Observations from Effective Economy (1)

I will start documenting some characteristics that I observe from effective economies. This will be accumulated bit by bit. Today is about corporate management and culture.

1. In an effective company, the rewards or compensation received by employees (including managerial leaderships)are directly linked to the economic value they have created, in a transparent way. People management involves ranking and motivating your team members by their impacts to the companies in a data-driven fashion. The relevant data should reflect the amount and significance of work they have accomplished.

2. In an effective company, employees are also held accountable for their mistakes. Rules are established to guide employees on daily business practice. The rules should be clearly and unambiguously written.

3. In an effective company, goals and achievements are quantitatively measured.