3 ms·

Short term money. If it kills productivity, they lose money in the long run.

• theprotocol 10y ago
  Nearly every company these days falls for this. I suspect suits completely misunderstand the principle of time value of money, as they wrongly conflate "short term money" with "earlier money." And in finance, when it comes to inflows of money, earlier always trumps later (as it's assumed that you can thus will invest that money for longer when you get it earlier).
• InclinedPlane 10y ago
  That's true of a lot of practices, but when the feedback loop isn't as tight, it's easy for companies to ignore it. There are countless examples of big companies hemorrhaging talent because of their corporate culture, policies, etc. I've witnessed it many times with my own eyes. But that sort of thing doesn't manifest as the company burning to the ground in the next year and then people going "why did that happen? oh, it's because we lost Jim". Instead it looks like a failure to execute as well on big projects. But because there are always so many things changing from project to project, it's always easy to blame something else. And the management at most big corporations are loathe to blame themselves or their policies, so they always find some other convenient excuse. This is a big reason why companies change character of time and transition from being industry powerhouses to also-rans.