Managing By Measurable Metrics Leads to Immeasurable Losses
Never measure a 3D world with a flat ruler
The gift season continues—read to the end of the article.
1970 was a difficult year for humanity.
The Vietnam War was in full swing.
The Bhola cyclone struck Pakistan and India in November, killing over 150,000 people.
But on September 13, 1970, something happened that didn’t take any lives but had devastating long-term consequences.
That day, American economist Milton Friedman dropped a ticking time "bomb" of sorts. He published the article in the New York Times called ‘The Social Responsibility Of Business Is to Increase Its Profits.’
In the article, Friedman proclaimed the shareholder primacy approach. He affirmed that shareholders were the sole group to which the organization is socially responsible, making profit maximization the firm's primary goal.
Beware of those who see people as sheets, charts, and diagrams.
Around the same time, another prominent American voiced an idea that was misinterpreted. However, when combined with Friedman’s concepts, it amplif…