Week 3 literatuur

Question 1

Human consideration in turnaround

Answer 1

Humans all want to be seen and a turnaround leader cant view them as robots.

1. Cutting out inefficient that people created that don’t care anymore created
2. Create human capital (hire value creators; they will not have the emotional bagage and lack of confidence that existing employees have. qualified people however will be reluctant to join firm with bad rep - turnaround managers charisma)
3. Take decisive action (Sends tyhe message that someone is in charge and making things happen)
4. Be aware of stakeholders (Each stakeho0lder is a person whow nats to be heard, respected and appreciated)

Don’t make promises you can’t keep! However tempting it is.

Question 2

Why managers procrastinate

Answer 2

• Ingorant managers ()Do not realize firm is underperforming. Managers are unlikely to draw attention to conditions that could result in own terminations so unlikely to request consulting investigations. Managers delude themselves that it is not as worse as people think.
• Conflict adverse managers (Do not want to take necessary actions. Unpleasant to shut down business and fire people. Reputational damage)
• Conceptually flawed strategy
• Wrong implementation (fail to implement strategic systems. Innapropriate performance metrics/milestones)

-Slash and burn (Ondermijnen vertrouwen en moraal van resterende werknemers. employees can become cynical when they see that cash is drained from operatons instewad of reinvesting)