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Prestige = low quality signal. That’s why it’s called prestige and not excellence. In theory, this provides a “moneyball” style opportunity for arbitrage, but
by hyko 6y ago
Prestige = low quality signal. That’s why it’s called prestige and not excellence.
In theory, this provides a “moneyball” style opportunity for arbitrage, but in reality you probably won’t be able to profit from it because elitism creates a very robust moat protecting the incumbents.
- dalbasal 6y agoLow quality signal for what? What would improve, for whom, if they hired better. What would better quality look like? Management consulting has a hard to define "job" in objective terms.
- hyko 6y agoMerit. Productivity would improve, for everyone, if they hired better. Better quality would look like more profit (or better triple bottom line metrics if you’re that way inclined). The job of a management consultancy is to improve an organisation’s performance, and in capitalism the key performance indicator is profit.