Bottom Of Pyramid

In economics, the bottom of the pyramid (BOP) is the largest, but poorest socio-economic group. In global terms, this is the three billion people who live on less than $2.50 per day. But there also lies an interesting version of BOP in management hierarchy of the institutes/organizations out there striving to make a mark. By management, I mean people who are responsible for decision making and corporate governance.

Management in all business and human organization activity is simply the act of getting people together to accomplish desired goals and objectives. The definition makes it look like a cakewalk but it’s easier said than done. Of all the animals, men are the most unmanageable; nevertheless, the BOP phenomenon I wish to explain here is the outcome of faulty and myopic decision of back seat drivers upon those in front.

According to famous advertising executive late David Ogilvy, “In the modern world of business, it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them by a good salesman.” That means to be able to monetize your innovative ideas, you need a manager. Also for the seamless, frictionless and progressive functioning of the organizational machinery, Management is a must. But Management must manage and not create layers of isolation. Peter Drucker, famous American Educator said that “Management by objective works - if you know the objectives. Ninety percent of the time you don't.”

That’s the bone of contention I am talking about. The loss of foresight, lack of clear objective and the fear of unknown. Together, they create a sense of complacency in the top management and when the time to act comes, the most you can expect is a restructuring, new process methodologies and heightened but short-lived motivation. The problem, however, still continues to grow as the root was not acknowledged but only the stems were pruned. The top management will hope for the best with their new projections but at the grass root level, what happens to those who have to physically act? Alas! Nobody cares!

Time for one more quote by Warren Buffett : “When a management team with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.” The failure should not be confused with destiny. Poor management is the only evil. That management is best which manages least, and in the end, when everyone is ready for it, that management is best which manages not at all.