Discontinued paradigm shift in management

"Now, whether the business schools or managers want it or not, a discontinuous paradigm shift in management is happening. It’s a shift from a firm-centric view of the world in which the firm’s purpose is to make money for its shareholders to a customer-centric view of the world in which the purpose of the firm is to add value for customers."

The shift in management is a shift from shareholder capitalism in which the firm revolves around the manager to a customer capitalism in which the firm revolves around the customer. No amount of tweaking the shareholder model of capitalism can fix it, because the goal of making money for shareholder entails a set of management practices—hierarchical bureaucracy—that are inherently incompatible with the goal of delighting customers: each tweak entails a new set of problems, that sooner or later lead the firm to regress back to the norm of hierarchical bureaucracy."

(Source: Steve Denning)

This is one of the challenges the public service sectors (city, state, federal governments) is facing right now - how to respond to the wants and needs of its customers (the American people), and maintain its organizational status as a hierarchical bureaucracy. Governments were initially meant to be regulators of policy, but now that many functions and tasks are automated, operations are undergoing a transformation. I propose adding values as opposed to adding more policies.