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Tag Archives: managers

I wrote recently about how concern over commercialisation of the universities was masking the larger problem – and frankly, the scandal – that is the usurpation of conventional management. A relatively new elite have changed the objectives of the universities to their own interest. In doing so they have used a familiar lexicon to disguise their efforts, to make them appear efficient and business-like. They have misused access to information systems to invert the relationship between management information and management objectives.*

My reason for returning to the topic so soon is that reaction to the original piece, while oddly favourable, has missed the point. Many of those who’ve spoken to me about the piece assumed that it was taking sides in the entirely bogus debate that is frontline workers versus administrators. It’s worth emphasising that what has been done to university management is common to many – perhaps most – organisations. I’ve had lecturers and post grad workers say to me that I was right to comment on the growth of admin. staff and the decline in academic staff. I made no such comment.

With the rise of electronic and the decline of paper systems three things were inevitable. Firstly, many of those who operated the paper systems would have to go or adapt. Secondly, the electronic systems would require technical and user support staff. Thirdly, the increase in data production would create a need for more administration. In short, it’s not in the least paradoxical that more efficient systems would demand staff increases. All of this can and should be managed. Change is not a recent phenomenon and has always had to be managed. The contrived specialisation of the likes of “change management” is as much a fetish as the production of management information for its own sake.

Setting frontline workers – be they doctors, firefighters or academics – against administrators suits those who are the real problem. They will side with the frontline workers and condemn administration in the language of efficiency. If successful, they are so well entrenched that it is they who will decide which administrators will go and what is best done by contractors. Thus, aided by their apparent critics in academia, their grip on universities will tighten at the expense of poorly paid staff and those remaining managers who might have offered some opposition.

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* https://colummccaffery.wordpress.com/2014/04/25/cui-bono-the-commercialisation-of-universities-is-more-complex-and-durable-than-many-critics-imagine/

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On this morning’s Marian Finucane radio programme * a discussion began about the culpability of former Taoiseach, Brian Cowen, for Ireland’s economic mess. From former minister, Mary O’Rourke, came the familiar routine of “we all had a party, so no one is at fault” and then Eddie Hobbs offered the view that the ordinary person couldn’t be expected to understand an economic bubble and that those he calls “gatekeepers” failed to warn the general public.**

Eddie is wrong. Anyone with normal intelligence, a basic education and a little interest in their surroundings could see that – whatever about the wider world – Ireland was headed for a fall. Failing to see this required enormous stupidity or wilful blindness. It was a topic of discussion among ordinary people, many of whom could see that the property boom was a scam, bound to end. These ordinary people held on to their savings and/or didn’t borrow to buy property.

Eddie is right, however, to blame “gatekeepers” for failing. The term usually refers to media workers but Eddie included public service economists. Two points need to be made. Firstly, the distinction is correctly drawn here between people who are paid to think, write, speak up and manage and the rest who are merely expected to do these things. It is the difference between citizens and those whom society expects to do a particular job because they are paid for it. Who are these people? Clearly, elected politicians, advisers, civil servants, economics professionals, journalists, producers and researchers are included but so too are public commentators, lecturers, teachers and managers – particularly managers in banking and finance.

Secondly, nothing whatsoever has been done about this failure. Let’s be blunt: If an electrician or plumber failed to perform to the point of wrecking the house, they’d hardly be let continue. (Well, in view of the dangerous buildings now coming to light, that may be a topic in itself.) In the case of those paid to think, write and speak up … Nothing! They are all still there. They did not do what they were paid to do and they are all still there. They are known to be useless and they are all still there.

They didn’t fail to perform some difficult task. There are many failures trying to find cover in the fabrication that Ireland’s economic crash came as a surprise. It bears repeating that only a complete fool could have confused a building boom with a productive economy and only the wilfully blind could have failed to see the bricks and mortar evidence accumulating across the country. (That some did see the problem but remained silent is a different kind of failure. ***)

It is simply implausible to suggest that some kind of recovery could be achieved while so many of those paid to think and to manage are demonstrably unable or unwilling to do their jobs.
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* http://www.rte.ie/radio/radioplayer/rteradioweb.html#!rii=9%3A10146436%3A70%3A12%2D05%2D2013%3A
** At about 11.00 mins. into the programme.
*** https://colummccaffery.wordpress.com/2010/11/24/time-for-a-clear-out-who-misled-and-who-remained-silent-as-a-completely-irish-made-fiasco-developed/

John Fallon reported in the Irish Times today that David Duffy, the CEO of Allied Irish Banks, intends a clean-up within the bank.* However, what is reported is that David Duffy has joined Fianna Fáil and Sinn Fein in asking citizens yet again to go WAWA (“We are where we are”). Yes, here we go again. What he proposes is that past wrongdoing be attributed to “culture” and that the bank makes a fresh start without getting rid of wrongdoers.

The wrongdoing in question is managers borrowing from their own bank to become developers or investors. David Duffy is clearly of the view that this is not just a bad practice but unethical and lacking in integrity. He is resolute that it will never happen again and that if it does, the manager will be dismissed.

The problem of course is that it can’t be wrong today but not wrong yesterday. That’s where the old reliable WAWA escape clause comes in and it’s all too familiar: “No one is guilty; it was the culture”. It’s a constant refrain in Ireland today. It is offered as an excuse for all sorts of failure and for crimes: failure to speak up while the economy was ruined, child abuse, political murders, laundry slavery and now dodgy borrowing by bank managers has been added to the list.

It is simply not credible that the chancers who were involved in these loans will now suddenly become people of integrity fit to be managers in an important institution. It is not acceptable that the CEO of this institution is prepared to go WAWA and to leave those not fit for office in place.
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* http://m.irishtimes.com/newspaper/finance/2013/0223/1224330416276.html?via=bnews

Journalists have become far too prone to cooperation in the development of  Orwellian Newspeak. An example is the use of “political class” in public discourse about Ireland’s economic crisis. Firstly, talk of a “political class” is an evasion of a responsibility to take sides. It is support for an old, old FF stance: “Sure, we’re all rogues and you may as well vote for us because we’re affable rogues.”  This is dangerous nonsense and SF etc. are clearly aware of its possibilities.

Secondly, to place blame exclusively on any group of politicians – even FF – is to suppress what really happened in Ireland and make the necessary degree of reform less likely. A very real danger is that far too few people will fall in the process of change. Look at it this way: What if most of the prominent FF TDs lose their seats and a banker or two goes to jail, and the Irish rest happy that sacrifice had been offered? Well, then the army of fools and rogues who created and contributed to this mess could hold on to their positions and inflict their stupidity on Ireland in the future. I am not saying this as a socialist advancing an alternative. I am saying that as liberal/capitalist policy goes the FF creation of a construction bubble was foolishness on a hitherto unimaginable scale, BUT they were far from alone in its creation.

Ireland is suffering the consequences of a global problem but is also suffering the consequences of a carefully considered, willfully created boom based on building. The problems have been plain for years. Anyone with an eye in their head could see the rash of houses in under-populated areas, the crazy number of furniture stores along major roads, the glut of hotels and the competition to buy “development” sites at virtually any price. Only a complete fool could have failed to see that this was unsustainable madness. Now, over those years it was possible for people with different degrees of public profile, power, influence etc. to speak out. (No, to scream out and repeatedly!) Why would those in such positions stay quiet? Well, if they didn’t see the problem, they’re too stupid for any position of responsibility; and if they did see it and remained silent – say, for a quiet life or career reasons – they lack the integrity necessary for any position of responsibility.

There should be a clear out well beyond the fall of a few FF politicians and the sacrificial jailing of a banker or two. I’m not talking about ordinary people who behaved foolishly and invested their savings in property and other scams, or bought houses at prices they could ill-afford. I’m talking about those who are PAID TO THINK. Let’s take the management of banks for example. It’s not unreasonable to demand that banks be run by people of moderate intelligence and integrity. We certainly should not tolerate anyone – from branch manager and upwards – who did not speak out. “Sensible people in the banking and finance industry must have felt intimidated by the tide of nonsense in support of the clearly unsustainable; they must have had to weigh good conduct against career prospects.” Oh, here’s the complete blog entry (it’s short, I promise): https://colummccaffery.wordpress.com/2009/12/31/appointments-in-irish-banking-and-finance/

Let’s take journalists and broadcasters as another example. I recall the constant urging of young people towards ruin (to “get on the property ladder” as soon as possible) and the urging of ordinary people to try to acquire a property “portfolio” because it was a “no-brainer”. No, I’m not referring to the property supplements.

Similarly, it’s not unreasonable to demand that other categories be people of moderate intelligence and integrity. Make a list starting with senior civil servants, teachers, commentators, senior managers . . .

It’s possible to salvage a test from this Irish-made fiasco. Prominent people were tested for ability and integrity. Those who failed should leave the stage and live quietly in modest comfort – and have the decency to remain silent.