4 ms·
All the takes are correct, but they don't really explain the root of the problem imo. We can recognize all these problems with budgets - that sales is incentiv
by GabeIsko 3y ago
All the takes are correct, but they don't really explain the root of the problem imo.
We can recognize all these problems with budgets - that sales is incentivized to sell under budget, and submit change orders or project renewals later to get more money. Yet why does this happen? Can a private company really compel a government to change a contract? If the government really wanted to, they could take steps to limit the budgets, sue, nationalize a business, etc... This brings concerns that a government could wield it's power to exploit private companies, but I don't think people would be that opposed to the idea of a government trying to save taxpayer money.
The core of the issue is actually cultural. In business circles, closing a sale is considered a "skill". Lying, cheating, bribery - these are all culturally laundered as a method of sales tactics, and businesses laud salesman that can close above all else. I would argue that this is a cornerstone of business culture, at least in the US.
I think this is the core of why bids are so far off, and even a core issue with the world economics. A large portion of business occurs in the "enterprise" space behind closed doors, and the sales process is very obfuscated. It is the opposite of a free transparent market. These deals occur behind closed doors, net salesman a bundle in commission, and fall apart when they have to be implemented.