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Yeah, even having learned to explain this shit in the IT Consultancy language of “supply contracts” and “mission critical”, it’s still not guaranteed that I’ll convince a manager to avoid or at least account for the higher exposure to outside risks when subcontracting certain things.
Nowadays, with 3 decades of experience in the Industry, I honestly think that the majority of managers, no matter how high in a company, are either incompetent as fuck or simply manage with as priority maximizing their next bonus in the full knowledge that they’re leaving traps for the next one to solve and if they do blow up during their own time, they’ll still personally end up better off by going for bonus-today-problem-tomorrow than refraining from doing so.
The Peter Principle states that a manager will get promoted to his level of incompetency, then get stuck there. As time goes on, more and more managers reach their level of incompetency, until the entire management level is populated by people who are bad at their jobs.
Say a guy is a great salesman, the best in the company, beats all his targets. He’s just great at it, and all his customers love him. So he gets promoted to sales manager, with a nice office, and a big raise.
But just because he’s a talented salesman, doesn’t mean he knows how to manage sales people. Also, the guy who replaced him isn’t pulling in near the revenue, so the department he’s managing is now WORSE than before he took over. He becomes just another mediocre manager, in over his head, and he never gets another promotion again.
Or maybe he moves up a few more levels, but eventually he hits the point that he can’t do well, and that’s where he remains, being mediocre. After a while, ALL the managers are people who were good at their old jobs, but mediocre at this one, and here they stay, until they are swept out in their 50s.
I think that there are roughly 4 causes:
I would say that nowadays in management the first one is a pretty small fraction of it (except maybe in the less prestigious and less paid low level management positions) because people are rarely “promoted from the ground floor” nowadays and hiring for more prestigious positions is very heavy on the impression people project, so most of the problem are numbers 2 and 3 plus a bit of number 4.
Number 4 is especially pernicious because it means that once an institution is managed at the top level by people who do not recognize the importance of certain skills in management (like caring about and understanding risk analysis) it tends to mainly hire people who are the same for other management positions and even for replacements for the top job - people who don’t think a certain skill or mindset is important for the job are not going to have as a hiring criteria that candidates have such skill or mindset.