Powering Up for PMI: Making the Right Strategic Choices

This Focus, which is the first in a series of reports on post-merger integration (PMI), describes the key strategic and tactical issues that need to be considered before a PMI is executed. The subjects discussed range from determining the speed and style of the integration to setting up clean teams, dealing with sensitive people issues – including retaining star performers – and how to formulate … [ Read more ]

Bolko von Oetinger

The center is an essential element of social interaction. There are no strong cultures without an organizing middle. Human beings are social creations. They develop and progress by means of collective actions–in other words, in proximity to other human beings. Centers establish order and organize coexistence, whether it be spiritual, religious, social, political, or cultural. Centers are the sites of thought and planning, where great … [ Read more ]

Philip Evans

On Enterprise 2.0…
Consider the domain of internal corporate organization. How many tasks can be rethought as the sum of small, loosely joined contribtuions? How much effort can be motivated and shaped by the collective approbation of a corporate community, even risking some dilution of accountability? How far can reputation be substituted for reciprocity as the primary basis of trust? Where can a community of individuals … [ Read more ]

George Stalk, Jr.

Many companies concentrate on finding the right people. It is just as important, sometimes more so, to get rid of the wrong ones.

The Turnaround Man’s Last Speech

It’s hard enough to turn around a failing company. Try steering a successful one into the headwind of elective change. Naysayers and obstructionists will land all around you. Yet companies that don’t understand how fragile their success is will lose it soon enough. In a constantly changing world, a turnaround strategy must always be in play. This article spells out the five rules of … [ Read more ]

Getting to Win-Win: How Toyota Creates and Sustains Best-Practice Supplier Relationships

Across the automotive industry and around the globe, Toyota ranks as suppliers’ preferred OEM-the one with which they would most like to do more business. Yet Toyota is also known to be extremely demanding of its suppliers and rigorous in its insistence on openness and highly disciplined processes. The authors outline the principles and practices that Toyota employs to win its suppliers’ extraordinary performance-and loyalty. … [ Read more ]

Brinkmanship in Business

A businessman often convinces himself that he is completely logical in his behavior when in fact the critical factor is his emotional bias compared to the emotional bias of his opposition. Unfortunately, some businessmen and students take the attitude that competition is some kind of impersonal, objective, colorless affair.

Editor’s Note: written in 1968…

The Pricing Paradox

The profit equation has three variables: price, volume, and cost. Of these, price is the most common candidate for manipulation since nothing else need change to produce profits for everyone, provided everyone changes prices together.

Editor’s Note: written in 1970…

Segmentation and Strategy

Segmentation is a critical aspect of corporate strategy. It is essential in visualizing the competitive arena and analyzing the preferred strategic emphasis. The goal is to find a way to convert differences from competitors into a cost differential that can be maintained.

Editor’s Note: written in 1974…

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…

Yves Morieux

To equate promotion only with managing more people often discourages those who can’t do it or elevates individuals who don’t have the required management skills.

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.

The Time Paradigm

Time is the secret weapon of business. Advantages in response time provide leverage for all the other competitive differences that make up a company’s overall competitive advantage.

Why Management Consultants

The management consultant has come to be taken for granted. But the management consultant is an extraordinary and indeed a truly unique phenomenon.