Wednesday, October 21, 2009

Pleasing Wall Street is a Poor Excuse for Bad Decisions - Is the U.S. Killing Its Innovation Machine? - Harvard Business Review


Pleasing Wall Street is a Poor Excuse for Bad Decisions - Is the U.S. Killing Its Innovation Machine? - Harvard Business Review:

"Outsourcing, in and of itself, isn't responsible for the erosion of America's high tech infrastructure. The short-term thinking that led to a lot of bad outsourcing decisions is the root cause. And short-term thinking isn't a problem confined to the executive suite. It's a problem in Washington and in our society as a whole.

Managers who focus on maximizing short-term profits end up driving out things that generate long-term value — like R&D. They use all sorts of excuses when they make those decisions, including the need to please Wall Street and create shareholder value. But they're just excuses for poor thinking."