To analyze the health of a company, a business researcher must undertake an in depth analysis into the way the firm is being managed. Often the financial results may not reveal the true state of affairs in a company. Investment experts opine that when investing in the shares of a particular company, it is better to enquire into the people in control of the key decision making levels of the company. It means that only if the right person is present at the right position at the right time will the company be able to generate significant profits and be able to sustain and improve upon its profits continuously.
Company histories of almost all the prominent listed firms in the United States make interesting reading. Many companies that did not have skilled motivated workforce have either collapsed or are now seen only in the so called business museums. Why did it happen? And what went wrong and where? Companies that have failed can be grouped into a particular group that followed strange management practices. Many often, in these companies the Chief Executive Officer (CEO) must have abrogated dictatorial powers and must have made `it a practice of breathing down his commands on his subordinates. No one was allowed to question his decisions. Words of caution from his juniors must have been thrown to the winds. The arrogant I know all attitude must have played havoc with the day to day functioning of the company. Thus, the slow demise of the firm must have taken place.
In the United States, in many instances, companies have gone into the red when the prominent people either got retired or moved on to other companies to avail better opportunities. The adage goes that Old is Gold. This is very true of the managements of the prominent firms as well. A management expert that has come up the hard way is a storehouse of case studies of different hues. It is very difficult to find a replacement to such a candidate. Only by retaining such people will it be possible to ensure better results.
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