Management guru Bob Sutton is off to conference in Singapore this week and on his consistently thought-provoking blog Work Matters he’s preparing for the event with a little thought experiment. Namely, he’s attempting to brainstorm the stupidest management practices of U.S. companies that remain inexplicably popular despite plenty of evidence against them.
As fresh eyes on corporate America, newcomers to the world of work sometimes have the clearest view of what’s seriously silly about how a company does business — employees who have been with an organization for awhile accept things as standard that, to the uninitiated, simply seem stupid. So can we help Sutton out? Most of his examples below are drawn from higher up the company ranks (at the level where overall strategy is formed) but widespread, dumb practices that are common to managers farther down the pecking order are also welcome.
- Dangerous Complexity. The assumption that when we can’t understand an expert, they must be both smart and right. This is certainly part of the Wall Street story — for years the financial wizards and economists have conveyed to the rest of us that we are far too dumb to ever understand what they are doing. An interesting contrast, by the way, is JP Morgan CEO Jamie Dimon. If you read Fools Gold, you will see that one reason that JP Morgan avoided the worst of the collapse was that Dimon believed that, if you were investing in something you couldn’t understand, you should get out.
- Dysfunctional Internal Competition. If you dig into the problems in the banks and a lot of other companies, they actually punish people who help others succeed, both via the reward systems and who gets the most prestige.
- Breaking-up Teams Constantly. American companies often seem to love moving people around constantly, breaking-up teams, giving people new experiences, and so on. Certainly, there is a time for fresh blood, but if you read J. Richard Hackman’s Leading Teams you will see that the weight of the evidence is that breaking up teams less often rather than more often is linked to all sorts of effectiveness indicators.
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