- **More businesses die from indigestion than starvation**
- First and foremost define the reason why the company was started -
namely the problem in society the company intends to solve
- the value the company wants to bring to society
- Thereafter define the rules we will follow and do things in the company
- HP founders rejected the idea that company exists to merely maximize profits
- Find the best people, take care of your people and demand results
- Personal communication is necessary to back up written instructions
- Strategic objectives
Profit - to ensure our operations continue to be sustainable
- focus on the needs of our customers
- focus on our core capabilities
- growth
- invest and trust in employees
- Wall Street knows how to value assets but does not know how to value
people
- processes
- culture
- Getting rewards right is hard. Bad reward structure brews tension against company mission
- Management by objectives
clearly stated and agreed upon objectives
- gives people flexibility to work towards those goals in ways they determine best for their own areas of responsibility
- decentralization
Pre-requisite of the knowledge economy
- managers have no authority
- Open door policy
practice good listening
- Management by walking around
- Promoting from within
- Management succession