Shapiro, Slywotzky and Tedlow

Top executives should rate their subordinates on loyalty and competence. Those who are more loyal than competent should be fired because they are the dangerous ones. They will stay forever while other more competent, less loyal people will jump ship as problems develop. And the loyal, noncompetent subordinates will “protect” their bosses from the truth. Reality will be too threatening and ugly. When truth dies, really bad things happen.

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