Economic Results
How to develop a customer-driven outside-in perspective: 1. Only Cost Centers Exist Within a Business Employees do not create sales. Products do not create sales. Processes do not create sales. Only customers create sales. Every department inside a business is a cost center and not a profit center. Drucker says, “It is always somebody outside who decides whether the efforts of a business become economic results or whether they become so much waste and scrap.” 2. Solving Problems Solves Little Jeffrey Krames summarizes Drucker’s wisdom by writing, “Solving problems can only return the organization to its prior status quo. To achieve results managers must exploit opportunities.” Constantly fire-fighting problems will never allow a company to grow. It is only by finding and taking advantage of opportunities that causes a company to grow. 3. Effectiveness is Better than Efficiency Drucker once said, “Efficiency is doing things right; effectiveness is doing the right things.” And, Dr...