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# The consequences of a bad strategy
- URL: https://www.pesec.no/the-consequences-of-a-bad-strategy/
- Published: 2021-11-29T07:32:24.000Z
- Updated: 2021-11-29T07:32:24.000Z
- Description: When value destruction runs rampant.
- Author: Bruno Pešec
- Tags: Strategy, Leadership

Here is one easy indicator of a bad strategy and management:

> If an established company repeatedly fails to obtain a profit\* on its investments (adjusted for risk), then its managers are charging a salary to destroy value.

Above requires immediate attention and rapid intervention.

*\*Replace with impact or change, if assessing a non-profit or a change-driven organisation.*