In his recent address as the guest of honour at the Royal Society of Arts in London, Clayton explored the issues of a lack of economic and employment growth following recent recessions. In his speech, Clayton described the shifting dynamic between finance and management and the impact this can have on business management strategies.
Clayton followed on by discussing how investments in what he has termed efficiency innovations (which create capital, have fast returns, but in nature reduce jobs) are being promoted over investments in empowering or disruptive innovations (which cost capital, have slow returns but jobs). Clayton argued that this is because managerial decisions are being driven by the ‘Doctrine of new finance’, which was introduced into an economy scarce in capital. As economic landscapes have shifted however, Clayton argues that new rules need to be created, as capital has become abundant and jobs are now scarce.
Video footage was used with permission from the RSA with great appreciation from Liberty Stage Ltd.
Professor Christensen will be in Australia and New Zealand this November to discuss management strategies such as this and more.
Find out more about the Business Influentials series at the website here.