Enshittification: When good business turns to merde

[Smurf1976]

Over optimisation.

Happens with everything from share trading to music to physical business.

Someone reasons they can improve overall results by stripping out lesser performing parts and focusing only on the most profitable or otherwise successful aspects.

End result is every song sounds the same, the portfolio is entirely in one sector, the business operates in a very narrow segment of the market, etc. Then the inevitable happens - there's a shift in the market, the public tires of the music, etc and that's it, there's a great wipe out.

The odd one manages to spot what's coming and successfully pivot but the vast majority fail at that point.

 

[orr]

Over optimisation.

Happens with everything from share trading to music to physical business.

Someone reasons they can improve overall results by stripping out lesser performing parts and focusing only on the most profitable or otherwise successful aspects.

End result is every song sounds the same, the portfolio is entirely in one sector, the business operates in a very narrow segment of the market, etc. Then the inevitable happens - there's a shift in the market, the public tires of the music, etc and that's it, there's a great wipe out.

The odd one manages to spot what's coming and successfully pivot but the vast majority fail at that point.

Galbraith sets this out in 'The New Industrial State' circa late 1950's... so much is still the same.
This is a simplification... the technocrats that run management are interested in maintaining their position in management as the first priority ...and hope the company goes merde' after they have the gold watch.

Joe Heller in 'Catch 22' gave Colonel Cargill ... 'these are the enlisted men sir' and he smiled, 2 years in the service hadn't dimmed his capabilities......
a very special management skillset applicable to this thread.

 

[houtman]

Galbraith sets this out in 'The New Industrial State' circa late 1950's... so much is still the same.
This is a simplification... the technocrats that run management are interested in maintaining their position in management as the first priority ...and hope the company goes merde' after they have the gold watch.

Joe Heller in 'Catch 22' gave Colonel Cargill ... 'these are the enlisted men sir' and he smiled, 2 years in the service hadn't dimmed his capabilities......
a very special management skillset applicable to this thread.

Is that where the name came from? Great book.

 

[moXJO]

Let's be real.
Its us shareholders wanting returns

 

[orr]

Is that where the name came from? Great book.

'Catch-22' the phase??? yes it was coined by Heller.
The book should be read as a critique of post was American capitalism... so many brilliant characters don't make it in the film.
Scheisskopf and his capacity to fail-up.... never more poignant