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The CFO failed to anticipate that humans are irrational, and that people will read all sorts of things into the loss of free sodas. It's not just an economic tr

The CFO failed to anticipate that humans are irrational, and that people will read all sorts of things into the loss of free sodas. It's not just an economic transaction. I thought the sales point of "business" types was that they were good at managing the irrationality of humans.

dkarl 17y ago
Do you think the CFO who proposed this dismal change regrets it? She raised her standing with her peer group by proposing a popular cost-cutting measure, and they probably blame the engineers for the outcome, not her. They may even be glad to be rid of the engineers who wouldn't adjust well to big-company culture. Big-company culture is a culture of mediocrity and interchangeability, and the guys on top like it that way. They want all the initiative and excellence to be on their level of the company, so everything that happens in the company is due to their control. Google is exceptional in even trying to avoid that fate.
- pwnstigator 17y ago
  I doubt it. Few people are going to mention the sodas during exit interviews. In fact, I think very few people are even aware that the sodas might be a trigger for their decision, since it's not about the sodas, but the show of loyalty.
RyanMcGreal 17y ago
> humans are irrational It's not irrational to recognize that the kind of thinking that would eliminate free soda on the basis of narrow cost-benefit analysis is also the kind of thinking that would transform their beloved startup into a stultifying corporate bureaucracy.
mattmcknight 17y ago
Is it really irrationality? If you are taking away a benefit, that is like a salary cut on something you were getting tax free. The reality is that it is revealing of a CFO attitude, let's take away as much as we can from the employees to help the bottom line. CFO's should first focus on growing revenue, not cutting benefits.
mattm 17y ago
This is why, when any new idea is proposed, it is important to look into the downsides. Every idea, no matter how great you think it is, has a negative side. People making important decisions at companies should always try to come up with the unforeseen consequences and compare it to the benefits.

dkarl 17y ago

Do you think the CFO who proposed this dismal change regrets it? She raised her standing with her peer group by proposing a popular cost-cutting measure, and they probably blame the engineers for the outcome, not her. They may even be glad to be rid of the engineers who wouldn't adjust well to big-company culture. Big-company culture is a culture of mediocrity and interchangeability, and the guys on top like it that way. They want all the initiative and excellence to be on their level of the company, so everything that happens in the company is due to their control. Google is exceptional in even trying to avoid that fate.

pwnstigator 17y ago
I doubt it. Few people are going to mention the sodas during exit interviews. In fact, I think very few people are even aware that the sodas might be a trigger for their decision, since it's not about the sodas, but the show of loyalty.

RyanMcGreal 17y ago

> humans are irrational It's not irrational to recognize that the kind of thinking that would eliminate free soda on the basis of narrow cost-benefit analysis is also the kind of thinking that would transform their beloved startup into a stultifying corporate bureaucracy.

mattmcknight 17y ago

Is it really irrationality? If you are taking away a benefit, that is like a salary cut on something you were getting tax free. The reality is that it is revealing of a CFO attitude, let's take away as much as we can from the employees to help the bottom line. CFO's should first focus on growing revenue, not cutting benefits.

mattm 17y ago

This is why, when any new idea is proposed, it is important to look into the downsides. Every idea, no matter how great you think it is, has a negative side. People making important decisions at companies should always try to come up with the unforeseen consequences and compare it to the benefits.