One of the best things to come out of so-called “big data” is the slow destruction of the human ego. I read an interesting joke few months back (not sure where, might have been in Capital Minded), the gist of it was basically: If 99% of people who buy corporations for a living can't beat a monkey throwing darts over time...why do we believe people who run corporations for a living are any smarter? They're both lookin…
An important part of an executive’s job is hiring the right people to execute, which requires some level of skill or networking in my opinion, even if results aren’t always guaranteed.
The MBA Myth and the Cult of the CEO
41–50 of 164 posts
Re: The MBA Myth and the Cult of the CEO
#42Re: The MBA Myth and the Cult of the CEO
#43I'm not sure this proves anything at all. To play devil's advocate: what if top CEO's (whether by school or by track record) look for harder challenges? Someone once said Dara Khosrowshahi took the CEO job of Uber not to make money, but because anyone willing to take that job is somehow who wants to play the CEO game on "hard mode". If everyone's taking a job where there's a 50% chance of failure for their personal s…
The hypothesis being: female/minority CEOs are more likely to be hired as CEOs at failing firms (perhaps) because male candidates are less likely to apply/accept. Which, if true, would contradict your hypothesis.
Re: The MBA Myth and the Cult of the CEO
#44I'm not sure this proves anything at all. To play devil's advocate: what if top CEO's (whether by school or by track record) look for harder challenges? Someone once said Dara Khosrowshahi took the CEO job of Uber not to make money, but because anyone willing to take that job is somehow who wants to play the CEO game on "hard mode". If everyone's taking a job where there's a 50% chance of failure for their personal s…
Re: The MBA Myth and the Cult of the CEO
#45I am thinking about starting MBA in the fall (having MS in CS from a Top 10 US school), just because I can and it could be helpful for running my own companies. Talk me out of it please! (I might do a PhD in ML in parallel if I feel crazy enough)
Re: The MBA Myth and the Cult of the CEO
#46Earlier quoted context omitted.
Well, poor outcomes can certainly be attributed to poor direction from a CEO. Many of us have experienced that. My example is a new ceo who came in making a lot of noise about cleaning house and righting the ship. His intention was the sales org, but effectively scared off the best developers. He did also gut the sales org, and sales never recovered. So objectively it’s not out of the question the reverse could be tr…
But this doesn't test what another CEO would have done in the same situation. All we can do is make a guess about how the average CEO would have performed. There's no way to really test it.
Re: The MBA Myth and the Cult of the CEO
#47Earlier quoted context omitted.
>> I always figured to be an effective leader requires knowing your product. One of the best bosses I ever had was when I worked at a small manufacturing company. This guy spent a ton of time with our customers and our products, came up with improvements, made lots of fixes, found other products our customers could use, made some people really happy. Then he went through the production floor. Looked at everything a f…
Interesting story. I'm curious about the "petty shit" part. Did he step on the owners' toes? Did he have an abrasive personality? Was he fudging his expense reports? Also curious what happened after he left. Did sales/profits drop? Did his legacy of reforms carry on?
1. Manager insisted on proper documentation of contract deliverables in case of a lawsuit. Higher manager said “Nah, waste of time. These companies never sue.” Lawsuit happened, case was overcomplicated due to poor documentation. Result of case still unknown, but should have been a slam dunk win for the company.
2. CFO decided to delay (not reduce) part of a regular disbursement to the owner in order to pay suppliers. If suppliers had not been paid, then product line gets shut down and company has an existential crisis. Disbursement eventually got paid, suppliers were happy, company thrived. CFO permanently in the dog house (e.g., lower bonuses, lower pay increases, left out of key meetings, etc.).
3. Any whistleblower in the US (maybe not “petty”). While whistleblower protections exist, it’s trivially easy in white collar work to find minor mistakes or question judgment calls. Retaliation can be trivially masked. Usually business as usual afterwards.
4. Taking alloted and approved vacation time — this happens a lot. Usually ends up causing the company to underperform after star leaves. I’ve seen it wreck a company when the person who left recruited all of their good people to his new company.
5. Documented firing of disruptive sociopaths who are friends with a senior manager (e.g., the CEO). I’ve seen this multiple times. Overall org usually becomes better due to lack of sociopaths, but the “hero” gets the shaft in the process.
6. Tactfully bringing up issues of fraternization by senior managers that may lead to conflicts of interest. I’ve seen this several times as well. Simple case is a senior executive who is married is sleeping with a low level employee. More complex is someone who is in an open marriage who is using junior employees not in his current department (but may be in his future department since they often make lateral moves) as a personal dating/sex pool. It usually ends up as a non-issue, until it becomes an issue (e.g., Ellen Pao).
7. I’ve literally seen someone fired for streamlining their department so much that it appeared that they didn’t do much work. The person was aware of the fact, and pitched it as “maintaining the system”. The management structure was “flattened” after that person was let go, things went to shit, and no one in senior leadership seemed to know exactly why.
8. Worker (not manager) reviewing vendors said that none of the vendors who submitted bids were able to do the work to standard based on work samples. Worker was replaced, contract went out, company lost millions due to... contractor not being able to produce product to standard.
There are many more...
Re: The MBA Myth and the Cult of the CEO
#48Earlier quoted context omitted.
What edges does the MBA rough out? I've always been skeptical of them, and my friends with MBAs haven't helped. They were all optimistic about how much they were going to learn, but by the end thought "at least I got a network and a degree on my resume". I don't think anyone would get an MBA if you couldn't see it on their resume.
Whichever edges are rough for you personally, that's the point. Like if you're great at finances but terrible at understanding sales and marketing, then the sales and marketing part of the MBA will be most valuable for you. And vice-versa, and all the other combinations. MBA's ensure you have at least a minimal competence in each classic area of running a business, and aren't going to make bone-headed decisions that…
MBA is a fine discipline. The problem is when MBA gets equated with SVP/CEO.
Re: The MBA Myth and the Cult of the CEO
#49I am thinking about starting MBA in the fall (having MS in CS from a Top 10 US school), just because I can and it could be helpful for running my own companies. Talk me out of it please! (I might do a PhD in ML in parallel if I feel crazy enough)
Bill Gates and Paul Allen hired one* (Steve Ballmer)
* Ballmer dropped out of business school before he finished
Re: The MBA Myth and the Cult of the CEO
#50Earlier quoted context omitted.
To play devil's advocate: The primary function of a manager is to say "No". As one goes higher and higher up the hierarchy, one has to say "No" to pushier and pushier subordinates, and the cost of every misplaced "Yes" is higher and higher. While leaders just under the CEO may understand the firm situation just fine, they may also be unable to say "No" to enough bad ideas for a myriad reasons, including lack of polit…
> The primary function of a manager is to say "No". I'm a manager, and I can't really see this being the key job description. But if it was, why would that have gotten harder in the last few decades?
My team also frequently comes to me with ideas for interesting work that also isn't contributing to our vision. If we just did everything that came to mind we'd also fall apart.