Chapter OneCOST, VALUE, PRICE:
The Three Pillars of Profit
In 1984 I was asked to teach economics to a group of seasoned managers with scientific and engineering backgrounds in the MIT Sloan School of Management's Management of Technology M.Sc. program. In one class, a young woman -- a senior manager at IBM -- asked me politely but firmly, "why do I have to know this?" My response was pitifully lame -- something like, "well, because...because it's economics, and this is an economics course."
For me, that question was an epiphany. I encounter it often when facing her equally challenging successors....