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Jay
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The January 10, 2005, issue of BusinessWeek reports on the best and
worst managers of the year. When I read the short reports on these managers,
some essential differences showed through.
Change
The best and worst managers both focused on change.
- The best managers changed the business, focusing on
new products and innovations in operations. Pepsi added 200 product
variations. AMD created the first dual-core computer chip. Home Depot
sustained a "ruthless drive for efficiency." Xerox instituted
lean Six Sigma to improve efficiency.
- The worst managers changed the numbers, cooked the
books, and engaged in questionable accounting practices. Fannie Mae's
"misuse of obscure accounting...misstated earnings for 3.5 years"
which lead to a restatement of earnings that could wipe out 40% of
their earnings from 2001 to 2004.
Customers
The best and worst managers both focused on customers..
- The best managers catered to customers. Pepsi's new
products were "aimed at wooing ethnic tastes and satisfying health-conscious
consumers." Ebay's Margaret C. Whitman focused on her 125 million
registered buyers and sellers. Pixar's The Incredibles shows
that Steven Jobs "still knows how to cater to consumers."
- The worst managers focused on the customer's wallet.
Merck "continued to promote Vioxx aggressively" even through
critics warned that it might be dangerous.
Cooperation
- The best managers focused on cooperation. Linus Torvalds,
developer of Linux, coordinates the work of a few dozen volunteer
assistants and thousands of programmers worldwide to enhance Linux,
which now holds 21% of the server market. Sprint used "unconventional
partnerships with cable companies and telcos to add millions of consumers
to Sprint's network." SAP tied their software to other companies
products.
- The worst managers showed no signs of true willingness to cooperate.
Donald Rumsfeld - Iraq. Disney lost Pixar. The National Hockey League
angered players and fans because of a lockout.
Giving Back
- The best managers focused on giving something back. Hector
Ruiz of AMD has set a goal to "outfit 50% of the world with sub-$200
PCs by 2015 to bridge the digital divide." Linus Torvalds created
the Linux operating system as a student and gave it away for free.
- The worst managers seem to be too focused on getting to give
back.
Here's My Point
The best managers focus on customers, employees and others. They focus
on changing the business to best serve those customers, employees and
others (including shareholders). They know that if they take care of
the business and its customers, that profits and rewards will accumulate.
The worst managers focus on themselves and the bottom line without
regard for the impact on other people.
Which one would you rather be?
© 2005 Jay Arthur, the KnowWare® Man, works with companies who want
to plug the leaks in their cash flow and people who want to master the mysteries
of the mind..
To have Jay Arthur to train your staff, contact Jay at (888) 468-1537, lifestar@rmi.net.
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