The Shift Index: How Corporate Equity Screwed Up
I've been distressed over Deloitte & Touche's Shift Index for a few days now. It's a new measurement of U.S. economics and digital infrastructure & it's pretty irritating to hear about. Not only did it tell me that asset gains, as opposed to equity gains, in the U.S. has DECREASED 75% over past 40-some years but it's also telling me that bloated, static U.S. corporations are not showing increased performance DESPITE increased worker productivity. My fears have been confirmed in a well phrased and intelligently executed index. Though no source says the word, "corruption" in the form of equity has brought down the economy and possibly the concept of democracy in the United States.
Implications: Executives must not only get used to "being lean", but must also identify channels of long term growth and answer the question "What business are we in?". By my estimation, that would mean being aware of the latest technological developments, who knows how to effectively utilize them, wrangling and retaining the "creative talent", and getting back to the nuts and bolts of knowing your business, not just owning it. Oh, and what could this possibly mean to the way Government operates? Futile at best.
Distressing on a good day.
Jon Taplin's Blog
Labels: business, crappy economy, decreased performance globalization, Deloitte and Touche, digital infrastructure, increased productivity, middle class, Returns on Assets, Returns on Equity, the Shift Index
