In late January, President Trump signed an executive order to ban the entry into the US from 7 countries in the middle east. He used a variety a reasons why, but one was a campaign promise to extreme vetting. It might have been a very good thing to do, except for it seemed nobody in the room told anyone else the ban to go in place. Since a large organization has many parts, including Foreign Affairs, Department of National Defence, Homeland Security, many internal security agencies and Border Patrol. How would these groups interpret the executive order? The presidential authority is overriding so they took it at its face value and implemented the ban. It turns out, there was supposed to be some exceptions and the ban is not really a ban, because no one was positive what extreme vetting had changed, was it a ban or not a ban? The reality is the government does extreme vetting, which means the process is measured in months and years, rather than days. The process is slow, but has never had a ban. The communication process was a disaster and that is putting it mildly because all the other interested parts had to be informed of the proper procedures and what they mean or did not mean.
Linking to dividend paying stocks, when new management comes in, they have their agenda or things that they would like to do. Like to do and can do often need to be adjusted and similar to every large organization the people want to hold onto their jobs. The new way is implemented but not effectively and things go back to what it was. Change takes a great deal of communication for people to buy into. If you see management is not communicating, then results will not be remarkably different. This is when you can see if management is any good or the company continues to make profits without the noise of management. Chaos is not the best method to run any organization. It might work in a small business but size and complexity matters.
There are more questions than answers, till the next time – to raising questions.