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Miyamoto Musashi, “The Book of Five Rings”
There are several revered authorities whose management principles result in businesses becoming and continuing to be successful. Two of the most famous: Peter Drucker and the legendary Sun Tzu. Peter Drucker is the eminent author of 39 management books and is considered the “father of modern management”. Sun Tzu is the author of “The Art [...]
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EBITDA. Is it misleading?
In the majority of distressed companies I’ve worked on, the two most important measures of financial performance are not reviewed – Operating Income (EBIT) and Free Cash Flow. Instead EBITDA, Gross Profit and Net Income are the only profit measures included on the Income Statements. Operating Income is a superior measure of an operating company’s [...]
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Peter Drucker’s Tenets
Peter Drucker, a writer of 39 books and a management consultant, was considered the “father of modern management”. An avid student of managing complex businesses, he was the advisor who helped mold many corporations into industry leaders which forged this country’s ability to become an economic super power. A Sampling of Mr. Drucker’s Tenets: “In [...]
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The Netflix Culture & Mistake
Netflix’s culture was described in a recent edition of the Business Insider. It makes an interesting read. At more than one hundred pages, it is quite long and detailed – but worthwhile. While it is described as a statement of its company culture, it is more of a guide and blueprint for its employees on [...]
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Outsourcing from China – Avoiding this Horror Story
A recent article in Manufacturing News described the outsourcing horror story that has engulfed Fellowes Inc. The large paper shredder manufacturer has suffered a significant loss in China. A Chinese joint venture partner stole Fellowes Inc.’s proprietary assets and forced the operation into bankruptcy. The estimated cost is valued at a $100 million. Now the [...]
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General Motors – Industry Leader?
Regardless of various company officials and politicians assurances that General Motors Company’s rescue is a success, several facts cast a cloud over its viability: ● Its products are not cost competitive. Hourly union labor costs are too high at approximately $58 per hour. Its USA based Asian competitors have lower labor costs. Two are at [...]
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Where is China Heading?
Mark Leonard’s book “What Does China Think?” presents China’s challenges and struggles with some surprising priorities its leaders have set to correct them. For the first time in China’s history its 11th five-year plan does not list economic growth as its first priority. The plan: “put people first”…“respecting the natural environment”…introduces a Scandinavian model of social welfare [...]
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The GM & Chrysler Bankruptcies
“The General Motors Corp. Chapter 11 bankruptcy marks the humbling of an American icon that once dominated the global car industry and sets up a high-stakes gamble for USA taxpayers.” Reportedly both General Motors and Chrysler will exit from Chapter 11 Bankruptcy Court in 60 to 90 days. This sounds like wishful thinking and may [...]
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Sun Tzu’s “The Art of War”
Sun Tzu’s book “The Art of War”was written in 400BC. Peter Drucker’s and Sun Tzu’s management tenets for success are essentially the same. Sun Tzu was China’s first professional General. Prior to him the Sovereign led his army which was frequently disorganized, under-funded and unsuccessful. He developed strategy and tactics of war but also detailed [...]
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Why William Clay Ford, Jr. Failed
In October 2006, the Ford Motor Company replaced William Clay Ford, Jr. as its Chief Executive Officer. Why did Mr. Ford fail? His own words, reported by Micheline Maynard of the New York Times on July 16, 2006, titled “Is Ford Running On Empty” revealed the answer. “I bowed to managers on what I knew [...]
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Miyamoto Musashi, “The Book of Five Rings”
There are several revered authorities whose management principles result in businesses becoming and continuing to be successful. Two of the most famous: Peter Drucker and the legendary Sun Tzu. Peter Drucker is the eminent author of 39 management books and is considered the “father of modern management”. Sun Tzu is the author of “The Art [...]
EBITDA. Is it misleading?
In the majority of distressed companies I’ve worked on, the two most important measures of financial performance are not reviewed – Operating Income (EBIT) and Free Cash Flow. Instead EBITDA, Gross Profit and Net Income are the only profit measures included on the Income Statements. Operating Income is a superior measure of an operating company’s [...]
Peter Drucker’s Tenets
Peter Drucker, a writer of 39 books and a management consultant, was considered the “father of modern management”. An avid student of managing complex businesses, he was the advisor who helped mold many corporations into industry leaders which forged this country’s ability to become an economic super power. A Sampling of Mr. Drucker’s Tenets: “In [...]
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