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Our Lady of Perpetual Profit

Corporations that take investors make an impossible promise to increase profits forever. Accordingly, they hire MBAs whose role is to juggle numbers to create ongoing, short-term profit. This juggling is frequently labeled “leadership.”

The juggling methods—abusing data, diminishing the primacy of the customer relationship, repeating what worked last year as if the demand for it will never end, and perpetually cutting costs—invariably remove value from the company. This, of course, results in more staff and cost cutting.

People who understand the customer and the product are ignored in favor of the number jugglers; research is disparaged in favor of a dogmatic relationship to data.

The people who wreck the company get the big paychecks. Eventually a bigger company buys the first company, further destroying its value. The wreckers exit with more money, 1980s-corporate-raider-style. Skilled workers are laid off, quality plummets, and the cycle begins again.

This picture of a business world with deeply misguided priorities—exemplified by horror stories from the worlds of tech, gaming, and entertainment—is brought to you by Doc Burford, whose discursive post, “the biggest threat facing your team, whether you’re a game developer or a tech founder or a CEO, is not what you think,” takes a while to get through, but is nonetheless worth reading.

It is not a picture of every company, to be sure. But it applies to many, and accounts for much of the worker unhappiness plus customer frustration that characterize this time and contribute to our political unrest.

I wrote this post so you’d know to check that one. Do it.

# contentMap.en
Our Lady of Perpetual Profit

Corporations that take investors make an impossible promise to increase profits forever. Accordingly, they hire MBAs whose role is to juggle numbers to create ongoing, short-term profit. This juggling is frequently labeled “leadership.”

The juggling methods—abusing data, diminishing the primacy of the customer relationship, repeating what worked last year as if the demand for it will never end, and perpetually cutting costs—invariably remove value from the company. This, of course, results in more staff and cost cutting.

People who understand the customer and the product are ignored in favor of the number jugglers; research is disparaged in favor of a dogmatic relationship to data.

The people who wreck the company get the big paychecks. Eventually a bigger company buys the first company, further destroying its value. The wreckers exit with more money, 1980s-corporate-raider-style. Skilled workers are laid off, quality plummets, and the cycle begins again.

This picture of a business world with deeply misguided priorities—exemplified by horror stories from the worlds of tech, gaming, and entertainment—is brought to you by Doc Burford, whose discursive post, “the biggest threat facing your team, whether you’re a game developer or a tech founder or a CEO, is not what you think,” takes a while to get through, but is nonetheless worth reading.

It is not a picture of every company, to be sure. But it applies to many, and accounts for much of the worker unhappiness plus customer frustration that characterize this time and contribute to our political unrest.

I wrote this post so you’d know to check that one. Do it.