Pennsylvania Investment Observer

No Credit

by Daniel J. Nestlerode

Somewhere along the line, we created a style of life patterned after the management policy called "management by exception". Management by exception is an especially useful tool for managers who now run larger and larger enterprises. In these huge enterprises, and I include almost every organization with more than five people, the management just cannot follow and know everything that is going on in the organization. So someone invented, or we fell into just paying attention, to those things that did not work. If things were going along smoothly, that was as it was supposed to happen. We only seem to pay attention to that which doesn't work or the failures of our organizations. That is, of course, what needs to be corrected to keep the organization producing results?

This process, however, has led to the dehumanization of our organizations to the point where it just isn't fun any longer to be involved with a large organization. If you want the boss's attention, then you have to become something that doesn't work in the machinery of your organization. Sometimes my dogs do this same behavior. It is then that I remember the old style of management called paying attention and empowerment. At this level of interaction, more attention is paid to what actually works and everyone is acknowledged for what they contribute. This is management by acknowledgement and empowerment. It works, but it is a lot more "work" for the boss than employing management by exception.

It is along these lines that I have noticed a couple other issues that need to be corrected. The preacher who harangues the churchgoers because of the people who stayed home is part of the issue. The second part is the credit people don't get for what they didn't do, or for what they did do that has become a built-in expectation by their peers. There seems to be a void of everyday acknowledgement for the ninety-nine percent of the population that does what it is supposed to do without complaining. We focus our attention, mistakenly, on those who do bizarre things and forget the overwhelming many that support us with their everyday activities. I attribute the way the news media practices their trade for this sorry state of affairs. Likewise, I never get any credit for the really bad investments that I did not buy for the accounts of my clients. We avoided many of the "newsworthy" companies like Enron, Adelphia Communications, Tyco, Worldcom and Martha Stewart Living to name just a few. It is not that we have avoided all the problems stocks or companies. We have bought a few stocks that have turned out to be losers along with some really terrific winners. But then I have to remember that it is hard to create a report for my clients that show them what I didn't buy for their accounts.

In the spirit of my new insight to management, I would like to thank all the readers of this column, whether you read this religiously or if you only occasionally bump into my musings. Much of what goes on in life we barely pay attention to or realize it has importance in our lives. I hear very little from my readers, yet I know you are there. Hopefully, what I have written will make a difference for you and those around you. Start with acknowledging what everyone does for you automatically.

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