I do tend to disagree with his views though, having worked in a number of industries (Stockbroking, Telecoms, Finance) the problem seems to be what kind of person is in control – in my mind there are two clear types:

Type 1 – Bean counter (Finance orientated)
Type 2 – Creative (Marketing orientated)

These managment styles are in dire contrast to each other.

A bean counter will ensure that everything is costed accurately and monitored and checked and double checked. A creative person will drive the products forward, regardless of cost and/or structure

The problem is that only a combination of both skills will work, you need the bean counter to ensure everything is costed, affordable and manageable – but without a creative driving force – the bean counter is unlikely to invest in new IP, as it will be seen as too risky.

So in summary, risk adverse companies normally hire bean counters and non risk adverse companies tend to go for the more creative types – what’s actually needed is a blend of skills.

Once the structure at the top is right, the rest of the management ranks will fall into place.

People are always promoted to a level of ‘incompetence’ – that’s the nature of the beast – however, better appraisal systems and skill assesments by line managers are needed to ensure these mistakes are not made and if they are, not repeated.

Just my 2 pence

Now, if you look at a smaller publisher or studio, they are much more concerned with making their art, inevitably they won’t be as business savvy.