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The lack of effective management style and experience has been one of the major contributors to the dot-corn and overall high-tech downturn.
During the dot-com mania, when so many new companies popped up, people were placed into management positions that were much higher than their knowledge or experience would warrant.
Because of the shortage of experienced people, there was a free-for-all in hiring practices in which companies were hiring titles and personalities. Little thought was given to creating a balanced management team that actually knew what it was doing.
Not only were upper management teams poorly constructed, the lower management teams that were put together didn't have the ability to do the work for which they were hired. That created a situation in which the job wasn't getting done. There was a presumption that constantly hiring more people would suddenly make the work happen.
Because of these problems, the valley is now recalibrating its management practices. Boards and upper management once again realize the importance of following the sound business practices of having a clearly delineated plan, having a knowledgeable and skilled management team and executing in a timely manner to produce a product or service that actually makes a profit.