Go long the problem solvers

Businesses exist to solve problems. If they are good at that, monetary rewards follow but money is really just the feedback mechanism – the scorecard – that lets managers know how well the company is doing at fulfilling its function. It’s not why they exist. The lesson has been particularly instructive for recent IPO, iSelect. The company is an online aggregator that allows customers to search and compare different health insurance products. Once selected and bought, the insurer pays a fee and a trailing commission to iSelect. This is no doubt a useful service, one that probably deserves to make...

Businesses exist to solve problems. If they are good at that, monetary rewards follow but money is really just the feedback mechanism – the scorecard – that lets managers know how well the company is doing at fulfilling its function. It’s not why they exist.

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