Will They Never Learn? Hyatt goes down the Circuit City Road to Brand Destruction

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Stupidity is not learning from the mistakes of the past.

Now we see Hyatt Hotels destroying themselves in much the same way that Circuit City did before them.

What is it with these management decisions?

Paul Michelman describes the two-step process:

1. Make the decision to fire a very important yet modestly paid sector of your workforce. Fire the entire lot of them.
2. Outsource their positions to a third-party vendor who will bring in contractors to do their jobs at a lower cost. But -- and this is critical -- before you fire them, trick your workers into training the people who will replace them. How to pull this neat trick off? Tell them they are training vacation replacements. (Best to leave out the fact that the vacation is permanent).

Nice job.

A while back I had written about similar stupidity from Circuit City and the results of their brilliance.  Same plot, same results.

How can a company compete when they turn their employees into disengaged zombies?  This is an old management problem. Peter "The Great" Drucker believed that employees are assets and not liabilities.  Too bad there are so many businesses that haven't yet learned the cost of treating employees as costs.

And once again, I'm sure these executives are paid "well above the market-based salary range for their role."

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This page contains a single entry by Christian Sarkar published on September 21, 2009 12:59 PM.

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