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Have American Businesses Been Stranded By the MBAs?
theodp writes "In his new book, Car Guys vs. Bean Counters: The Battle for the Soul of American Business, legendary car-guy Bob Lutz says to get the U.S. economy growing again, we need to fire the MBAs and let engineers run the show. The auto industry, writes TIME's Rana Foroohar, is actually a terrific proxy for a trend toward short-term, myopically balance-sheet-driven management that has infected American business. In the first half of the 20th century, industrial giants like Ford, GE, AT&T and others used new technologies to create the best possible products and services with the idea that if you build it better, the customers will come. But by the late '70s, if-you-can-measure-it-you-can-manage-it MBAs were flourishing, and engineers were relegated to the geek back rooms. 'Shoemakers should be run by shoe guys,' argues Lutz, 'and software firms by software guys.' Learning that China plans to open 40 new graduate schools of business in the next few years, Lutz quipped, 'That's the best news I've heard in years.'"
Most engineers know next to nothing about marketing and sales... to the degree that they actually despise interacting with customers. You can have the best product in the world, but if no one knows about it, your business will fail. Consistently in this world, inferior products with better marketing win over superior products. You have to know how to get your name out there, and how to get people to buy your stuff.
I agree your average engineer has zero business skills, but moving them to the back room and having MBAs run the show is still bad.
Get rid of the MBAs and let the engineers have business input, but not run front office.
Oh, and get rid of the lawyers, they are even worse than an MBA.
---- Booth was a patriot ----
The problem appears when the managers don't understand what the geeks are doing and give orders based on unrealistic (or completely wrong) understanding of what's happening downstairs.
A percentage of geeks have people skills, they should be the ones in charge.
No sig today...
Indeed, people with different beneficial skills are essential in any organization. The key idea there isn't "different", however; it's "beneficial skills".
MBAs typically have absolutely no helpful skills or abilities. They are often people who tried engineering, but couldn't cut it. They are people who tried accounting or finance, but couldn't cut it. They are people who tried marketing, but couldn't cut it. They are, in essence, the rejects of the business world.
For many of them, their only "skill" (if we can even call it that) is forcing bullshit down the throats of productive, useful people. They do this by holding wasteful meetings, by putting in place absolutely stupid and counterproductive workplace policies, by making decisions about stuff they know absolutely nothing about, and by hiring in a way that protects them from any negative repercussions.
They've been successful at this, and that's why America is as economically and socially fucked as it is today. The rejects are leading the operation, and it shows. Thankfully, it's only a temporary "success". It inherently can't be sustained. It's a so-called "race to the bottom", and the bottom is going to be met very quickly. "Free trade", off-shoring, outsourcing and other popular MBA techniques are the best way to destroy not only individual companies, but entire economies.
I don't think that anyone is suggesting that a software business, for example, should consist only of software developers. Rather, it should merely be led by people who understand how to properly build and provide on-time, on-budget, functioning software systems, rather than by some MBA who can spew out this month's buzzwords in order to fool some other idiot MBA at some other company into buying a shitty software system. Different kinds of people will still be needed, of course, but they should be useful workers, not MBAs.
The problem are pure business guys who understand everything the MBA tought them, but don't have a true appreciation for the type if business they are running.
Jumpstart the tartan drive.
You got a point there - but this point highlights the key failure of the MBA crowd - they are trapped within their own echo chamber. A good manager needs to be a translator in the first place, he needs to translate between his engineers, his designers, his sales people, his financial people and the customers, all of which are using different languages. If this kind of communication fails at any level, you end up fucked. To stay within your RPG example, a good manager is the raid leader in your picture, who, without micromanaging, keeps the communication up between his dps, healing and tank class leaders while learning a new, tough raid. And that's where the TFA's point fails - you wouldn't want to put the main tank (engineer) in charge of that, because he rightfully views everything from the tanking perspective, thereby neglecting the needs of the dps and healers, which are secondary to him.
Ubi solitudinem faciunt, pacem appellant.
Agreed. They had a great model, "The HP Way", which was based on the way the founders like to treat people and be treated. Bill and Dave were both engineers and built the company up to be a major international by encouraging everyone in the company to both co-operate and work for self-improvement - exactly as they had done themselves. They recognised the importance of their management in knowing the product field they were involved in and understanding the culture of creativity and job security needed for long term success. The company's slide began when they started to appoint to senior positions from outside the company - and outside the engineering field - resulting in the dilution of the HP ethic and outsourcing the engineering and manufacturing functions which had driven their innovation and growth historically. Sadly this has happened with so many western companies that we have a deficit of home-grown talent in anything other than managerialism (of which we have a surfeit). Sadly, "management" has been the real growth business of the last 30 years. The Chinese are welcome to all the MBA graduates they want.
The problem has very little to do with people skills. As a manager at a larger company, you don't need people skills. You aren't doing most of the negotiating etc yourself, you're just steering the company.
In order to STEER you need to know where you are and where you're going. This is the problem with MBAs. They generally have zero skills related to the field they are managing and end up not knowing where there are and then with a flawed understanding of where they are they can't possibly know where they are going.
MBAs are for sales managers and marketing. The problem is they've made it into the real management branches as well.
Seriously, we should not have sold off chrysler and simply bailed out GM. The problem in America is that America's business school are in charge of far too many of our businesses. These are basically neo-cons who think short terms rather than long-term or what is good for everybody. An engineer who is in charge would keep everything local so that they can deal with issues quickly. An American MBA has no real knowledge so they trust that others will botch everything and they can pass the blame.
I prefer the "u" in honour as it seems to be missing these days.
said, "Charge me a buck more and make this part out of metal instead of fucking plastic" or words to that effect?
Pick the product, I mean it doesn't matter what it is anything thing from your car, house, cell phone, kids bicycle, toilet paper, laptop pick the damn product.
THAT is the MBA / Bean Counter Problem.
They don't think in terms of high customer satisfaction they think in terms of "I can shave 0.0001 dollars per unit" and "I can predict that we will only increase our returns and warranty repair by 0.0001% and we will increase profit by .5 %".
Huge pet peeve... I like gauges I like to see actual oil pressure in my car, actual engine temperature but these days those are rare things in cars. I know the cost difference might be 2 dollars per car and frankly I will happily pay 30 times that since 60 bucks on the cost of a new car is nothing.
Plastic gears in assemblies... My wife drives a Mercedes C320 and there is a plastic gear someplace under the dash that is attached to a vacuum servo of some kind that has something to do with the air handling. The damn thing has some teeth missing and it chatters now and the sound is really annoying. The replacement part costs 40.00 bucks. But it will cost close to 1000.00 bucks in labor to get at the damn thing since you have to basically dis-assemble the dash to get at it.
The above reasons are why they need to be yacked out of the chain of command.
Hey KID! Yeah you, get the fuck off my lawn!
Most engineers know next to nothing about marketing and sales... to the degree that they actually despise interacting with customers. You can have the best product in the world, but if no one knows about it, your business will fail.
Which is true and important and entirely beside the point. MBAs aren't about marketing. They hire people for that. MBAs are all about managing, not marketing. MBAs are the guys who export American manufacturing jobs to the Third World, the guys who cook the books to pump up their employer's apparent profitability enough to raise the stock price again this quarter, the guys who, with apologies to Oscar Wilde, "know the price of everything and the value of nothing." They're the guys who have spent the last 30 years or so systematically dismantling America's industrial base while simultaneously enriching themselves. They nearly destroyed the world's economy three years ago, and yet, mysteriously enough, they're still in charge of basically everything today.
They are the people to whom Santayana was referring, when he warned about repeating the past's mistakes. They are our leaders.
May Chthulu have mercy on our souls.
Check out my novel.
ask what the manager *really* wanted
you dont have a lot of experience dealing with business/management requirements, do you?
People, what a bunch of bastards
My father was a management accountant, and worked in a fairly diverse set of businesses. While his job was more or less the same one in each business, he always made an effort to understand the rudiments and fundamentals of the business in his spare time. For example when working for glass company, he familiarised himself with how glass was made, the major companies in the industry, and the types and uses of glass. He would never have as much expertise as someone who worked in that industry their whole lives, but he would have enough understanding to acknowledge and even foresee problems when they came to his attention.
I seriously doubt that MBA managers make these kinds of efforts when they take charge of companies. The dominant ethos of that profession appears to be to run a company by the numbers just long enough to move on to a higher paid position. Most that I have met have little to no underlying understanding of the businesses they are being paid handsomely to operate.
So we have a situation where NASA managers literally do not know how rockets work, and yet will pride themselves on that fact, even as their shuttles and rockets explode after take-off. Our banks are being run by "fairly dim former [sports] players", who couldn't even perform a compound interest calculation without assistance. And above all the senior decision making levels of government, the civil service, and private industry are saturated with people who are literally incapable of understanding even why they are making their decisions, let alone which they should make.
The quintessential manifestation of this pervasive dysfunction in western management was the US President George W. Bush. The man ran everything he ever managed into the ground, and stayed true to form while in office. People may moan about old families, money, and influence, but a large portion of the blame lies in a culture which sees fit to appoint unqualified, unknowledgeable, sweet talkers to positions of responsibility, and moreover to even deny those positions to competent candidates.
This isn't about choosing between inarticulate geek savants and networkers. This is about choosing between experienced professionals who can communicate effectively if dryly, and people with the training, mentality, and ethics of used car salesmen. The analogy is exact.
May the Maths Be with you!
The quintessential manifestation of this pervasive dysfunction in western management was the US President George W. Bush.
And at every opportunity, he boasted of being a "C" student, rubbing his "greater position" in the faces of those who'd spent their lives hitting the books.
If that helped him win "C" student votes with the expense of some "A" student votes, then he's not so dumb or incompetent as a politician. There are lots more "C" students than "A" students :).
Fact is he got reelected, so he "passed". If Obama doesn't get reelected then Obama fails.
If the person that gets reelected was doing a bad job, then the voters and/or the voting system fails.