Why is productivity low in NZ? Could it be so many of the Boards & CEO positions in NZ are made up of "A Lister" management types who have no in-depth knowledge of the technical, engineering workings of their industries? Fletcher Building's Board is over half accountants & lawyers. Was Google started by accountants & lawyers? Was SpaceX started by lawyers & accountants? Was RocketLab started by lawyers & accountants? Say no more. This country was never meant to be one with a Soviet Union style proliferation of people who measure and do compliance, not create wealth.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
4 comments:
I thought I saw research long ago on this. Successful companies had someone who knew the core of the company, with a bunch of lawyers and accountants keeping an eye on the cash.
Unsuccessful ones had several top layers of accountants, with the expertise held well down the management structure.
Often the people further down with the expertise and knowledge of their craft will be overlooked when there's an error in design or an unsuitable material specified .
Very true. Accountants know the cost of everything and the value of nothing. While lawyers can identify the risks, but have little appreciation or willingness to convey the commercial probability. Hence why both seldom make great entreprenuers, which is what NZ really needs and, indeed, was built on.
And if you read any of Ian Wishart's books re - Conspiracy theories, fraud, money laundering, intrigue, horses and court cases against those who speak out about - lawyers & accountants and - money laundering etc - then you have to ask why do so many Lawyers & Accountants sit and/or have sat on Company Boards - I do not think it is for their respective knowledge requirement of Commerce (other than from a Legal prospective) - as pointed out in this article, they will have no idea how Commerce "ticks over at the coal face" - Jenny Shipley did not, it cost a Major NZ Freight Haul Company their business.
What does a former Teacher (and short term PM for the National party)know about Commerce? It would be like asking Wayne Mapp to run a business in producing Military Hardware.
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