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A business is more effective when it is more selective
26-Feb-2009
This quote came from Peter Drucker who also asserted, “Most businesses try to accomplish far too much. They lose concentration and give in to the temptation of trying to be all things to all people.”
“If what looks like an opportunity does not advance the strategic goal of the institution, it is not an opportunity. It is a distraction.
“Economic results require that staff efforts be concentrated on the few activities that are capable of producing significant business results. Managers must minimize the amount of attention devoted to activities which produce primarily costs."
Peter Drucker also coined the term ‘purposeful abandonment.’ He argued that the best way for a company to grow, is to first stop doing what’s not working. That is, abandon projects that fail to deliver results. Abandon products and services that fail to increase profit. Abandon people that fail to make worthwhile contributions to the company.
“In order to grow, a business must have a systematic policy to get rid of the distractions”
Similarly, in the book Good to Great, Jim Collins recommended a ‘Stop Doing List’. He wrote, “Take a look at your desk. If you're like most hard-charging leaders, you've got a well-articulated to-do list. Now take another look: Where's your stop-doing list?”
“Those who built the good-to-great companies made as much use of ‘stop doing’ lists as ‘to do’ lists.”
Both Drucker and Collins agree - distractions must be avoided.
Smart organizations identify and relentlessly focus on their core activities, while ignoring and eliminating those activities and investments that are distractions.
These smart organizations will not only survive this recession, but will thrive when the economy invariably turns around. Those who ignore the advice of these two business greats do so at their peril.
Perhaps Mark Twain said it best; “I cannot give you a formula for success, but I can give you a formula for failure, which is: Try to please everybody.”
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