly those in homogeneous industries, can do to aid innovation and increase the competitive advantage – stop doing things that don’t work or in other words “stop doing stupid things”.