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The Origin of the Executive Compensation Industry...

From a book I'm reading - The Firm: The Story of McKinsey and its Secret Influence on American Business by Duff McDonald:

"A small number of McKinsey consultants did manage to stand out from the rest. In 1951, Arch Patton became the first consultant since the founder himself to Arch pioneer an entire field. General Motors had hired Patton to do a study of executive compensation, and he did so by surveying 37 major companies. The results, published in Fortune and the Harvard Business Review, showed something remarkable. Worker wages had risen faster than management wages. Management tool special note of this development, and demand for Patton's help on executive pay packages went through the roof.  Once started, this demand became a perpetual rotation machine, with Patton writing more than sixty articles on the subject over the years."

I'm only 50 pages in, but I've got a highlighter out for this book. Many things we take for granted in American business and management emulated from early McKinsey practices. 

As for the Arch Patton story above, it's a cautionary tale for giving the people what they want, as well as for giving people in power what they want. It's fair to say that this development at McKinsey created a whole segment/industry (executive compensation) that has a lot of implications for where we find ourselves today - regardless of your belief system.

When creating work product, it's always best to create something that more than one person has a need for. Create something - a process, a service, a product - and be capable of marketing it to many.

That's the gold standard. 

What can you create that could be repurposed multiple times in your job or help you get your next job (or two)?  That's the question all of us should be attempting to answer.

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