PC469 Business Nov 2009
F-laws of conventional Business teaching

- Management F-Laws - on Peter Days BBC business prog
- Russel Aycalf also says no to MBAs - education is nothing compared to experience just like Edward De Bono convinced me
- Managers are out of touch - education is out of touch

- 1. Ford's business model is followed too much
- 2. Don't imagine a business as like a body , machines don't have " heads"
- 3. Don't concentrate on parts too much instead of whole.
You can damage the whole by improving a part , architects start with the overall idea not the parts
- 4. Key is for management to facilitate the interactivity between parts - there is no need to micromanage
- parts should fit in with each other - No RR engine in Hyundai

- Small talk not big talk
- outsoucing to other countries is not a negative : It helps spread wealth across the world
- Errors of omission "since only decisions to" are recorded - accounts record losses, but don't record opportunities not taken so are not effectively judged - so playing safe instead of going forwar is favoured
- executives live in a top floor isolated environment
- Teachers same

- An Inspirational Idea on Education
- Students should be taught by the people who just learnt, cos once you’ve taught it you retain it. 95% only 20% first time.
- Much learning is irrelevant - actually education imprints the wrong practice
- Practices are different from subjects so apprenticeship is best
- experience means people make mistakess and learn
- Practice like architecture can't be learnt from books.
- So college studying is a waste of time.

- http://curiouscat.net/library/russellackoff.cfm full list of books

- not much on Amazon maybe cos not big US publisher - different US title ?

- http://ackoffcenter.blogs.com/ supposed to be a podcast, but not available Russ-Ackoff.m3u

- www.f-laws.com How to avoid the fatal F-Laws

- From the 13 examples

- 1. Lower and senior managers are so wrapped up in "management games" like trying to show power, trying to impress
- Antidote: Focus on the questions: ‘what are we trying to achieve?’ and ‘how can we support each other?’

- 2. Measuring the wrong Thing - e.g. People aim for a high standard of living because they can measure it., but it's not the same as quality of life .. you can be poor and happy
- similarly a higher price product doesn't mean better quality
- free work is not valued . Yet other things like war are valued cos they cost a lot of , but actually it lowers quality of life.
- companies count days of training instead of measuring skill

- 3. Exercising More Power gets less done - don't micromange- choose people who can do the job in the first place

- 4. Managers get into the habit of defending things they are not sure about - (they argue religion does this)
- solution lose your ego and listen

NOT FINISHED

The idea of fertile hubs
- they attract talent and resources (BBC Business prog)
- Hollywood films
- Silicon valley
- where’s the hub for reasoning ? or Games/theatre
What about Cyberjaya it seems like an enlightened idea so why didn't it work ..maybe Malaysian dynamics and politics

Peter Day's BBC progs are always very Good
- The next one was about different business models like partnerships etc.
- Yes if you give workers a shareholding things work better...they lock stuff up properly so it's not stolen etc.

Mad property Prices
- There was an interesting story of how in 1999 Scottish crofters bought the entire Assynt estate of many houses and 21,000 acres for £300,000. They got into controversy cos then they started a hydo project effecting the nature of the nearby loch.
They got 21,000 acres for the price of a medium size house in southern England That shows how unrealistic UK house prices are.
- from the BBC4 TV prog : Saving Britain's Past" by Tom Dyckhoff

Marx is about needs and surplus
- at his time workers were coming off the land and into facilities so we could see these efficiencies coming.
- We work together and an ruling class get surplus yet at the same time a lower class doesn't even get what they need to survive so there is an imbalance.
- Marx thousand capitalism was in crisis & would fall apart, but in practice it balanced itself

- My idea : Government should let the Ruling Class keep some surplus but give some back to satisfy lowers needs - this is tax I suppose

How Investment Bankers make lots money without making anything
- Normal business people make money by adding value to a product and taking a profit. e.g. taking wood and turning it into a chair, but investment bankers don't make anything do they.

- I guess they take that field over there which is worth £1m and they split it into 100 plots which they then market as building plots with countryside views at £100,000 each. So they have taken a £1m product and turned it into a £10m
.... so aren't they entitled to take a high salary ?

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