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Jun29
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Know More:
Peter Drucker Business Results, Business Wisdom, Change, Commitment, Communication, consultant, Create Future, Decision Making, Effective Executives, Efficient, Knowledge Worker, Objectives, Obsolete, Performance, Reflection, Responsibility
"Organizations do not exist for their own sake ... survival is not an adequate goal. The organization's goal is a specific contribution to individual and society. The test of its performance, unlike that of a biological organism, therefore lies outside of it."
The first part of Drucker's comment that it is not enough to exist for the purpose of survival is right on the mark. Try being in business for the purpose of making the business last, and you'll find yourself and the business extinct.
Any business should of course exist for the purpose of something outside of itself. While there are things that can be done within to make that more effective, efficient and successful, it is still for the purpose of those we exist to serve that it remains. If we lose that, we are already dead, then it's just of matter of going through the process of decay.
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Jun29
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“You can’t just keep doing what works one time, because everything around you is always changing. To succeed, you have to stay out in front of that change.”With change being the one constant that we can all count on, we...
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Welch's 21 Steps to Management Greatness - 7 Facing RealityThese two words are included with some of the simple concepts that are vastly underrated by business leaders. Some even surround themselves with people who say "yes" to everything and so hide the...
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Continuing Coverage of the Dow Jones StoryAn example of my post yesterday about "What the Real Battle over Dow Jones is About," is shown in the comments Paul Krugman makes in a select New York Times (NYT) article (subscription).He says...
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Jun28
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"But money is not enough in and of itself because you want people to be psychically satisfied with what they do. Compensation doesn’t cause people to give that last 10% that is often crucial."Contrary to what a lot of misguided...
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Continuing Coverage of the Dow Jones StoryWhen you consider the relatively short time it took for the upstart Fox Network to crush its cable TV competition, you get a look into the reason why some quarters are so fiercely attacking...
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Warren Buffett has an unmatched ability to take very profound things and communicate them in a common sense way that people can understand concerning the business and financial world.Another person that had this ability when he was alive was Sam...
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Continuing Coverage of the Dow Jones StoryReports from insiders say that the new agreement concerning the makeup and power of a board that would oversee the editorial independence of the company, will allow News Corp. the power to hire and...
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Jun27
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"We went from a single-focus company to at least a dual-focus company. I guess it goes to prove that management attention does make a difference."Grove made these comments after he had left Intel (INTC), and was asked in an interview...
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"Don't hide behind policy in dealing with their problems." Mary Kay had a set of guidelines in place for those in the organization that had any type of supervisory responsibilities.One of those that strikes me is when she admonishes her people...
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Continuing Coverage of the Dow Jones StoryFrom Rupert Murdoch's perspective, he's done everything he's willing to do to buy Dow Jones & Co. (DJ). In one of the last remaining points being bantered around: the offering price, Murdoch said he...
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Difference Between Commodity and ProductMost of us know that if you have a commodity, the way people differentiate you is by price alone. Most businesses can't compete based upon that. How many businesses can have the lowest prices.Of course if...
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Microsoft (MSFT) leaders Bill Gates and Steven Ballmer have led a steady flow of executives of high-tech company to Capitol Hill to try to convince lawmakers to allow more visas for permanent immigrants or temporary foreign workers.This is the result...
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Jun26
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"Keep everybody guessing as to what your next trick is going to be. Don’t become too predictable."There's a secret in keeping what you're going to do next close to you. Have any idea what it is? It's not the obvious...
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Welch's 21 Steps to Management Greatness - 6 "We now know where productivity - real and limitless productivity - comes from. It comes from challenged, empowered, excited, rewarded teams of people."This is the most vital side of business leadership that...
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"Many people will often have a distinction in their mind between big things and little things, but in reality the little things lead to big things."The idea that you can separate little things from big things is a huge mistake....
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Continuing Coverage of the Dow Jones StoryPeople close to the negotiations say that Dow Jones & Co. (DJ) board and News Corp. (NWS-A) have come to an agreement in principle on how the editorial board of The Wall Street Journal...
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Jun25
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"In evaluating people, you look for three qualities: integrity, intelligence, and energy. If you don't have the first, the other two will kill you." This is an amazing thought. Yet when you listen to many people talk today, they throw...
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"Take a bit of the future and make it your present."When we aren't satisfied with the present of our company, what better thing to do than the admonition by Andy Grove than to take that part of the future you...
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"Dare to risk public criticism."This comment by Mary Kay is more important than ever to me in our current business climate. I've never seen so many companies afraid to stand for something other than what certain elements of the population...
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There's one thing that people trying to make deals always fear, and that is there is no feedback or questions that arise from a presentation. It looks like the deal for Dow Jones & Company (DJ) has no fears along...
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Jun24
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Having Fun is More Important than you Think“When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you ... All of this is more important, and more fun, than you think.“...
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Welch's 21 Steps to Management Greatness - 5 Become As Informal As PossibleThere is nothing more important to a company, as it relates to digging out ideas from our people or opening up communication than the depth of informality within...
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More on Encouraging Ideas to Spread in a CompanyLast post on Kelleher we talked about how he encouraged workers and managers to get ideas flowing across the company.This post we'll talk a little more on what happens if the answer...
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"We must get revenue into the right risks. They must be used to make the future rather than defend the past."The greatest tendency that must be battled in any business is the strong pull to defend the past and how...
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The ongoing battle between Starbucks (SBUX) and the Ethiopian government seems to have come to an end, as the two have reached an agreement over the licensing and sale of the country's coffee.The dispute centered around the attempt by Ethiopian...
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Jun23
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Buffett Wouldn't Play Another Man's GameWe've talked before about the pressure people were putting on Buffett right before the dot com bust, saying that he was missing out on the greatest boom in history etc. We all know he had...
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The Strategies that made Mary Kay Successful - 9 Sweetening compensation with an array of performance bonuses.One of the best motivations for people are seeing rewards in action. I would take it a step further and say "relevant" rewards in...
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One of Walton's Secrets to Increasing ProductivityOne of the things we need to understand in business, is everything we do needs to be thought in terms of increasing productivity. Walton had these motives with Wal-Mart for sure.This isn't bad in...
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Welch's 21 Steps to Management Greatness - 4 "Simple messages travel faster, simpler designs reach the market faster and the elimination of clutter allows faster decision making."Here we have one of the greatest managers and business leaders of all time...
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The decision by the Bancrofts to hand over negotiations to the board of Dow Jones & Co. (DJ) may end up being a non-event, as the latest plan by those that have seen its contents does nothing to further the...
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Jun22
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"When there is an opportunity that you can pursue, if you choose not to pursue it you are choosing a different corporate persona."Grove was referring to choosing a path of the highest growth when he mentioned the statement above. He...
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New law requires government agencies to publish compliance guides "using sufficiently plain language." The new law that works with the exising law that requires federal regulatory agencies to publish compliance guides, is way beyond due. It's not just that there's a...
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Some of the headlines back in 1999 made fun of what was at the time the highest price paid for an Internet domain name: $7.5 million for business.com. Nobody is laughing now as it's being put up for auction with...
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Continuing Coverage of the Dow Jones StoryWith General Electric (GE) and Pearson PLC dropping out of the race for Dow Jones & Co. (DJ), it looks like there's nothing to stop Rupert Murdoch from moving ahead to victory. The offer...
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Jun21
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"For no ignorance is as great or nearly as dangerous as is precision imposed on misunderstanding or misapprehension."What an extraordinary statement. We know that the best executors of a vision are those that will far outperform their competitors in any...
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How We Promote Exchange of IdeasWhen asked about how he solicited ideas from his people, Herb Kelleher said that they had no specific method they used at Southwest Airlines (LUV). Sometimes the most effective way to do things is the...
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Continuing Coverage of the Dow Jones StoryThe price of the $5 billion offer by Rupert Murdoch for Dow Jones continues to be the most formidable obstacle in those wanting a possible stake in the company. Microsoft (MSFT) was the first...
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Jun20
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Buffett has been consistent and disciplined in following his own advice, and this is also true with regard to all of the principles that Buffett reveals. Learning has no meaning if it can't be practically applied, as far as business goes....
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Continuing Coverage of the Dow Jones DealIn one of the best decisions they've made as controllers of Dow Jones & Co. (DJ), the Bancroft family has decided to turn the negotiation responsibilities over to the company board. This is smart...
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The Strategies that made Mary Kay Successful - 8 Offering superior compensationAt the time when Mary Kay launched her company, sales compensation was usually around 35% to 40% for people in sales. She set her compensation at a high 50%.Before...
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Continuing Coverage of the Dow Jones StoryThis isn't the first, neither will it be the last time we hear people talk about their preference in who buys Dow Jones (DJ).It's not surprising to hear one of the major shareholders James...
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Jun19
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“Celebrate your success. Find some humor in your failures.” But, above all, “show enthusiasm – always.”If someone in business leadership or management doesn't understand their will be ups and downs throughout their tenure at a company, they are in for...
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According to a couple of unnamed sources close to the deal with Cerberus Capital Management and Chrysler, the acquisition has been approved by federal antitrust regulators.With the Federal Trade Commission making the decision before the usual 30-day review time was...
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Welch's 21 Steps to Management Greatness - 3 "Leaders inspire people with clear visions of how things can be done better." What may be the most important part of a vision, once it's formulated, is the clarity in which its...
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Covering Coverage of the Dow Jones CompanyWhen we talked yesterday about the possibility of General Electric and Pearson PLC partnering to make a bid on Dow Jones & Co. (DJ), I didn't think opposition would rise so quickly.The third largest shareholder...
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Jun18
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"You have to keep a company scrappy at all times in order to be ready for whatever comes your way, and without fighting for growth, you lose that scrappiness."This is an interesting valuing of growth that I haven't heard talked...
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"You can Amass the Facts and be totally wrong about their meaning."How can someone be wrong if we're gathering all the facts about a needed situation in business? Can different people read the same data and come up with different...
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The Wall Street Journal and the Financial Times said on their Web sites that General Electric (GE) and Pearson Plc are looking seriously at making a bid to challenge News Corp.'s $5 billion bid for Dow Jones & Co. (DJ).On...
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Jun17
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Bringing new people in and being open about new ideas presents challenges for having a well defined mission and core values.Managing and business leadership is never easy, and that's true even when it comes down to our core values. When...
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Opportunities are hard to predict but it is not unrealistic to assume that they will come along.The reason it's so important to assume the arrival of opportunities, is the attitude that comes along with that assumption.One valuable result of this...
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The Strategies that made Mary Kay Successful - 7 Not Limiting Sales TerritoriesWorking for another company, Mary Kay, through a series of circumstances had to end up moving from her top sales territory. Amazingly, the company wouldn't allow Mary Kay...
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“Capital isn't scarce,” Walton once said. “Vision is.”What Walton is talking about here, isn't necessarily referring to the underlying vision of the company or purpose of the company; any great company will have that.When he refers to scarcity of vision,...
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Welch's 21 Steps to Management Greatness - 2 Manage Less - "We are constantly amazed by how much people will do when they are not told what to do by management." Over and over again, I've heard the comments by...
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Jun16
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"Growth is built into everyone's genes." Andy Grove was asked one time why it was so important for a company to grow. The question was referring to a time when Grove had bought around 30 companies in a relatively short...
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The thought is simple, but the execution is exceedingly complex.All the great business leaders have always understood what the core of their business was and is. In that area things should always be simple and easy to understand. In a...
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Jun15
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A successful executive must always recognize that crucial matters may be beyond vision today, notwithstanding the acumen and savvy of the executive officer. This is a tough saying to embrace. It may sound like it can create excuses for underperforming...
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Continuing Coverage of the Dow Jones StoryTo me the story of the Bancrofts and Dow Jones & Company gets stranger and stranger. They have shown more interest in the company when Rupert Murdoch made the offer to buy it, than...
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Jun14
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For the first time since 2001, The Wall Street Journal (DJ) will be raising its weekday newsstand price from the current $1 dollar to $1.50, effective July 16. A spokesman for the company said there would be no change to...
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The Strategies that made Mary Kay Successful - 6Consultants couldn't buy on credit.When Mary Kay set up her company, she drew upon her vast amount of experience with other direct selling companies that helped her to weed out the things...
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Walton was not only fearless of the unknown, he agressively pursued it!The implication of the unknown is the understanding that we don't have all the answers. For some, this hinders them because they're afraid of where the answers may lead...
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Continuing Coverage of the Dow Jones StoryIn a move that shouldn't be surprising, UBS downgraded Dow Jones (DJ) from Neutral to reduce. The key reason given was that it's no longer certain whether a deal will go through.UBS said that...
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Jun13
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The report by the Commerce Department that retail sales exploded far beyond what analysts thought they would, caught most people by surprise. The increase of 1.4 percent is double the expected, moderate 0.7 percent. In April retail sales had fallen...
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The U.S. economy picked up more steam than was expected as it launched into the summer with fairly good momentum.Manufacturing was better than expected and consumers ignored higher gas prices as they still shopped and went about traveling. The survey...
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Welch's 21 Steps to Management Greatness - 1"Weak managers are the killers of business; they are the job killers. You can't manage self-confidence into people."The next several posts about Jack Welch will be his specific insights into management greatness. The...
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The semiannual report by the US Treasury avoided calling China a currency "manipulator." If the designation had been made, it could have triggered a process that would have led to sanctions in the form of tariffs. Obviously the Treasury knew...
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Jun12
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Memory, Microprocessors, Communications When Intel (INTC) was in the memory business, the reality came to the leadership that Microprocessors were going to be the new direction of the company. Once begun, the shift was complete and total. Intel was out of...
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US lawmakers are set to unveil a law this week that is created to respond to the value of the Chinese yuan. Some US government officials say that the Chinese are keeping it undervalued. Chinese officials said they'll respond if...
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How Southwest People Communicate Their IdeasHerb Kelleher was asked one time how people at Southwest Airlines (LUV) were able to communicate their ideas for improving the company. Kelleher responded with a two-fold answer, that's very instructive in itself.First, he said...
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Continuing Coverage of the Dow Jones StoryWhat's important about the news the Bancroft family, who control Dow Jones & Co. (DJ), are said to be mulling over a set of proposals that they will present to Rupert Murdoch and News...
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Jun11
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We've talked about the fact that money has long gone as the chief motivator for attracting and keeping great workers. While it's a part of the equation, it's not the No. 1 element.A study of 200,000 managers over a 10-year...
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Good ideas come along, and they do so on their own schedule. Most of us know Warren Buffett's strategy of only buying companies that he understands and has a healthy amount of predictability built that comes with them. How does...
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Continuing Coverage of the Dow Jones StorySaying the deal for Dow Jones & Company (DJ) doesn't make economic sense, Microsoft (MSFT) and NBC (GE) broke off talks to acquire the business news media company. Microsoft was the company initiating the...
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Jun10
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The Strategies that made Mary Kay Successful - 5Insisted on Delivery on the SpotIf you've ever been in sales as a job or business, you know at the end of the day you want to shower, put your feet up...
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Despite the fact that Wal-Mart is known for its advanced technological capacities, Walton believed that a computer would still never be able to substitute for getting out in his stores and learning what was going on.This is true of any...
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Speaking at the Saint Petersburg International Economic Forum, Russian President Vladimir Putin said that there needs to be a world revolution in economic relations.With world and business leaders in attendance, Putin said that emergence of developing economies in the world...
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The announcements of the no or low salaries by companies for their CEOs, has drawn a lot of attention over the last couple of years, as some have received no salaries or the more popular $1-a-year salary.Some of the more...
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Managers muddle - leaders inspire. Leaders are people who inspire with clear vision of how things can be done better. "What we are looking for are leaders at every level who can energize, excite and inspire rather than enervate, depress,...
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Jun 9
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The most direct way of increasing productivity is doing the same thing in a lesser period of time - turning things faster. And productivity is the key to everything - greater productivity increases economic growth.Groves' comments from years ago are...
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Enlarging Your MarketWith the low cost strategy of Herb Kelleher and Southwest Airlines (LUV), it would have never been enough to rely upon taking customers from competitors as the means of creating a healthy business. While Southwest was able to...
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Some of the concerns we talked about Starbucks several months ago are continuing to go on unaddressed, as it looks like they're increasingly looked upon as not much above a fast-food business. At that time we talked about them being...
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Jun 8
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Continuing Coverage of the Dow Jones StorySupposedly another "unnamed" person of interest is looking at buying up Dow Jones & Co. Inc. (DJ). It seems that this mystery Internet entrepreneur and another Wall Street group have now been added to...
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Most corporate executives see the Annual Report as an opportunity to aggrandize personal reputation (and hopefully compensation) while shamelessly touting the company stock.We've probably all read some type of annual report that is nothing much more than a marketing tool,...
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In good news, the U.S. trade deficit dropped way beyond what was expected as it decreased by 6.2 percent from March's 62.39 billion, according to the Commerce Department. It finished at $58.50 billion for April.Most of it was due to...
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Jun 7
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The Strategies that made Mary Kay Successful - 4Restricting the number of people at a party.With Mary Kay's vast amount of experience in sales, she had learned that getting women to participate in a demonstration made them much more apt...
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Continuing Coverage of the Dow Jones StoryThe interest of Brian Tierney in potentially purchasing Dow Jones (DJ) reveals the underlying problems the company will face no matter who buys it. It's not simply the company of course, but the entire...
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The results from some of the nation's top retailers show that Americans are still hesitant to loosen up the pocket books too much. Big firms like Wal-Mart (WMT), Abercrombie & Fitch Co. (ANF) and Macy's had disappointing results. On the...
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Sam Walton the Technology LeaderWith the media portrayal of Sam Walton as the 'aw shucks' kind of guy that in reality he really was, it would sometimes take away from the real vision and embracing of technology that he had...
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Jun 6
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Welch had little time for bureaucracy and archaic business ways. If managers didn't change they were replaced with someone that could and would change. Many people that don't understand Welch would consider this another one of the things that he...
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Pascal Lamy, the director general of the WTO, says that when he talks to the "extended meeting" of the G8 conference, he will send a "strong message" to the G8 nation leaders to not allow the opportunity to achieve a...
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"I think the changes in the part of the economy that I have the right to comment on, the things that I've witnessed in my lifetime, have all been incremental changes."Grove's comment above was in response to a question about...
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The Labor Department released its report saying that American worker productivity slowed in growth over the first quarter, with only a gain of 1 percent. That was the slowest rate-of-growth since the third quarter of last year, and far below...
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Jun 5
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A union official for Independent Association of Publishers' Employees (IAPE), which represents 2,000 Dow Jones employees, claims they've enlisted the help of Ron Burkle in attempt to thrwart the attempt of Rupert Murdoch to buy the company.Evidently Burkle's Yucaipa Cos....
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According to a message from Federal Reserve Chairman Ben Bernanke delivered via satellite, the economy will continue to grow at a slower pace during the coming months. "Although core inflation seems likely to moderate gradually over time, the risks to...
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"I have this vague feeling that, just as every generation thinks it invented sex, every generation thinks it created a new economy."The reason it's extremely important to understand Grove's statement above, is the ease of moving off our center of...
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It seems that Julie Roehm would have been better off just keeping quiet and going ahead with her lawsuit with Wal-Mart (WMT). It looks like she thinks the tactics she's used in the past for her marketing efforts can be used...
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Jun 4
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Sometimes You've Got to Go with what You've GotThere are a number of managers and business owners that are so committed to perfection in the sense of completing something, that by time they implement it, competitors may have beat them...
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A survey conducted by Institute for Corporate Productivity (i4cp) found that 65 percent of business professionals are connecting through social networking Websites - both personal and professional. The top three Websites used for networking professionally are LinkedIn, Yahoo 360 and...
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The Journalists at The Wall Street Journal are threatening to stage a walk-out if Rupert Murdoch buys the company through purchasing Dow Jones (DJ) via News Corp. (NWS-A). That's pretty much meaningless, as we saw how far the rebellion at...
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Jun 3
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Buffett's Strategic Plan? Something will Eventually Come AlongAs with everything concerning Warren Buffett, this is very easy to understand theoretically, but difficult to execute.We have to understand that Buffett is the CEO of a conglomerate. So the basis for his...
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The Strategies that made Mary Kay Successful - 3Put the emphasis at the sales parties on teaching rather than selling.When I was doing a lot of selling, which all companies do, I found the above insight probably the most effective...
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While the news that over the short-term Dell (DELL) outperformed analysts' expectations was good, it may be the last good news for the company for a long time.Overall revenue for the company's fiscal first-quarter increased to $14.6 billion, up from...
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The meeting where the figures were thrown out that 52 percent of the Bancroft family opposed Rupert Murdoch's offer to buy Dow Jones & Company (DJ), shows the many problems that make up what is the Bancroft family shareholders in...
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Jun 2
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“I have always been driven to buck the system, to innovate, to take things beyond where they've been.” One of the problems in the statement that Sam Walton said above, is that after something like that is repeated enough, it becomes...
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"Weed out the weakest. The Red Sox and the Mets are playing tonight. Guess what? They're not putting on the field guys in the minors."For some reason, the idea of hiring the best for your business was controversial when Welch...
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In the end, the deal concerning Dow Jones & Company (DJ), with its Wall Street Journal, could come down to a family affair. The announcement that Bancroft family will meet with Rupert Murdoch sets the stage for a lot of...
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Jun 1
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Success breeds complacency. Complacency breeds failure. Only the paranoid survive.During the years I've managed, one of the most dangerous times of a business or department is the times when they're experiencing their greatest success. So are the comments by Grove...
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In the Beginning, Travel Agents Weren't Fans of SouthwestAt the beginning of Southwest Airlines (LUV), the only thing that travel agents could think of were that the commissions they received from the airline would be smaller than their counterparts. With...
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The wakeupwalmart.com group is showing it's moving into panic mode as it is trying to spread their continuous lie to Americans that somehow Wal-Mart is "not American anymore."I wonder if they're talking about the other union infiltrated industries in the...
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One of the revelations to the controlling shareholder family of Dow Jones & Company (DJ) is it can't allow the company to continue on its current path. The first steps toward changing direction will be a meeting with Rupert Murdoch's...
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