Just posted on www.economist.com in response to Sept 26 Schumpeter article

Let’s cut through the Gordian Knot to the real issue. That we manage what we measure is as close to an absolute truth as there ever was. What got us into this mess was the inadequacy of the vast majority of our measures. So-called “measures” that only get in the way of management are a sign that new standards, criteria, and methods of measurement are needed. The core issue we face is how to transform socialized externalities into capitalized internalities. Transaction costs are the most important and largest costs in any economic exchange. We reduce and control these via measurement. Human, social, and natural capital transaction costs are virtually uncontrolled and unmeasured. We need a metric system for universally uniform measures of abilities and skills, health, motivation, loyalty and trust, and environmental quality. And we needed it yesterday. But who is working on it? Who is talking about it? Most importantly, who is taking advantage of the huge strides that have been made in measurement science over the last 50 years, strides that have made measurement far more rigorous, practical, and flexible than anyone in business seems to know. As to business being an art, so is music, but music is played on and reproduced by some of the highest technology and finest precision instrumentation around. What we need to do is tune the instruments of the management arts and sciences so that we can harmonize our relationships, get with the beat, and sing the melodies we feel in our hearts and souls. For more information, see http://www.livingcapitalmetrics.com, or my blog at https://livingcapitalmetrics.wordpress.com.

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4 Responses to “Just posted on www.economist.com in response to Sept 26 Schumpeter article”

  1. Matt Barney Says:

    Love the musical analogy, bravo!

  2. Matt Barney Says:

    I couldn’t find the article on the Economist….can you provide a link?

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