and bad management can kill a company. Just take a look at Montana Power turning into Touch America. Management, along with Goldman Sachs, decided to turn the company from a Power Utility company into a Telecommunications company without consulting the stockholders or the employees. It now trades for 33 cents on the dollar and lost billions. It went from Bluechip to Dotcom status. Management thought it was a good idea and went with it without telling anyone else or asking permission.
My point is that bad management can kill a company slowly by making boneheaded decisions like that.
Also trying to keep on good employees is hard if the management is bad. That lawfirm that I worked for has an IT staff of 30 people and in a peroid of 4 years had 35+ people leave or get fired from the IT department. The good talent either walked out the door to find a job elsewhere, or after voicing complaints about management to management (like me) got terminated by something that was made up in a bogus annual review. A big turn-a-round is a good sign of bad management. They got rid of almost everyone except the managers and they still have the same sort of problems there.
My point is that bad management can cause key employees to quit or get terminated for bogus reasons. Then they no longer have experienced workers, but newbies trying to find their way around the company.