The second of two blog posts on shareholder and stakeholder theories of management.
An excellent research paper by Vladislav Valentinov on the shareholder (neoclassical economics) and stakeholder theory (institutional economics). Unfortunately, the neoclassical economics that most top leaders (and their lines of succession) remain strongly committed to, as well as their understanding of corporate purpose and business precludes having a process (relational) focus.
To improve, Lean promoters, influencers, and advocates must become active participants in efforts to render archaic paradigms (i.e., neoclassical economics) obsolete. A continued focus on “Lean tools” will not do it. This is the kind of learning that will help the Lean community move forward.