22 October 2008

Blog my thoughts...

"A beautiful company"... it's a nice idea.

If fact, it is probably a good way to maintain stability in a company so you can continue to make profits for shareholders. There's just one problem with that: the Board.

Unless the Board has the concept of "beautiful company" in mind, what they're going to see is a lot of fooferry being employed when standard top-down practices produce known results of profitability. Ignore the possibility that "known results" may not be as high as an established profitability under the beautiful company concept: How do you measure the beauty of a company? Anything you cannot measure is an opinion.

And an opinion shares much in common with a certain posterior orifice: everyone has one, and they all stink. You can't manage reliably to opinions.

So, in order to make the Beautiful Company concept palatable to those whose job it is to ensure stockholder value... we must create some workable metrics, and relate them to profitability. Anecdotally we find that beauty must have a relationship with profitability...

How do we measure that? What combination of objectively gathered numbers can be composited to indicate a presence of Beauty, and show a trend in the increase or decrease of Beauty?

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