Reply to post: Re: Turn around in its grave, maybe ?

Re: Turn around in its grave, maybe ?

Then I thought some more, and it does actually make sense (for small values of sense)

You probably also didn't consider the alternative explanation. Sales are tasked with getting new work, and have a reward structure based on this. While they are probably aware that contracts that they take on are unsustainable they still get a bonus for it, and so consider it their sworn duty to collect their bonus by getting as much new work as possible, regardless of it's profitibility. Or how much money the company actually loses by winning the contract.

When this happens then the sales management are also on the bonuses, so aren't inclined to point out to senior management that they should be changing the reward structure, and so you end up with an entrenched bureaucracy. Fixing this situation by somebody at the top standing up against that entire bureaucracy is quite rare, since there would be a chorous of "all my staff will quit and the company will be ruined if you do this". Of course, if you let them carry on then the company will be ruined and nobody will have a job...