Aperiomics is a system I thought of in 1989, I’ve been working on it mainly privately since then but am now starting to publish it. More detailed of it are found at Aperiomics.org, it is based on 12 mathematical principles of chaos and randomness that combine to explain events in war, economics, crime, sociology, evolution, etc.
People are welcome to read, they can correspond with me at firstname.lastname@example.org.
Wednesday, February 27, 2013
Management theory was hijacked in the 80s. We're still suffering the fallout | Simon Caulkin | Comment is free | guardian.co.uk
The answer is that management in the 1980s was subject to an ideological hijack by Chicago economics that
put at the heart of governance a reductive "economic man" view of human
nature needing to be bribed or whipped to do their exclusive job of
maximising shareholder returns. Embedded in the codes, these assumptions
now have the status of unchallenged truths.
Companies are like a tree, they are usually more stable when they have Bi unions like upper root systems and V cooperative management. A strong Iv-B economy from R-B technological revolutions can cause this V-Bi component to shrink with unions being replaced by workers competing with each other lowering wages. It can also cause management to become more Iv competitive and often deceptive, they aim for commissions as stock options and growth rather than a V equilibrium or normal company business. When many companies do this they compete with each other to maximize shareholder returns, this cause people to buy into companies with the most momentum heading towards a ceiling and then crash.
consequences of the hijack have been momentous. The first was to align
managers' interests not with their own organisations but with financial
outsiders – shareholders. That triggered a senior management pay
explosion that continues to this day. The second was that managers
abandoned their previous policy of retaining and reinvesting profits in
favour of large dividend and share buyback payouts to shareholders.
An explosion is a sing of Iv-B growth.
the effect of this stealth revolution was to undercut the foundations
of the very shareholder value under whose flag the activists had ridden
into battle. Along with corporate welfare and customer service, among
the functions squeezed in the shareholder bonanza was research and
development. Innovation has stalled since the 1980s, prompting some
economists to query whether the era of growth itself is over.
A stealth revolution is Iv-B, it is usually hidden and revolutionary with new ideas that often collapse later like growing weeds instead of trees.
it's not economics, it's management, stupid. Unsurprisingly,
downtrodden and outsourced workers, mis-sold-to customers, exploited
suppliers and underpowered innovation cancelled out any gains from ever
more ingenious financial engineering – leaving shareholders less well
off in the shareholder-value-era since 1980 than in previous decades.
The great crash of 2008 stripped away any remaining doubt: the economic
progress of the last 30 years was a mirage. As Nassim Nicholas Taleb put
it in The Black Swan, the profits were illusory, "simply borrowed against destiny with some random payment time."
Iv-B growth is deceptive like a mirage, it uses too much leverage like trees with roots and branches that are too fine until it becomes easy to knock over.
the last decades, misconceived ideologically based governance has
recreated management as a new imperium in which shareholders and
managers rule and the real world dances to finance's tune. A worthier
anniversary to celebrate is the death seven years ago this month, on 11
November, of Peter Drucker,
one of the architects of pre-code management, which he insisted was a
"liberal art". Austrian by birth, Drucker was a cultured humanist one of
whose distinctions was having his books burned by the Nazis. In The
Practice of Management in 1954 he wrote: "Free enterprise cannot be
justified as being good for business. It can be justified only as being
good for society".