"Business chief executive officers and their boards succumb to the pressures of the financial markets and their fears of takeovers and pour out their energies to produce quarterly earnings - at the expense of building their companies for the long term"
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Miller’s line lands like an insider’s indictment: the most powerful people in a company are no longer steering it, they’re flinching. The verb “succumb” does heavy lifting. CEOs and boards aren’t making hard-eyed strategic tradeoffs; they’re caving to a cocktail of market expectations and takeover anxiety. That fear is the quiet engine of the sentence: act like a public company long enough and you start managing your stock price the way a politician manages polling.
The rhetorical move is to reframe “quarterly earnings” not as a neutral reporting cycle but as an addictive task that soaks up “energies.” Miller isn’t only criticizing greed; he’s diagnosing attention. When compensation, analyst narratives, and activist threats reward immediacy, the organization’s talent and imagination get reallocated toward the measurable and the soon. R&D becomes a “cost,” training becomes “overhead,” maintenance becomes “optional,” and anything that pays off after the next earnings call reads as a liability.
Context matters: Miller led Cummins through decades when American management philosophy increasingly fused with Wall Street logic, especially from the late 20th century onward, as hostile takeovers and shareholder primacy hardened into doctrine. His warning is less moral than structural. He’s saying the system punishes patience, then acts surprised when companies stop building durable products, resilient supply chains, and loyal workforces.
The subtext is almost elegiac: long-term company-building is framed as a kind of craftsmanship, crowded out by a market that mistakes short-term signal for long-term health.
The rhetorical move is to reframe “quarterly earnings” not as a neutral reporting cycle but as an addictive task that soaks up “energies.” Miller isn’t only criticizing greed; he’s diagnosing attention. When compensation, analyst narratives, and activist threats reward immediacy, the organization’s talent and imagination get reallocated toward the measurable and the soon. R&D becomes a “cost,” training becomes “overhead,” maintenance becomes “optional,” and anything that pays off after the next earnings call reads as a liability.
Context matters: Miller led Cummins through decades when American management philosophy increasingly fused with Wall Street logic, especially from the late 20th century onward, as hostile takeovers and shareholder primacy hardened into doctrine. His warning is less moral than structural. He’s saying the system punishes patience, then acts surprised when companies stop building durable products, resilient supply chains, and loyal workforces.
The subtext is almost elegiac: long-term company-building is framed as a kind of craftsmanship, crowded out by a market that mistakes short-term signal for long-term health.
Quote Details
| Topic | Vision & Strategy |
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