Solving the Riddle of How Companies Grow Over Time

Can company growth rates persist over long periods of time? A new study of long-lasting enterprises might make CEOs rethink their strategies.

Management in the Second Machine Age

Future leaders will succeed by being entrepreneurial and by rethinking the balance between financial and social goals.

Not Just for Profit

Emerging alternatives to the shareholder-centric model could help companies avoid ethical mishaps and contribute more to the world at large.

The Experience Curve Reviewed – V. Price Stability

Whenever real (deflated) prices fail to parallel real (deflated) cost trends, then market shares will shift. When market share shifts, then relative costs of competitors will shift also.

Editor’s Note: written in 1974…

The Experience Curve Reviewed – IV. The Growth Share Matrix

The use of cash is proportional to the rate of growth of any product. The generation of cash is sa function of market share because of the experience curve effect. The BCG growth share matrix is a diagram of the normal relationship of cash use and cash generation.

Editor’s Note: written in 1973…

The Experience Curve Reviewed – III. Why Does It Work?

The whole history of increased productivity and industrialization is based on specialization of effort and investment in tools. So is the experience curve. It is a measure of the potential effect of specialization and investment.

Editor’s Note: written in 1974…

The Experience Curve Reviewed – II. History

Experience curve is the name applied in 1966 to overall cost behavior by The Boston Consulting Group. The name was selected to distinguish this phenomenon from the well known and well documented learning curve effect. The two are related, but quite different. Read on for background on the development of this concept.

Editor’s Note: written in 1974…

The experience Curve Reviewed – I. The Concept

A short introduction to the concepts involved in the BCG experience curve which holds that the cost of value added declines approximately 20-30 percent each time accumulated experience is doubled..

Editor’s Note: written in 1974…

Rules of Response

Corporate operations – their value-delivery systems – are subject to a challenging set of rules. These are the rules of response.

“Revenues are Good, Costs are Bad” and Other Business Myths

Precise thinking and business discipline are essential for business success. Yet, for too many managers in too many companies, “self-evident truths,” that really are vague generalities, get in the way. Jonathan Byrnes calls these “business myths” and exposes ten of the worst offenders in this article.

Beyond the Protestant Work Ethic

New research suggests a link between religion and attitudes that are conducive to economic growth.

Must we all be entrepreneurs now?

Entrepreneurship is once again fashionable with policymakers, business schools, large corporations and the media. But in the light of the dot-com crash, many wonder whether it can provide the much needed spark to re-ignite growth. What exactly is the link between rates of new business formation and the wider performance of an economy? Can large corporations replicate the conditions in which small companies successfully innovate … [ Read more ]

Fundamentals of Value

Here are seven fundamental lessons about IT value that Mohanbir Sawhney has learned in a decade-long career as an academic researcher, consultant and teacher:
1. Value is customer-defined… To understand the true nature of value, you need to get inside the minds and hearts of your customers, whether they’re internal or external…
2. Value is opaque…Understand all factors that customers take into consideration in assessing … [ Read more ]

Measurement Traps

Measuring performance can cut both ways. It can play a valuable role in improving organizations – or it can stand in the way of necessary change.

Honey, I Shrunk the Profits

Actually, technology did, by speeding up the maturation of industries-but you can fight back.

Have We Run Out of Big Ideas?

Looking over the current crop, you might think so. Look harder.

The ‘Rule of Three’ in Europe

Jagdish Sheth and Rajendra Sisodia say their research demonstrates that in mature, competitive markets there is only space for three large volume-driven companies alongside several niche specialists.

Key messages:
– Efficient markets eventually get organised into two kinds of competitors: full-line generalists and product/market specialists.

– Generalists are large scale companies, which compete across a range of products and markets, and are volume-driven. Specialists operate … [ Read more ]

Good to Great

Start with 1,435 good companies. Examine their performance over 40 years. Find the 11 companies that became great. Now, here’s how you can do it too.

How Do Fast Companies Work Now?

Imagine a company (iFormation) started by the best-connected investment bank in the world, by a leading management-consulting firm, and by one of the top venture-capital firms. Give it $300 million — and set it loose to reinvent big business.

To Follow or to Find? Industry Influence on Leading Value Creators

What makes a value leader, and how much do industry dynamics determine value creation for different types of firms? Professor Gabriel Hawawini, Professor Paul Verdin and PhD candidate Venkat Subramanian re-examine the question to reveal new findings. Using 55 industries, they categorise firms within each industry into 3 main groups – the leading value creators, the value destroyers (the losers) and the rest that lie … [ Read more ]