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Facts, Dangerous Half-Truths, and Total Nonsense
By Martin English | October 16, 2006
Heroic leaders are a disaster. Seventy per cent of mergers fail. In most organisations, financial incentives cause more problems than they solve. There is no connection between high executive pay and company performance (well, there is – the wider the pay differentials, the lower the commitment of the less well paid). The main result of many consultancy assignments is another consultancy assignment. All ’silver bullet’ or ‘big ideas’ on their own are wrong.
These are not theories, but facts. Yet companies trip over themselves to buy others, launch change initiatives, introduce pay for performance, flit from one big idea to the next – and pay their CEOs stratospherically. It’s hardly surprising so many go belly up. If doctors were as cavalier with the evidence, a lot of their patients would be dead and many medics would be behind bars.
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