Management & Organizations

Terrible Scrambled Eggs: Are Managers Running a Business or Just Reading Reports?

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Management story (Mintzberg)

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Collected in Robin Shen’s Field Notes · Content type and attribution are shown above

English translation of the Chinese post originally published 2021-11-21. Translated 2026-10-28 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Years ago, Henry Mintzberg flew Eastern Airlines, then the world’s largest airline, and ate terrible scrambled eggs. A flight attendant said frontline staff had repeatedly told management, which never listened. Mintzberg wondered whether management was running a business or merely reading financial statements. Analysts might explain problems through load factors, but he says Eastern closed because of those eggs. Years later, someone from IBM added a story: Eastern’s CEO boarded at the last minute; a paying first-class passenger was moved to economy. The CEO later apologized and introduced himself. The passenger replied, “I’m the CEO of IBM.” The issue was status, not a seat. Management has nothing to do with your customary seat, and everything to do with the eggs.

Key points

  • Frontline voices not reaching management are a fatal organizational problem.
  • Reading financial statements is not the same as running a business.
  • Eastern’s closure began with the scrambled eggs.
Distinct modular elements joined into a coordinated, balanced whole.
Management & organizationsThematic illustration · AI generated

Full text — English translation

#ListenToCustomers #ThinkOfYourCustomers Years ago, one morning, management thinker Henry Mintzberg flew Eastern Airlines from Montreal to New York. It was then the world’s largest airline, but eventually closed. Breakfast included something called “scrambled eggs.” Mintzberg told a flight attendant, “I have eaten plenty of terrible things on airplanes, but these scrambled eggs are absolutely the worst.” “I know,” she replied. “We frontline flight attendants have tried to tell management many times, but they never listen.” How could that be? If they ran a cemetery, difficulty communicating with customers would be understandable. But what is the difficulty for an airline? Whenever he encounters poor service or a badly designed product, Mintzberg wonders: is management running the business or just reading financial statements? Financial analysts naturally read statements and may explain an airline’s problems through load factors or other factors. But do not believe any of those numbers: Eastern went out of business because of those terrible scrambled eggs. Years later, Mintzberg told this story to a group of managers. Afterward, someone from IBM shared another: Eastern’s CEO rushed aboard a flight at the last minute. First class was full. I suppose he had a customary seat, so the crew asked the paying passenger already in it to move to economy and give it to him. Apparently ashamed, the CEO went back to apologize and introduced himself as the airline’s CEO. The passenger replied, “Oh, I’m the CEO of IBM.” The issue is not whose seat was taken. It is status: they considered a higher cabin class more important than reason or decency. Management has nothing to do with your customary seat, but a great deal to do with the scrambled eggs you eat. #Mintzberg寫給管理者的睡前故事 (Mintzberg’s bedtime stories for managers)

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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