The problem can be identified with one sole cause. Shareholders. Take a private company public and you have major problems, especially when the insiders don't have control over the majority of the stock.
In some cases I wholeheartedly agree. In this I don't.
Shareholders want you to maximize value. This is decimating, not maximizing.
Look at what happened with Maxis and Westwood. That is maximizing value in today's world. Like mentioned with the problems Google is having with outside shareholders, short term results are desireddemanded rather than long term growth(or growth potential). The modern stock market operates on quarterly numbers rather than long term numbers.