Their Socio-Economic Consequences

GTIM Nation knows of my disdain for the old saw that the point of “all” management is to “maximize shareholder wealth.” Even though this assertion is easily overturned, it’s still commonly taught in business schools around the world.

The answer to the question in the title might not be as clear-cut as some in GTIM Nation believe, and to demonstrate this let’s break out the Game Theorists’ favorite tool, the Payoff Grid. Consider that both consultants and auditors seek to review the target organization’s business practices as they manifest in its reviewable outputs, hoping to glean insights into its management techniques and how those techniques are eventually implemented and executed.

A famous cartoon by Sydney Harris has two men standing in front of a chalkboard with equations on it. In the middle of the equations are the words “And then a miracle occurs,” with one of the men telling the other (in the caption) “I think you should be more explicit here in step two.” Of course, being the geek that I am, I thought this hilarious. It also came to mind repeatedly during a real-life experience, which I will share.