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Stupid Executives Should Be Fired

Companies should stop tolerating managers who treat their employees and suppliers with respect; that kind of stupidity is a fool's game.

Gary Cokins
Gary Cokins
A potential risk is lurking for opportunistic organizations losing sales. That is, there is a danger for companies that are making stupid decisions, especially by their executives.

For example, executives who are reluctant to lay off large numbers of employees to improve short-term, bottom-line profits should be fired by their board of directors. After all, later on when their business improves they can always hire new employees and train them. It is a bogus notion that retaining employees with years of knowledge and experience makes good sense. Rubbish. Employees are easily replaceable.

Another example. Executives who do not beat up on their vendors and squeeze them by demanding lower prices should also be fired. Suppliers are a dime a dozen. Who cares if they go bankrupt from your crushing them? You can always find another supplier.

Another example. Executives who do not gouge their most loyal customers with huge price increases should also be fired. Successful executives know that you can also further increase profits by reducing services to loyal customers. It saves unnecessary costs. Customers who are loyal are basically customers that are timid and weak, and they will tolerate any abuse because they are afraid and insecure to begin purchasing from a competitor.

There are so many examples as to why stupid executives should be fired. Here are some more.

Executives should cut out all research and development. That is so obvious. R&D is basically a bunch of scientists playing with test tubes. They still think they are in grade school doing a science project.

Another way to boost profits is for executives to eliminate all employee travel and employee training. Most employee travel is really just a smokescreen for them to party hardy and run up big tabs at restaurants. And employee training gains nothing because during training courses most employees are solving crossword or Sudoko puzzles, or they are looking up sports scores on their mobile smart phones when the instructor thinks they are paying attention.

Another good way to both save costs and increase sales is to lower incentive commissions to the sales force. Sales people behave like hamsters on a spinning wheel in a cage by running faster so they can make enough income to feed their families. Just make them run faster. Any executive who does not reduce their sales force’s compensation bonuses should be fired.

Most executives do not understand that these examples are proven ways to improve bottom-line profits and make themselves look like stars to their shareholders and board of directors.

And if you believe what I have written here, read the first letter of each word in the first sentence of this blog. You will see that together they spell A-p-r-i-l F-o-o-l-s!


Gary Cokins, CPIM
(; phone 919 720 2718)

Gary Cokins (Cornell University BS IE/OR, 1971; Northwestern University Kellogg MBA 1974) is an internationally recognized expert, speaker, and author in advanced cost management and enterprise performance and risk management systems. He is the founder of Analytics-Based Performance Management LLC, an advisory firm located in Cary, North Carolina at He began his career in industry with a Fortune 100 company in CFO and operations roles. He then worked 15 years in consulting with Deloitte, KPMG, and EDS. From 1997 until recently Gary was a Principal Consultant with SAS, a leading provider of enterprise performance management and business analytics and intelligence software. His two most recent books are Performance Management: Finding the Missing Pieces to Close the Intelligence Gap (ISBN 0-471-57690-5) and Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics (ISBN 978-0-470-44998-1). His most recent book is Predictive Business Analytics (ISBN 978-1-118-17556-9), published by John Wiley & Sons. Mr. Cokins can be contacted at contact:

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Mardi 30 Juin 2015