The consequences of the hijack have been momentous. The first was to align managers’ interests not with their own organisations but with financial outsiders – shareholders.
I don’t think I’ll be hiring Simon Caulkin anytime soon to advise on management structures.
For managers are there to run the organisation in the interest of the shareholders, not the organisation, the management itself or the insiders. You know, this principal/agent problem?
For example, the British coal industry was run for the benefit of the NUM, along with their political hangers on, certain parts of the Labour party. Instead of in the interests of those who actually owned it, the taxpayers.
And, amazingly, we tend not to think of the British coal industry (or car industry, BT, GPO and all the rest run in the same manner) as being well managed institutions.
Innovation has stalled since the 1980s
It has? Err, haven’t we just gone through the great telecoms revolution? The internet, the web, mobile phones? Smartphones, the fastest disseminating invention ever, in the history of the entire species? Effectively they’re only a decade old at most and there’s a billion people with them already?
The great crash of 2008 stripped away any remaining doubt: the economic progress of the last 30 years was a mirage.
Err, hang on. UK GDP per capita in 1980 was $12,931 (measured in 1990 PPP adjusted dollars). In 2008 it was $23,742 (in the same inflation adjusted 1990 $). We’re currently what, 5% still off that top? $22k say?
I dunno about you but I’d say that’s a near doubling over the 30 years, not a collapse back as all that growth was a mirage.
Not only wouldn’t I hire Mr. Caulkin as a management consultant I wouldn’t hire him to do basic arithmetic.