Knowledge and Technology The new technology embraces and feeds off the entire array of human knowledge’s. The search for knowledge,…
Browsing: Leadership & Business Wisdom
Face Reality Exploit the new realities. Today’s new realities fit neither the assumption of the Left not those of the…
A Social Ecologist For me the tension between the need for continuity and the need for innovation and change was…
Feedback: Key to Continuous Learning To know one’s strengths, to know how to improve them, and to know what one…
Managing Oneself: Revolution in Society Managing oneself is based on these realities: Workers are likely to outlive organizations, and the…
Society of Performing Organization “By their fruits ye shall know them.” Society in all developed countries has become a society…
The Function of Management Is to Produce Results Above all management is responsible for producing results. Management has to give…
Organizational Inertia All organizations need a discipline that makes them face up to reality. All organizations need to know that…
Limits of Social Responsibility “It is not enough for business to do well; it must also do good.” But in…
Common Core of Unity There has to be a “common culture” or at least a “cultural affinity.” Successful diversification by…
Business Not Financial Strategy “There ain’t no bargains,” and “You get at most what you pay for,” Successful acquisitions are…
Resource-allocation decisions The allocation of capital and people determine whether the organization will do well or poorly. The allocation of…
EVA AS A PRODUCTIVITY MEASURE Until a business returns a profit that is greater than its cost of capital, it…
INFORMATION ON COST AND VALUE We cannot achieve results until we have information on cost and value. Basic structural information…
TURBULENT TIMES AHEAD It turbulent times, the first task of management is to make sure of the institution’s capacity to…
Rules for Staff People Unless staff people have proved themselves in operations, they will lack credibility among operating people and…
FUNDAMENTAL OF COMMUNICATIONS To improve communications, work not on the utterer but recipient. It is the recipient who communicates. Unless…
SIMULATED DECENTRALIZATION The main rule is to look simulated decentralization as a last resort only. Whenever a unit can be…
FEDERAL DECENTRALIZATION: REQUIREMENTS As a minimum the unit must contribute a profit to the company rather than merely contribute to…
THE FEDERAL PRINCIPLE Federalism relieves top management from operating duties and sets it free to devote itself to its proper…
THE RIGHT ORGANIZATION The only things that evolve by themselves in an organization are disorder, friction, mal performance. The pioneers…
HOW TO USE OBJECTIVES Objectives are not fate; they are not direction. If objective are only good intentions, they are…
LONG-RANGE PLANNING The future will not just happen if one wishes hard enough. The future requires decisions – now. It…
Divestment In looking for a husband for your daughter, says an old proverb, don’t ask: “Who’ll make the best husband…
The Failed Strategy Most of the people who persist in the wilderness leave nothing behind but bleached hones. When a…
Gathering and Using Intelligence Information has to be organized to test a company’s assumptions about its theory of its business.…
The Future Budget The budget for the future remains stable throughout good times and bad. In most enterprises—and again not…
Organize Dissent The effective decision-maker organizes dissent. Decisions of the kind the executive has to make are not made well…
The Right Compromise “Half a loaf is better than no bread.” One has to start out with what is right…
Harmonize the Immediate Long-range Future A manager must, so to speak, keep his nose to the grindstone while lifting his…
[dropcap]P[/dropcap]URSUING PERFECTION “THE GODS CAN SEE THEM.” The greatest sculptor of ancient Greece, Phidias, around 440 bc made the statues…
[dropcap]C[/dropcap]ONTROLS FOR NONMEASURABLE EVENTS A BALANCE BETWEEN THE MEASURABLE AND THE NONMEASURABLE IS A CENTRAL AND CONSTANT PROBLEM OF MANAGEMENT.…
[dropcap]M[/dropcap]ANAGING ONESELF: REVOLUTION IN SOCIETY MANAGING ONESELF IS BASED ON THESE REALITIES: WORKERS ARE LIKELY TO OUTLIVE ORGANIZATIONS, AND THE…
[dropcap]B[/dropcap]ALANCE CONTINUITY AND CHANGE PRECISELY BECAUSE CHANGE IS A CONSTANT, THE FOUNDATIONS HAVE TO BE EXTRA STRONG. The more an…
[dropcap]T[/dropcap]HE INFANT NEW VENTURE BUSINESS ARE NOT PAID TO REFORM CUSTOMERS. Above all, the people who are running a new…
[dropcap]P[/dropcap]RACTICE COMES FIRST DECISION MAKERS NEED TO FACTOR INTO THEIR PRESENT DECISIONS THE “FUTURE THAT HAS ALREADY HAPPENED.” Decision makers…
[dropcap]L[/dropcap]ONG-RANGE PLANNING THE FUTURE REQUIRES NOT JUST HAPPEN IF ONE WISHES HARD ENOUGH. The future requires decisions – now. It…
[dropcap]P[/dropcap]RACTICE COMES FIRST DECISION MAKERS NEED TO FACTOR INTO THEIR PRESENT DECISIONS THE “FUTURE THAT HAS ALREADY HAPPENED.” Decision makers…
[dropcap]M[/dropcap]ANAGING ONESELF: WHAT TO CONTRIBUTE? SUCCESSFUL CAREERS ARE NOT THE PRODUCTS OF LUCK OR PLANNING; THEY ARE BUILT BY PEOPLE…
BUSINESS NOT FINANCIAL STRATEGY “THERE AIN’T NO BARGAINS,” AND “YOU GET AT MOST WHAT YOU PAY FOR.” Successful acquisitions are…
[dropcap]S[/dropcap]UCCESS ALWAYS CREATES NEW REALITIES ONLY THE FAIRY STORY ENDS “THEY LIVED HAPPILY EVER AFTER.” Success always obsoletes the very…
[dropcap]M[/dropcap]ANAGING ONESELF: IDENTIFY STRENGTHS IT TAKES FAR LESS ENERGY TO MOVE FROM FIRST-RATE PERFORMANCE TO EXCELLENCE THAN IT DOES TO…
[dropcap]H[/dropcap]ITTING THEM WHERE THEY AREN’T “HITTING THEM WHERE THEY AREN’T” OUTFLANKS THE BY CREATIVE IMITATION. Here, the innovator doesn’t create…
[dropcap]U[/dropcap]NREALIZED BUSINESS POTENTIAL “OPPORTUNITY IS WHERE YOU FIND IT,” NOT WHERE IT FINDS YOU. Luck, chance and catastrophe affect business…
[dropcap]M[/dropcap]ANAGING CASH IN THE NEW VENTURE THERE IS AN OLD BANKER’S RULE OF THUMB ACCORDING TO WHICH ONE ASSUMES THAT…
[dropcap]S[/dropcap]OCIAL INNOVATION: THE LAB WITHOUT WALL STEINMETZ’S TECHNOLOGY-DRIVEN SCIENCE IS ANATHEMA TO MANY ACADEMIC SCIENTISTS. Steinmetz’s innovation also led to…
[dropcap]T[/dropcap]UNNEL-VISION INNOVATION OFTEN A PRESCRIPTION DRUG DESIGNED FOR A SPECIFIC AILMENT SOMETIMES ENDS UP BEING USED FOR SOME OTHER QUITE…
[dropcap]M[/dropcap]ANAGING THE NEW VENTURE EVERY NEW PROJECT IS AN INFANT AND INFANTS BELONG IN THE NURSERY. Innovative efforts, especially those…
[dropcap]D[/dropcap]IVERSIFICATION SHOEMAKER, STICK TO YOUR LAST!” The old cliché is still sound advice. The less diverse a business, the more…
[dropcap]E[/dropcap]LIMINATING COST CENTERS WOULD THE ROOF CAVE IN IF WE STOPPED DOING THIS WORK ALTOGETHER? No matter how well a…
[dropcap]R[/dropcap]ESPECT FOR THE BUSINESS AND ITS VALUES THE ACQUISITION MUST BE A “TEMPERAMENTAL FIT.” No acquisition works unless the people…
[dropcap]I[/dropcap]N INNOVATION, EMPHASIZE THE BIG IDEA INNOVATIVE IDEAS ARE LIKE FROGS’ EGGS: OF A THOUSAND HATCHED, ONLY ONE OR TWO…
[dropcap]T[/dropcap]EST OF INNOVATION MEASURE INNOVATIONS BY WHAT THEY CONTRIBUTE TO MARKET AND CUSTOMER. The test of an innovation is whether…
[dropcap]D[/dropcap]EFINING BUSINESS PURPOSE AND MISSION: THE CUSTOMER WHO IS THE CUSTOMER? “Who is the customer?” is the first and the…
[dropcap]B[/dropcap]ALANCING THREE CORPORATE DIMENSIONS SHAREHOLDER SOVEREIGNTY IS BOUND TO FLOUNDER. IT IS A FAIR-WEATHER MODEL. An important task for top…
[dropcap]L[/dropcap]EGITIMACY OF THE CORPORATION UNLESS THE POWER IN THE CORPORATION CAN BE ORGANIZED ON AN ACCEPTED PRINCIPLE OF LEGITIMACY, IT…
[dropcap]M[/dropcap]ANAGEMENT AND ECONOMIC DEVELOPMENT IT CAN BE SAID THAT THERE ARE NO “UNDERDEVELOPED COUNTRIES.” THERE ARE ONLY “UNDER MANAGED” ONES.…
[dropcap]N[/dropcap]EED FOR A HARMONY OF INTERESTS THE DEMAND OF HARMONY DOES NOT MEAN THAT SOCIETY SHOULD ABANDON ITS RIGHT TO…
[dropcap]D[/dropcap]EMANDS ON POLITICAL LEADERSHIP BEWARE CHARISMA. Charisma is “hot” today. There is an enormous amount of talk about it, and…
[dropcap]R[/dropcap]OLE OF THE BYSTANDAR THE BYSTANDER SEES THINGS NEITHER ACTOR NOR AUDIENCE NOTICES. Bystanders have no history of their own.…
[dropcap]M[/dropcap]ODERN ORGANIZATION MUST BE A DESTABILIZER ONLY A SOCIETY IN DYNAMIC DISEQUILIBRIUM HAS STABILITY AND COHESION. Society, community, and family…
[dropcap]T[/dropcap]HE TRANSNATIONAL COMPANY SUCCESSFUL TRANSNATIONAL COMPANIES SEE THEMSELVES AS SEPARATE, NON NATIONAL ENTITIES. Most companies doing international business today are…
[dropcap]K[/dropcap]NOWLEDGE AND TECHNOLOGY THE NEW TECHNOLOGY EMBRACES AND FEEDS OFF THE ENTIRE ARRAY OF HUMAN KNOWLEDGE’S. The search for knowledge,…
[dropcap]F[/dropcap]ACE REALITY EXPLOIT THE NEW REALITIES. Today’s new realities fit neither the assumption of the Left not those of the…
[dropcap]A[/dropcap] SOCIAL ECOLOGIST FOR ME THE TENSION BETWEEN THE NEED FOR CONTINUITY AND THE NEED FOR INNOVATION AND CHANGE WAS…
[dropcap]F[/dropcap]EEDBACK: KEY TO CONTINUOUS LEARNING TO KNOW ONE’S STRENGTHS, TO KNOW HOW TO IMPROVE THEM, AND TO KNOW WHAT ONE…
[dropcap]M[/dropcap]ANAGING ONESELF: REVOLUTION IN SOCIETY MANAGING ONESELF IS BASED ON THESE REALITIES: WORKERS ARE LIKELY TO OUTLIVE ORGANIZATIONS, AND THE…
[dropcap]S[/dropcap]OCIETY OF PERFORMING ORGANIZATION “BY THEIR FRUITS YE SHALL KNOW THEM.” Society in all developed countries has become a society…
[dropcap]T[/dropcap]HE FUNCTION OF MANAGEMENT IS TO PRODUCE RESULTS ABOVE ALL MANAGEMENT IS RESPONSIBLE FOR PRODUCING RESULTS. Management has to give…
[dropcap]O[/dropcap]RGANIZATIONAL INERTIA ALL ORGANIZATIONS NEED A DISCIPLINE THAT MAKES THEM FACE UP TO REALITY. All organizations need to know that…
[dropcap]L[/dropcap]IMITS OF SOCIAL RESPONSIBILITY “IT IS NOT ENOUGH FOR BUSINESS TO DO WELL; IT MUST ALSO DO GOOD.” BUT IN…
[dropcap]P[/dropcap]ROVIDE NEW TOP MANAGEMENT THE BUSINESS THESE PEOPLE SELL IS THEIR “CHILD.” Within a year or so, the acquiring company…
[dropcap]C[/dropcap]OMMON CORE OF UNITY THERE HAS TO BE A “COMMON CULTURE” OR AT LEAST A “CULTURAL AFFINITY.” Successful diversification by…
[dropcap]B[/dropcap]USINESS NOT FINANCIAL STRATEGY “THERE AIN’T NO BARGAINS,” AND “YOU GET AT MOST WHAT YOU PAY FOR,” Successful acquisitions are…
[dropcap]R[/dropcap]ESOURCE-ALLOCATION DECISIONS THE ALLOCATION OF CAPITAL AND PEOPLE DETERMINE WHETHER THE ORGANIZATION WILL DO WELL OR POORLY. The allocation of…
[dropcap]E[/dropcap]VA AS A PRODUCTIVITY MEASURE UNTIL A BUSINESS RETURNS A PROFIT THAT IS GREATER THAN ITS COST OF CAPITAL, IT…