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Why smart firms should experiment : Comments
By Andrew Leigh, published 12/1/2010From fruit farms to travel agencies, experiments represent a powerful challenge to business as usual.
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The system TQM was developed in the US but was not taken up widely because it involved empowering workers and making management accountable. In the corrupt world of mediocre middle management and boys clubs, this idea is very threatening!
The current consultant industry makes most of it's profits from "bums on seats". Because of this there is a very strong profit motive to bulk up projects with staff. This causes projects to run slower and involve more communication/coordination costs, so still more staff are hired. 9 women cannot have a baby in 1 month; Similarly putting too many people on a task makes it go no faster, but it does add to confusion and extend the revenue.
Lots of "good practice" spouted by consultants are actually profit maximising strategies...not "good" for the customer at all!
In a society that thinks it is OK for the boys-club of company directors to be paid $Millions a year for showing up to meetings, whilst paramedics, nurses, teachers, etc. struggle to earn enough to own a house...it is clear that our "Leaders" would kill off any competence based reward system.
The parasites make the rules, because they have all the gold.
Ideally companies beset by parasites should die...however most of them have arranged for a government lifeline so that even completely deranged businesses (Macquarie...) can continue to make "profits" from paper manipulation. All this while our future wealth industries are starved of funds.
I honestly believe a generational shift is required before we can recover from the cultural nightmare of Profiteers.