4 ms·

MBA-thinking

wqtz 3y ago
Is it possible for a hundred billion dollar company to hold constant stream of innovation that is not in big tech? From what I understand MBA-fication of innovation is inevitable. Innovation is funded by revenue and revenue is backed by sales. Sales is driven by "who you know" aka networking. Technical prowess will convince someone to buy your product, but networking gets you through the doors in the first. Inevitably you need MBAs to generate revenue. After a certain points MBA-fication creeps in to engineering decisions and innovation. From what I understand, innovation is largely fueled by chaos and risk. MBA fundamentally is about risk minimization and certainty. So, I can't blame Boeing, like I can't blame Intel, IBM, Ford, GM, General Electric, Phillips etc.
- a_paddy 3y ago
  Surely sales is driven by producing the best product
  - Jtsummers 3y ago
    Sales are driven by convincing the most people (or the deepest pockets) to buy your product. It doesn't have to be the best, it has to be the best marketed.
  - klodolph 3y ago
    There are too many counterexamples. Normally I’ll deep into the apologia and explain stuff like “why VHS is actually better than Beta”, which, yes, is something I believe. But I only have a limited stockpile of apologia for why the market chose correctly and gave us the better product. There is an unlimited supply of counterexamples, where an inferior product won out, even when you consider things like manufacturing cost.
  - TaylorAlexander 3y ago
    I can't tell if this is sarcasm.
- detourdog 3y ago
  A big difference I see is that Boeing is the consolidation of many different going entities. Each entity likely had subtley different goals.
russellbeattie 3y ago
"Fiduciary duty to maximize shareholder value." The most mendacious and destructive idea to have ever been been conceived. Customers, employees and governments can screw themselves, only the wealthy matter. Propped up by the concept of a corporation as a legal entity with the same rights as a person, who happens to be a sociopath.
- skissane 3y ago
  If the board is solely elected by shareholders, whose interests do you expect them to prioritise? In some EU countries, they put union/employee reps on corporate boards. Generally done by having two boards - a supervisory board containing union/employee reps, which in turn appoints a management board without them. The CEO reports to the management board which in turn reports to the supervisory board But it doesn’t necessarily stop scandals/mismanagement/corruption - Volkswagen has a supervisory board with employer/union reps, but that didn’t stop Dieselgate. Would employee/union reps on Boeing’s board have stopped the 737 MAX debacle? Hard to know

MBA-thinking

wqtz 3y ago

Is it possible for a hundred billion dollar company to hold constant stream of innovation that is not in big tech? From what I understand MBA-fication of innovation is inevitable. Innovation is funded by revenue and revenue is backed by sales. Sales is driven by "who you know" aka networking. Technical prowess will convince someone to buy your product, but networking gets you through the doors in the first. Inevitably you need MBAs to generate revenue. After a certain points MBA-fication creeps in to engineering decisions and innovation. From what I understand, innovation is largely fueled by chaos and risk. MBA fundamentally is about risk minimization and certainty. So, I can't blame Boeing, like I can't blame Intel, IBM, Ford, GM, General Electric, Phillips etc.

a_paddy 3y ago
Surely sales is driven by producing the best product
- Jtsummers 3y ago
  Sales are driven by convincing the most people (or the deepest pockets) to buy your product. It doesn't have to be the best, it has to be the best marketed.
- klodolph 3y ago
  There are too many counterexamples. Normally I’ll deep into the apologia and explain stuff like “why VHS is actually better than Beta”, which, yes, is something I believe. But I only have a limited stockpile of apologia for why the market chose correctly and gave us the better product. There is an unlimited supply of counterexamples, where an inferior product won out, even when you consider things like manufacturing cost.
- TaylorAlexander 3y ago
  I can't tell if this is sarcasm.
detourdog 3y ago
A big difference I see is that Boeing is the consolidation of many different going entities. Each entity likely had subtley different goals.

russellbeattie 3y ago

"Fiduciary duty to maximize shareholder value." The most mendacious and destructive idea to have ever been been conceived. Customers, employees and governments can screw themselves, only the wealthy matter. Propped up by the concept of a corporation as a legal entity with the same rights as a person, who happens to be a sociopath.

skissane 3y ago
If the board is solely elected by shareholders, whose interests do you expect them to prioritise? In some EU countries, they put union/employee reps on corporate boards. Generally done by having two boards - a supervisory board containing union/employee reps, which in turn appoints a management board without them. The CEO reports to the management board which in turn reports to the supervisory board But it doesn’t necessarily stop scandals/mismanagement/corruption - Volkswagen has a supervisory board with employer/union reps, but that didn’t stop Dieselgate. Would employee/union reps on Boeing’s board have stopped the 737 MAX debacle? Hard to know