What’s Really Costing American Corporations?

What’s Really Costing American Corporations?

What’s Really Costing American Corporations?

The state of American business is always in flux. The economy is generally trending upward and right now many large corporations are enjoying success. Of course, not everything is perfect. There is always room for improvement. So what are the keys to even greater success? One of the biggest obstacles corporations face actually has nothing to do with business. Leadership is where many corporations suffer the most. The problem is there are too many leaders who don’t really lead. In other words, they don’t portray the right kinds of traits to truly help those they lead, and their companies, move forward.

Poor Leadership Is Costly

So how costly is poor leadership? According to an estimate from Gallop, lack of, or poor, leadership costs American companies as much as $550 billion every year. That’s some serious cash. So why are so many companies suffering from poor leadership? The simple answer is because leadership development is a fractured process. So what are the main problems that need to be fixed?

Promotion Process Is Broken

For starters, the promotion process in mostly broken. In most cases, managers and executives are promoted based on their previous positions and time worked at the company. Unfortunately, times served, does not equal great leadership. This promotion process tends to completely overlook quality individuals who could be great leaders, simply based on their lack of experience or tenure. Managers should be promoted because they demonstrate the ability to successfully lead.

Abuse of Power

When managers are promoted based on superficial things like tenure, they tend to feel entitled and they rarely act as quality leaders. In fact, they’re often abusive to their employees and only watch out for their own well-being. They rarely show empathy or compassion and no one trusts them. It’s their way or the highway, which leads to employee dissatisfaction.

Self-Absorbed and Self-Inflated

These types of leaders not only tend to be very self-absorbed, but they’re often very self-inflated, as well. This leads to a much higher opinion of themselves, which means they aren’t really in touch with what others truly think of them. This false perception hurts companies, because employees don’t want to work for self-absorbed or self-inflated leaders. Thus, both productivity and success decline.

Poor Training

Another huge factor of poor leadership that U.S. corporations face is the lack of quality training. There just isn’t enough quality leadership training. The training that does take place either isn’t sufficient or effective. Quality leadership training does have a positive affect on leadership effectiveness, which can greatly impact the workplace in positive ways. However, determining and finding quality leadership training programs and materials can be difficult.

Leaders Need These Qualities

So what can be done to fix all of this? The fact is if leaders possessed and portrayed four simple qualities they would make the corporate world a better, and much more profitable place. Leaders who are compassionate, trustworthy, truthful and selfless are the leaders that make the biggest difference in the workplace.


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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio



GROCO.com is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

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MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

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