The importance of the competence of managers is illustrated by findings of provisional research conducted on the failure of managers in health care (15 case studies of dismissed managers in hospitals, nursing homes, and convalescent homes). The first guarded conclusion that may be drawn from the preliminary study is that, as a rule, the dismissal is based on the attitude and competence of the manager ("software") and not on business expertise or technical skill ("hardware"). It could be said that the manager in health care is judged more on the process than the results.