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View Diary: Harvard innovation guru: Pursuit of profit is killing the U.S. economy (199 comments)

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  •  Majoring in the Minor (8+ / 0-)

    When I got my MBA, from an Ivy program, I was shocked at the lack of moral depth of the majority of my classmates.  Don’t get me wrong, they were mostly good people.  But, even then, there was little value placed on the actual management of people and things.  My most useful lessons were learned in a course I took outside the business school.  I learned one theoretical approach, taught in the business school as an elective that is very successful, but seldom applied.

    My classmates were not all brilliant.  Indeed, few of them were.  For me, the MBA is an admission ticket. The MBA is proof that you should be taken seriously.  It is not proof that you are brighter, more creative, or deserve more than you contribute to the process.  And, certainly not proof that you have all the answers.

    I am pleased that I have an MBA.  I understood, mostly, what was happening when the music stopped in 2008.  Instruments that were meant to manage the risk of banks were being used as investment vehicles.  Quant jocks (does anyone use that term anymore?) had theoretically eliminated risk in their portfolios and unknowingly shifted that risk to the general economy. The less scrupulous created vehicles made of straw but sold as gold.

    Managing people, actually getting the best of what people have to offer, is difficult work.  It is difficult to measure, and therefore, under our up-side-down, system, not valued (similar to good teaching), not really.

    Somehow, the definition of capital has shrunk to the point that only money is counted as capital.  Exclusion of the other, arguably more important and sustaining, forms of capital is leading to sub-optimal results.  It isn’t the measures that have failed.  We have failed to measure important things.

    •  In the mid-80s there was (0+ / 0-)

      some notion that cost accounting was not at all successful as a managerial tool because of the difficulty of quantifying many of the activities of a business.

      But we  ought not blame it all on MBAs. There are plenty of managers who have the same problematic outlook and no fancy degree.

      Thump! Bang. Whack-boing. It's dub!

      by dadadata on Sat Dec 10, 2011 at 07:08:15 AM PST

      [ Parent ]

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