How would you feel if you borrowed money from your Uncle and he started telling you to buy canned tomatoes from the bulk ware house instead of getting the more expensive fresh tomatoes?
Better yet, you run a business, that Unc has no real expertise in running, but your new silent partner has found the unmute button. Why do you pay that VP so much? I don't think he's any better than the manager that makes 1/3 of the money.
Recently, Unc told GM, you have 2 months to get your act together...and do that without your leader. He needs to go now. Not that I disagree, but it's interesting that Unc has to do what the GM board would not do...even in desparate times.
By the way, Unc will now guarantee the warranty on some vehicles...because the companies took his $$$. I wonder how that deal tastes to Ford and the other auto companies? Maybe Unc will fix cars too. After all, those government mechanics will need something to do when they are not making warranty repairs for UncCars divisions TCCFKAGM (the company formerly known as General Motors) and TCCFKAC (the company formerly known as Chrysler). You know how the government loves those jacked up acronyms.
If you had written employment contracts with some of your employees, do you abandon them based on advice from Uncle or do you take the heat and gain a little credibility internally?
There are no easy answers, but I am confident of a few things.
If Uncle w/o industry experience knows more about your business than you do, find another line of work.If you made commitments to your employees prior to taking Uncle's money, make sure you know how this will impact your reputation inside your organization and industry when you decide to change the game. He who holds the cash may make the rules. That doesn't mean that the rules are good ones. If I am your competitor that did not take Uncle's money--this is a part of the game plan to take your best employees.If Uncles smacks you around for spending money on things that may not fit the core business, make sure he treats you the same way when the questionable spending goes to Uncle's business associates. From taxpayers to TARP to Congress.
It is not easy to be responsible with large quantities of other people's money, but it is clear that many folks are tempted to chastise business people when they spend money in ways that they don't like while looking the other way when the funds are spent on themselves.
When my neighbor is out of work, its a recession.When I am out of work, it is a depression.When politicians get TARP funds it's hypocrites in session.
Whos is watching Uncle's employees?...hmmmm
The elected ones have 2-6 years between formal evaluations/elections.
Can we even afford to fund Uncle's wallet? That's a future discussion.