Society relies on an acceptable balance between the
richest and the poorest.
Governments and the Bank of England have been tasked with maintaining a balance that
the mass population are able to live with on a daily basis.
As the balance of financial success has moved from one country to another, so too has the
lack of control over the return on investments that can be achieved by the ordinary person
on the street.
Those who have money, are able to invest in areas that generate more money, and cost less
in tax, realising a rise in personal wealth.
Pressure on big business to return high level rewards for investors, cause more and more
boards to offer higher pay and bonus’s to be able to achieve this.
Banks begin to suffer at the bottom end of the spectrum with higher risk of loss from loans,
whilst still needing to offer returns for rich investors.
A question now arises. Have we reached a point where the ordinary person no longer trusts
big business and its management. Is this mistrust starting to eat away at the employees
working for big business, recognising that their pay in relation to the senior management is
being eroded at a rapid rate?
Is it time for directors and business owners to rethink the way they operate their business to
bring about a more favourable return for everyone.
As with the national economy, the place to start is surely with the expanding costs.
Measurement of finance should surely be returned to the return on investment.
This brings about two significant changes. It means management cannot receive massive
bonus payments for failure, described by a failure to meet pre agreed targets. Similarly,
there is no point in offering massive rewards to new managers unless they are able to prove
success in their previous roles. Managers (directors) moving between roles on a regular
basis should also be avoided as the losses may only show up after a short tenure.
The people who work for any company are also more likely to give greater input to success
if they can be adequately rewarded for that success. This will also draw more people to
successful businesses and reduce key personnel losses.
National interest rates used to be considered to work most effectively at around 4%. Now I
cannot argue this hasn’t shifted given the changes in our ability as a country to maintain our
balance of payments, but our costs are totally out of control throughout government with
little of no understanding of return on investment.
When all we can do is encourage the man and women on the street to buy from China, for
our children to eat rubbish foods instead of learning to cook, to teach them theory without
putting a shovel in their hand, to offer everyone money not to work, and to allow those who
do have jobs to work from home as a right, how on earth can a manager plan for a return on
investment, with financial stability as a total unknown?
Is it time now for decision to be taken at the very top to bring about a NEW BALANCE.
To enable this, there is going to be a need for decisions to be seen to be FAIR.
This means that people are going to need to understand that everyone has a responsibility
to add value to the lives of others. Nothing into the system offers nothing out.
Will this article cause screams of protest from all levels of society? Of course.
Now ask yourself just how much you take out, and how much you offer in return, and is this
amount likely to benefit others as much as it does you? Do you really need millions in an
offshore account so as not to pay tax. Do you really agree that your business should need to
offer free out of date food to people who cannot feed their families? Do you really feel that
if you rely on government handouts you should have five children?
One more thing, If you go on strike to get more money for yourself and put other people out
of business, should we all support your right to strike. WHAT IS FAIR?
BOTTOM LINE. Watch what happens when you devise a plan that offers growing rewards for
people who deliver results to your business.
