rule of exceptiinal
Answers
Answer:
The Three Rules for Exceptional Corporate Performance
Deloitte’s Michael E. Raynor and Mumtaz Ahmed have boiled long-term corporate success down to three simple rules: 1) Pursue a “better before cheaper” strategy. 2) Focus on revenue before cost. 3) There are no other rules; follow the first two.
For decades, management studies have sought to pinpoint the qualities that distinguish truly great companies from the rest. Such studies often have focused on identifying the actions companies and their leaders have taken to achieve high performance—actions that other organizations can’t necessarily replicate for various reasons.
A more useful approach may be to investigate the thought processes and decision-making rules that have propelled industry leaders into long-term success. That’s what Michael E. Raynor, director of Deloitte Services LP and author of “The Strategy Paradox,” and Mumtaz Ahmed, chief strategy officer for Deloitte LLP, have done in their new book, “The Three Rules: How Exceptional Companies Think” (Portfolio/Penguin, May 2013). As the title indicates, the authors identify three guiding principles that capture how high-performing enterprises deliver superior results over the long run, despite facing the same constraints as competitors:
Rule No. 1: Better before cheaper: Compete on differentiators other than price.
Rule No. 2: Revenue before cost: Drive superior profitability with higher prices or higher volumes, not lower cost.
Rule No. 3: There are no other rules: Change anything/everything in order to abide by the first two rules.
