Parable of the Faraway Manager

post by nonwasp · 2018-02-01T08:38:30.105Z · LW · GW · 3 comments

A man was hired to manage a faraway subsidiary. He alone submitted reports on the status of the factory, and he sent dividends back to the owners.

He began cooking the books, not for any malicious reason, but because the owners refused his request to reduce dividends and increase contigency reserves.

A few years later, there was a disaster. The factory was severely damaged in the worst monsoon in decades. He sent word that the factory was lightly damaged in the disaster, even though it would take months for his report to make it to the owners.

He used the extra funds to repair the factory and blamed reduced profits on the damaged local infrastructure.

In the long run, the owners made more money. The experienced workers, who would lose their jobs and have to start anew at a new factory, made more money.

The manager did not gain or lose however, his skills was in great demand in the area, and could've found a job for the same pay easily, even after the monsoon. No one ever knew about the manager's good deeds.

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