Your Boss is Simply a Bad Manager

Is it possible to have a bad manager as a boss or an owner of a business? Believe it or not, it is possible to have a boss who is simply a bad manager. I have witnessed first hand many instances where bosses "think" they know what they are doing but in reality fail to use simple common sense.

Most bosses just don't want to admit to themselves or their employees that "some" of their decisions are poorly designed, poorly executed, or just plain silly. Years ago I was with a client where the owner of the company insisted he didn't need help from a consultant. "OK, fine I will leave because I have to catch a flight", I said. But before I left the owner asked me nicely to look at his gross revenue and explain to him why he didn't have "cash" (working capital) with so much gross revenue. It took me about 5 minutes to realize he had entered a vendor invoice as a sale which obviously made his business look super strong on the sales side. Needless to say I stayed for 3 days while I continued to review his books and accounting procedures. I stayed another two days to help him liquidate his inventory - he was bankrupt. It turns out his data entry person (no accounting training or background) had been periodically entering vendor invoices as sales for the the last 6 months. Well, he never checked or trained, or even verified if this person was qualified to be a data entry person.

What's the morale of the story here? Yes, sometimes bosses don't know what they are doing. What's worse is that some owners don't know that they don't know. Did you get that? It is important that owners and employees have a open relationship where they can help each other, learn from each other, and even teach each other how to be more effective. It never fails when I am on an airplane inevitably the person next to me on the plane has a horror story of when they owned their business and made so many mistakes wishing they would have sourced help. A business must be organized no matter what! Know where sales come from, know where costs go, and know whether your employees are more than just employees and can be resources to help you manage the business better.

I recently heard of a business owner who gave everyone a raise in his company because two of his key employees quit to go work somewhere else. He gave the employees raises for fear they would quit as well. Really? That's the solution? Sad. The solution to this issue is rather easy and I will leave the narrative for another post. Bottom line; know your business. Don't be the boss that is simply a bad manager. Don't put your employees in the awkward position of losing respect for you because of poor decision making. Don't leave your customers to deal with your incompetence - that's just rude.

Luis Luarca PhD

For more about Dr. Luarca visit Allectus LLC

Categories: Leadership

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