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This page contains a single entry from the blog posted on December 3, 2010 11:33 AM. The previous post in this blog was Milwaukie light rail funding source identified: Tooth Fairy. The next post in this blog is Let this be a lesson. Many more can be found on the main index page or by looking through the archives.

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Friday, December 3, 2010

Bullseye

You must read this excellent take on how bureaucracy swallows up service. The piece is applicable not just to government, but to almost any organization we can think of:


Comments (7)

You can see this quite clearly as well in the private sector. Read the financials for any rapidly growing company and many times you will see G&A expenses growing(%) faster than revenue.

Would such an 'organization' that this applies to include the United States of America?

Wow, that is good.
Is implosion near? But will it turn into a neutron star or go all the and become a black hole?

JC, that depends upon the organization. I used to work for a company that did both: about six months ago, someone decided that the company was spending too much money in its home town on general employee benefits and salaries, and that simply replacing them with cheaper new hires wasn't an option. Therefore, it shut down the entire operation, laid off everyone but the upper managers, and relocated everything to North Carolina. The vice-presidents and their annointed lackeys were thrilled, and were given big bonuses by the parent company for such foresightedness. Everyone else, though, got the axe.

"Read the financials for any rapidly growing company and many times you will see G&A expenses growing(%) faster than revenue."

The difference is that when a private company self destructs, only the stockholders take a bath. With government, we all take a bath - they raise taxes and refuse to let others provide the service they are supposed to provide.

Thanks
JK

University education system in the US is a classic example.

I hit Charles Hugh Smith's blog daily. Usually pretty good stuff.




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