Ritchie on corporate management

What if it thinks there can be more than one business model (it was, after all, the Co-op trying to adopt the standard business model that caused its problems)?

Eh?

Set this in context. The Co-op succeeded. It cannot do so as any other business. It can only do so as a Co-op.

What?

The Co Op damn near went bust as a result of having an incompetent from among the insiders running the bank.

I was intrigued by Paul Myners’ demand that now that the Co-op has had the temerity to change his plan for its governance that they must ‘now bring in a top-class chairman and chief executive from outside’. Rumour had it that this is not the plan: insiders are tipped for these posts. I am not surprised; the evidence seems very clear that outsiders, Myners included, have great difficulty understanding the Co-op’s mind set. That to me makes an insider as as an obvious a choice for this job as an insider is to head John Lewis, where the current incumbent as CEO proves just how successful such appointments can be.

This, however, hadme thinking very slightly more than usual about the structure of UK board management and the conventions surrounding it, which it can fairly be said Myners represents.

??

13 comments on “Ritchie on corporate management

  1. we’ve seen where consensual management by committee by people committed to “the cause” gets us. It hives us Co Op Bank’s current parlous state. We’ve also seen where a powerful CEO who’s also an arse gets us and that gets us RBS. What we want is somewhere in the middle with a strong leader who’s accountable to a competent and challenging board, and who can delegate to competent board members and so on down the chain. That gets us banks that stay out of the papers.

    What Ritchie seems to fail to grasp is that free-market capitalism allows people to try a variety of structures including co-ops, and in certain circumstances and at certain times a co-op can be a phenomenally powerful and useful construct. His anger that his hobby horse isn’t the solution reminds me of Noel Gallagher’s line about his brother – “Liam’s the angriest man I’ve ever met. He’s like a man with a fork in a world of soup”

  2. The problem is the business model. All this chasing after profits are obscene.

    The ideal business model would be the company that tries to serve the community, look after the sick and the poor, helping those in need, and staffed by people whose lives are dedicated to serving others selflessly. Like the Catholic church. Ha-Ha.

  3. Re e there is no evidence of a structural deficit – such things are just myths made up by those who think governments may not 1) borrow to pay for infrastructure –

    Oh Lordy, not another twat who thinks a structural deficit is what is spent on infrastructure! I spent hours arguing with some clown from the Open University on this subject a few years back, I guess efforts to contain the stupidity were unsuccessful.

  4. Right wingers. Please listen

    I have just been to Scotland, and Scottish people are considering voting no BECAUSE OF UKIP. They are scared of their extreme English nationalism. Please can you UKIP and right wing tories shut up for the next three weeks, so we the NO side can win. I want the No side to win. I do not want a civil war in Scotland or a war between Scotland and England.
    Message to UKIPERS and right wing tories keep stoom for the next 3 weeks to keep our country together. You lot are scaring the Scots into breaking up the union.

    UP WITH GLASGOW CELTIC FC.

  5. ” I do not want a civil war in Scotland or a war between Scotland and England.”

    Nurse! NURSE! He’s gotten loose again…

  6. If my fellow Scots and Celtic supporters can’t stand to let Englishmen say what they think, then perhaps the jig is up.

    Living in England as I do (came down to serve in the RAF, met a girl and stayed) I have come to the conclusion that all the Scots with get up and go have got up and gone and you’re left with a brain dead lumpen proletarian mass of welfare addicted fantasists (including a disturbing number of my relatives) who will listen to that dishonest, authoritarian, snake-oil peddling creep Salmond. If 51% actually believe that stupid fat turd then frankly they deserve what they’re going to get, which is the McANC: statues of the great redeemer Salmond in every square, punishment of anyone who voted for the union, land redistribution, capital flight and sectarian conflict. Enjoy.

  7. He has the classic mindset of a fanatic who cannot, WILL NOT, consider alternative explanations for the failure of things he has emotional investments in. He just doubles down on his original prejudices.

    He is incapable of ever learning from mistakes, because he doesn’t want to.

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