Steve Towers wrote:

A theme of recent global conferences has been the mix of different approaches to improving business performance.  This quest for business performance improvement as measured by reducing costs, improving revenues and enhanced service [also known as ‘the triple crown’] is a worldwide phenomena brought by increasing competition, greater customer promiscuity, chaotic business cycles and more generally ‘globalization’.

He goes on to say that shareholder pressure results in extreme short-termism.  He says that when executives are faced with that pressure, they will often revert to what they think they know best.

Our thoughts…

Let’s look at the second paragraph first.

I worked for SGI during the beginning of their downturn.  I can attest that management reverted to what they think they know best – high end graphic workstations.  In one analyst briefing, they even said as much and the stock tanked.

That brings to mind the humorous definition of insanity: Doing the same thing and expecting different results.  Or, performing the same tasks and expecting different results.

Regarding business performance…

If our objective is to reduce costs, improve revenues and enhance customer service - ‘the triple crown’ – we should look at the tasks we are performing.  We should ask ourselves, ‘Does this task that I perform help reduce costs, improve revenues and/or enhance customer service?’

Currently, there are 3 big pressures contributing to shareholder pressure - the current downturn in the economy, globalization and competition.  Let’s react by looking to reduce costs, improve revenues and enhance customer service.  Let’s reach for the ‘triple crown’.

Your thoughts…