The Balanced Manager

Strategic leadership demands a delicate balance between:

Applications of the 80/20 Theory of the Firm

Internally, some resources, be they people, factories, or machines, will produce very much more value relative to their cost than will other resources:

  • 80% of the surplus is usually generated by 20% of employees;

  •  80% of the value created is likely to be generated in 20% of time when, through a combination of circumstances, the employee is operating at his/her highest level of effectiveness.

Radical Improvement (Kaikaku): Kore 10 Tips  Download PowerPoint presentation, pdf e-book

Action Implications:

Any corporation can raise the level of surplus by reducing the inequality of output and reward within the firm. They can do it by identifying the parts of the firm that generate the highest surpluses and reinforcing these, giving them more power and resources; and, conversely, reducing or stopping the expenditure on non-performing resources... More

 

 

References:

1. "Building Tomorrow's Company", Philip Sadler

2. The Leader's Guide To Lateral Thinking Skills, Paul Sloane

3. "Blur", Davis, S. and Meyer, C.

 

"It's not hard to make decisions when you know what your values are." ~ Roy Disney  >>>

Do You Practice the Inclusive Company Approach?

At the heart of the inclusive approach is the belief that understanding stakeholder needs – the needs of customers, employees, suppliers, shareholders and society, and the environment – and incorporating them into the enterprise strategy and sustainable value creation activities are central to the achievement of sustainable growth and competitiveness.1... More

The Tree of Business Success

Case Studies Konosuke Matsushita

Konosuke Matsushita, the legendary founder of Panasonic, believed that a company should create wealth for society as well as for shareholders. Business and production, to Matsushita, were not meant to enrich only the business owners, investors, employees or shops, but all the rest of the society as well.

The Matsushita Basic Business Philosophy consists of three elements.

  1. Basic Management Objective – expresses the corporate goals of the company: " Recognizing our responsibilities as industrialist, we will devote ourselves to the progress and development of society and the well being of people through our business activities, thereby enhancing the quality of life throughout the world."... More

Matsushita's 10 Corporate Management Lessons

Creating Customer Value: 10 Lessons from Konosuke Matsushita

Case Studies Johnson & Johnson

Our Credo

"... We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens ‒ support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources."... More

Strategic Innovation

Strategic innovation is a holistic systematic approach focused on generating beyond incremental, breakthrough or discontinuous innovations. Innovation becomes "strategic" when it is an intentional repeatable process that creates a significant difference in the value delivered to consumers, customers, partners and the corporation. A Strategic Innovation initiative generates a portfolio of breakthrough business growth opportunities using a disciplined yet creative process... More

Smart Business Architect  Download PowerPoint presentation, pdf e-book

Harness the Creative Power of Your Employees

"The best way to create value is to innovate your way ahead of the competition in order to create temporary monopolies where yours in the only show in town. You can do this by harnessing the creative power of your greatest asset, your people. The goal is to turn them into opportunistic entrepreneurs who are constantly looking for new ways of doing business," says Paul Sloane.2

Systemic Innovation: 7 Areas  Download PowerPoint presentation, pdf e-book

 

 

Apply the 80/20 Rule

The 80/20 Principle states that 80% of your results come from 20% of your efforts and activities and that the progress means moving resources from low-value to high-value uses. Look through your list of ideas and circle the 20% that will yield 80% of the results you are looking for... More