Sir John Kay delivers a masterful analysis of how corporations have evolved from their industrial origins to today's knowledge-driven enterprises, revealing profound insights about the changing nature of business success.

Drawing on his distinguished career spanning academia, business, and finance, Kay traces the corporate journey from the industrial titans of the Gilded Age through the professionally managed firms of mid-20th century America to today's "hollow corporations" like Apple. His historical perspective illuminates the critical shift that occurred when businesses abandoned their focus on building excellent, enduring companies in favor of maximizing shareholder value—a shift Kay argues has been self-defeating.

The conversation explores fascinating case studies of once-dominant corporations that lost their way. General Electric, once America's most admired company under Jack Welch's "make the numbers" philosophy, has now broken itself apart. Boeing abandoned its culture of engineering excellence for financial metrics and suffered devastating consequences. ICI, Britain's industrial crown jewel, collapsed within 15 years of changing its mission statement from applying chemistry to creating shareholder value.

Kay argues persuasively that human relationships and ingenuity have superseded physical assets as the true drivers of modern business value. The smartphone exemplifies this transformation—a device replacing libraries, record players, and atlases in our palm. This shift demands rethinking how businesses operate and create value in an economy where capital intensity has diminished while financial influence has paradoxically increased.

For leaders navigating today's complex business landscape, Kay offers this wisdom: focus on building great products that customers value and creating organizations where employees proudly identify with the mission. The score—profit—will take care of itself. As we grapple with questions of corporate purpose, sustainability, and societal trust, Kay's insights provide a thoughtful roadmap for businesses seeking authentic, lasting success.

Link to John Kay's website: https://www.johnkay.com/

Book: The Corporation in the Twenty-First Century: Why (almost) everything we are told about business is wrong

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