Get Rid of the Munching Cows before your Management Buy Out

Google earth has led to some interesting discoveries, one being that Cows, who eat all day long, either face north or south whilst eating.  Why?  No one knows, but they have always done it that way.

Now, look at your company before you perform a Management Buy Out, and look at what your managers do on a daily basis and ask, 'do they always eat North?'  Have they always done it that way?  Many tasks performed in a business are carried out as a matter of habit and process.  Often when you re-examine these things there seems to be no reason why they are still going on.

The 'Cows Eat North' principle in business is particularly true with businesses which have a longer history.  Processes can be developed more than 30 years ago - before computers and before cheap data storage - which still continue. Often businesses will have considerable resources employed just to keep these processes going.  Examples of whole departments existing on a bygone need are not uncommon.

When you are considering a Management Buy Out you must make sure that you don't have a bunch of munching cows in your business.

The best Management Buy Outs are those which detach themselves from their previous owners but which also re-examine every system and process to make sure it is still required in the new enterprise.  CEOs and Directors must be ready to shoot the munching cows in their own area of responsibility even if it does mean some difficult conversations.  It doesn't always mean the people leave the business, it may mean that those munching cows are trained to eat facing a different way.....but it isn't easy, after all, cows have been munching the same way since the first baby calf walked this earth.