The new architects of this red pill world of business are 21st century psychologists. The uncomfortable truth is that before they were CEOs, business leaders were human beings complex, unique individuals with personal values, deep-seated emotions and a fully-developed conscience. In the red pill world, work requires a broader social purpose to justify the scrutiny of a diverse, range of stakeholders.
In courses on corporate governance, grounded in agency theory, we have taught our students that managers cannot be trusted to do their jobs.” “Many of the worst excesses of recent management practices have their roots in a set of ideas that have emerged from business school academics over the last 30 years. Professor Sumantra Ghoshal summed up the inevitable consequence of this his influential paper, ‘ Bad management theories are destroying good management practices’, when he said: In academic circles, this business paradigm is known as ‘agency theory’.
In the blue pill world, organisations worshipped profit and the business leader could not be trusted because the economists decreed that left to their own devices, business leaders would exploit the system for their own ends. The architects of these illusions were 19th century economists led by Adam Smith. In the blue pill world of leadership, we colluded under the illusions that work could be reduced to an economic necessity and that business leaders were purely rational beings motivated only to maximise their self-interest. This is the same choice that business leaders face each day in a transparent world where nothing can be hidden. He chooses an uncomfortable truth over a comfortable illusion. Neo hesitates for a moment and then opts for the red pill. Remember: all I'm offering is the truth.” You take the red pill - you stay in Wonderland, and I show you how deep the rabbit hole goes. You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe.
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