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January 2012

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TechNet E-Mail Forum <[log in to unmask]>, Pete <[log in to unmask]>
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Tue, 24 Jan 2012 08:18:22 -0600
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There seems to be two types of MBAs.  Those that start with an undergrad degree and get their MBA as they, and those that get their MBAs before entering the real world.  The problem came in the 80's, when every company wanted to hire those freshly minted MBAs right out of school.  About the same time that share price became the only barometer.   So began a cycle of formulatic answers because the textbook said so.  Profits temporarily down?  Reduce the workforce.  Wnat more profits?  Send it to China.  The MBAs with real experience knew better, wouldn't go for the instant gratification ideas, so they aren't the ones who got promoted to positions to make significant business decisions.  Part of the reason American companies seem to be stuck in a ditch is because we're now starting to see the long term effects of short term efforts to prop up that share price.

I could show rather convincingly how moving some R&D workforce to China because they bill 1/3 is costing us twice as much, and losing us market share.  But I don't have the right letters after my name, I don't get to go to those meetings.

Pete

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