April 30, 2026 l Manila Bulletin
A number of years ago, someone very close to me confided that the chief operating officer (COO) of their company was threatening to resign. This was despite the fact that the executive was already receiving a massive salary, along with perks and compensation that would be the envy of most senior executives. I was asked for advice: should the company give in and increase the pay further? When I asked what the person was demanding, the figure was so excessive that I had to ask why.
Apparently, the Board feared they could not sustain the “outstanding” performance of the COO, who had grown the company by 20 percent, and believed they would be unable to find a more suitable replacement. The Board was on the brink of justifying the raise based on the additional net income generated under the COO’s tenure, which had increased by hundreds of millions of pesos.
That certainly sounded like an excellent justification for an otherwise unconscionable increase. However, I couldn‘t help myself; I had to ask: “What was the industry growth rate and the growth rate of your direct competitors?”
The look on my friend‘s face was like someone had suddenly switched on a light. The answer? The industry and its peers had grown by 35 percent. To make a long story short, the “hero” became a zero. The COO resigned shortly thereafter, and the company has done better ever since.
Much like “stolen valor,” manifest incompetence involves claiming organizational improvements in isolation. These individuals attribute any financial gain to their own presence without comparing it to the performance of the industry at large. Consider, for example, whether a large increase in membership dues—which results in a positive net income that otherwise would have been a massive loss—should be attributed to the person running the club. According to those who approved the increase, the answer is yes! This is a direct insult to the members and perhaps even a violation of SEC rules regarding the grave abuse of power.
Incompetence typically results in a triple threat: the job isn‘t done right, it isn’t done on time, and it always costs more. The most irritating trait of incompetent people is that they are often unaware of their own deficiencies. They find no reason to ask for help or acknowledge that they cannot reach an objective; they would rather drag the entire organization down than admit a lack of competency. Furthermore, incompetent managers will never hire someone more capable than themselves, as doing so would expose their shortcomings and offer a glaring contrast to what real management looks like.
Typically, incompetence stems from a combination of factors, such as a lack of experience, insufficient training, poor education, a bad attitude, feigned ignorance, listening to the wrong advice, or even conflicts of interest.
Manifest incompetence can exist at every level, from the Board of Directors down to the lowest-ranking employee. If you are in a position to do something about it, please do so—get those people out of your organization. In my case, the most I can do is write about it.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email georgechuaph@yahoo.com. Photo is from Pinterest.