Traps Every Entrepreneur Must Avoid

This leadership model is extremely dangerous because all decisions are made without the knowledge or vital input of the people the decision will affect. This is especially critical because those people are generally the producers within the organization.

The impact of these decisions is disastrous as it actually punishes the people who produce profits and intellectual equity. Most importantly, it violates trust; the change sends a message to those who have been loyal and who have proven their ability to succeed that they can no longer trust those in control.

Favoritism should never be the rule for placing people in leadership positions; how one feels about a person’s potential performance should yield to what one knows about people and what they have already proven. When making appointments to new positions, the president or CEO should always ask, “How will this affect my existing team?”

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