Posted on | June 25, 2012 | No Comments
The first evidence came in the 90s when the shareholder value movement gained primacy. The notion was that the interests of the ‘owners’ of the business should come first. This spawned ‘pay for performance’ which was supposed to have forced managers to have ‘skin in the game.’ But as many observers have noted, measurements begin to lose value as soon as they are announced because those affected by them begin to game them to their advantage. The interests of a couple of other crucial stakeholders, customers (oh yeah, them…) and employees, were devalued.