애덤 스미스
Scottish economist and moral philosopher; The Wealth of Nations
743 records in all
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William Pulteney recommended Smith for a high-level commission with the East India Company. Although Smith was willing to accept the role, he did not actively lobby for it, unlike his peers who campaigned vigorously.
LessonReputation can bring opportunities to your door, but active pursuit is often needed to secure them in competitive environments.
Smith identified that the University of Edinburgh excelled because its professors received insignificant fixed salaries and had no total monopoly on degrees. This forced them to be diligent and successful to attract students.
LessonStructure incentives so that your team's success is directly tied to the value they deliver to customers.
In the remote Highlands of Scotland, Smith observed that farmers had to be their own butchers, bakers, and brewers because the population was too sparse to support specialized trades. A carpenter in these areas had to handle every type of woodwork, from making cabinets to building wagons.
LessonWhen your customer base is small and scattered, you must offer a broad range of services to remain viable.
During a period of public mourning, the demand for black cloth suddenly spikes, leaving the market understocked. Merchants who already possess large quantities of black cloth see their profits soar, while the wages of the weavers remain unchanged.
LessonInventory holders benefit most from sudden, temporary spikes in market demand.
Smith explains that originally workers kept their full output, but the introduction of private land and capital accumulation led to deductions for rent and profit. This created the modern structure where workers usually serve under a master who provides materials and maintenance.
LessonBusiness owners must realize that their profit is a deduction from the total value created by labor, justified by the capital they provide.
Soldiers employed in piece-work were so driven by the desire for gain that they frequently overworked themselves. Their officers had to intervene and set a maximum daily earning limit to protect the soldiers' health from excessive labor.
LessonUnchecked incentives can lead even disciplined people to sacrifice their long-term health for short-term gains.
Smith compares the legislator of Muscovy, who had great public spirit but little humanity, with James I of Great Britain, who was social but lacked passion for national interest. He uses this to show that public-spiritedness often stems from a love of system rather than personal empathy.
LessonEffective leadership requires a focus on the 'system' of the organization, even if the leader lacks natural empathy.
Aristotle challenged Plato's idea that knowing what is right is enough to act rightly. He argued that ingrained habits are more powerful than intellectual conviction alone.
LessonKnowledge of business principles is useless unless you turn them into daily operational habits.
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