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Fixing the Game: How Runaway Expectations Broke the Economy, and How to Get Back to Reality
In 2001 and 2008, we suffered the two biggest market crashes since 1929--just seven years apart. Clearly, market volatility is intensifying to perilous levels.
In Fixing the Game, Roger Martin reveals the culprit: the tight coupling of the "real" market (business) with the "expectations" market (the stock market). Martin shows how such coupling has been engineered and lays out its results: a single-minded focus on the expectations market that will continue driving us from crisis to crisis--unless we act now.
Drawing on the analogy of the NFL's strict separation of actual games from betting, Martin shows how to reverse our plight, including:
- Restructuring executive compensation to focus entirely on the real market, not the expectations market
- Reining in the power of monopoly pension funds and hedge funds
- Enlarging private companies' role in the economy
Concise and hard-hitting, Fixing the Game advocates seizing American capitalism from the jaws of the expectations market--and planting it firmly in the real market. And it presents the steps we must take now to do so.
In Fixing the Game, Roger Martin reveals the culprit: the tight coupling of the "real" market (business) with the "expectations" market (the stock market). Martin shows how such coupling has been engineered and lays out its results: a single-minded focus on the expectations market that will continue driving us from crisis to crisis--unless we act now.
Drawing on the analogy of the NFL's strict separation of actual games from betting, Martin shows how to reverse our plight, including:
- Restructuring executive compensation to focus entirely on the real market, not the expectations market
- Reining in the power of monopoly pension funds and hedge funds
- Enlarging private companies' role in the economy
Concise and hard-hitting, Fixing the Game advocates seizing American capitalism from the jaws of the expectations market--and planting it firmly in the real market. And it presents the steps we must take now to do so.
251 pages, Kindle Edition
First published March 28, 2011
21 people are currently reading
531 people want to read
About the author
Roger L. Martin
33 books222 followersRoger Martin is the Institute Director of the Martin Prosperity Institute and the Michael Lee-Chin Family Institute for Corporate Citizenship at the Rotman School of Management and the Premier’s Chair in Productivity & Competitiveness. From 1998 to 2013, he served as Dean. Previously, he spent 13 years as a Director of Monitor Company, a global strategy consulting firm based in Cambridge, Massachusetts, where he served as co-head of the firm for two years.
His research work is in Integrative Thinking, Business Design, Strategy, Corporate Social Responsibility and Country Competitiveness. He writes extensively and is a regular contributor to: Harvard Business Review’s The Conversation blog, the Financial Times’ Judgment Call column, and the Guardian Sustainable Business. He has written 24 Harvard Business Review articles and published 10 books: Getting Beyond Better (with Sally Osberg); Harvard Business Review Press (HBRP, 2015); Playing to Win (with A.G. Lafley) (HBRP, 2013); Fixing the Game (HBRP, 2011); The Design of Business (HBRP, 2009); The Opposable Mind (HBRP, 2007); The Responsibility Virus (Basic Books, 2002); Canada: What It Is, What It Can Be (with Jim Milway, Rotman-UTP Publishing, 2012); and Diaminds (with Mihnea Moldoveanu, University of Toronto Press, 2009), and The Future of the MBA (with Mihnea Moldoveanu, Oxford University Press, 2008). In addition, he co-edited Rotman on Design (with Karen Christensen, Rotman-UTP Publishing, 2013).
In 2013, Roger placed 3rd on the Thinkers50 list, a biannual ranking of the most influential global business thinkers, moving up from 6th in 2011 and 32nd in 2009. In 2010, he was named one of the 27 most influential designers in the world by Business Week. In 2007 he was named a Business Week 'B-School All-Star' for being one of the 10 most influential business professors in the world. Business Week also named him one of seven 'Innovation Gurus' in 2005.
He serves on a number of public service boards: Skoll Foundation, Canadian Credit Management Foundation, Tennis Canada (past chair), and Bridgespan Group (academic advisory board chair).
A Canadian from Wallenstein, Ontario, Roger received his AB from Harvard College, with a concentration in Economics, in 1979 and his MBA from the Harvard Business School in 1981.
His research work is in Integrative Thinking, Business Design, Strategy, Corporate Social Responsibility and Country Competitiveness. He writes extensively and is a regular contributor to: Harvard Business Review’s The Conversation blog, the Financial Times’ Judgment Call column, and the Guardian Sustainable Business. He has written 24 Harvard Business Review articles and published 10 books: Getting Beyond Better (with Sally Osberg); Harvard Business Review Press (HBRP, 2015); Playing to Win (with A.G. Lafley) (HBRP, 2013); Fixing the Game (HBRP, 2011); The Design of Business (HBRP, 2009); The Opposable Mind (HBRP, 2007); The Responsibility Virus (Basic Books, 2002); Canada: What It Is, What It Can Be (with Jim Milway, Rotman-UTP Publishing, 2012); and Diaminds (with Mihnea Moldoveanu, University of Toronto Press, 2009), and The Future of the MBA (with Mihnea Moldoveanu, Oxford University Press, 2008). In addition, he co-edited Rotman on Design (with Karen Christensen, Rotman-UTP Publishing, 2013).
In 2013, Roger placed 3rd on the Thinkers50 list, a biannual ranking of the most influential global business thinkers, moving up from 6th in 2011 and 32nd in 2009. In 2010, he was named one of the 27 most influential designers in the world by Business Week. In 2007 he was named a Business Week 'B-School All-Star' for being one of the 10 most influential business professors in the world. Business Week also named him one of seven 'Innovation Gurus' in 2005.
He serves on a number of public service boards: Skoll Foundation, Canadian Credit Management Foundation, Tennis Canada (past chair), and Bridgespan Group (academic advisory board chair).
A Canadian from Wallenstein, Ontario, Roger received his AB from Harvard College, with a concentration in Economics, in 1979 and his MBA from the Harvard Business School in 1981.
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Displaying 1 - 28 of 28 reviews
January 5, 2012
I really wanted to love this book. I agree with Martin's core idea: Maximizing shareholder value is a terrible mission for corporations, and leads to the kinds of shenanigans we've seen in the past decade.
The problems with this book, however, are many. Like many nonfiction ideas that aren't quite book-length, Martin repeats central ideas over and over and over and over again to fill space. This would've worked better as a Kindle Single.
More troubling is that Martin's arguments just don't hold water factually. A few examples:
- A big exmaple: He keeps repeating that the stock market is a zero-sum game. This might end up being true if we have a crash that returns every stock to its IPO price, but history just doesn't bare this out. Everyone who has money in a 401k believes that the stock market isn't a zero-sum game.
- A small example: He claims that offense and defense in soccer are out of balance, which is why it's not as popular as the NFL. Hate to break it to Martin, but soccer is way more popular than American football. Terrible example.
Seems like the Wired summary of this book that's been making the rounds recently is more worthwhile than Martin's actual book.
The problems with this book, however, are many. Like many nonfiction ideas that aren't quite book-length, Martin repeats central ideas over and over and over and over again to fill space. This would've worked better as a Kindle Single.
More troubling is that Martin's arguments just don't hold water factually. A few examples:
- A big exmaple: He keeps repeating that the stock market is a zero-sum game. This might end up being true if we have a crash that returns every stock to its IPO price, but history just doesn't bare this out. Everyone who has money in a 401k believes that the stock market isn't a zero-sum game.
- A small example: He claims that offense and defense in soccer are out of balance, which is why it's not as popular as the NFL. Hate to break it to Martin, but soccer is way more popular than American football. Terrible example.
Seems like the Wired summary of this book that's been making the rounds recently is more worthwhile than Martin's actual book.
September 4, 2020
This book is a treasure of thoughts and recommendations about capitalism that we really need to act upon. Roger Martin has built up his case very well and I was even able to relate with his examples as I experienced some of it when I was deciding about a career change. There were so many takeaways from this book and I was still left asking for more. A fundamental change is needed and it generally revolved around bringing capitalism back to finding and building companies to create meaningful products and services that customers care about.
August 6, 2013
From my review at Solomon Says:
Read Fixing The Game for an easy to read and incisive analysis of what is wrong with the business world, and how NFL may show us the way out. The core ideas are very, very simple – The stock market has nothing to do with real world. It is a place built purely on expectations, and as such, it is legalized gambling. However, the world completely ignores this fact, and tries to do business as if the real business is not in the business but in the stock market. This is the root cause of the spate of scandals and bubbles, and the only way to prevent these in the future is to unequivocally separate the real business and the expectations world. We can look to the NFL for guidance – they have done it very well.
This book is essential precisely to filter out the intellectual white noise surrounding the theories and practices of American style capitalism. Roger presents his arguments in a straightforward manner, sticks to the point, and present compelling data that stock based compensation and agency theory have actually harmed investors since their advent. The arguments are logical but not mathematical, so concerned non-rocket-scientists can follow with ease.
Unfortunately, the above reasons are also why the book may be slightly difficult for some to swallow. Surely something this obvious can’t be the root of so much trouble? The arguments brought to be bear against this can be convincing at first glance and intimidatingly erudite at the second. Fixing the Game is a simple exposition of a simple argument, but that sword cuts both ways.
Read Fixing The Game for an easy to read and incisive analysis of what is wrong with the business world, and how NFL may show us the way out. The core ideas are very, very simple – The stock market has nothing to do with real world. It is a place built purely on expectations, and as such, it is legalized gambling. However, the world completely ignores this fact, and tries to do business as if the real business is not in the business but in the stock market. This is the root cause of the spate of scandals and bubbles, and the only way to prevent these in the future is to unequivocally separate the real business and the expectations world. We can look to the NFL for guidance – they have done it very well.
This book is essential precisely to filter out the intellectual white noise surrounding the theories and practices of American style capitalism. Roger presents his arguments in a straightforward manner, sticks to the point, and present compelling data that stock based compensation and agency theory have actually harmed investors since their advent. The arguments are logical but not mathematical, so concerned non-rocket-scientists can follow with ease.
Unfortunately, the above reasons are also why the book may be slightly difficult for some to swallow. Surely something this obvious can’t be the root of so much trouble? The arguments brought to be bear against this can be convincing at first glance and intimidatingly erudite at the second. Fixing the Game is a simple exposition of a simple argument, but that sword cuts both ways.
Want to read
November 29, 2011Martin, "Fixing the Game" http://bit.ly/n9oKh0 ~Emphasis on finance confuses "winning the Super Bowl with winning a bet on the Super Bowl"
Excellent review/precise by Steve Denning in Forbes: http://onforb.es/sPyKv4
Excellent review/precise by Steve Denning in Forbes: http://onforb.es/sPyKv4
October 9, 2013
Great book about the failures of capitalism in modern society that I had to pick up after seeing Roger Martin speak in person with an outstanding message about prioritizing long-term sustainability in the corporate world vs. short-term shareholder gains (quarterly stock performance). Martin’s prediction (/hope) is that we will soon see a return to the days of private/public hybrid companies (e.g. Rockefeller and Vanderbilt) where shareholders invest in privately run companies but hold no sway over the direction of the company so that long-term innovation is not sacrificed for the sake of short term returns (that benefit shareholders and not customers nor the company). Martin writes this novel in a very entertaining manner comparing capitalism to the way that commissioners run the NFL – ensuring that customer satisfaction is #1 (i.e. delight of the fans) and taking actions on a yearly and gradual basis to ensure compeition and parity so that every team has a fair chance at success – which has resulted in the NFL becoming a $33B business. Basically his proposal is to focus on the product (customers and public good) which will result in sustainable financial success, instead of the other way around which can deliver short term rewards but often at the expense of the primary objective and thus a loss of long-term success. A brief synopsis:
- after the financial crises of 1929, 200, and 2008 our government took steps to prevent the specific abuses from happening again (more independence for auditors, executive compensation), which addressed symptoms but not the root cause of capitalism's failures: the fundamental objective to maximize short-term shareholder return.
- cites a 1976 paper by 2 professors from Simon School of business entitled "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership structure" that formed the "principal/agency theory" - that shareholders are the principal owners of a firm and executives are the agents whose task should be to maximize shareholder value. Hence the movement to principal/agent roles with the executive as shareholder who is incentivized personally to create value, though that has not been the result: pre shareholder-value, TSR from 1933-1976 was 7.5%/yr. from 1976-2010 was 6.5%/yr.
- draws a parallel between the real market (actual product sales/revenue) and the expectations market (stocks) as with football where you have real games (winners/losers) and a betting line based on expectations of how much a team should win by (cover the spread). As a team wins more and more, the spread they have to cover also increases since expectations are higher - would be ridiculous for a qb like Tom Brady to spend a post-game conference talking about how he should have scored more points to win by even more. Here in the nfl players are isolated from the expectations market and care only about the real one. In a real market, customers and this innovation in products/services are the central focus (winning). In the expectations market, traders and gaming are the focus.
- 2nd chapter delves into the fundamental goal of a company that should be changed to delivering for the customer and not the shareholder. Examples given of J&J who puts the shareholder behind the customer politely (#4 in their credo), P&G who does so subtly, and Apple where Steve Jobs did so with open disdain. Examples given about how focusing on shareholder value often comes with a sacrifice to customers, but vice-versa does deliver shareholder value in the long term. NFL example given is one of constant governance what the 3 commissioners over the last 50years subtly have introduced slight shifts over time to make sure that the league has parity and balance between offense and defense - keeping the customer (fans) as priority #1 so that games stay exciting and competitive. Compared vs baseball who has had many commissioners that act in the interest of the owners and has lost viewership (and the nfl result has been a huge spike in team value long-term). J&J and P&G both outperformed companies as GE and coca-cola that espoused shareholder return as priority #1 during their famed ceo's tenures.
- 3rd chapter is about the impact of earnings management where stock trading (expectations market) delivers absolutely nothing for the customer and only profits traders at the expense of others who are not able to get such a good deal. When a company's stock price increases, the only benefit is to the shareholder who can then sell at a higher price to someone else - the amount of money the company received to expand is the same.
- hitting your projection has become paramount for a company: 75% of ceo's would abandon a 5yr npv positive project if it would affect meeting next quarter's expectations. Studies also show that a company is less likely to succeed if it earns more but lower than expectations vs earns less but beat expectations. Martin contends that putting executives responsible for releasing quarterly expectations adds zero value to society or the customer since so much time is spent artificially finding ways to make the numbers work. Shareholders derive no value either since so many pundits track results so carefully as to be able to offer accurate market projections anyways.
- interesting study cited by Prof Lie of Iowa school of business that tracked stock compensation to Ceo's over 30years: these gifts are always preceded by a drop then by a rise. Ceo's are incentivized to make stocks drop upon taking the helm so they can be see as building stock price during their tenure.
- chapter 4 about the perverse conflicts of interests of governing boards and how these are ultimately ineffective at curbing abuses or building value. Martin draws a good analogy in that directors need to be like judges - serve out of a duty to public service. Judges make less money than lawyers but are held in high esteem for serving the good of their profession.
- chapter 5 about the 2&20 policy, whereby hedge fund managers claim 2% of all assets and 20% of stock gains, an incentive structure that pushes them to go for big bets only with the safety of knowing that they get 2% win or lose. This they are incentivized to increase volatility. Executives are incentivized to create perceived value in the expectations market rather than concrete value in the real market. Prior to 2&20, investors did just fine financially relying on only 2%.
- Martin holds the position that betterment of companies is to not only place customers as priority over shareholders but also strive to build civil foundations at the expense of some profits. A bit of a Buddhist type thought here in focusing on authenticity. Like in "bonfire of the vanities", if you can't explain what you do as a bond trader to a child, then you probably don't add any real value to this world.
- like the nfl, we should
1) keep our players from betting on the games they play (I.e. Remove the conflict of interest of ceo's who can also trade their own stock)
2) provide the right incentives to executives to focus on the real market instead of expectations market.
3) consistently tweak the rules as the market evolves instead of having to catch up after many years of changing dynamics.
4) focus on customer delight above shareholder return.
5) rethink the role of governance boards
6) focus on betterment of the world instead of short term profits
No argument from me as to what to do - the real question is how? In the real world prisoner's dilemma is this even possible to do from the inside? With lobbying and special interest groups I think it's clearly not going to happen from outside (government) considering how many times we have tried after 2 crises in a decade.
- after the financial crises of 1929, 200, and 2008 our government took steps to prevent the specific abuses from happening again (more independence for auditors, executive compensation), which addressed symptoms but not the root cause of capitalism's failures: the fundamental objective to maximize short-term shareholder return.
- cites a 1976 paper by 2 professors from Simon School of business entitled "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership structure" that formed the "principal/agency theory" - that shareholders are the principal owners of a firm and executives are the agents whose task should be to maximize shareholder value. Hence the movement to principal/agent roles with the executive as shareholder who is incentivized personally to create value, though that has not been the result: pre shareholder-value, TSR from 1933-1976 was 7.5%/yr. from 1976-2010 was 6.5%/yr.
- draws a parallel between the real market (actual product sales/revenue) and the expectations market (stocks) as with football where you have real games (winners/losers) and a betting line based on expectations of how much a team should win by (cover the spread). As a team wins more and more, the spread they have to cover also increases since expectations are higher - would be ridiculous for a qb like Tom Brady to spend a post-game conference talking about how he should have scored more points to win by even more. Here in the nfl players are isolated from the expectations market and care only about the real one. In a real market, customers and this innovation in products/services are the central focus (winning). In the expectations market, traders and gaming are the focus.
- 2nd chapter delves into the fundamental goal of a company that should be changed to delivering for the customer and not the shareholder. Examples given of J&J who puts the shareholder behind the customer politely (#4 in their credo), P&G who does so subtly, and Apple where Steve Jobs did so with open disdain. Examples given about how focusing on shareholder value often comes with a sacrifice to customers, but vice-versa does deliver shareholder value in the long term. NFL example given is one of constant governance what the 3 commissioners over the last 50years subtly have introduced slight shifts over time to make sure that the league has parity and balance between offense and defense - keeping the customer (fans) as priority #1 so that games stay exciting and competitive. Compared vs baseball who has had many commissioners that act in the interest of the owners and has lost viewership (and the nfl result has been a huge spike in team value long-term). J&J and P&G both outperformed companies as GE and coca-cola that espoused shareholder return as priority #1 during their famed ceo's tenures.
- 3rd chapter is about the impact of earnings management where stock trading (expectations market) delivers absolutely nothing for the customer and only profits traders at the expense of others who are not able to get such a good deal. When a company's stock price increases, the only benefit is to the shareholder who can then sell at a higher price to someone else - the amount of money the company received to expand is the same.
- hitting your projection has become paramount for a company: 75% of ceo's would abandon a 5yr npv positive project if it would affect meeting next quarter's expectations. Studies also show that a company is less likely to succeed if it earns more but lower than expectations vs earns less but beat expectations. Martin contends that putting executives responsible for releasing quarterly expectations adds zero value to society or the customer since so much time is spent artificially finding ways to make the numbers work. Shareholders derive no value either since so many pundits track results so carefully as to be able to offer accurate market projections anyways.
- interesting study cited by Prof Lie of Iowa school of business that tracked stock compensation to Ceo's over 30years: these gifts are always preceded by a drop then by a rise. Ceo's are incentivized to make stocks drop upon taking the helm so they can be see as building stock price during their tenure.
- chapter 4 about the perverse conflicts of interests of governing boards and how these are ultimately ineffective at curbing abuses or building value. Martin draws a good analogy in that directors need to be like judges - serve out of a duty to public service. Judges make less money than lawyers but are held in high esteem for serving the good of their profession.
- chapter 5 about the 2&20 policy, whereby hedge fund managers claim 2% of all assets and 20% of stock gains, an incentive structure that pushes them to go for big bets only with the safety of knowing that they get 2% win or lose. This they are incentivized to increase volatility. Executives are incentivized to create perceived value in the expectations market rather than concrete value in the real market. Prior to 2&20, investors did just fine financially relying on only 2%.
- Martin holds the position that betterment of companies is to not only place customers as priority over shareholders but also strive to build civil foundations at the expense of some profits. A bit of a Buddhist type thought here in focusing on authenticity. Like in "bonfire of the vanities", if you can't explain what you do as a bond trader to a child, then you probably don't add any real value to this world.
- like the nfl, we should
1) keep our players from betting on the games they play (I.e. Remove the conflict of interest of ceo's who can also trade their own stock)
2) provide the right incentives to executives to focus on the real market instead of expectations market.
3) consistently tweak the rules as the market evolves instead of having to catch up after many years of changing dynamics.
4) focus on customer delight above shareholder return.
5) rethink the role of governance boards
6) focus on betterment of the world instead of short term profits
No argument from me as to what to do - the real question is how? In the real world prisoner's dilemma is this even possible to do from the inside? With lobbying and special interest groups I think it's clearly not going to happen from outside (government) considering how many times we have tried after 2 crises in a decade.
March 13, 2020
The book considers the very serious economic problems and proposes some ideas on how to fix these economic problems in the USA. It is clear to everyone that the American capitalism needs to be improved somehow!!! Prof. Roger L. Martin must read the Wealth Management Time book by Viktor O. Ledenyov and Dimitri O. Ledenyov, which explains how the smart investors can make the American capitalism better, fixing the game one time and forever!!!
November 7, 2017
- very repetitive concept
- comparison to NFL is too simple, too naive
- appears to be "too" idealistic without providing concrete suggestion while simply advocating the financial market should emulate/imitate NFL is not convincing. Where is the execution?
- comparison to NFL is too simple, too naive
- appears to be "too" idealistic without providing concrete suggestion while simply advocating the financial market should emulate/imitate NFL is not convincing. Where is the execution?
August 17, 2019
Good book and concept, like that he tries to see symptoms and cause and offers remedies, though remedies seem less researched that the diagnosis.
Comparison of NFL and real to expectation market was good
S
Comparison of NFL and real to expectation market was good
S
March 17, 2013
This book was recommended to me by my father, so of course I had to read it. In spite of the sometimes repetitive nature of the book, I have to say I really enjoyed it and found value in the message.
Essentially the financial system, and with it many people's lives, has been ruined by people gaming the system to their own personal benefit. This is the overriding theme of the book, people acting in a way that benefit's them personally and does not offer value to customers or society as a whole.
This has happened as a result of totally unrealistic expectations being set as leaders try to build every larger shareholder value in the short term, and in doing so ignoring the long term. With an incentive system built around shareholder value and the expectations game, it is little surprise that we see the behavior and results which come with it.
The author compares the rules and governance around the financial system to that of the NFL. Add odd comparison at first, but as I made my way through the book it made more and more sense. In short, the NFL constantly tweaks the rules to ensure balance and is completely focused on the customer experience.
Changes to the rules in the financial system were made post the meltdown of 2000-2002, yet we had an even worse meltdown in 2008-2009. Even after the most recent meltdown the expectations game and the wildly complex means of gaming the system are still going strong today.
This book is worthwhile read as the only real way to change things is for the people to demand change and switch the order of focus back to customer value before shareholder value.
Essentially the financial system, and with it many people's lives, has been ruined by people gaming the system to their own personal benefit. This is the overriding theme of the book, people acting in a way that benefit's them personally and does not offer value to customers or society as a whole.
This has happened as a result of totally unrealistic expectations being set as leaders try to build every larger shareholder value in the short term, and in doing so ignoring the long term. With an incentive system built around shareholder value and the expectations game, it is little surprise that we see the behavior and results which come with it.
The author compares the rules and governance around the financial system to that of the NFL. Add odd comparison at first, but as I made my way through the book it made more and more sense. In short, the NFL constantly tweaks the rules to ensure balance and is completely focused on the customer experience.
Changes to the rules in the financial system were made post the meltdown of 2000-2002, yet we had an even worse meltdown in 2008-2009. Even after the most recent meltdown the expectations game and the wildly complex means of gaming the system are still going strong today.
This book is worthwhile read as the only real way to change things is for the people to demand change and switch the order of focus back to customer value before shareholder value.
February 14, 2013
The book provides arguments for some needed changes in the financial sector. He draws a very nice comparison to the NFL, but I think it is somewhat superficial in its analysis of the financial sector. Stock-based compensation to executives give them incentives to not only perform in the real market, but also in the expectation market (the stock market). Stock-based compensation started in the 1970s. Unlike the business world, the NFL has separated the two markets, by not allowing agents in the real markets to act in the expectations market. He discusses the effects of focusing either on shareholder or customer value. With a great comparison to the NFL, he argues that focus on customers ensures good returns to shareholders, but not vice versa. He defines authenticity as staying true to morals. Unhealthy communities (shareholder pleasing) cause inauthentic behavior. Monetary incentives should be grounded solely in the real market. Board of directors need to be driven be a sense of public service with high social status. Investment managers use a 2&20 formula, where they earn 20% of the profits. This causes a high-risk high-reward strategy, as losses cost them nothing. He proposes a high tax on profits from short-term trading. He finishes with a discussion of morals and social norms in business.
This entire review has been hidden because of spoilers.
December 28, 2011
If the back of the book is any indication, Roger Martin had lofty ambitions indeed when he wrote Fixing the Game. Excerpts from the book jacket include: "American capitalism is in dire straits", "Martin shows how we can act to end the destructive cycle" [and] "presents the steps we must take now to do so". Certainly Roger Martin has the credentials to try: he worked for over a decade at leading strategy consulting firm Monitor Group (founding its Canadian office and co-heading the firm for two years) and has served as dean of the University of Toronto's Rotman School of Management since 1998.
Does Martin succeed? Given the book's stated objectives, I would have to say that he falls short. Martin explores some interesting concepts (a few examples: that corporate executives are too focused on managing short-term expectations, that incentives are often poorly structured and so drive poor decision making, and that society defines business success too narrowly), but I wish that he had taken more than 217 pages to better explain his ideas and prove his arguments.
Does Martin succeed? Given the book's stated objectives, I would have to say that he falls short. Martin explores some interesting concepts (a few examples: that corporate executives are too focused on managing short-term expectations, that incentives are often poorly structured and so drive poor decision making, and that society defines business success too narrowly), but I wish that he had taken more than 217 pages to better explain his ideas and prove his arguments.
July 7, 2013
There was a time when shareholders provided capital so that companies could exist so that companies could serve customers or some social need. Today, in the era of maximizing shareholder value, that equation has gotten flipped: companies exist solely to enrich shareholders, primarily by raising expectations and pushing up company stock prices and accomplishing this by whatever means necessary. If customers and society are served in the process, fine. But if customers and society need to be deceived, fleeced, or trampled over, that's also fine.
Without being nostalgic for bygone days that were by no means perfect, this book offers a sane assessment of the shareholder-first market's structural problems, and more importantly offers ideas for the beginnings of solutions.
Without being nostalgic for bygone days that were by no means perfect, this book offers a sane assessment of the shareholder-first market's structural problems, and more importantly offers ideas for the beginnings of solutions.
April 16, 2012
An interesting book, if somewhat repetitive. It would have nade a great article, but was not enough topic for a book. My synopsis: "Business executives are compensated for beating market expectations. This is like conmpensating football coaches for beating the point spread, raher than for winning games. And it is doomed to fail in the long run, since expectations constantly increase. And it leads to short term stupid behavior"
It is hard to disagree with this thesis, but if you read my statement above, you do not need to read the book. (Unless you disagree with it, in which case the book might convince you.)
It is hard to disagree with this thesis, but if you read my statement above, you do not need to read the book. (Unless you disagree with it, in which case the book might convince you.)
July 15, 2012
I too wanted to love this book. I recently heard Martin speak at a a local event about this topic and I was completely fascinated by the premise and his explanation. In reading the book, I started out loving it, but then it seemed to quickly become repetitive and drawn out. By 3/4ths through I really began to think it should have just been a series of HBR articles, not an entire book. At the end I read his acknowlegdements, which made it all clear - he started out with a series of articles, which he then morphed in this book...good thought, but didn't hold for me. I still value Martin and his ideas, and look forward to his next book.
March 13, 2013
Good book on an interesting topic. Liked the metaphors on business/sport which makes the topic somewhat easier to grasp. Sure, there are a lot of repetitive information in the book but in all the book is still quite short. Definitely recommended to anyone interested in incentive programs and similar information.
December 16, 2012
There are certainly some interesting bits of data and information, but the ideas are too repetitive to fill up nearly 300 pages. I think it would have been most appropriate and effective as a series of HBR articles.
September 13, 2013
I found this book highly entertaining and informative.
If you want to have a serious think of what is wrong in the world today this is the book for you! You will walk away from this book wanting to turn the C-suite upside down.
If you want to have a serious think of what is wrong in the world today this is the book for you! You will walk away from this book wanting to turn the C-suite upside down.
January 20, 2016
Martin's new book, coming in May, is a compelling polemic against running companies and compensating execs to maximize shareholder value. It's good to see this from the head of a leading b-school -- maybe it means the tide is starting to turn.
Want to read
July 11, 2011Daniel Pink
September 21, 2011
Highly recommend to anyone interested in leadership, investing, corporate responsibility and capital markets.
November 29, 2011
Great read from my old professor
Read
February 5, 2012Better as a one-pager.
July 6, 2012
I wanted to like it but found it repetitive.
Want to read
October 2, 2012CBC "Ideas" Oct 20,2012
December 31, 2012
Provocative read but a 20 page article would have sufficed. I would recommend finding a few of the articles the author wrote and just read those.
March 18, 2019
"The lesson is that no matter how good you are, you cannot beat expectations forever. Expectations will get ahead of anything you can actually accomplish, even with superhuman effort."
June 23, 2015
An interesting book that introduced to me the idea of a real and expectations market within capitalist economic structures. Maybe a bit repetitive but none the less a worthy concept to explore.
Read
February 2, 2016Cool book...puts a lot of things about the financial aspects of how companies are run (and in a lot of cases, not run) by looking at how the NFL has been successful.
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