It is management’s job to get the right regulation enacted.
To make elimination of a detrimental business impact into a business opportunity should always be attempted. But it cannot be done in many cases. More often eliminating an impact means increasing the costs. What was an “externality” for which the general public paid becomes business cost. It therefore becomes a competitive disadvantage unless everybody in the industry accepts the same rule. And this, in most cases, can be done only by regulation—that means by some form of public action.
Whenever an impact cannot be eliminated without an increase in cost, it becomes incumbent upon management to think ahead and work out the regulation that is most likely to solve the problem at the minimum cost and with the greatest benefit to public and business alike. And it is then management’s job to work at getting right regulation enacted. Management—and not only business management—has shunned this responsibility.
ACTION POINT: What detrimental business impact in your industry can you turn into a business opportunity or effective regulation?
Management: Tasks, Responsibilities, Practices
* Source: The Daily Drucker by Peter F. Drucker