Monday, December 25, 2006

One Minute Manager - Ken Blanchard

Key Concepts of One Minute Management

  • People who feel good about themselves produce good results.
  • Help people reach their full potential. Catch them doing something right.
  • The best minute I spend is the one I invest in people.
  • Feedback is the breakfast of champions.
  • Everyone is a potential winner. Some people are disguised as losers.
  • Don't let their appearances fool you.
  • Do one minute goal setting in not more than 250 words on a single sheet of paper.
  • Take a minute, look at your goals, look at your performance. See if your behaviour matches your goals.
  • We are not just our behaviour. We are the person managing our behaviour.
  • Goals begin behaviours. Consequences maintain behaviours.
  • Praise in public when people do the right things and Reprimand in private when people do something wrong. Do both praising and reprimanding immediately and don't wait till the annual appraisals.

Memorable Quote by Peter Drucker

Here's a memorable quote by the Father of Modern Management:

"There is nothing quite so useless as doing with great efficiency what should not be done at all."

- Classic Drucker

Sunday, December 24, 2006

Sam Walton - Made in America

If you are interested in Retailing, then Sam Walton's Made in America is a must read book. Below are Sam Walton's top 10 rules for building a business:

1) Commit to your business. Believe in it more than anybody else. I think I overcame every one of my personal shortcomings by the sheer passion I brought to my work. I don't know if you are born with this kind of passion, or if you can learn it. If you love your work, you'll be out there everyday trying to do it the best you possibly can, and pretty soon everybody around you will catch the passion from you - like a fever.

2) Share your profits with your associates, and treat them as partners. In turn, they will treat you as a partner and together you will all perform beyond your wildest expectations. Remain a corporation and retain control if you like, but behave like a servant leader in a partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. It's the single best thing we ever did.

3) Motivate your partners. Money and ownership aren't enough. Constantly, day by day, think of new and more interesting ways to motivate and challenge your partners. Set high goals, encourage competition, and then keep score. Make bets with outrageous payoffs. If things get stale, cross-pollinate; have managers switch jobs with one another to stay challenged . Keep everybody guessing as to what your next trick is going to be. Don't become too predictable.

4) Communicate everything you possibly can to your partners. The more they know the more they'll understand. The more they understand, the more they'll care. Once they care there's no stopping them. If you don't trust your associates to know what's going on, they'll know you don't really consider them partners. Information is power, and the gain you get from empowering your associates, more than offsets the risk of informing your competitors.

5) Appreciate everything your associates do for the business. A paycheck and stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them. We like to hear it often, and especially when we have done something we are really proud of. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They are absolutely free and worth a fortune.

6) Celebrate your successes. Find some humor in your failures. Don't take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm - always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Don't do a hula on Wall Street. It's been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools the competition. " Why should we take those cornballs at Wal-Mart seriously?"

7) Listen to everyone in your company. And figure out ways to get them talking. The folks on the front lines - the ones who actually talk to the customer - are the only ones who really know what's going on out there. You'd better find out what they know. This really is what total quality is all about. To push responsibility down in your organization, and to force good ideas to bubble up within it, you must listen to what your associates are trying to tell you.

8) Exceed your customers' expectations. If you do, they'll come back over and over. Give them what they want - and a little more. Let them know you appreciate them. Make good on all your mistakes, and don't make excuses - apologize. Stand behind everything you do. The two most important words I ever wrote were on that first Wal-Mart sign: "Satisfaction guaranteed." They are still up there, and they have made all the difference.

9) Control your expenses better than your competition. This is where you always find the competitive advantage. For twenty five years running - long before Wal-Mart was known as the nation's largest retailer- we ranked number one in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you are too inefficient.

10) Swim upstream. Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way , there's a good chance you will find your niche by going in exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you you're headed the wrong way. I guess in all my years, what I heard more often than anything was: a town of less than 50,000 population cannot support a discount store for very long.

Those are some pretty ordinary rules, some would say even simplistic. The hard part, the real challenge, is to constantly figure out ways to execute them. You can't just keep doing what works one time, because everything around you is constantly changing. To succeed you have to stay out in front of the change.

Purpose of Life - George Bernard Shaw

"This is the true joy in life, being used for a purpose recognized by yourself as a mighty one, being a true force of nature instead of a feverish clod of ailments and grievances complaining that the world will not devote itself to making you happy. I am of the opinion that my life belongs to the whole community, and as long as I live, it is my privilege to do for it whatever I can.

I want to be throughly used up when I die. For the harder I work, the more I live. I rejoice in life for its own sake. Life is no brief candle to me. It's sort of a splendid torch which I have got to hold up for the moment and I want to make it burn as brightly as possible before handing it on to future generations."

- George Bernard Shaw