Value Extractors, "Super-Managers," Vampires and the Decline of the US and US Health Care

Appearing during the last few weeks were a series of articles that tied the decline of the US economy to huge systemic problems with leadership and governance of large organizations.  While the articles were not focused on health care, they included some health care relevant examples, and were clearly applicable to health care as part of the larger political, social, and economic system.  The articles reiterated concerns we have expressed, about leadership of health care by generic managers, perverse executive compensation, the financialization of health care, in part enabled by regulatory capture, and the abandonment by effective stewardship by boards of directors, but with new takes on them.The articles included "Profits Without Prosperity," by William Lazonick in the the Harvard Business Review,  "Why Have US Companies Become Such Skinflints," by Paul Roberts in the Los Angeles Times, and "How Business Leaders Turned Into Vampires," by Steve Denning in Forbes, which in turn was partially based on "The Rise (and Likely Fall) of the Talent Economy," in the Harvard Business Review.Let me summarize the main points, and discuss some health care examples."Super-Managers" as Value ExtractorsSteve Denning's article contrasted people who  add value to the economy versus those who extract value.  The first species of value extractor he listed was: ‘Super-managers’ are people who hold administrative positions in the C-suite of private-sector bureauc...
Source: Health Care Renewal - Category: Health Management Tags: boards of directors executive compensation financialization generic managers Pfizer regulatory capture Renaissance Technologies Source Type: blogs