Are Performance Goals Motivating Or Demoralizing Your Employees?
Do the words “channel stuffing” mean anything to
you? They come from the manufacturing sector and
refer to a practice of forcing distributors to accept
product shipments for which there’s no demand.
Channel stuffing creates the illusion of moving
inventories, and, with some creative accounting, can
Accounting is the last stop for the corporate pressurecooker.
When nothing else gives, there’s always
cooking the books. Creative accounting aims to shift
the pressure from the company to investors. When
there’s too much pressure on the investors, the stock
price falls, and the pressure comes back full-circle to
the top management.
If the manager keeps pushing the pressure down
the line, eventually it will backfire. We all know what
comes next: bankruptcies, resignations, lawsuits,
even suicides. And if the story goes public, we learn
the names of the guilty parties. We learn about their
families. We learn too much.
But we don’t always realize that we are walking the
same slippery slope.
Corporate scandals have become almost as
commonplace as corporate pressure. Every year
“another one bites the dust.” In 2016 we saw a handful
of surprise resignations, but nothing like the media
circus and political fanfare surrounding Wells Fargo
Chairman and CEO John Stumpf.
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