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I think this thinking is, at least in part, a result of assuming that the decision makers are optimising for the same outcome as you might expect them to, eg. l
by liamwire 6y ago
I think this thinking is, at least in part, a result of assuming that the decision makers are optimising for the same outcome as you might expect them to, eg. long-term growth, profitability, etc. rather than, say, bleeding the company of its human equity for short-term increases in monetary profit, that otherwise wouldn’t be attainable, and likely as a result likely furthering that decision maker’s career, assuming they exit before implosion.
- diob 6y agoYou're exactly right, and I actually called them out on these tradeoffs early in the acquisition. They were talking about how they were surprised we were able to charge so much for our engineers on our contracts, when all of theirs had much tighter margins. I told them it was probably because they optimized for winning contracts at any cost vs winning contracts that were worth it.