Problems In One Country Are Not Seen As Sufficiently Important In Headquarters
Each location has individual problems and situations.
Management at headquarters may not want to hear about these things. They rely on
the managers put in place in the location to deal with the situations. This was
the only way centuries ago when communications were poor. Remote managers and
governors were given wide discretion on what to do. The problem is exacerbated
by local managers who want to get promoted and so tend to push local problems
“under the rug” if they cannot deal with them.
Impact
Many very large problems
start out as simple issues at the local level. There could be a small chemical
leak or a problem with employee security. Then it turns out that the problem
expands. This was the case with the renegade employee at the trading firm in
Asia who caused the parent company in Europe to go under. The signs were fairly
plain to see locally, but went unreported.
Prevention
Independent of the projects going on, management at
headquarters must make the effort to be informed of local issues and problems.
Managers at various locations should be encouraged, not discouraged, to present
problems. This often is a major culture problem in companies. It requires a
degree of openness that is not common or inherent in the culture of the firm.
Action
When a problem surfaces, it is often treated as unique. This
is not the proper course of action. When you kill one termite, you can assume
that there are many others. Here it is the same. You should institute an effort
to uncover local issues. You should visit the locations and work with Human
Resources to encourage people to come forward with problems and situations.
Sections
Syndication
