Seeweed,
WSJ is good about presenting varying ideas, unlike more left wing rags. However, I'll take the word and experience of those actually in the trenches of business over an old World Bank bureaucrat like Steve Denning.
Investments are down in the corporate market because foreign investments in the US market are down. Corporate profits are up because of overseas operations. Comparing private businesses to corporations -- please show me an equivalent to GM or GE.
Love the quote “If anyone familiar with even the rudiments of the law were to be asked whether a corporate executive is an employee of the shareholders, the answer would be: clearly not. The executive is an employee of the corporation.
An organization is a mere legal fiction.” Basically, this is a rehash of the liberal meme on corporations as some amorphous entity independent of the CEO, board of directors and shareholders. Sorry, but the CEO is an employees of the shareholders via the board. The corporation’s money is the shareholders’ money, less debts and taxes. There is no other legal entitlement to the funds than those.
Denning correctly quotes Peter Drucker, “There is only one valid definition of business purpose: to create a customer.” Then, screws it up with the idea that the customer solely makes the company. If so, we’d be living in well-appointed caves, with fine flint tools – the liberal dream for most of mankind, except their elect, of course. Enterprises may identify a need that a potential customer didn’t even know was possible, else blacksmiths would still show horses, as our major method of transportation. Or, enterprises determine how to deliver a product cheaper and/or better. Drucker also said, “Enterprises are paid to create wealth, not control costs.”
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Once again you are brought down by your lack of reading comprehension.
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A whole set of organizations responded by doing things differently and focusing on delighting customers profitably, rather than a sole focus on shareholder value. These firms include Whole Foods [WFM], Apple [AAPL], Salesforce [CRM], Amazon [AMZN], Toyota [TM], Haier Group, Li & Fung and Zara along with thousands of lesser-known firms. The transition is happening not just in high tech, but also in manufacturing, books, music, household appliances, automobiles, groceries and clothing. This different way of managing turned out to be hugely profitable.
The common elements of what all these organizations are doing has now emerged. It’s not merely the application of new technology or a set of fixes or adjustments to hierarchical bureaucracy. It involves basic change in the way people think, talk and act in the workplace. It involves deep changes in attitudes, values, habits and beliefs."
The proof is in the pudding dire. Regardless of what you "think", reality is proving you wrong.
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Jank, M'dear, not only have you misstated my main points, but represented a conclusion that does not standup to inspection.
Among my points were Denning, a World Bank bureaucrat, has little experience with real economies. Both left and right have decried that organization for further destroying national economies under the guise of rescuing them.
I did not defend the idea of pumping up a company's quarterly profits. That is short sighted and the stuff of last century business methods. My major point was that Denning did not identify correctly the reasons the US economy is still struggling to make a minimum recovery. The companies, cited such as Whole Foods and Amazon were not founded solely to meet a customers needs. They were founded to make a profit by identifying a customers' needs -- in the case of Amazon, before the customer knew his need. Sorry, no new age philosophy. Just, new tech used to meet a need and produce a profit. With a bit of wordsmithing, I could conclude the barons of the Gilded Age did the same thing with railroads and timber mills as those you stated for new companies.