Are there real cases of using a single universal corporate objective function?
In optimization theory we learn that you can't really maximize A and B. You have to find some compromise, such as:
- Maximize A subject to B higher than something
- Maximize A times B
What I see in the corporate world is that there are many KPIs (revenue, retention, cash margin, employee churn, etc). Some people are held accountable for A and some other people are for B. But usually, if not always, there are trade-offs - and instead of transparently prioritizing each KPI, things are resolved through political/personal influence or simply though some VP's mood.
I know that companies (human organizations in general) are complex to reduce to some simple formula, but are there any real cases of companies who sucessfully implemented a single one-dimensional objective even if somehow ill-defined (like the expectation of profits within a X year period) or frequently revised by say senior management?
This shows that there are some efforts in academia to do that at least.
As you all may know, when everything is important, nothing is important.
management
asked 52 mins ago
gsmafragsmafra
1032
add a comment |
In optimization theory we learn that you can't really maximize A and B. You have to find some compromise, such as:
- Maximize A subject to B higher than something
- Maximize A times B
What I see in the corporate world is that there are many KPIs (revenue, retention, cash margin, employee churn, etc). Some people are held accountable for A and some other people are for B. But usually, if not always, there are trade-offs - and instead of transparently prioritizing each KPI, things are resolved through political/personal influence or simply though some VP's mood.
I know that companies (human organizations in general) are complex to reduce to some simple formula, but are there any real cases of companies who sucessfully implemented a single one-dimensional objective even if somehow ill-defined (like the expectation of profits within a X year period) or frequently revised by say senior management?
This shows that there are some efforts in academia to do that at least.
As you all may know, when everything is important, nothing is important.
management
asked 52 mins ago
gsmafragsmafra
1032
add a comment |
In optimization theory we learn that you can't really maximize A and B. You have to find some compromise, such as:
- Maximize A subject to B higher than something
- Maximize A times B
What I see in the corporate world is that there are many KPIs (revenue, retention, cash margin, employee churn, etc). Some people are held accountable for A and some other people are for B. But usually, if not always, there are trade-offs - and instead of transparently prioritizing each KPI, things are resolved through political/personal influence or simply though some VP's mood.
I know that companies (human organizations in general) are complex to reduce to some simple formula, but are there any real cases of companies who sucessfully implemented a single one-dimensional objective even if somehow ill-defined (like the expectation of profits within a X year period) or frequently revised by say senior management?
This shows that there are some efforts in academia to do that at least.
As you all may know, when everything is important, nothing is important.
management
asked 52 mins ago
gsmafragsmafra
1032
In optimization theory we learn that you can't really maximize A and B. You have to find some compromise, such as:
- Maximize A subject to B higher than something
- Maximize A times B
What I see in the corporate world is that there are many KPIs (revenue, retention, cash margin, employee churn, etc). Some people are held accountable for A and some other people are for B. But usually, if not always, there are trade-offs - and instead of transparently prioritizing each KPI, things are resolved through political/personal influence or simply though some VP's mood.
I know that companies (human organizations in general) are complex to reduce to some simple formula, but are there any real cases of companies who sucessfully implemented a single one-dimensional objective even if somehow ill-defined (like the expectation of profits within a X year period) or frequently revised by say senior management?
This shows that there are some efforts in academia to do that at least.
As you all may know, when everything is important, nothing is important.
management
management
asked 52 mins ago
gsmafragsmafra
1032
asked 52 mins ago
gsmafragsmafra
1032
asked 52 mins ago
gsmafragsmafra
1032
asked 52 mins ago
gsmafragsmafra
1032
asked 52 mins ago
gsmafragsmafra
1032
1032
add a comment |
add a comment |
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