Aesop Fable And High Frequency Of Death Of Companies

Why do so many companies go bankrupt? Companies that were launched with fanfare a few months or years ago suddenly disappear out of the radar?

The Aesop Fable may actually explain this unfortunate development that has called to question not only the managerial abilities of those that ran these companies aground, but also lack of leadership by the owners.

The Aesop Fable: “One day a countryman going to the nest of his Goose found there an egg all yellow and glittering. When he took it up it was as heavy as lead and he was going to throw it away, because he thought a trick had been played upon him. But he took it home on second thoughts, and soon found to his delight that it was an egg of pure gold. Every morning the same thing occurred, and he soon became rich by selling his eggs. As he grew rich he grew greedy; and thinking to get at once all the gold the Goose could give, he killed it and opened it only to find nothing.”

Have you ever worked in a company that is doing so well? Profit margin was high and business outlook seems so great that even the management and leadership began to think that they have arrived. The owners began to enjoy unprecedented reward system at the expense of men and machines.

With the ever increasing reward system for the ogas at the top (countrymen) who have become so greedy, machines may no longer be serviced as at when due and if serviced it would not be properly done. Most of the time the ogas does not understand how the machines work, even as they are enjoying the highest reward with total neglect of the machines, machine operators and supervisors. The machine operators and supervisors soon began to think of rewarding themselves outside what was approved for their ranks in the company. They buy substandard spare parts and get the least capable hands to service the machines in order to get extra-company income for themselves. Under this scenario, the machine frequently breaks down; quality of service and product depreciates, while customers are increasingly unhappy with the frequency of products that they had to return to the company as bad or substandard.

As customers grow disenchanted with the company’s product, sales plummets. The result of this is that the company began to face challenges of salary payment even as the greedy (countrymen) continue to reward themselves at the expense of the workers. Given that the greedy countrymen were “chopping alone” when the going was good and the workers were aware of this, they lack the courage to ask for sacrifice in form of salary cut.

 Salaries are not paid for months while the machines are not serviced as required. Soon the spirit of workers is broken and the machine also began to resist command to perform. The company is nearing its dying days.

At this time (countrymen) owners began to contemplate closing the company and paying off its liabilities, as the goose (men and machines) that lay the golden eggs that service their greed are dead.

For those who want to own and run successfully companies, never you neglect the men and machines. Protect and reward them, for that would ensure sustainability of your company’s profitability and longevity.