Wednesday, August 31, 2005

Not Maximizing Shareholder Value

“Instead of being managed “in the best balanced interests of stakeholders,” corporations [in the 1980’s were] managed exclusively to “maximize shareholder’s value”… Managing a business exclusively for these shareholders alienates the very people on whose motivation and dedication the modern business depends: the knowledge workers. An engineer will not be motivated to work to make a speculator rich.”

Peter Drucker, 1993
Post-Capitalist Society

I have worked organziations such as Drucker described. I second that emotion.

Hat tip to Nivi
blog comments powered by Disqus