Thursday, December 11, 2014

When they lose their way

This story by at Bloomburg News shows what often happens in "make your numbers to make your bonus" organizations.  Summary:

Cracks in the foundation of Wal-Mart’s retail business in China have been developing for years, hidden by questionable accounting and unauthorized sales practices.

Let this be a lesson to boards of trustees of health care systems who focus too much on CEOs' achieving corporate financial objectives.

1 comment:

  1. Well not only that but incentives in general; witness the sudden concentration on patient satisfaction due to government incentives, often to the exclusion of priorities like patient safety.

    Not sure about Walmart, but in health care it's the whole question of how do you get people to do the right thing, when deep down they know what they should be doing in the first place. Very troubling.

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