SteveFromMySpace , 13 hours ago (edited 12 hours ago)

This is somewhat of a mischaracterization of how this all shakes out/is taught/is perceived even though I get why it seems that way.

No one tells people “sacrifice the company for short term gains.” That’s not actually what people are taught. The problem is we have a misaligned incentive system that rewards that behavior more than it punishes it and little to no incentive to play the long game other than “make sure it doesn’t completely crumble under your watch.” So eventually people think they know what good leadership looks like (rapid expansion/rapid cost cutting/fat and happy shareholders with a C-suite reaping fat stacks as a result). All while they play hot potato with a company that is being redlined which may or may not be able to take the strain.

The issue is longterm plays/considerations are disincentivized rather than straight up demonized. Since MBA programs are ultimately going to teach you what businesses want and what keeps investors happy, it feeds into this perverse incentive structure.

Edit: there are obviously exceptions to this rule, but we’re talking broadly about publicly traded companies/companies answering to a group of investors

Edit 2: yea I did a second one sorry, just had a thought that feels pretty relevant. If anybody here has seen Silicon Valley then you know that the show sprinkles in some pretty serious realities once in a while. I always think back to when “Action” Jack Barker becomes CEO of Pied Piper and is fighting with Richard. Jack is MISTER MBA CEO ELITE in a nutshell. He’s the guy to run a unicorn company. At one point Jack asked him “do you know what our product is?“ And when Richard starts explaining the technology/platform he wants to build, Jack says “it is not your platform, it is not the box, it is Pied Piper stock. That is our product.“ [Sic.] When you view your decisions through that lens at all times, eventually you’re going to run into issues with the long-term health of your company. Stocks do not represent the long term health of your company. They are a complicated snap shot of that particular moment consisting of yes some data/numbers, but also “vibes” and more.