About

This blog started in April 2009 when ‘The Rise and Fall of Management’ was published and focused mainly on how the practice of professional management has been corrupted by the blind acceptance of what Sumantra Ghoshal referred to simply as bad theory. He was referring to neoclassical economic theory, especially the strand advanced by Milton Friedman which emphasised the importance of shareholders over all other stakeholders. Management as a professional practice was founded on observation of, and learning about, human behaviour in organisations. Neoclassical economic theory, which is based on mathematical fantasy, has persuaded management to focus on the maximisation of profit, and over the past three decades or so, to maximise shareholder wealth. That is the bad theory. Its impact has been decisive in those economies dominated by that ideology, notably Britain and the United States. The result has been disastrous for the management of firms in the real economy. It has refocused them away from technologies, innovation, customers and people, to M&A deal making driven by purely financial concerns. It has motivated the privatisation of publicly owned and spirited enterprise, the minimisation of state involvement in the economy, an explosion of inequality and a growing anger among the broader population. This is predatory capitalism. These are the subjects discussed in all my publications which also seek to identify more positive ways forward.

Remaking the Real Economy

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