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Sunfish
28th Nov 2011, 18:33
Theory Over Practice - The Rush To Corporate Genocide.

"To keep you is no benefit. To destroy you is no loss"

by Sunfish.

A friend recently returned from working in Cambodia told me what struck her most about the place; "There are no old people". The Khmer Rouge came to power in 1975 and embarked on on a deliberately genocidal experiment in Marxist theory - the creation of a perfect agrarian peasant Communist republic, a 1965 theoretical construct of a group of Khmer political science students in Paris. The political strategy to achieve this dream involved the elimination of any vestige of Cambodian capitalism, root stem and branch, by the cold blooded execution of anyone suspected of being remotely tainted by it. Contemporary research suggests between 1.4 and 2.2 million died, with approximately half being due to executions, the remainder from disease and starvation (wikipedia). Victims included the entire intelligentsia and professional classes - tainted as they were by western thought. The Khmer seem to have adopted a perverted precautionary principle in selecting those for execution, embodied in their chilling slogan: "To keep you is no benefit. To destroy you is no loss". In my opinion, many Western business leaders are sympathetic to this concept.

I have been struggling to come to terms with Corporate genocide - deliberately cruel and destructive management, in the Eleven years since I was personally exposed to it. Two friends in the human resources industry directed my attention to narcissism, which explains the cruelty, and my own experience as a failing MBA credentialed manager in a business I knew nothing about, and could never know anything about, supplied some hopefully relevant experience. Corporate Genocide is not about tough management and hard decisions taken in the interest of increased profitability. Those decisions must and are made every day by many businesses and Corporate Genocide tries to mask itself this way. Corporate genocide is a term I use for deliberately and needlessly cruel and unusual behaviour that destroys value in a business.

It is this stupid behavior - needless cruelty to employees and customers coupled with the destruction of shareholder value, that characterises this phenomenon. For example, I watched as whole swathes of COBOL computer programmers in a company were declared "Legacy employees", writing programs in a "Legacy Language" that ran on "Legacy computers". These older programmers were systematically denied training and promotion and encouraged to leave and there was no investment in new equipment and software. There was studied cruelty. The company invested its resources in "New" systems and employees that subsequently spectacularly failed to deliver, by which time its ignored and reviled COBOL systems were in disarray. Its demise was completed by the year 2000 computer issue which put a huge salary premium on COBOL programming experience that it no longer had.

Lest you write this off as a mere "failure of technical leadership" I need to say that it was nothing of the sort. Management had been repeatedly warned, in excruciating detail by multiple experienced people over Four years, of exactly what was going to happen, yet they deliberately and wilfully ignored what they were told - they - like the leaders of the Khmer Rouge, had already mentally written off the speakers at best as irrelevant and worse, an irritating and subversive voices that must be permanently silenced. I confess that I fired one such "noisy" employee and had him marched off the premises by security guards. One wonders for example what happened to knowledgeable folk at Qantas who extolled the B777 over the A380 and counseled about the technical risks inherent in purchasing the B787?


PPrunes Australian threads on Qantas and to a lesser extent, Airservices and perhaps CASA and others, seem to me to offer a microcosm of this Corporate Genocide that lets us examine this phenomena in more detail. The aviation industry seems to attract narcissistic practitioners because by its nature it is a highly visible activity and socially important. The first and most obvious characteristic appears to me to be a disrespect by management, nay out and out hatred, of industry specific experience, especially of obviously successful performance in a relevant role. Such experience, and the natural leadership it creates, is directly opposed to the credo - marketed by business schools, that management is a discipline in itself that ranks equally with the sciences and the trades. What follows of course is the idea that anyone can manage anything and that actual coalface experience of the thing being managed is not only irrelevant, but positively harmful because it blinkers people to "new possibilities" - cloud cuckoo land dreams of how things should work as opposed as to how they actually perform, hence the famous management quote "I don't care if it works in practice, I want to see it work in theory!"

Of course this wouldn't matter that much if managers could be educated like the fictional Army Lieutenant who it took his Sergeant Two years to train, but that brings us to the second problem - multiple layers of know nothing managers. Why for example would any manager hire as a subordinate someone with more industry experience than themselves? That is a form of career suicide! It is thus that Airservices allegedly hired for a head of its training college a person with training experience, but no industry experience and of course that itself begs the question of why the hiring was external in the first place. The idea that anyone stupid enough to work for an organisation is too stupid to be promoted to management is common these days.

This is how multiple layers of stupidity and ignorance are built into organisations - managers hiring and promoting people who are no threat to themselves. However even this defect can be prevented or reversed. Given time, any good consulting company can weed these people out. However what really, and almost certainly, kills the organisation is the narcissist in management. This provides a lethal genocidal combination; vast ambition and an overweening belief in their own "specialness"; a special talent for sycophancy, office politics and mimicry that makes them very hard to spot and even harder to remove; lack of the practical experience that would make them natural leaders and the terrible self knowledge that they are ultimately impotent; the hate this knowledge generates for real achievement, and finally the narcissists total lack of empathy towards anyone.

This is how a manager can decide to make people reapply for their jobs. This is how an airline can tell its staff that their jobs might go overseas - or not - at a date to be decided by management. This is how management can deliberately destabilise, demoralise and depress its workforce. "Legacy Airline" - says it all really. And I almost forgot, this is how management can deliberately **** in its customers faces by suddenly grounding an airline.

Wunwing
28th Nov 2011, 18:55
Recently an old friend and neighbour died. He had been for all his life a personell/HR manager in a legacy airline in Australia.He had an interesting "take" on how his company had been so successful during his time.

His theory was that immediately post war promising staff were dispatched to New Guinea for a posting. All of these staff lived together mainly in single quarters and therefore socialised and worked as a unit. When things went wrong everybody from the office boy to the manager went out to the airport TOGETHER and sorted it out. From that they ended up with a profound respect and knowledge of every role in the airline.His belief was that when those who came from that background retired the airline went down hill.

If you work out a time line on that it is hard to refute his theory.
Wunwing

balance
28th Nov 2011, 19:07
Well written, Sunfish. I've been watching this phenomenon for a while now, but I'm afraid I couldn't express it quite as eloquently as you have.

Time to get it out there to the quashed minions!

Helmut Smokar
28th Nov 2011, 19:10
It is this stupid behavior - needless cruelty to employees and customers coupled with the destruction of shareholder value, that characterises this phenomenon. For example, I watched as whole swathes of COBOL computer programmers in a company were declared "Legacy employees", writing programs in a "Legacy Language" that ran on "Legacy computers". These older programmers were systematically denied training and promotion and encouraged to leave and there was no investment in new equipment and software. There was studied cruelty. The company invested its resources in "New" systems and employees that subsequently spectacularly failed to deliver, by which time its ignored and reviled COBOL systems were in disarray. Its demise was completed by the year 2000 computer issue which put a huge salary premium on COBOL programming experience that it no longer had.

I gather you used to work for QF IT Sunfish?

blurter8
28th Nov 2011, 19:55
Thank you Sunfish.
Sometimes just reading a particular book, article, email or whatever provides a feeling of enlightenment, positivity or just s plain good feeling.
Reading the above has provided me with a little of all.
Thanks.:ok:

CaptCloudbuster
28th Nov 2011, 22:49
Excellent post Sunfish.

I note the following article from the SMH which highlights the AIPA "legacy" Pilots proffering new ideas to save QANTAS for the benefit of all stakeholders only to come up against the intractable ideology of our Dear Leaders.


Read more: Not if but when: Qantas has made the decision to set up a cheaper airline in Asia (http://www.smh.com.au/business/not-if-but-when-qantas-has-made-the-decision-to-set-up-a-cheaper-airline-in-asia-20111128-1o3bp.html#ixzz1f2wVgDMp)
Contrary to speculation that Qantas was set to mothball plans for a new Asian airline, worth hundreds of millions of dollars, Joyce is believed to have been working on a deal to not only speed up these plans but make them bigger and less costly than the original proposal announced in August.

It will be a blow to the unions and the Gillard government - which have been negotiating behind the scenes to try to find a way for Qantas to ditch the idea of setting up a new airline in Asia and instead work out how to resuscitate its international business.

To this end one of the unions has put together a set of proposals to the government calling on it to help reduce the costs of the airline by introducing more favourable depreciation rules on aircraft.

Another proposal is to help it reduce its massive interest bills by granting it access to the government's AAA credit rating when it buys aircraft.

While Qantas would no doubt welcome anything that would reduce its tax bill or debt burden, the decision has been made to set up a cheaper airline in Asia.

MTOW
29th Nov 2011, 05:03
In a previous life, I picked up a Fokker 50 from the Fokker factory in the mid 80's. Fokker was at the time in the middle of a major crisis, (a crisis that eventually led to the company going broke). One of the major reasons the company was in crisis, or so we were told during our stay there, was that the place looked a bit like Cambodia (as described by Sunfish) - not a grey head to be seen on the factory floor or anywhere in their offices.

Apparently, Fokker management some years earlier had made offers that were not allowed to be refused to virtually all of their senior technical staff and replaced them with young people "with fresh ideas", many if not most of whom went on to make a succession of very costly mistakes, mistakes that eventually led to the company re-employing some of their old staff on contract rates, but too late to recover from the disaster the company had become.

I have to say that from first hand experience, and on more than one occasion and in more than one company, I've seen one point Sunfish made - the tendency of senior management almost universally promoting ONLY those who are not a threat to them, and spending most of their day screwing over and getting rid of anyone who might be a threat to them. (Politicians, particularly, Prime Ministers, are well known for doing the same thing - and look what we end up with as a result of that!)

Most will have seen the emails doing the rounds explaining the newly coined word 'ineptrocracy'. It would be amusing if it wasn't so damned true.

it seems to be a case of 'the more things change, the more they stay the same'...

601
29th Nov 2011, 06:15
Peter Principle?

Sunfish
29th Nov 2011, 08:01
Not the Peter principle. Peter didn't systematically kill rivals.

unrestricted
30th Nov 2011, 22:19
Eloquently put, Sunfish. :D

Airservices adopted this technique when the present CEO came on the scene, now every management nook and cranny is brimming with complacency, ignorance and a compulsion for self preservation.

It was only in the last 12 months that the grey hairs returned to take up tower duties and top up their super. Alas, another failed project .
By the time they finished training their 12 months was up!!! :ugh:

Lodown
1st Dec 2011, 01:17
Hopefully I can add a little to the discussion. I agree with much of what Sunfish has written, however there are a couple of areas that I disagree with.

My wife is in Communication and she has this knack of being able to summarise in three paragraphs what it takes me three pages to explain. We were talking a few evenings ago about the demise of Netflix. Netflix took the US movie rental market by storm some years ago with their DVD’s by mail business model. The availability and convenience of the service was great. Go online to their website, select and add to a list of DVD’s that you’d like to watch and the movies were subsequently delivered by post. Customers could pay a monthly fee for one or more movies at a time. Being a monthly fee, there was no limit on the number of movies that you could get. If you paid for one movie at a time, you received one movie by mail; watched it that same evening or kept it for a month or more and returned it. When the company logged the return, another movie would be mailed out. Simple enough, and very attractive to consumers. The company expanded with online movies and included a basic, but comprehensive list online at no charge over the monthly DVD rental. Blockbuster was the main competition and that franchise fell flat almost overnight in the US and the company is still trying to drag itself back into market significance. Other competitors included cable movie providers and a relative newcomer: Redbox, which dispenses movies via a vending machine.

I think it was last year, Netflix decided to split the business with online movies offered as a separate market product. There may have been some market research, but I didn’t hear of any. Almost immediately upon implementation, Netflix was inundated with complaints. The company chose to ignore the complaints and push ahead with its strategy. Irate customers started cancelling their subscriptions. The customers weren’t just upset with the change of service, they were also pissed at the arrogance of Netflix’s management in ignoring their concerns. It takes a considerable amount of effort on the part of monthly subscribers to cancel a payment plan, but customers went out of their way to do so…and they did it in large numbers. It took 3 months before the CEO in an effort to stop the bleeding, sent out a letter explaining the actions. The letter obviously didn’t go through any effective Corp. Comms department because it was a non-apologetic, rambling, vague and lengthy explanation that did even more damage (if that was possible). That was pretty much the end of the remaining loyal customers. Netflix is a shell of what it used to be and it happened in 6 months.

To get back to my wife…we were talking about Netflix and she commented that all Netflix had to do was t.w.e.e.t and blog about its plans and it would have received market feedback on the proposed decision in very little time. However, this wasn’t done. Through arrogance, hubris or whatever, a decision was made and implemented with what seemed like very little discussion. The damage was exacerbated with the inability of management to timely re-evaluate the decision in light of the market reaction.

Which brings me back to Sunfish’s original thread on the intentional genocide of corporate knowledge with the justification (?) of removing resistance to change and potential career threats. I personally have not witnessed removal of career threats, but don’t doubt that it is out there. I would argue that one of the big areas of unintentional demise with this strategy is in corporate patience and tolerance. MBA programs make a big deal of consultation, research and implementation. They gloss over the consultation part.

Generalising: When a manager comes up through the line, not only is there likely an intimate understanding of how the process functions, but there is also a level of patience and consideration that is inherent in the process. There’s a personal knowledge of the employees, suppliers and customers and an experienced patience, tolerance and consideration for their individual capabilities.

As a soon-to-be old fart, what I am noticing is that these 21st century C-somethings are lacking a respectable dose of patience. They see it as an asset to quickly make a decision, implement it and then see it through. I know we are living in an accelerating world, but these young guns are so intent on making a mark and climbing the corporate ladder that one of the first things they do is completely declutter the area in which they see a resistance to forward progress. Meetings are brief. Items are actioned without an effective time for consideration. And the youthful exuberance allows no time for effective consultation and consideration. The result can be a spectacular hit and sometimes a spectacular miss. More and more, it’s becoming a spectacular miss. Then again, that’s what the investor and the company board is demanding.

I was listening to a radio discussion some time ago. An executive has three months after being hired in which to make a mark. If there's little to show after three months, they're out. The corporate genocide might just be an unintentional consequence.

PLovett
1st Dec 2011, 02:14
Fascinating post Sunfish and much to be agreed with. I especially liked the counter-point with the military having just finished a book written by a second lieutenant following a posting to Afghanistan, " Callsign Hades".

The military recognises that although a person may be an officer they need a competent senior NCO to actually train and watch over them until such time they achieve the level of experience to be able to lead effectively. To apply the analogy to the corporate field, the officer would be an MBA and the senior NCO an experienced worker. However, that is where the analogy ends.

There is also a well recognised view that the traits that make a successful businessman are the hallmarks of a psychopath. I suggest that many of the leading CEOs' fit that profile. I suggest that there is also another factor at work and that is our community looks for instant results. That just reinforces the effect.

Sunfish
1st Dec 2011, 04:54
What also concerns me is that filling Management with a specific age group or preferred background leads management into error. Twenty somethings make one type of error, old farts like me make different types of mistakes.

I realised this years ago watching a work crew changing an engine at Ansett. The apprentices were doing the muscle work. The twenty somethings were passing the tools and directing the apprentices. A Thirty something had the manuals open. A pair of forty somethings were looking at, and trying to make sense of, the paperwork.

An older grey headed leading hand was just sitting back watching everything happen and occasionally directing or correcting somebody. It is a powerful combination; old age and rat - like cunning combined with the energy and enthusiasm of youth.

hewlett
1st Dec 2011, 05:03
Rat-like cunning, now thats getting personal sunnie. Mods....Mods....:E!

AlphaLord
1st Dec 2011, 06:36
The workforce has been disempowered.
The disparity in remuneration between management and the shop floor has been growing markedly for the last twenty years,It has gathered exponential pace since the beginning of the GFC.
The Wall Street protests are the birth of a movement that will gather momentum over the next years.
Just as the middle east dictators have fallen so too will the coterie of corporate psychopaths