Huh. So this is what happens when you treat every business like every other business (as a money machine who’s only need is growth at any cost) Â and not as an idea unto itself.

From The New Republic, “Why can’t Americans make things? Two words: business school.”

A focus on financial instead of manufacturing leads to the commoditization of business itself. A well-run and well-managed company that has a crappy product and horrible service will succeed where a badly-run business selling a kill product will thrive. For example: XEROX, IBM, Digital, and every other company the Tom Peters/Jim Collins crowd talks about as being well-run vs Microsoft and the entire music industry who made money hand over fist despite having horrible management and seeming not to be able tot do anything right for years.

Just because you can take financial management models and replace the money with people doesn’t mean that’s a smart way to run a business.