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The MBA Myth and the Cult of the CEO

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Re: The MBA Myth and the Cult of the CEO

#161

Earlier quoted context omitted.

Your examples show that CEOs "can" matter, but not that they "do" matter. I think anyone would agree that there are plenty of CEOs who happened to get their jobs just as pipelines come through, the economy rebalances in their favor, long-term HRD plans come to fruition etc. but they get all the credit anyway

The man in charge always gets the credit. I have some AMZN stock. I wouldn't trade Bezos for someone cheaper. Would you?

Bezos is a hardcore megabrain who lives in the future

I think he is atypical, and so not a good representative example

Re: The MBA Myth and the Cult of the CEO

#162
post #115

Earlier quoted context omitted.

On the flip side, a team of developers who aren't even interested in adding anything of their own volition is also a bad sign. There has to be a balance.

Can’t say no to everything, or soon you won’t have anything to say no to any more.

In a good profession relationship 95% of the time proposals/issues are discussed until some agreement is reached or a decision to punt is made. The basis of that is a mature understanding that resources are limited.

Re: The MBA Myth and the Cult of the CEO

#163

Earlier quoted context omitted.

What most long-term investors would prefer is a cult of a 'process', rather than a cult of 'personality'. A process' is a combination of know-how + culture + rules + compliance. Every business goes through cycles (eg startup, growth, pivot, then repeat) At every cycle, different personal qualities of a CEO would be more beneficial. However, a property of a company with a cult of 'process', is that the process will or…

I'm not sure that a cult of process would be desirable - even putting aside irrationality of investors in the first place (and there is plenty in that field both mostly with short-term but also with long-term). Process dominated companies often have issues with failing to adapt to a changing world as the reasons behind the process no longer exist and yet they stick with it anyway only to wind up out-competed and irre…

Thx for the note.

So, I tend to separate a 'process' from a 'ritual'.

Most organizations would have 'rituals', but not processes in the context I noted above.

A 'ritual', is a process without clear goals, and without compliance and compensatory controls.

So, when a company has a pow-wow annual product strategy meeting, driven by a new CEO... or a technology group holds bi-monthly Architecture board meeting, or a data governance meeting -- those are mostly rituals. Not processes.

Rituals, masked as 'processes' are bad, of course.

They take oxygen out of the cult-of-the-process and move it back, again, to the cult-of-personality.

Which, then creates very similar 'profile' to the one of an organization that depends on a 'hero/mover and shaker/brilliant CEO'.

I do challenge myself at times, to compare how my disdain for the culture-of-personality would work at a war time..

Do general win wars, or do the troops?

I am going to say, at I need to learn quite a bit of more historical facts before, I can approach that subject.

Which is also why, I believe, solid bias-free education in history is almost essential for the work in management consulting, large organization transformations, and even creative consumer-oriented product design.

--

WRT my point on entertainers.

Their talents today, are not fundamentally different than the same talents that were appreciated 3000 years ago. Because these are bound to physical human abilities (and I include comedian/actors there as well).

This is in stark contrast to the professions that leverage scientific knowledge to achieve their expected outcomes (eg engineers, medical doctors, etc).

There is no net-positive-to-society economic model, where we can justify an actor making more than 1000 science teachers or a 1000 soldiers.

As I noted above, I think the entertainers benefited greatly from technologies, that allowed them to multiply and extend their performances in space and time.

For non-sportsman entertainers , additionally the copyright system , put them on the same footing as engineers leveraging the patent system (both systems are now heavily abused to install mafia-like control over engineering or entertainment content).

Lack of wars among the super-nations, and using entertainers as vehicles for political agenda, also gave them additional compensation leverage. Last 50 years, in western societies, have been exceptional for those professions.

And I find their current compensations whether it is Messi or Bill Maher, or Tom Cruise -- just repulsive (and even more so, than of mediocre or even talented CEOs).

Re: The MBA Myth and the Cult of the CEO

#164

Earlier quoted context omitted.

To my knowledge Bezos gets paid only 80 grand a year - so no.

That's salary, not compensation.

It’s pretty much both.

https://www.marketwatch.com/story/the-typical-amazon-worker-...

Companies this year are reporting their CEO pay in relation to the compensation of a median worker for the first time as a result of a 2015 rule mandated by the Dodd-Frank act. Amazon Chief Executive Jeff Bezos recorded total compensation of $1,681,840 in 2017, almost all of which is money paid for personal security — Bezos drew a salary of $81,840 and received no additional stock. Bezos’s compensation is 59 times the median Amazon worker’s.

He doesn’t need to draw a fat salary or get more stock, he already owns more than $110,000,000,000 in stock.

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