Strategists trying to understand and influence the future of an organization will study the “containing system” surrounding it. That is, factors that affect the environment in which the organization operates. Social forces, regulatory changes, competitor actions, and global economic trends are examples. But rarely do strategists consider the notion of whether our nation remains a democracy or operates under capitalism as a component of that containing system. It may be time that we do so. Chairman of the Joint Chiefs of Staff General Mark Milley‘s comments at his farewell ceremony moved me deeply. Appointed by Trump, he is voluntarily retiring. You might remember that when Trump refused to concede the election, Milley reached out to his counterparts in China. He said the US would not attack China during Trump’s increasingly erratic last days in office. For this act, Trump has accused Milley of…
The high price of profits from many business models
As a budding economist, I was initially awed by the market mechanism: the invisible hand that encourages innovation and leads companies to efficiency levels that grow our nation’s wealth. Observing underlying economic principles at work never ceased to amaze me as a college or graduate student. My learning journey in economics was not unlike that of a science student seeing beauty in the laws of nature. What I have learned in decades of practice and observation however is that outcomes are only as positive as the underlying motives of decision makers in the private and public sectors. And in this regard, “Houston, we have a problem.” Over the holidays I read a Wall Street Journal article, “Counterfeit Cancer Medicines Multiply.” As the price of cancer drugs rose, they moved to being 8th among the top 10 drugs targeted by counterfeiters, according to the…