If You Pay Peanuts, You Will Get Monkeys
Management is One of the Most Important Factor to Determine the Succes of a Company.
It is Better to Have an Excellent Management with Mediocre Employees, than the Opposite.
With the advent of the Privatization, the Italian Sanitary System became fragmented in more and more “Local Private Companies”.
This is conceptually coherent if we want to adopt the Benefits of Efficacy and Efficiency of the Liberalism Framework (“Free Market”).
But when you try to get a Hybrid of 2 different Systems, what could you get is that you obtain the worst part of each other and not the best one.
In fact, one of the fundamental principles of the Free Market, in order to maximize the Consumers Wellness, is the system of punishment-reward determined by the prices and the consume/not-consume choice.
A bad company will be punished with the not-consume choice, determining its failure in the long run, vice versa a good one will be rewarded democratically by the market with huge sales.
This situation could be a little different if we have Local Monopolies, where there aren’t alternative to choose.
This factor generates a poisoned environment and a potentially destructive effect (in terms of consumer’s wellness).
In fact, a manager whose behavior and organizational efficiency will not impact the final results (and especially his final earning) would not be incentivized to maximize the consumer wellness improving the organizational structure.
This generates a situation where managers will be easier corrupted and extremely inefficient.
Also, the worst part is that the Local Sanitary Companies’ Management is Elected by the Local (Regional) Politicians, adding more inefficiency, reducing meritocracy and incentives to improve local services for the final customer.
In fact, local resources are frequently used to buy out-of-market priced products (to “cook the books” and mask the money “robberies”) from suppliers chose discretionally by the local managers.
This reduces the resources available to determine an efficient sanitary process, making things worse for the customers (infinite waiting time, lack of drugs and sits, etc.)
To mitigate this system is necessary to introduce the Feedback Logic of the Free-Market, or this system will be destined to fail in the long-run.
This could be done only with customers’ feedback and not with “political” one.
Blockchain could trace in a decentralized and “difficult to exploit” way the true Local Sanitary Company’s Customers and ask (at the end of the service) them a Feedback on the Final Service.
Once collected and aggregate those Feedback, would it be possible to obtain an estimation of the average Feedback and to make a National Ranking of the Best and Worse Local Sanitary Company.
So Yearly would be possible to Identify the worse 20% Local Sanitary Companies and to fire Incompetent Management, changing it.
Vice versa the Best 20% Local Sanitary Companies could obtain a Cash Bonus as a Reward.
Consequentially this system will incentive Managers to Behave better to not be fired in Future, improving the services for the final customers.
Because sometimes it is not lack of resources, but lack of creative initiatives to determine the failure for a Company.
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