Three Spectacular Examples of Corporate Ineptitude
And Stengel had it worse. Two years after taking the Yankees to game 7, he helmed the Mets to a record of 40 wins, 120 losses -- a 250 win percentage. For perspective, it’s axiomatic that a baseball team will win one-third of their games, lose one-third of them, and decide their fate in the middle third. Winning 108 games means a clean sweep in the swing games -- which is why you seldom see teams win 108 games. Being the surly legend he was (and most likely wanting to distance his legacy as far from the Mets as possible), Stengel openly violated the cardinal rule of team sports: Don’t ridicule the talent or the potential of your own club to outsiders. He disrespected the team to reporters, guys at the bar, other teams, and the players themselves -- constantly. He wasn’t motivating the players; he was mocking them.
Stengel unknowingly created the title for Jimmy Breslin’s book about the first-year Mets, Can’t Anybody Play this Game? -- which must have really fired up the starting 9.
2009 is becoming a year of Stengel-esque ineptitude: No one on the boards or in the corner office can seem to play this “management” game. The rules haven’t really changed since the ‘20s: Appease the analysts, deliver on what you say, and make your earnings.
Earlier this week, Boeing (BA) pulled off the trifecta of ineptitude: It not only missed earnings, it also delayed the release of the 787 Dreamliner due to “additional stress at the point where the wings connect to the sides of the plane.” And this only a week before the Dreamliner's scheduled demo flight -- which is 2 years late already. A window allowing the 850 prospective purchasers of the 787 out of their deal may be the greatest material adverse change ever.
“The wings fall off, and the plane is years late. That closes our side of the case, Your Honor.”
The insanely bright Karen Finerman and I would argue about Boeing. She, being the analytic yang to my ever-offensive yin, would point out that Boeing makes more than 787s. My 2 responses: The Dreamliner is their showpiece product, and they’re failing to produce it in any reasonable way. And if Boeing makes so much other stuff, why can’t they put on a secure wing?
Karen is running numbers -- a measure of what stocks can be. These analytics are a great strategy, assuming management is at all capable (or at least rational). Missing delivery of the plane by years is one thing; being unable to duct-tape a Dreamliner together enough to make a token flight is quite another. My battle with Karen over Boeing isn’t entirely over -- but I like my side of the wager.
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Nice to hear from you again.
I completely agree, this thing is a great toy, but a terrible phone. Does anyone know when AT&T's control of Iphone exclusivity expires? I'd love to combine this Iphone with my old Verizon service.
That said, I am a fan of your column. Welcome back.
That biz model is also not geared for a market in which something like a third of all the aircraft flying two years ago are now sitting, parked and for sale at rock bottom recession prices, available on short notice--and unwanted even so. So, Boeing is the new car dealer surrounded by used lots of late model luxury vehicles offered at 30% of the price of the new model (which won't be available until 2015.
Some business model. Some future. There are sound arguments for a bailout of Boeing on a national-security basis, and others, but by the time that's the discussion the common will be trading on the pink sheets.
Jeff, I'm with you on this wager.
But no trade? I regard you as one,if not the, most straight shooting traders on the planet - just like Toddo - but it's what you don't say that sometimes gets me to thinking.
Thus: The market must be in no mans land, you seem to have a fairly flat book??????????
"Call me a cynic (I call myself one, though I'm generally not), but I think the Board of Directors announced the news about Jobs last Saturday (Saturday?) because they knew they'd be able to announce 1,000,000-plus iPhone sales on Monday morning. What didn't seem to occur to them is the fact that the timing of the releases wouldn't slip past the media or the public."
Dynamo Hum! "the Macke bites... the Macke chews it"
Seems they're playing the same Game, with similar results, as Our Beloved Leader. Sure, sober and watchful (if not cynical) people noticed the timing, but if their share price is any indication they received at most a wrist slap. Today back above last Friday, and the slope of the rise since mid-May the same as the slope throughout April.
Inept? Deceitful? Sure and sure, and like ever-reelected politicians, still rewarded.
Disclaimer: I'm an ex-Palm employee, with a bit of Palm stock left.
Regarding, "âmanagementâ game. The rules haven't really changed since the â20s: Appease the analysts, deliver on what you say, and make your earnings. "
I would say they have changed. It has been more about telling people what they want to hear, and playing tricks, than about real results(Citigroup, etc?). That is why we are in the situation we are in.
B.S. over action. Political correctness, over getting the job done.
Cut Jobs some slack. He might be a S.O.B. (I don't know) but he gets the job done. And after the years of junk he has taken from other CEOs(there are some incredible stories of what happened at Apple), it's a wonder he is still alive.
[Steve, please relax a little, as there is nothing more important than your health]
So now we must have years of the market telling us that real results and growth are what matters. Too bad we didn't learn this lesson after the 30s, Japan in the 80s', etc.
Now, Jenny says let it go.
Every time they whiff, it becomes a matter of teaching investors to expecting failure. It's not the guys on the line or higher-ups killing BA's stock; it's the dudes in the corner office.
In terms of mind set, trading is fishing as opposed to say, jumping double decker buses in a Limey stadium.
I missed 171 pt Dow rally and I have a hard time caring. I believe the market to be moving in more or less random range which will likely resolve lower. Why am I more or less flat (over 75 pct, which is going to simply KILL me when I go to the Bahamas for a few days next week... "another $25 Heineken, Mr. Macke?" "No thank you, I'll stick to the $12 club soda with no ice").
But you gotta with the gal you came with, even if she's aging in 2x Dog Years.
That's not what made Apple. My work, but it's very different
Respect the Crayon!
However, you should watch your old show, Karen lit into Boeing for the exact same reasons on Tuesday.
Regarding the Pre, you should have waited for it. It's worth it. And regardless of Sprint's action, have a look at PALM's after hours action today. Mother of all short squeezes. hehe
I didn't do anything to change the column, mostly because only real a*****les pick on someone like Karen. She's sharp as a tack and a genuinely sweet person, not to mention my friend.
As for watching my old show.... suffice it to say I find it generally painful. I seldom even watch the network anymore. Let's leave it at this, months after his departure, and days before his new MSNBC show debuts, audio tapes as this: http://gawker.com/5302434/the-rant-that-explains-why-dylan-ratigan-left-cnbc are still being leaked. I was two seats to the camera left of him at the time. I've heard him rant better but find it hard to fault his argument.
The network is a highly profitable corner of the corporation. They simply have a preference for folks who are always bullish; or at the very least don't attack the sponsors, regardless of how bad their management may be. And, as Jim Morrison sang, "No one here gets out alive" is the company motto.
The second wasn't at all what I said but the first would sell more tabloids.
















