 | Management Quotes |  |
If you ask people to go through a difficult period of time, they have to trust that you’re sharing it with them.
— Carlos Ghosn (president and CEO of Nissan)
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Listen while you can so that you can lead when you must.
— Tom Peters
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What gives something meaning, besides the meaning we give it?
— Unknown
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Our strategies must be tied to leading-edge customers on the attack. If we focus on the defensive customers, we will also become defensive.
— John Roth (Nortel CEO, president, and VC )
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Success is the ability to go from failure to failure without losing your enthusiasm.
— Winston Churchill
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Competitive advantage is a function of two variables: the amount of customer-valued differentiation between what your company offers and that of its direct competitors, and the sustainability of that differentiation over time. The greater the difference and the longer you can sustain it, the more attractive your prospects for creating above-average returns for investors.
From an investor’s point of view, any business process that creates additional differentiation, or that contributes to increasing the staying power of the differentiation currently achieved, is core. Investors want you to spend their capital to improve your stock price. By contrast, all the other business processes in your company are context–critical to run your business, but not related to creating or maintaining competitive differentiation. Investors don’t want their capital to underwrite these efforts because they can’t improve the stock price.
So how does context work ever get funded? Investors say to expense it, not to invest in it. That is, it’s OK for them to see noncore spending on your profit and loss statement, they just don’t want to see it on your balance sheet.
…Competitive differentiation on context is actually a liability. It requires financial and human capital to create and maintain, without increasing shareholder value.
In the long term, the best way to manage context processes is to turn them over to another company. This is the inherent logic of outsourcing–whether the processes are IT functions, manufacturing processes, payroll processing, or any other function.
If you list all the context processes in your company, you’ll quickly note that many are crucial while others play a supporting role…Most managers conclude that the company simply can’t risk outsourcing a critical process. That conclusion, however, inevitably leads to a slow but inexorable decline in stock price. More of the total assets get tied up in processes that can’t produce a competitive advantage and therefore can’t improve the company’s prospects for increasing future earnings.
…In this new world, the mnemonic for ensuring that you focus on the right variables is QRSTUV, which stand for: Quality, Reliability, Scalability, Total cost of ownership, User control, and Visibility.
Today, for the most part, such control systems for business don’t exist. Instead, both outsourcers and their customers throw human intervention into the mix, leading to a deterioration of the value proposition at both ends.
— Geoffrey Moore
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When governance has the texture of service it calls for a like response from those governed.
— Unknown
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The purpose of all rulers is the well being of those they rule.
— Saint Augustine
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Half my advertising is wasted. I just don’t know which half.
— John Wanamaker (19th century dept store magnate)
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We think, and with those thoughts, we create. We create the world we live in … We harvest in life, only and exactly, what we sow in our minds.
— Dr. Dennis R. Deaton
No Comments » Posted by Administrator / Life and Personality / Behavior