I feel like it’s a common script that most good companies eventually fall to short term focused management types who are happy to shred the company as long as they get their golden parachute.
Why does this seem to be the case? If you wanted to build a company that was more immune to this sort of thing how would you go about it? Examples and counter examples of these sorts of companies would be awesome to hear about.
Short Answer - Money.
Long Answer:
Money and Greed :p
But in reality, it’s usually just money. Ultimately if a company has decided that it’s sole purpose for existing is maximization of wealth for it’s owners, it will inevitably tend to go to the traditional business routes and hire executives who are educated in doing exactly that.
Technology companies in particular are prime for that because everyone hopes to eventually either become the next Apple/Microsoft, or be bought out by them. It’s fast, short term and big money.
Only time in my career I was laid off was because of this. Brother owners had been running their business for 40 years very well and very employee friendly. We got lots of bonuses and pay outs based on revenues and was an awesome place to work.
one of the 3 died and so the other 2 decided it was time to retire, and they did exactly this. Went out and hired a CEO who came from a reputable business school, who has done nothing but “be an executive” since graduating, and was purely a sociopath.
within 3 years the company was a horrendous place to work for. our bonuses nearly all disapeared, or started getting pegged to arbitrary company performance standards and other bullshit. by the end of 3 years 30% of us were then let go.
All because this shmuck’s primary objective was “maximize the value of the company above all else” and for him, that meant going after the employees. Since we released ZERO product in those 3 years since he took over.