I think it could simply be that CEOs and business leaders in general are often just uncreative, and constantly looking at their peers in other companies and things like Harvard Business review for clues and hints about what to do next. They read somewhere that we are in “bad market conditions” and their Wharton buddies at other companies also say they heard about these “market conditions” and there we go: that’s their justification to take action. What action do they take? They call their Wharton buddies back and ask them what they are doing. Oh, you’re laying off and canceling projects? Then that’s what we will do too.
Same thing happens when the meme is “good market conditions.” What are all my Stanford CEO buddies doing? They’re hiring?? Then, we must hire, too!
This is a common theme throughout life. It seems like people are wildly uncreative and just follow the crowd at every possible venture. I’ll point to the Stanley cup craze as a prime example.
Same thing happens when the meme is “good market conditions.” What are all my Stanford CEO buddies doing? They’re hiring?? Then, we must hire, too!