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This model is a problem where a company (usually beyond the startup phase) has multiple profit centers. Success in one division can be dragged down by substanda
by mentalpiracy 11y ago
This model is a problem where a company (usually beyond the startup phase) has multiple profit centers. Success in one division can be dragged down by substandard performance elsewhere, if (poor/unethical/ignorant) management chooses to measure it so.
I just left a job where my division (which consisted of just 3 people) produced nearly a million in profits for 2015. We were told by management that there would be no raises or bonuses for us, simply because overall company sales were flat.
The three of us left. You cannot retain talent if you make your top producers beholden to operations they cannot possibly affect.
- jdmichal 11y agoNo doubt. I've been in a similar situation; one of the top-performing groups that got zero reinvestment because all our profits had to support the rest. [0] Unfortunately, I came to the same decision that leaving was the best solution for me. I'm not really sure what the correct response is to these situations, short of removing some of the weight so that the rest can hopefully rise higher. [0] I've discussed one of the symptoms before: https://news.ycombinator.com/item?id=11167407 https://news.ycombinator.com/item?id=11167407