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1/ I want to talk about the topic of "modern management doctrine", what is taught in business schools around the world.
Let's look at core tenets:
a) Metrics: you can only manage what you can measure
b) Specialize: focus on your core competence and outsource all the rest
Let's look at core tenets:
a) Metrics: you can only manage what you can measure
b) Specialize: focus on your core competence and outsource all the rest
2/ ... Management doctrines
c) Shareholder value: the sole purpose of a company is to increase shareholder value (this from Milton Friedman).
Now my take on these.
I often joke that a major purpose of my life is to refute Milton Friedman, who I actually admire as a person!
c) Shareholder value: the sole purpose of a company is to increase shareholder value (this from Milton Friedman).
Now my take on these.
I often joke that a major purpose of my life is to refute Milton Friedman, who I actually admire as a person!
3/ First on "Metrics". This is probably the most pernicious modern management doctrine and has done so much to rob people of dignity and purpose at work, simply because who can be against measurement and metrics? Unscientific nuts?
Metrics are great for widgets, not people.
Metrics are great for widgets, not people.
4/ I am a mathematically inclined software engineer and metrics are great for widgets. Metrics try to reduce people to widgets. That's why metrics don't work long term for people.
Here is a great book that details the case against metrics for people: https://www.goodreads.com/book/show/36644895-the-tyranny-of-metrics
Here is a great book that details the case against metrics for people: https://www.goodreads.com/book/show/36644895-the-tyranny-of-metrics
5/ Here is the basic problem with the second doctrine "Specialize": how does an organization develop a NEW core competence?
Toyota branched out from its core competence of textile looms to automobiles. Amazon branched out from ecommerce to AWS.
Zoho Corp has done that too.
Toyota branched out from its core competence of textile looms to automobiles. Amazon branched out from ecommerce to AWS.
Zoho Corp has done that too.
6/ We used to have intense debates on "core competence" at Zoho and I rejected that doctrine and declared "Our business domain is whatever we take a deep interest in".
That's the only way an organization can evolve to add new competencies, by tinkering with new ideas.
That's the only way an organization can evolve to add new competencies, by tinkering with new ideas.
7/ Finally, shareholder value. The social crisis in America traces its origins to this seductive and pernicious idea.
An organization is an organic entity that must remain rooted to people and communities. Untethered from roots, organizations become soulless and destructive.
An organization is an organic entity that must remain rooted to people and communities. Untethered from roots, organizations become soulless and destructive.
8/ This idea of "shareholder value" is tied to the idea of "everything worthwhile about an organization is reflected in its financial valuation".
Philosophically it confuses the tail with the dog and "pointer to an object with the object itself" (sorry for that - programmer
)
Philosophically it confuses the tail with the dog and "pointer to an object with the object itself" (sorry for that - programmer
)
