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It's not about being good for shareholders. They are far away and generally know nothing about what is good or bad decision in long run. We have replaced human
by mnau 3y ago
It's not about being good for shareholders. They are far away and generally know nothing about what is good or bad decision in long run. We have replaced human QC with computers in many industries. C-suite cares about company profit, middle management cares about KPI.
It's about maximizing individual management KPI despite being wrong for a company as a whole. Problems are for other guys/gals down the line.
- chii 3y ago> It's about maximizing individual management KPI so you could argue that those people setting the KPI is either incompetent, or they themselves benefit from such a KPI (at the cost of the company going down).
- maximus-decimus 3y ago“When a measure becomes a target, it ceases to be a good measure.” -- Goodhart's law Could just be that chasing KPIs is inherently bad because people will game them no matter what.