2. Lack of detail
At the board of directors, managers only saw the expense item - for example, office expenses. What is inside the item and what can be optimized is unknown.
3.
It was impossible to predict expenses and income by the end of the reporting period. It was also impossible to draw management conclusions in the process: which expenses to cut, why there is a loss in the middle of the month, when there will be a profit.
4. Only an annual plan
Expenses and incomes were divided equally by iceland consumer email list weeks and months, and the business lived according to its own life cycles.
5. Does not motivate employees
This concerned both top management, middle management, and specialists. The company's co-owners and board members could not take money out of circulation and received only salaries. Everyone was afraid of losses and wanted to play it safe. Project managers worked for a percentage of the projects' profitability. They could not influence this percentage. Specialists received a salary that did not depend on the amount of work performed.