Making Cost-Control Permanent 永続的コスト管理

Cost control is not a matter of cost cutting but of cost prevention.

  What matters is not really the method. It is the realization that the cost-effectiveness of an activity depends on the way it is being structured. It depends heavily on accepting the premise that cost control is not a matter of cost cutting but of cost prevention. And costs never drift down, so cost prevention is a never-ending task. No matter how well structured the organization, its cost-effectiveness needs to be looked at again and again. No matter how carefully it controls its costs, its activities and processes need to be put on trial for their lives every few years.
  This process also ensures that the entire workforce embraces and accepts cost control. It should actually see it as an opportunity and not a threat. If cost control is seen as cost cutting, the workforce will see it as a job threat and will refuse to support it. But if cost control is seen and practiced as cost prevention, then the workforce will actually see it as an opportunity, or at the very least it will support the cost control for the sake of better and more secure jobs.

ACTION POINT: Put all the activities in your organization on trial every two or three years.

Permanent Cost Control (Corpedia Online Program)






2009.07.31 | Trackback(0) | Drucker ドラッカー

Eliminating Cost Centers コスト源の廃棄

Would roof cave in if we stopped doing this work altogether?

  No matter how well a business prevents cost inflation, it will still have to cut costs. This is because business are like people, and people often get sick no matter how carefully they exercise, control their diet, and avoid substance abuse. There is thus always the need for cost cutting. To start cost cutting, management usually asks: “How can we make this operation more efficient?” It is the wrong question. The question should be: “Would the roof cave in if we stopped doing this work altogether?” And if the answer is “probably not,” one eliminates the operation. It is always amazing how many of the things we do will never be missed. But businesses that actually succeed in cutting costs don’t wait until they have to cut costs. They build into their routine operations organized abandonment. Otherwise, eliminating activities and operations runs into extreme political resistance.

ACTION POINT: Set up a systematic process of reviewing all products, processes, and services. Abandon those that no longer contribute to customer value.

Permanent Cost Control (Corpedia Online Program)





2009.07.30 | Trackback(0) | Drucker ドラッカー

Cost Control in a Growth Business 機会予算

How much business can we expect in this new company if we are
successful? And how much front-end investment is the justified?

  To grow a business one has to put in front-end money. That money is invested in tomorrow’s profit makers, so those front-end investments will only be costs and no returns, and sometimes for a long time. How does one manage those to maintain cost control? The first thing is to budget these activities separately. I call it the opportunities budget. The second rule, therefore, is to think through what results we expect from these investments in the future and within what time period.
  The best example I know is how Citibank became the world’s only successful transnational bank in the heady 1970s and 1980s. The reason was that Citi first thought through how much front-end investment in a new branch could be justified. It thought through what the minimum results in the new territory could and should be. Citibank asked: “How much business can we expect in this new country if we successful and become a market leader? And how much front-end investment is then justified assuming that the front-end investment must not exceed a certain percentage of the potential results? And then Citi knew from its own experience how long it should take before this new branch should reach break-even, that is, before it should begin to produce profits.

ACTION POINT: Budget development projects separately. Develop most likely estimates of expected results. Monitor results and adjust expectations accordingly.

Permanent Cost Control (Corpedia Online Program)
Innovation and Entrepreneurship





2009.07.29 | Trackback(0) | Drucker ドラッカー

Cost Control in a Stable Business コスト予防

In cost control an ounce of prevention is worth a pound of cure.

  All of us have learned that it is much harder to get rid of five extra pounds than it is not to put them on in the first place. In no other area is it as true as it is in cost control that an ounce of prevention is worth a pound of cure. An absolute necessity is to watch like a hawk to make sure that costs do not go up as fast as revenues; and, conversely, that they fall at least as fast as revenues if there is a recession and revenues go down.
  One example of a follower of this rule is one of the world’s largest pharmaceutical companies, a company that grew almost eightfold, adjusted for inflation, between 1965 and 1995. During those thirty years, it held cost increases to a fixed percentage of its increase in revenues; a maximum 6 percent rise in costs for every 10 percent rise in revenues. After five or six years of trying, it also learned how to make sure that costs go down in the same proportion as revenues go down in a down period. It took quite a few years to make this work; now it’s almost second nature in that company.

ACTION POINT: Hold increases in operating costs to a fixed percentage of increases in operating revenues. Make sure operating costs go down by the percentage decrease in operating revenues.

Permanent Cost Control (Corpedia Online Program)
Managing for Results





2009.07.28 | Trackback(0) | Drucker ドラッカー

Cost-Driven Pricing コスト主導の価格設定の間違い

Customers do not see it as their job to ensure that
manufactures make a profit.

  Most American and European companies set their prices by adding up costs and then putting a profit margin on top. And then, as soon as they have introduced the product or service, they have to start cutting the price, have to redesign the product at enormous expense, have to take losses – and, often, have to drop a perfectly good product or service because it is priced incorrectly. Their argument? “We have to recover our costs and make a profit.” But the only sound way to price is to start out with what the market is willing to pay and design to that price specification. To start out with price and then whittle down costs is certainly more work initially. But in the end it is much less work than to start out wrong and then spend loss-making years bringing costs into line.
  Price-led costing is an American invention and over one hundred years old. It gave the General Electric company world leadership in electric generating stations way back in the early years of the twentieth century. That’s when GE began to design turbines and transformers to the price the customers, the electric power companies, could pay. They were designed from the price the customer could pay and was willing to pay; and so the customer could and did buy them.

ACTION POINT: Investigate your pricing practices. Set prices according to customer realities and then form a team to help achieve a cost structure that will allow you to make the necessary profit at a present price.

Managing in a Time of Great Change
The Five Deadly Business Sins (Corpedia Online Program)





2009.07.27 | Trackback(0) | Drucker ドラッカー

From Selling to Marketing 販売よりもマーケティング

Consumerism is the “shame of marketing.”

  Despite the emphasis on marketing and the marketing approach, marketing is still rhetoric rather than reality in far too many businesses. “Consumerism” proves this. For what consumerism demands of business is that it actually market. It demands that business start out with the needs, the realities, the values of the customer. It demands that business define its goal as the satisfaction of customer needs. It demands that business base its reward on its contribution to the customer. That after years of marketing rhetoric consumerism could become a powerful popular movement proves that not much marketing has been practiced. Consumerism is the “shame of marketing.” Indeed, selling and marketing are antithetical rather than synonymous or even complementary.
  There will always, one can assume, be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits her and sells itself. Ideally, marketing should result in a customer who is ready to buy. We may be a long way from this ideal. But consumerism is a clear indication that the right motto for business management should increasingly be, “From selling to marketing.”

ACTION POINT: Are your institution’s products and services meeting the actual needs of your customers? If not, does this explain your marketing difficulties?

Management: Tasks, Responsibilities, Practices





2009.07.26 | Trackback(0) | Drucker ドラッカー

Four Lessons in Marketing マーケティングの心得

Henry Ford is supposed to have said: “We can sell the Model T at such
a low price only because it earns such a nice profit.”

  Of the top marketing lessons for the highly competitive twenty-first century, the most crucial one is that buying customers doesn’t work. The collapse of the Hyundai Excel was a spectacular marketing failure. There was nothing wrong with the car. But the company had greatly underpriced it. As a result, it had no profits to plow back into promotion, service, dealers or improvements to the car itself.
  How to define the market is the second lesson – the lesson of what was both a marketing success and a major marketing fiasco: the conquest of the American market by the fax machine. The Japanese did not ask, “What is the market for this machine?” Instead they asked, “What is the market for what it does?” And they immediately saw, when looking at the growth of courier services such as Federal Express, that the market for the fax machine had already been established. The next lesson is that marketing starts with all customers in the market rather than with our customers. The final lesson is that of the success of the new “pastoral” churches by exploiting demographic changes as a marketing opportunity.

ACTION POINT: Apply these four marketing lessons to your business: Don’t try to buy customers. Ask, “What is the market for what the product does?” Consider all customers in the market. Exploit demographic changes.

Managing for the Future





2009.07.25 | Trackback(0) | Drucker ドラッカー

Worship of High Profit Margins 利益幅信奉の危険

High profit margin holds an umbrella over the competitor.

  Most businesspeople are aware that profit is not the same as profit margin. Profit is profit margin multiplied by the turnover of capital. Maximum profitability and maximum profit flow are thus obtained by the profit margin that produces the optimum market standing and with it the optimum turnover of capital.
  Why is the worship of high profit margin likely to damage – if not destroy – the business? It not only holds an umbrella over the competitor; it also makes competing practically risk-free and virtually guarantees that the competitor will take over the market. Xerox invented the copier, and in all of business history very few products have been as successful as the Xerox copy machine. But then Xerox began to chase profit margin. It put more and more gimmicks on the machine, each developed primarily to increase the profit margin. But each of these new accessories also increased the price of the machine, and what was probably even more important, each made it more difficult to service the machine. And the great majority of users didn’t need these additional features. And so a Japanese company, Canon, developed what was not much more than a replica of the original Xerox machine. The Canon model was simple and cheap, and easy to service, and it captured the U.S. market in less than one year.

ACTION POINT: Is your organization guilty of worshiping high profit margins?

Managing in a Time of Great Change
The Five Deadly Business Sins(Corpedia Online Program)





2009.07.24 | Trackback(0) | Drucker ドラッカー

Optimal Market Standing 最適の市場地位

Market domination produces tremendous internal resistance against any innovation.

  A major decision underlying marketing objectives is market standing. One common approach is to say, “We want to be the leader.” The other one is to say, “We don’t care what share of the market we have as long as sales go up.” Both sound plausible, but both are wrong. It does not do much good for a company’s sales to go up if it loses market share, that is, if the market expands much faster than the company’s sales do. A company with a small share of the market will eventually become marginal in the marketplace, and thereby exceedingly vulnerable. There is also a maximum market standing above which it may be unwise to go – even if there were no antitrust laws. Market domination tends to lull the leader to sleep; monopolists flounder on their own complacency rather than on public opposition. Market domination produces tremendous internal resistance against innovation and thus makes adaptation to change dangerously difficult. There is also well-founded resistance in the marketplace to dependence on one dominant supplier. No one likes to be at the mercy of the monopoly supplier.
  The market standing to aim at is not the maximum but the optimum. This requires careful analysis of customers, of products or services, of market segments, and of distribution channels. It requires a market strategy, and it requires a decision of high risk.

ACTION POINT: Define your institution’s optimal market share by carefully analyzing your customers, competitors, market segments, and distribution channels. Base your market strategy on your optimal market share, not on simply dominating the market or increasing market share.

Management: Tasks, Responsibilities, Practices





2009.07.23 | Trackback(0) | Drucker ドラッカー

Service Institutions Need a Defined Mission 社会的機関の使命

We have attained what we were trying to do.

  First, the public-service institution needs a clear definition of its mission. What is trying to do? Why does it exist? It needs to focus on objectives rather than on programs and projects. Programs and projects are means to an end. They should always be considered as temporary and, in fact, short-lived. Second, the public-service institution needs a realistic statement of goals. It should say, “Our job is to assuage famine,” rather than, “Our job is to eliminate hunger.” It needs something that is genuinely attainable and therefore a commitment to a realistic goal, so that it can say eventually, “Our job is finished.” Most objectives can and should be phrased in optimal rather than in maximal terms. Then it is possible to say, “We have attained what we were trying to do.” Third, failure to achieve objectives should be considered an indication that the objective is wrong or at least defined wrongly. If an objective has not been attained after repeated tries, one has to assume that it is the wrong one. Failure to attain objectives is a prima facie reason to question the validity of the objective – the exact opposite of what most public-service institutions believe.

ACTION POINT: Write down your nonprofit institution’s mission. Is it attainable or is it an open-ended, wishful statement? If it’s the latter, replace it with a realistic and genuinely attainable statement of goals.

Innovation and Entrepreneurship





2009.07.22 | Trackback(0) | Drucker ドラッカー

Innovation in Public-Service Institutions 社会的イノベーション

Most innovations in public-service institutions are imposed
on them either by outsiders or by catastrophe.

  Institutions such as government agencies, labor unions, churches, universities and schools, hospitals, community and charitable organizations, professional and trade associations, and the like need to be entrepreneurial and innovative fully as much as any business does. Indeed, they may need it more.
  The rapid changes in today’s society, technology, and economy are simultaneously an even greater threat to them and an even greater opportunity. Yet public-service institutions find it far more difficult to innovate than even the most “bureaucratic” company. The “existing” seems to be even more of an obstacle. To be sure, every service institution likes to get bigger. In the absence of a profit test, size is the one criterion of success for a service institution, and growth a goal in itself. And then, of course, there is always so much more that needs to be done. But stopping what has “always been done” and doing something new are equally anathema to service institutions, or at least excruciatingly painful to them. Most innovations in public-service institutions are imposed on them either by outsiders or by catastrophe. For example, the modern American university in the mid-nineteenth century came into being when the country’s traditional colleges and universities were dying and could no longer attract students.

ACTION POINT: Fight the bureaucrats at your nonprofit institution who just do what has “always been done.” Do something new that addresses the rapid social, technological, or economic changes buffeting your institution.

Innovation and Entrepreneurship





2009.07.21 | Trackback(0) | Drucker ドラッカー

New Knowledge 発明発見とアイデア

In the theory and practice of innovation and entrepreneurship,
the bright-idea innovation belongs in the appendix.

  New knowledge is not the most reliable or most predictable source of successful innovations. For all the visibility, glamour, and importance of science-based innovation, it is actually the least reliable and least predictable one. Knowledge-based innovation has the longest lead-time of any-innovation. First, there is a long time span between the emergence of new knowledge, and it’s becoming applicable to technology. And then there is another long period before the new technology turns into products, processes, or services in the marketplace.
  The introduction of innovation creates excitement and attracts a host of competitors, meaning that innovators have to be right the first time. They are unlikely to get a second chance. Here, even successful innovators almost immediately have far more company than they want and must prepare themselves to weather the storm that lies ahead. For example, Apple Computer invented the personal computer. IBM was able to wrest market leadership from Apple through creative imitation. Apple failed to maintain its leadership position and became a niche player because it failed to predict and respond to the competition it would face. In the theory and practice of innovation and entrepreneurship, the bright-idea innovation belongs in the appendix. But it should be appreciated and rewarded. It represents qualities that society needs: initiative, ambition, and ingenuity.

ACTION POINT: Are you and your organization inventors or imitators? If the former, remember to predict the competition that your successful invention might inspire, and plan on responding to that competition.

Innovation and Entrepreneurship
Driving Change (Corpedia Online Program)





2009.07.20 | Trackback(0) | Drucker ドラッカー

Changes in Perception 認識の変化

If general perception changes from seeing the glass as “half-full” to seeing
the glass as “half-empty,” there are major innovative opportunities.

  In mathematics there is no difference between “the glass is half full” and “the glass is half empty.” But the meanings of these two statements are totally different, and so are their consequences. If general perception changes from seeing the glass as “half full” to seeing it as “half empty,” there are major innovative opportunities.
  Unexpected success or unexpected failure is often an indication of change in perception and meaning for the consumer. When a change in perception takes place, the facts do not change. Their meaning does. For example, American health hypochondria represents a change in American values, such as worship of youth, more than a reaction to the health statistics. Forty years ago even minor improvements in the nation’s health were seen as major steps forward. Now dramatic improvements are barely paid attention to. This change in perception has created a vast market for new health-care magazines, alternative sources of medicine, physical fitness centers, and other “wellness” goods and services.

ACTION POINT: Define a major change in perception influencing your industry. Exploit this change.

Innovation and Entrepreneurship
Driving Change (Corpedia Online Program)





2009.07.19 | Trackback(0) | Drucker ドラッカー

Demographics 人口の変化

Changing demographics is both a highly productive and
a highly dependable innovative opportunity.

  Of all external changes, demographics – defined as changes in population, its size, age structure, composition, employment, educational status, and income – are the clearest. They are unambiguous. They have the most predictable consequences. They have a major impact on what will be bought, by whom, and in what quantities.
  Demographic shifts may be inherently unpredictable, yet they do have long lead times before impact, and lead times, moreover, that are predictable. Particularly important are age distribution and with the highest predictive value changes in the center of population gravity, that is, in the age group that at any given time constitutes both the largest and the fastest-growing age cohort in the population. In the U.S. in the 1960s, this was a shift to teenagers as the fastest-growing group. With these shifts came a change in what would be considered “representative” behavior. The teenagers of course continued to behave like teenagers. But that was widely dismissed as the way teenagers behave rather than seen as a change in the constitutive values of behavior of society. Statistics are only the starting point. For those genuinely willing to go out into the field, to look and to listen, changing demographics is both a highly productive and a highly dependable innovative opportunity.

ACTION POINT: What are the demographic factors that affect the market for your products or services? Project these factors five to ten years into the future. What opportunities do they create?

Innovation and Entrepreneurship





2009.07.18 | Trackback(0) | Drucker ドラッカー

Industry and Market Structure 産業の構造変化

Market and industry structures are quite brittle.
One small scratch and they disintegrate, often fast.

  Industry and market structures appear so solid that the people in an industry are likely to consider them foreordained, part of the order of nature, and certain to endure forever. A change in market or industry structure is a major opportunity for innovation. In industry structure, a change requires entrepreneurship from every member of the industry. It requires that each one ask anew: “What is our business?” And each of the members will have to give a different, but above all a new, answer to that question. Large, dominant producers and suppliers, having been successful and unchallenged for many years, tend to be arrogant. At first they dismiss the newcomer as insignificant and, indeed, amateurish. But even when the newcomer takes a larger and larger share of their business, they find it hard to mobilize themselves for counteraction.
  For example, the U.S. Post Office did not react when UPS and FedEx took away larger and larger shares of its business. What had made the Post Office so vulnerable was rapid growth in the demand for urgent delivery of time-sensitive documents and packages.

ACTION POINT: Never stop asking yourself, “What is our business?”

Innovation and Entrepreneurship
Driving Change (Corpedia Online Program)





2009.07.17 | Trackback(0) | Drucker ドラッカー

Process Need ニーズの存在

“Necessity is the mother of invention.”

  The first two possibilities for innovation are opportunity driven. But the third is anchored in the old proverb, “Necessity is the mother of invention.” Here need is the source of innovation. I call it process need. Everybody in the organization always knows that the process need exists. Yet usually no one does anything about it. However, when the innovation appears, it is immediately accepted as “obvious” and soon becomes “standard.”
  Process innovation starts with the job to be done and requires the presence of five basic criteria: a self-contained process, a weak or missing link, a clear definition of the objectives, clearly defined specifications for the solution, and widespread realization that there ought to be a better way. Take for example, O. M. Scott and Company, a leader among American producers of lawn-care products. It gained its leadership position based upon a simple gadget called the spreader that users can set to evenly distribute proper quantities of lawn-care chemicals. Without such a tool there was an internal incongruity in the existing process and this incongruity frustrated consumers who were unable to evenly distribute chemicals. There are now many such spreaders.

ACTION POINT: Define a process in your organization that has a missing link. Describe the process, the objectives of the process, the level of awareness of the existence of a missing link, the missing link, and the specifications for a solution.

Innovation and Entrepreneurship
Driving Change (Corpedia Online Program)





2009.07.16 | Trackback(0) | Drucker ドラッカー

Incongruity ギャップの存在

The incongruity bespeaks an underlying “fault.”

  There is often a discrepancy between “what is” and what management thinks “ought to be” that represents an incongruity within an industry, a market, and a process. The incongruity may be clearly visible to the people within or close to the industry, market, or process. Insiders may notice it but think, “this is the way it has always been,” as a reason for not initiating a change. Change leaders exploit these incongruities to the organization’s advantage.
  Take, for example, the unequal information in the hands of buyers and sellers of automobiles. There are a few things about buying vehicles most of us dislike. These include haggling over price, misleading ads, spending hours at a dealership while the salesperson goes back and forth between the sales manager and us, and so on. Several online organizations have created one-stop shopping for used and new automobiles with complete and accurate information about vehicles of all types, including warranties, financing, and insurance. They have leveled the playing field for consumers.

ACTION POINT: Are there any incongruities within a process or within your market that may be exploited to your advantage?

Innovation and Entrepreneurship
Driving Change (Corpedia Online Program)





2009.07.15 | Trackback(0) | Drucker ドラッカー

Unexpected Failure 予期せぬ失敗

Failure should always be considered a symptom of an
innovative opportunity.

  The unexpected failure demands that you go out, look around, and listen. A competitor’s unexpected success or failure is equally important. Failure should always be considered a symptom of an innovative opportunity, and taken seriously as such. One does not just “analyze.” One goes out to investigate. A good many failure are, of course, nothing but mistakes, the results of greed, stupidity, thoughtless bandwagon-climbing, or incompetence, whether in design or execution. Yet if something fails despite being carefully planned, carefully, designed, and conscientiously executed, that failure often bespeaks underlying change and with it, opportunity.
  Unexpected failure often informs us of underlying changes in customer values and perceptions. The assumptions upon which a product or service, its design or market strategy, were based can quickly become outdated. Perhaps customers have changed their value proposition – they may be buying the same thing, but they are actually purchasing a very different value. For example, after the failure of the Edsel, Ford decided that income segmentation no longer applied to the automobile industry. Rather, it was lifestyle segmentation that mattered to consumers.

ACTION POINT: Identify an important unexpected failure, yours or a competitor’s. Identify plausible explanations for the failure. Apply these lessons to your current business.

Innovation and Entrepreneurship
Driving Change (Corpedia Online Program)





2009.07.14 | Trackback(0) | Drucker ドラッカー

Unexpected Success 予期せぬ成功

It takes an effort to perceive unexpected success as one’s own
best opportunity.

  It is precisely because the unexpected jolts us out of our preconceived notions, our assumptions, our certainties, that it is such a fertile source of innovation. In no other area are innovative opportunities less risky and their pursuit less arduous. Yet the unexpected success is almost totally neglected; worse, managements tend actively to reject it. One reason why it is difficult for management to accept unexpected success is that all of us tend to believe that anything that has lasted a fair amount of time must be “normal” and go on “forever.”
  This explains why one of the major U.S. steel companies, around 1970, rejected the “mini-mill.” Management knew that its steelworks were rapidly becoming obsolete and would need billions of dollars investment to be modernized. A new, smaller “mini-mill” was the solution. Almost by accident, such a “mini-mill” was acquired. It soon began to grow rapidly and to generate cash and profits. Some of the younger people within the steel company proposed that available investment funds be used to acquire additional “mini-mills” and to build new ones. Top management indignantly vetoed the proposal. “The integrated steelmaking process is the only right one,” top management argued. “Everything is cheating – a fad, unhealthy, and unlikely to endure.” Needless to say, thirty years later the only parts of the steel industry in America that were still healthy, growing, and reasonably prosperous were “mini-mills.”

ACTION POINT: Don’t neglect or reject unexpected success. Identify it, absorb it, and learn from it.

Innovation and Entrepreneurship





2009.07.13 | Trackback(0) | Drucker ドラッカー

Systematic Innovation 体系的イノベーション

Successful entrepreneurs do not wait until the “the Muse kisses them”
and gives them a bright idea; they go to work.

  Systematic innovation means monitoring seven sources for innovative opportunity. The first four sources lie within the enterprise, whether business or public-service institution, or within an industry or service sector. The unexpected – the unexpected success, the unexpected failure, the unexpected outside event; the incongruity – between reality as it actually is and reality as it is assumed to be or as it “ought to be”; innovation based on process need; changes in industry structure or market structure that catch everyone unawares. The second set of sources for innovative opportunity involves changes outside the enterprise or industry: demographics (population changes); changes in perception, mood, and meaning; new knowledge, both scientific and nonscientific.
  The lines between these seven source areas of innovative opportunities are blurred, and there is considerable overlap between them. They can be likened to seven windows, each on a different side of the same building. Each window shows some features that can also be seen from the window on either side of it. But the view from the center of each is distinct and different.

ACTION POINT: Monitor the seven windows of innovative opportunity: the unexpected; the incongruity; process need; changes in industry structure or market structure; changes in demographics; changes in perception, mood, and meaning; and new knowledge.

Innovation and Entrepreneurship





2009.07.12 | Trackback(0) | Drucker ドラッカー

Organized Improvement カイゼンの効果

Continuous improvements in any area eventually transform the operation.

  The next policy for the change leader is organized improvement. Whatever an enterprise does internally and externally needs to be improved systematically and continuously: product and service production processes, marketing, service, technology, training and development of people, using information. Continuous improvements in any area eventually transform the operation.
  However, continuing improvement requires a major decision. What constitutes “performance” in a given area? If performance is to be improved, we need to define clearly what “performance” means. For example, a major commercial bank decided that the way to improve performance in it branches was to offer new and more advanced financial “products.” But when the bank introduced the new products in its branches, it rapidly lost customers. Only then did the bank find out that to customers, performance of a bank branch means not having to wait in line for routine transactions. The bank’s solution was to concentrate the tellers at the branches on the simple, repetitive, routine services, which require neither skill nor time. The new financial products were assigned to different groups of people who were moved to separate tables, with big signs advertising the products in which each table specialized. As soon as this was done, business went up sharply, both for the traditional and the new services.

ACTION POINT: Make systematic improvement a priority.

Management Challenges for the 21st Century





2009.07.11 | Trackback(0) | Drucker ドラッカー

Exploiting Success 成功の新展開

Change leaders should starve problems and feed opportunities.

  The first – and usually the best – opportunity for successful change is to exploit one’s own success and to build on them. Problems cannot be ignored. And serious problems have to be taken care of. But to be change leaders, enterprises have to focus on opportunities. They have to starve problems and feed opportunities.
  This requires a small but fundamental procedural change: an additional “first page” to the monthly report, one that should precede the page that shows the problems. It requires a page that focuses on where results are better than expected, whether in terms of sales, revenues, profits, or volume. As much time then should be spent on this new first page as has traditionally been spent on the problem page. Enterprises that succeed in being change leaders make sure that they staff the opportunities. The way to do this is to list the opportunities on one page and then to list the organization’s performing and capable people on another page. Then one allocates the ablest and most performing people to the top opportunities. The best example, perhaps, is the Japanese company Sony. It has built itself into one of the world’s leaders in a number of major businesses by systematically exploiting one success after the other – big or small.

ACTION POINT: Every month, prepare a page that lists opportunities, including areas where results were better than expected, whether in terms of sales, revenues, profits, or volume. Follow this with another page that lists the organization’s most capable people. Then allocate the best performers to the top opportunities.

Management Challenges for the 21st Century





2009.07.10 | Trackback(0) | Drucker ドラッカー

Each Organization Must Innovate イノベーションの実績評価

Every organization needs one core competence: innovation.

  Core competencies are different for every organization; they are, so to speak, part of an organization’s personality. But every organization – not just businesses – needs one core competence: innovation. And every organization needs a way to record and appraise its innovative performance. In organizations already doing that – among them, several topflight pharmaceutical manufactures – the starting point is not the company’s own performance. It is careful record of the innovations in the entire field during a given period. Which of them were truly successful? How many of them were ours? Is our performance commensurate with our objectives? With the direction of the market? With our market standing? With our research spending? Are our successful innovations in the areas of greatest growth and opportunity? How many of the truly important innovation opportunities did we miss? Why? Because we did not see them? Or because we saw them but dismissed them? Or because we botched them? And ho well do we do in converting an innovation into a commercial product? A good deal of that, admittedly, is assessment rather than measurement. It raises rather than answers questions, but it raises the right questions.

ACTION POINT: Keep a careful record of innovations in your area and periodically assess your organization’s innovation performance.

Management Challenges for the 21st Century





2009.07.09 | Trackback(0) | Drucker ドラッカー

Identifying Core Competencies 中核的能力の判定

Core Competencies meld customer value with a special ability of the producer.

  Leadership rests on being able to do something others cannot do at all or find difficult to do even poorly. It rests on core competencies that meld market or customer value with a special ability of the producer or supplier. Some examples: the ability of the Japanese to miniaturize electronic components, which is based on their three-hundred-year-old artistic tradition of putting landscape paintings on a tiny lacquered box; or the almost unique ability GM has had for eighty years to make successful acquisitions.
  But how does one identify both the core competencies one has already and those the business needs to take and maintain a leadership position? How does one find out whether one’s core competence is improving or weakening? Or whether it is still the right core competence and what changes it might need? The first step is to keep careful track of one’s own and one’s competitor’s performance, looking especially for unexpected successes and four unexpected poor performance in areas where one should have done well. The successes demonstrate what the market values and will pay for. They indicate where the business enjoys a leadership advantage. The nonsuccesses should be viewed as the first indication that the market is changing or that the company’s competencies are weakening.

ACTION POINT: Identify your organization’s core competencies. Determine whether they are improving or getting weaker.

Management Challenges for the 21st Century





2009.07.08 | Trackback(0) | Drucker ドラッカー

Creating Customer Value 顧客価値の創造

There is no loss to the customer by eliminating activities
that do not add value.

  Activity-based costing provides the foundation for integrating into one analysis the several procedures required to create customer value. With activity costs as a starting point, the enterprise can separate activities that add value to customers from those that do not, and eliminate the latter. The chain of value-creating activities uncovered during value analysis is the starting point for analyzing the underlying process of value creation. Process analysis seeks to: improve the features of the product or service, restructure the process while reducing costs, and maintain or improve quality.
  Process analysis in an automobile company involves designing and redesigning components and subfunctions in order to carryout each function at predetermined cost targets. For instance, the basic function of an automobile is to provide transportation, but secondary functions include comport, fuel efficiency, and safety. Each of the functions and subfunctions require components or services that create value for the customer. Each also contributes to the quality of the automobile as well as to the cost. A process team is formed from personnel who perform the value-chain activities. This team often includes suppliers and customers. The task of the team is to identify the functions the product or service is to perform and to analyze the components or services that go into each function with the objective of achieving value and quality objectives while meeting cost targets.

ACTION POINT: Eliminate activities that do not create value. Analyze the underlying processes of value-creating activities and redesign the processes if necessary to enhance customer value.

Management Challenges for the 21st Century
From Data to Information Literacy (Corpedia Online Program)





2009.07.07 | Trackback(0) | Drucker ドラッカー

Focus on Excellence 卓越性の追求

What is our specific knowledge?

  A valid definition of the specific knowledge of a business sounds simple – deceptively so. It takes practice and regularity to do a knowledge analysis well. The first analysis may come up with embarrassing generalities such as: our business is communications, or transportation, or energy. These general terms may make good slogans for a salesmen’s convention; but to convert them to operational meaning – that is, to do anything with them – is impossible. But with repetition, the attempt to define the knowledge of one’s own business soon becomes easy and rewarding. Few questions force a management into as objective, as searching, as productive a look at itself as the question: “What is our specific knowledge?” No company can excel in many knowledge areas. A business may be able to excel in more than one area. A successful business has to be at least competent in a good many knowledge areas in addition to being excellent in one. But to have real knowledge of the kind for which the market offers economic reward requires concentration on doing a few things superbly well.

ACTION POINT: What are the few things that your organization does superbly well? Stay focused on them.

Managing for Results





2009.07.06 | Trackback(0) | Drucker ドラッカー

The Obsolete Theory 事業の定義の陳腐化

A degenerative disease will not be cured by procrastination.
It requires decisive action.

  There are, indeed, quite a few CEOs who have successfully changed their theory of the business. The CEO who built Merck into the world’s most successful pharmaceutical business did so by focusing solely on the research and development of patented, high-margin breakthrough drugs, then radically changed the company’s theory by acquiring a large distributor of generic and nonprescription drugs. He did so without a “crisis” while Merck was ostensibly doing very well.
  We can’t rely on miracle workers to rejuvenate an obsolete theory of the business. And when one talks to these supposed miracle workers, they deny vehemently that they act by charisma or vision. They start out with diagnosis and analysis. They accept that attaining objectives and rapid growth demand a serious rethinking of the theory of the business. They do not dismiss unexpected failure as the result of a subordinate’s incompetence or as an accident but treat it as a symptom of “systems failure.” They do not take credit for unexpected success but treat it as a challenge to their assumptions. They accept that a theory’s obsolescence is a degenerative and, indeed, life-threatening disease. And they know and accept the surgeon’s time-tested principle, the oldest principle of effective decision-making. A degenerative disease will not be cured by procrastination. It requires decisive action.

ACTION POINT: Is your theory of your business obsolete? If so, don’t procrastinate. Act decisively to analyze and rethink your assumptions and develop an updated theory.

Managing in a Time of Great Change





2009.07.05 | Trackback(0) | Drucker ドラッカー

Communicate and Test Assumptions 事業の定義の周知と検証

The theory of the business is a discipline.

  The theory of the business must be known and understood throughout the organization. This is easy in an organization’s early days. But as it becomes successful, an organization tends increasingly to take its theory for granted, becoming less and less conscious of it. Then the organization becomes sloppy. It begins to cut corners. It begins to pursue what is expedient rather than what is right. It stops thinking. It stops questioning. It remembers the answers but has forgotten the questions. The theory of the business becomes “culture.” But culture is no substitute for discipline, and the theory of the business is a discipline.
  The theory of the business has to be tested constantly. It is not graven on tablets of stone. It is a hypothesis. And it is a hypothesis about things that are in constant flux – society, markets, customers, technology. And so, built into the theory of the business must be the ability to change itself. Some theories are so powerful that they last for a long time. Eventually every theory becomes obsolete and then invalid. It happened to the GMs and the AT&Ts. It happened to IBM. It is also happening to the rapidly unraveling Japanese keiretsu.

ACTION POINT: Establish a forum in your organization for communicating, systematically monitoring, and testing your theory of you business.

Managing in a Time of Great Change





2009.07.04 | Trackback(0) | Drucker ドラッカー

Synergy of Business Assumptions 経営環境と使命と卓越性

Assumptions in all three areas have to fit one another.

  The assumptions about environment, mission, and core competencies must fit one another. Marks and Spencer recognized that World War I had led to a new environment – masses of new buyers for good-quality, stylish, and inexpensive merchandise such as lingerie, blouses, and stockings. By the mid-twenties the four brothers-in-law who had built the penny bazaars into a major chain of variety stores might have been satisfied to enjoy their considerable wealth. Instead they decided to rethink the mission of their business. The business of Marks and Spencer, they decided, was not retailing. It was social revolution. From having been a successful variety chain, Marks and Spencer purposefully changed its mission into being a highly distinct “specialty” marketer. Finally, it went out and looked for the right manufacturers, whom it often had to help get started – for the existing old-line manufacturers were, for obvious reasons, none too eager to throw in their lot with the brash upstart who tried to tell them how to run their business – thus developing the core competency required by the new environment and mission.

ACTION POINT: Does the mission of your enterprise fit the environment? Do your core competencies fit the mission?

Management: Tasks, Responsibilities, Practices
Managing in a Time of Great Change





2009.07.03 | Trackback(0) | Drucker ドラッカー

Reality Test of Business Assumptions 事業の定義と時代の変化

Assumptions about environment, mission,
and core competencies must fit reality.

  The assumptions about environment, mission, and core competencies must fit reality. When four penniless young men from Manchester, England – Simon Marks and his three brothers-in-law – decided in the early 1920s that a humdrum penny bazaar should become an agent of social change, World War I had profoundly shaken their country’s class structure. It had also created masses of new buyers for good-quality, stylish, and inexpensive merchandise such as lingerie, blouses, and stockings – Marks and Spencer’s first successful product categories. Marks and Spencer then systematically set to work developing brand-new and unheard-of core competencies. Until then, the core competency of a merchant was the ability to buy well. Marks and Spencer decided that it was the merchant, rather than the manufacturer, who knew the customer. Therefore, the merchant, not the manufacturer, should design the products, develop them, and find producers to make the goods to his design, specifications, and costs. This new definition of a merchant took five to eight years to develop and make acceptable to traditional suppliers, who had always seen themselves as “manufacturers,” not “subcontractors.”

ACTION POINT: What new assumptions about its environment, mission, and core competencies were made by Marks and Spencer?

Managing in a Time of Great Change





2009.07.02 | Trackback(0) | Drucker ドラッカー

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【スエルテ - SUERTE】

Author:【スエルテ - SUERTE】
ピーター・ドラッカー(P.F.ドラッカー、Peter Ferdinand Drucker)の鋭い洞察力および示唆に富んだ文章は我々を魅了します。
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