TonyJohnston_CNi commented on the following stories on BizSugar

Tough Advice for Small to Medium Sized Business. Do you agree?

"There is more than a grain of truth in much of the advice offered by George Cloutier, founder of American Management Services. Certainly, I agree with his view that too many small and mid sized companies don't do as good a job as they need to do managing the economic side of their businesses (maybe that's why most are just life-style supporting endeavors rather than profit maximization-oriented enterprises). However, taken as a whole, I see the Cloutier approach as quite cynical and short sighted. Using it, a business owner is most likely to get marginal short term gain both in terms of a boost to their ego and performance while in the mid and longer term sacrificing sustained growth and compounded shareholder value appreciation. I say this because I can't imagine a future for those adopting his approach other than one of increasing isolation, increasing ownership burden due to having to shoulder more and more of the business burden all on their own and increasing frustration on seeing employees become ever more like cowering sheep too afraid to make any decision or take any action on their own. Heck, didn't the failure of the USSR prove that dictatorship doesn't work in the long run? Maybe this nothing more that Cloutier pursuing his own goal of profit maximization for his company American Management Services by encouraging business owners to be dependence not on the management team they have created in their company but on him and his consultants. I believe it is better to follow a more balanced, progressive, disciplinary approach, one where the carrot-like positive, we-are-all-on-a-vital-mission message is used predominantly, but where there is also a stick at hand that occasionally gets used when the need for it becomes clear and unequivocal. "
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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!