Smart People, Dumb Decisions
I was talking to a client from a major preschool toy company recently and learned that they are radically revamping their product mix. They brought in high paid consultants and discovered that they were involved in a lot of product categories in which they were not making any money. For all their MBAs and collective smarts, they were not aware of this themselves.
What error in their process of self examination, what oversight in fiduciary management would allow such a big sophisticated company comprised of so many smart and hard working people to be unaware of this?