Every entrepreneur’s must read- Obliquity by John Kay

What makes the most profitable companies profitable? Does a lust for materialism create the wealthiest people? Are those who seek pleasure the happiest in life?

The paradox in the above brain teasers are too profound. It refers to that concept of hedonism which states that the happiest people if ever, are the ones not seeking it, actually.

This paradox holds true for life, but the question is, is it true for economics and business too? Is profit maximization not actually about seeking the enhancement of profits. Is materialism all that it takes to be wealthy in life? 

The answer to all of the above is not affirmative, not atleast for all the cases. That’s what is the theory of economics professor, John Kay, who implies that implying rationality to understand market statistics and people’s behavior hides in it a huge glitch.

That’s to say that all the people who have ever been successful in business or the enhancement of economies have been so because they genuinely cared to run a good business. That is to say that they aimed to create good business activity, which was essentially their main goal. The monetary aspect of it all were secondary. Not to imply that the economy didn’t interest them but that most certainly wasn’t their primary goal. 

This is not the first time that he has come up with this path breaking theory stating that rationality cannot be the backbone reason to explain the economy and business. He is one of the leading economic thinkers in the States. 

The book “Obliquity” states that a very prominent pharmaceutical company would still be in existence today if it focused more on research and not on profit maximization per se. The company was already blessed with good outcomes. Had it sustained its focus on research, it would still exist today as a well functioning company and not just a Dutch company. 

There is two sides to each coin, but the two sides together still make a coin. It’s the same in this sphere too. As its said for the pursuit of happiness, fulfillment versus hedonism to lead you to it. But, you don’t decide to oblique. However, the practical adherence to this concept is to not solely focus on well tested, organized and formalized processes as the sole measure for risk assessment, staff appraisal or the way you hire people.

The real skill of management however, is to be able to:

·         Select the right people.

·         Make the right decisions

·         Being given the autonomy to do the above

Hence, every entrepreneur, budding or ortherwise should and must read “Obliquity by John Kay”to get a kick start on their business and economic skills.

http://cedruswealth.com/ - “Orchestrating distinctive wealth management strategies” Kolhapur Miraj Sangli Ichalkaranji Pune, India Jaisinghpur Jaisingpur, Maharashtra, India