Master of Business Administration (MBA)

We usually think of an individual doing administrative work not as an administrator, but as a businessman, an Army officer, or a civil servant. More specifically, we think of him, if he is a businessman, as a merchant, a production man, a sales manager, or a financial expert; while the Army officer may be a company commander, a staff officer, or a tactician; and the civil servant, a diplomat, a postmaster, or a revenue collector. It is true that all of these jobs involve administration: yet each of them is intimately bound up with a more or less specialized subject matter and it does not follow that a good production man win make a good diplomat or company commander.

To those who run businesses, profits are obviously desirable and losses deplorable. But economics is not business administration. From the standpoint of the economy as a whole, and from the standpoint of the central concern of economics — the allocation of scarce resources which have alternative uses — profits and losses play equally important roles in maintaining and advancing the standards of living of the population as a whole.

I believe that leaders and leadership teams working together in a proper design will run the business more effectively than by hierarchical, command-and-control managing. But I can't prove that. And there are no models.