Monday, July 14, 2008
How do you know when a company's management is clueless?
Look at where they're devoting their energies.
The Thursday, June 19, 2008 Wall Street Journal article "Banks Find New Ways To Ease Pain Of Bad Loans" tells how Astoria Financial Corp. reduced its non-performing loans from $106 million to $68 million in 90 days. How did they accomplish this feat. They changed the definition of a non-performing loans.
Their energies are being spent on making the picture look better than it is. They should be working on things that will actually make the future brighter. Their actions not only cost them credibility in the marketplace, it makes management look inept. Why? There is no indication of what actions they are taking to remedy their financial situation. If they had a viable plan they'd be touting it!
It's counter-intuitive, but when you find yourself wanting to put a pretty face on an ugly situation, it's time to refocus your energy. Look for ways to make real changes instead of changing the facade. If you don't know how to go about that, hire someone to help you. There's nothing wrong with saying "I'm too close to the situation. I need an objective opinion." We, all, need that from time to time.
Are you facing an ugly situation? Send me an email at dale@furtwengler.com and I'll apply some counter-intuitive thinking to it for you.
Look at where they're devoting their energies.
The Thursday, June 19, 2008 Wall Street Journal article "Banks Find New Ways To Ease Pain Of Bad Loans" tells how Astoria Financial Corp. reduced its non-performing loans from $106 million to $68 million in 90 days. How did they accomplish this feat. They changed the definition of a non-performing loans.
Their energies are being spent on making the picture look better than it is. They should be working on things that will actually make the future brighter. Their actions not only cost them credibility in the marketplace, it makes management look inept. Why? There is no indication of what actions they are taking to remedy their financial situation. If they had a viable plan they'd be touting it!
It's counter-intuitive, but when you find yourself wanting to put a pretty face on an ugly situation, it's time to refocus your energy. Look for ways to make real changes instead of changing the facade. If you don't know how to go about that, hire someone to help you. There's nothing wrong with saying "I'm too close to the situation. I need an objective opinion." We, all, need that from time to time.
Are you facing an ugly situation? Send me an email at dale@furtwengler.com and I'll apply some counter-intuitive thinking to it for you.
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