PassedOut, on 2013-October-28, 12:18, said:
It's not necessarily the case that providing better service to customers results in more profit in the short term, and quarterly reports drive stock prices. When the founders of a company leave or die off, I've seen a tendency for long-term planning to slip. The incentives for managers tie in closely with short-term results.
To me, it makes more sense to talk about the incentives of the folks running corporations and of those running government agencies than it does to talk about the incentives of the organizations they run. Alan Greenspan was surprised to find that the long-term health of a corporation was not the greatest incentive for the managers running it. I'm not sure what world he was living in, but it wasn't the real one. I don't mean to denigrate all corporate managers -- there are some really fine people everywhere I've been. But they do not have it easy, mostly because of the pressure of short-term thinking.
I certainly didn't intend to imply that private businesses always get things right. It's just not clear that governments usually do better.