Large companies tend to have thousands of workers and hundreds of expensive assets that should be organised efficiently. Organisation is really difficult, thus administrators are the CEO’s of those companies and the MBA (Master of Business Administration) is the graduate school degree to get there. But if organisation wasn’t difficult, then things would change..
The world isn’t as bureaucratic as it once was. Much of what we called administration is now automated by software. The number of employees at technology-era companies is smaller than those of the industrial-era. Thanks to companies like Kiva Systems, the challenges in operating a warehouse aren’t the same as they were either. The result of these changes is the old challenge of organisation that was extremely difficult is still important, but not as important as some of the other things one needs to worry about.
Industries with little innovation compete on who can be the most efficient because industries with a lot of innovation compete on who can be the most effective. Efficient industries decide what to do, learn how to do it and then repeat that for decades. They barely change their formula. Innovative industries are forced to constantly change what they are doing in order to keep up with their ever-changing world. If they don’t change their formula every half-decade, they die. Thus, the CEO of an efficiency industry should be a expert of administration and organisation. The CEO of an innovative industry should no longer be an expert of administration and organisation as that is no longer the most pressing problem. Instead, they should be an expert in making great products, likely a designer or an engineer.
The CEO of an efficiency industry should of course be competent in how their company makes products and the CEO of an innovative industry should of course be competent in organisation and administration.
A list of designer/engineer CEO’s: