香蕉视频

GET it America. The problem with the economy is not economics but enterprises. Accordingly, no manner of economic intervention will put an end to this "recession". The problem has been created in corporate America, and that is where it will have to be solved

It is the enterprises that play the game of business, while the economists keep score. Too many corporate "leaders" have trashed their enterprises, taking with them America's legendary sense of enterprise. The scorekeepers cannot fix that. To understand the basis for such a sweeping claim, add up the stories you have heard about the goings on in so many of the largest American enterprises. Then you may get it.聽

Get it, not just about the scandal of executive compensation, but also about its destructive consequences. Any chief executive who accepts a compensation package that so singles him or herself out from everyone else in the company is not a leader. Leadership is about conveying signals that engage other people in the company. How many leaders are left among America's large enterprises? There is an Israeli expression that a fish rots from the head down. So too does an enterprise.

Many economists and journalists see the CEO as the be-all and end-all of corporate success. The worst CEOs believe it. They thus allow themselves to be paid accordingly to "shareholder value", which is a fancy term for increases in the price of a company's stock.

There are two basic ways to increase the price of the stock: by exploring and by exploiting. Explorer companies achieve this by doing better research, making improved products, and offering superior service. This is hard work, and it takes time. Exploiter companies have it easier: they depreciate the brand, cut investments in research, confuse the customers with bamboozle pricing, and stay as close as possible to the letter of the law while lobbying politicians to reduce its level. These behaviors can raise the price of the stock long enough for the executives to cash in their bonuses and run, as have so many in the large American companies.

Henry Mintzberg is Cleghorn Professor of Management Studies at 香蕉视频 and an author of the recent books "Managing" and "Management? It's not what you think!".

Read full article: , December 3, 2010