Next week the Associates are reading The Law, by Frederic Bastiat, who is one of my favorite thinkers on the KAP curriculum. However it was Bastiat's "What is Seen and What is Not Seen," which details the broken window fallacy that sparked deeper economic thinking from my freshman-in-college self. I think if folks can understand and apply this one concept, the world would be a much better place.
There are lots of videos out on youtube that discuss Bastiat, but I think this first video gives the best flavor of Bastiat's original example.
Is this something only policy makers need to worry about? How might the broken window fallacy manifest in the organization?
That is an awesome video! The fact that he literally throws baseballs through windows is quite powerful.
The interns discussed Bastiat's "The Candle Makers' Petition" earlier this week. I think that satirical piece is a great companion to "What is Seen & What is not Seen" where Bastiat talks about the broken window fallacy.
Anyway, in the discussion, the interns brought up how mind numbing and worthless "make work" policies are. Often, especially as interns, they will receive busy work that is really just to keep them occupied--not actually creating something valuable. I think it is also easy to give ourselves work because we want to feel busy, rather than because it is the most highly valued use of our time.
Posted by: Paul | 15 October 2010 at 11:57 AM
However...
Working in an organization with many many people, and having a sense of sunk cost:
If there is a person that actively destroys value but there is nothing you can do about it (some crappy tenure or contract or something) It is sometimes the best value proposition to have that guy go dig a hole and then fill it in so he's pre-occupied creating ZERO value as opposed to destroying existing value.
Sunk Cost - what's the best option henceforth? get that guy out of the room.
Net Gain.
Odd example, but what are your thoughts out there?
Posted by: David McGinnis | 18 October 2010 at 11:49 AM
That makes sense to me. I suppose there are a couple approaches one could take to address the issue of someone with no (or little) accountability destroying value.
First, you point out that their are destroying value and make sure they understand how they can create value in their job.
If that doesn't work, then perhaps they are in the wrong role and could create value doing something else for your organization.
And if that doesn't work, you probably would want to minimize the number of ways that person could destroy value--perhaps through busy work.
I could hypothetically see the case for giving them busy work; but it really just shows the problems that are created by someone having little or no accountability.
Posted by: Paul | 19 October 2010 at 01:52 PM
indeed it does (show the problems...). It happens and it's sad that we have so little stomach for confrontation.
Posted by: David McGinnis | 25 October 2010 at 08:09 AM