Tuesday, December 9, 2008

The last two commandments



Commandment No 9: Organize not by personality but by function.

When business are first being established, personality rather than functionality is them demonstrated theme. People's preference and personality are selectors for positions rather than competence in a particular function. The influencers in this early stage of enterprise life are: relationship to the CEO; equity participation; lobbying pressure; pressure from key vendors, suppliers or even customers.



With time the CEO must endure the beginning postings with the realization that soon the competent employees will be identified through performance rather than by urgent request.



Employees seem to fall into three categories: finders, grinders, and minders. Finders will migrate to marketing and sales jobs. Grinders will migrate to operations jobs. Minders will migrate to accounting/finance/hr.



Of critical importance is never to allow each of the three groups to emphasize there contribution as being more important than the other two. All are needed in portions and required by the business plan. There is and will always be a natural tension between and among the groups. That tension is productive in that it provides the "checks and balances" needed to keep the organization focused on cash flow.



Commandment 10: Believe in Yourself

This is a call for personal courage in the face of disappointment, disaster, despair, and discontent. There will be countless reasons, many legitimate, for you to fail. Here are some old bromides which seem to refresh a CEO:


  • Your selfworth is never the same as your net worth.

  • "Never, never, never, never, never give up." Churchhill

  • What doesn't kill me makes me stronger.

  • "Never take counsel from your fears." Patton

  • If it was easy everyone would or could do it.

  • Second effort brings touchdowns.

  • The difference between success and failure is getting up one more time than you are knocked down.

  • "Don't lay there, wrestle!" My last wrestling coach. The sign writ large was displayed so that it could only be read if you were laying down and looking up at the ceiling. Very motivating.

Well those are the 10 Commandments of Business. To summarize:


1. Be customer oriented.


2. Know the life-time value of the customer.


3. Use direct response marketing.


4. Work on your business, not in your business.


5. Garuntee satisfaction.


6. Receive weekly profit and loss statements.


7. Perceived value establishes price.

8. Reward behavior you wish repeated.

9. Organize not by personality but by functionality.

10. Belive in yourself.

To discuss and get help call 530.383.9079 or email me at stoddardconsult@yahoo.com

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