At some point, we have to stop pretending that what worked in 1970—or even 2000—is still fit for purpose today.

And yet, here we are. Still teaching economics as if the world runs on tidy models and perfectly rational people. Still running businesses like short-term profit is the only thing worth measuring. Still managing teams like people are cogs instead of complex, motivated human beings.

We’re flying blind using an outdated map—and then wondering why we keep crashing.

The System Is Out of Date.

In a recent Financial Times article, Ha-Joon Chang is blunt:

Economics teaching, he says, has become the “Aeroflot of ideas.” Once dominant, now clunky and out of touch.

The article points out that students are still being taught theories that assume:

• Everyone behaves rationally.
• Markets always correct themselves.
• Growth is always good.
• Externalities (like environmental harm or inequality) are someone else’s problem.

But that’s not the world we live in.

We’re dealing with:

• Climate collapse.
• Political instability.
• Economic systems that reward the few and frustrate the many.
• Workers burnt out and leaders stretched thin, trying to solve problems their training never prepared them for.

It’s not that economics has no value. It’s that how we teach it hasn’t caught up with reality.

Business Thinking Is Stuck Too

John Kay’s book The Corporation in the 21st Century: Why Almost Everything We Are Told About Business Is Wrong makes a similar argument—but in the world of business.

He explains how the obsession with shareholder value has warped how companies behave. Instead of building long-term value, many chase quarterly profits, slash costs, gut teams—and call it strategy.

But the companies that actually last don’t operate that way.
They:

• Lead with a clear sense of purpose—not just financial gain.
• Invest in real relationships with employees, customers, and partners.
• Understand that trust is a currency—once spent, it’s hard to earn back.

In other words, they’re strategically aligned.

Take LEGO: after nearly collapsing from overexpansion and chasing trends, they returned to their core—quality, creativity, and timeless play. That clarity realigned their entire business—and sparked one of the most remarkable turnarounds in modern corporate history.

Or look at Basecamp (now 37signals)—a company that deliberately stays small, builds for usefulness not hype, and leads with focus and internal alignment. Their success comes not from scale or market domination, but from being deeply clear about who they are, how they work, and who they serve.

Meanwhile, the businesses that cut corners, fire fast, or outsource purpose?
They tend to fall apart when things get hard—because what they’ve built doesn’t hold under pressure.

The Link Between Education and Execution

When we teach future economists to ignore real-world complexity, they grow into leaders and advisors who can’t see the full picture.

When we train MBAs to worship spreadsheets over stakeholder relationships, we get managers who look good on paper but struggle to lead people.

When we reward profit without context, we build businesses that are fragile, extractive, and deeply misaligned.

So Here’s My Point:

Most business problems are design problems. And most design problems start with outdated assumptions.

We keep:

• Putting the wrong people in the wrong roles.
• Ignoring motivation and morale because we “can’t measure it.”
• Building brittle systems and hoping for robust outcomes.

Then we call in consultants when things break—never realizing the real issue is the architecture, not just the paint.

It’s Time to Redesign

We need to rethink:

• How we teach economics and business.
• How we define success.
• How we lead, measure, build, and grow.

That doesn’t mean throwing away everything old. It means getting honest about what no longer serves us—and choosing better. It means returning to alignment: between people, purpose, systems, and outcomes.

Strategic Reflection Prompt:

Where in your business (or leadership approach) are you using an old idea to solve a new problem? What’s the cost of staying the same?

Want to rethink how your business actually works?

Let’s start with a Clarity Conversation – an honest look at what’s working, what’s not, and where misalignment might be costing you more than you think. Click here to book.