Thursday, July 2, 2009
James Surowiecki, Wisdom of Crowds
Mr. Surowiecki talks about Coase's theorem. Firms will do things in house when the coordination costs that way are cheaper than the contracting overhead to outsource. He talks about decentralization and that even though decentralization and small teams were all the vogue, more and more money and attention was given to Chief Executive Differences. He says "What is perplexing about this faith is how little evidence there is that single individuals can consistently make sueprior forecasts or strategic decisions inthe face of genuine uncertaintly...me academics suggest that they have, at bst, a minor impact on corporate performance" Eighty percent of all new products fail and two thirds of all mergers end up losing money. I asked the question in my Daily Kos diary? a country really need a chief/executive/ prime minister/ president/ head of state pointing out the problems they seem to cause in many countries. All the comments were negative and people said that any organization needs a chief executive.