Just how good are these high flyers?

Just how good are these high flyers?

Logically I can’t believe in God. There is so little tangible evidence to support his/her existence. That doesn’t mean that in times of need I don’t say a prayer. This is most likely to be along the lines of “Don’t let it be true…” than “Thank you!” Although when I have asked for something not to be true, or to turn out OK, when the outcome is in the balance and outcome has been what I desired I have said thank you.

In this same way that I don’t believe in god yet seem to acknowledge the existence I have this same twin belief in senior managers.

From observation the best that truly make a difference (not 100% guaranteed) seem to be those that: -

1) Have been in and worked their way up the industry in a largely non-financial role.

2) They understand both the micro and macro needs of their customers

3) They have a clear simple (not simplistic) vision that all their employees can get behind.

4) They drive the business for the benefit of the customers and as a by-product the employees and shareholders

5) They are not remote from the front line, often value front line opinion above middle management.

Also from observation MOST senior managers swan in as CEO or Chairman sit back and let the momentum of the company carry them forward for 3-5 years before moving on. Often they move on just before some really bad news emerges. They are already in their new role when some really bad news emerges about the last job. By the time they are ready to move on again everyone seems to have forgotten.

There is so much empirical evidence about that I wonder why “we” still believe in them. Ignoring successes is someone really worth multiple - millions of dollars or pounds. When the lowest of their employees can barely afford to live. Who is creating the value when the management chain is so long that decisions at the top never reach the bottom unless it involves cutting jobs.

They play games with financial figures moving cost on and off balance sheet to hide what is really going on. They buy back shares so that the share price goes up, they get their bonus and their share options are more valuable.

And when there is a real challenge like ITV no one wants either the CEO or Chairman’s job. Are they not offering enough money? £4m p.a. seems good to me. Trouble is you will have to do something and no one knows what that is. At least no one in the circle of the “in” crowd. If there was a magic wand solution others would be waving it already. ITV needs not only to reinvent itself but to blaze a trail. Without a doubt if ITV can do something different enough to turn its fortunes around sustainable everyone else will be following.

They’ve tried all the “city” and accounts tricks, cutting cost, cutting jobs, outsourcing, selling of divisions and still it doesn’t work. Did you notice anything in the last sentence that remotely put the customer first?

Therein lays the problem. ITV is for the shareholders. Do shareholders care about customers? And who are ITV’s customers? ITV customer services department talks to advertisers, not consumers.

In the UK, in 2009, if someone is earning more than £1m year they are being paid too much by people that believe something that is only true as long as they believe it. Tulip bulbs, dotcom companies, house prices and stock market. Sure most people couldn’t do these jobs, some wouldn’t want to and others will never get the chance. The top 1% of the population earn more than the bottom 50%.