Why Are Executives Stupid

1. Executives were stupid? It is common to say that the CEO and other executives were stupid. Not likely, CEOs and others almost always have great track records in their relevant businesses. Chosen over their peers for being the most able and most competent. Often times come from Ivy League schools and having MBAs and PHDs. Not likely that the executives of failed companies are unintelligent.
2. Executives couldn’t have known what was coming. Even the best executives can be caught off guard by unforeseen events. None of the investigated businesses turned out to be CEOs being caught off guard. Managers time after time had every opportunity to see the important changes that were coming to their industry. In most cases the changes were foreseen and discussed, and eventually disregarded.
3. Failure to Execute. If managers and employees had done their jobs better and not messed up the details everything would have been fine. All business failures can
Executives weren’t trying hard enough. Lower level and mid-level managers often blame the fact that CEOs weren’t trying hard enough as reason for failure. You cannot look at the daily schedule of an executive and believe they don’t try hard enough. CEOs work extremely hard and most all their energy including activities away from work are business related.
5. Executives Lack Leadership Ability. Most companies executives have “strikingly forceful personalities” (p. 6) and are known to carry great charisma and charm. Most are respected and have demonstrated time and again impressive leadership abilities. Many have a clear vision of their company’s future, and empower employees to reach that vision.
6. Company Lacks the Necessary Resources. Many companies that fail on a large scale also tend to have large scale resources available. Often times those companies are technology powerhouses, and many have large sums of money available to them. The companies, were large companies that were able to acquire tremendous