Where Does It Hurt Summary

Where Does It Hurt SummaryAn Entrepreneur’s Guide to Fixing Health Care

Sick of going on those dreary hospital visits?

Not much you can do about the first part of that sentence! As long as you’re alive, you’ll have to visit your doctor from time to time.

But, there’s many things you can do about the dreariness of hospitals! Especially, if you’re an entrepreneur, current or would-be.

Where Does It Hurt?” is a book for you. And this summary is just the preview you need.

Who Should Read “Where Does It Hurt”? And Why?

“Where Does It Hurt?” targets at least three different groups of people.

In the first place, those who are in any way interested in the United States’ healthcare system. Secondly, those who are interested in business opportunities and practical business advice for the future.

Finally and especially, those who are both: entrepreneurs willing to disrupt and improve America’s healthcare system by launching medical start-ups in the recent future.

About Jonathan Bush and Stephen Baker

Jonathan BushJonathan S. Bush is an American entrepreneur, most famous as the cofounder and CEO of athenahealth.com, a publicly traded company which provides digital apps and services for hospitals throughout the United States.

Stephen BakerStephen L. Baker is an American journalist and author. He has written articles for “The New York Times,” and “The Wall Street Journal,” in addition to few non-fiction books. He has also authored a novel, the techno-thriller, “The Boost.”

“Where Does It Hurt Summary”

Time for a quick Jeopardy round:

This country’s GDP accounts for a quarter of the world’s nominal GDP, and yet its healthcare system was ranked by WHO as worse than the ones of Cyprus and Costa Rica?

The correct question is:

What, in earth’s name, is wrong with USA’s healthcare?

Jonathan Bush says: quite about everything.

First of all, no matter how sick you are, it’s hard to even reach the hospital. Parking is so bad that sometimes you need to park very far from the premises. Then, you’ll be lucky if your medical record is found promptly – or, even found at all. And even if this goes well, you’ll still need to wait quite few hours before you reach your doctor.

No, we won’t even mention the bills! An interesting stat says much more: even though America’s healthcare system is ranked as the 37th best in the world, the expenditure per capita is the world’s highest!

In other words: if you live in the United States, you pay more and get less than most of the developed countries in the world.

Bush’s question: but, how has this not resulted in a competitive field?

It’s not like we don’t have precedents.

For example, when the LASIK eye correction surgery first arrived in the beginning of the 1990s, the operation wasn’t covered by insurance. So, people had to pay. And providers had to make the service as best as possible and as cheap as feasible.

Three decades later, this has resulted in a 95 percent satisfaction rate. Or, to put this in a more memorable way: in a world of competitors, the customer is the one who wins the most.

Consequently, hospitals will be better off if run like businesses. Bush himself should know this best, since his company, athenahealth, is a pioneer in the field. By offering patients information giant hospitals don’t, it has attracted a host of customers.

The same holds true for Cerberus Capital, which bought six Catholic community hospitals in 2010 and turned them into for-profit clinics. They now have 11 – so their model probably works! Very well, in fact.

And why shouldn’t it?

Say, you want to get a CT scan. You go to a hospital and they tell you there that it costs $500. A private-owned company with new equipment offers CT scans for five times less. Wouldn’t you opt for the second choice?

That’s right:

Competition results in alternatives, and alternatives mean lower prices and better service. In time, a more structured service as well.

In fact, Bush says that this is also a serious problem in the American healthcare system. It’s not structured properly, so many people visit specialists when they can be treated at a much lower level.

Primary healthcare is virtually non-existent in the United States, and, as Rushika Fernandopulle has found out, it solves many problems and saves everybody a lot of money.

How, you wonder?

Well, Fernandopulle worked with Boeing and realized that the company spent fortune on hospital bills for its employees, for health issues they were able to treat by themselves. Coaching them some proper preventive measures resulted not only in better health for the Boeing’s staff members, but also in drastically reduced costs for the company!

Primary healthcare is a good way for entrepreneurs to disrupt the market, but a health-oriented digital start-up is an even better one!

Case in point: Beyond Lucid and RegisterPatient.com are two such startups which have already shown great results. They considerably improve a patient’s experience by letting him or her sign up for appointments online and sending relevant data and records straight to doctors before the patient’s arrival.

Technology is great at doing these things. Interestingly enough, hospitals still don’t have it.

Entrepreneurs of America, unite: there’s your chance to make some change!

Key Lessons from “Where Does It Hurt”

1.      USA’s Healthcare System Is Out of Sorts
2.      Competition May Make America Healthier
3.      You Can Be Healthier If You Visit Your Primary Doctor

USA’s Healthcare System Is Out of Sorts

Something’s rotten in the state of… America. The people are sick, but much more than of some illness – they are sick of its hospitals! Because, USA’s healthcare system has been under the weather for decades now.

Parking is impossible, medical records unattainable, bills unpayable.  And it’s not because of the lack of money. There is plenty of money, in fact! It’s the competition that’s lacking.

Competition May Make America Healthier

It’s the basic logic of the market: when there are competitors and alternatives, the service gets better and cheaper and the customer always leaves satisfied.

The healthcare market should be disrupted by private entrepreneurs. In fact, says Bush. this is the only thing which will make it better. If hospitals are run like businesses, it’s not only the current patients which will benefit.

Competition will also result in the advancement of proper technology. So, basically, the sooner the healthcare system becomes a competitive field, the earlier we’ll find a cure for cancer.

You Can Be Healthier If You Visit Your Primary Doctor

It may sound a bit paradoxical, but if you want to be healthy, you’ve got to get something out of your head: don’t go to the hospital as often! Visit your primary doctor instead. Because your primary doctor will send you to the right kind of specialist when – and if – such a problem arises.

In every other case – he will teach you how to solve it. Nice and neat. And probably pain-free.

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“Where Does It Hurt” Quotes

The fabulous market opportunity is not in replacing bad with better. The trick instead is to provide something the customers simply don’t have. Click To Tweet With the expansion of health data, insurance carriers will increasingly be in a position to offer customized rates. Click To Tweet is this freedom to make choices that will lead to a real health care market, one with many providers, many customers, and many options. Click To Tweet The industries we care about least innovate at the highest speeds, while those we hold dearest to our heart innovate hardly at all. Education, for example, is perhaps our most precious industry. Click To Tweet Consumers participate in a kind of informal laboratory. This could be one of the pathways leading toward personalized medicine. Click To Tweet

Our Critical Review

You’ll probably won’t love “Where Does It Hurt?” It’s not that well-researched, makes some unfounded comparisons (choosing healthcare providers should work the same as choosing washing machines?), and doesn’t’ really add an argument to the table.

However, just like in the case of “True Enough,” your answer will depend on whether you’re a Republican or a Democrat. And you’ll either like it or hate it. We, personally, found inside it both inspirational and falsely premised ideas.

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Trendology Summary

Trendology Summary

Building an Advantage through Data-Driven Real-Time Marketing

We’ve said it before, and we’ll say it again: everything is marketing nowadays!

Whether it’s permission marketing, Facebook marketing, blog marketing, micromarketing, or marketing 3.0 – it seems like it’s the ultimate profession nowadays!

It’s the age of “how” – and not “what”! The product you’re actually selling is less important than how you sell it! And many books we’ve written about before can testify to this simple fact.

Trendology” focuses on Twitter marketing – and joins the group. With few practical pieces of advice, you should heed.

Let’s summarize them!

Who Should Read “Trendology”? And Why?

It doesn’t matter whether you have already made a name for yourself and want to take it to the next level or you are just about to start building a brand. It doesn’t matter even if you’re the head of the marketing department or merely a staff member interested in advertising.

Either way, “Trendology” is just the book for you. All you need to have is an open mind for new technologies and concepts such as social media marketing (especially, Twitter). You don’t even need to know that much about them.

About Chris Kerns

Chris KernsChris Kerns is a prominent digital marketing researcher, who has written many articles for “The New York Times,” “The Wall Street Journal,” “Forbes,” and “USA Today.” He worked as the VP of Research & Insights at Spredfast, and, since recently, at Domo.

He is also the author of few well-received fiction books.

Trendology Summary

People in the advertising business – they’re really good at inventing new words and catchphrases! And they stick!

For example, what’s the name Disney uses to describe the science of studying their guests? That’s right: guestology! How would you ever forget that?

And here’s another word of a similar kind: trendology. That’s how Chris Kerns calls the science of analyzing trends. See: he’s already a great practitioner of it!

We’re summarizing here a book of his, but his main focus is, in fact, modern media.

Why?

Because he believes that the advent of social media changed the world of marketing once and for all. Most importantly, it put an end to one-way messaging. Billboards, jingles, TV commercials – they did their time! Nowadays – marketing is all about real-time.

You see, social media allows for something traditional advertising couldn’t dream about: two-way discussions between sellers and customers as things are happening.

And you should use – and use it wisely!

A good example would be posting a tweet like “Nice pick! Packers fans, pick your favorite pizza now for only $10. bit.ly/tonyspizza #interception” after someone posts a tweet such as “OMG damn straight #goPackers #interception.” It’s clever, it’s funny, it’s cheap, it’s real-time – and it will work!

A bad one would be posting a tweet like “come and get your chicken today #getnuggetrocks” after someone posts a tweet like “I like reading these book summaries! #getnuggetrocks: It’s neither clever nor funny. It’s not relevant. And it’s barely real-time. It won’t work!

How do we know?

Because, unlike traditional advertising, real-time marketing (RTM) provides you with measurable data you can analyze and use to improve.

Whether it’s Twitter, YouTube or Facebook, and whether we’re talking about followers and retweets, or subscribers and likes, you should know exactly if your marketing strategy is working!

Social media success is measured as a combination of three factors – audience, engagement, shares. This means you must take them all into consideration if you want better results.

For example, if 100 of your 1,000 followers favorite your tweet – you’re doing more than fine! If, however, 100 of your 2 million followers do the same, then you need to do some refinement.

And, since Kerns mostly talks about Twitter, you can use one of three ways to improve your result. Namely, you can create original content and broadcast a new message to the Twitter community; or echo someone else’s message by retweeting it; or, finally, reply to a message and address your customer’s concerns in real-time.

Since things are happening really fast out there, you need to be fast as well if you don’t want to fall behind.

A good strategy to do this is to follow the micro-trends and use the trending topic of the day to boost your sales. Kerns analyzed 93 companies, and almost 70 percent of them benefitted from this practice. Amazon especially.

And if micro-trends work, you can imagine how well large event tweeting does! 58 out of the 100 most valuable world brands have noticed positive bumps and earned more than 350 percent more followers on average than companies who skipped large events and Twitter altogether.

Naturally, most of these valuable brands have whole teams nuancing their social media marketing strategies. So, don’t expect to succeed unless you shell out some cash for a great social media team!

A word of warning: the team doesn’t stand for a guy with a Twitter account!

It stands for a group of talented and knowledgeable people who are witty and hip and creative and responsible. An emphasis on the last one: since Twitter is happening in real-time, their hands must be united at all times and under any circumstance.

You can’t censor them or expect them to ask your approval. It won’t work.

Key Lessons from “Trendology”

1.      Traditional Advertising Is Dead
2.      Long Live Twitter!
3.      Prepare Your RTM Strategy in Five Steps

Traditional Advertising Is Dead

Traditional advertising is a thing of the past. It’s a one-way message (from client to customer), it’s expensive, and it takes too much time in a world which is moving really fast. Time to reorient yourself: catch the RTM bandwagon!

(OK – don’t take us too literally! Of course, “Coca-Cola” will forever go on producing those ubiquitous and catchy Christmas commercials! But, even they have started finishing their commercials with a hashtag.)

Long Live Twitter!

Point taken: hashtags work better than traditional advertising no matter how valuable is your brand!

They communicate both ways, they cost next to nothing, and they produce new followers daily! Moreover, they provide you with measurable data which will help you improve.

Twitter was once imagined as “a status updater,” but it grew very soon to be Internet’s best way to share the news. Recently, it has grown as the world’s most convenient way to market your products!

Prepare Your Real-Time Marketing Strategy in Five Steps

Whether you should develop an RTM strategy should be a no-brainer. “Trendology” facilitates how in a five-step cyclical process: align, discover, prepare, execute & engage, analyze.

Aligning means lining up your RTM actions with the goals of your company. Discovering involves finding out everything that’s important beforehand (say, before a large event). Preparing requires getting ready for many possible scenarios.

Afterwards, you’re ready to execute and engage your program. The analysis afterward will tell you if you did well. And what you should do better next time.

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“Trendology” Quotes

The key to RTM is to have it seem spontaneous, but actually be well orchestrated behind the scenes for optimal customer engagement, risk management, and brand positioning. Click To Tweet For most big events, RTM works. Click To Tweet No matter where you stand on whether a brand should chime in on a political issue, it’s happening. Click To Tweet Without data, RTM can be chaos. Click To Tweet The pace of conversation has amplified, and pumping out the same pre-canned messaging doesn’t always resonate with the modern consumer. Click To Tweet

Our Critical Review

“Trendology” is both well-written and well-researched book about real-time marketing. Moreover, it’s one of the very few books which offer practical advice on how you should use Twitter to your benefit. It’s lauded and loved for a reason. Not to mention that it can bring you a lot of money.

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Start Small, Finish Big Summary

Start Small Finish Big SummaryFifteen Key Lessons to Start – and Run – Your Own Successful Business

Do you wonder if you can start a business even though you do not have many funding options? Have you ever wondered how some of the big names out there made it?

Then, you are in the right place.

In the “Start Small, Finish Big” summary, we will summarize Fred DeLuca’s book which talks about fifteen principles of success, which anyone can use to start a successful business.

Let’s start.

Who Should Read “Start Small, Finish Big”? and Why?

In “Start Small, Finish Big,” the co-founder of the Subway submarine sandwich chain, Fred DeLuca depicts his experience and the experiences of 21 different business visionaries who transformed independent ventures into large organizations.

He refers to 15 achievement principles while utilizing intriguing “How I did it” stories from business people to delineate them.

Having in mind that it is mainly a book consisted of cases and success stories, we recommend it not as a practical business manual, but rather as an intriguing of stories about how a couple of entrepreneurs made it to the top. It is an excellent read for anyone that searches for a little boost of motivation.

About Fred DeLuca and John P. Hayes

Fred DeLucaFred DeLuca is the president of Subway ever since 1965 when made the very first Subway sandwich. Around 30 years later, he established the nonprofit organization Micro Investment Lending Enterprise, designed to provide microloans for new entrepreneurs.  

John P. HayesJohn P. Hayes is a public speaker, a writer, a marketing trainer for small business operators, and a business coach on various subjects including franchising.

“Start Small Finish Big Summary”

The global business world offers a large number of cases of business people who began with little cash – $10,000 or less and ended up successful. These are called “microbusinesses, ” and the individuals who build them are called “microentrepreneurs.” The associations that loan finances to these organizations are “microlenders.”

In spite of the fact that these organizations might be little, they are incredibly significant to the economy. Some of the microentrepreneurs come from a business background, but most of them do not.

They vary in age, some start their business as a part-time venture, while they are employed full time, while some might be secondary school dropouts or school graduates. Formal education appears to have little effect on entrepreneurial achievement. Often microentrepreneurs begin in their homes, and they work alone.

So, what do you need to be a microentrepreneur?

Well, you need an idea, a minimal expenditure and, most the desire to begin. We further list the star-up principles you need to follow as an entrepreneur:

– Start small – Beginning small is superior to not kicking your business off in the first place.

– Learn to earn – Earning some money while you are young is an excellent practice and kicks you off figuring out how to procure.

– Begin with an idea – Ideas are all around you. Search for what should be enhanced or a void in the marketplace. By looking around, you will eventually find a worthy idea that can be developed into a business.

– Think like a visionary – Don’t just stop with the concept itself – look past it. Consider what your business can be, what value it can give to clients, and how it can help you financially.

– Keep the faith – Believe in yourself and your business notwithstanding other individuals who are doubtful.

– Get ready, aim, shoot – If you ponder what you need to do, you will not do it. You have to dive in, fire away, and begin.

– Make profits or die – Unfortunately, it is not difficult to make deals, yet not that easy to make a profit.

Stay positive – Optimism will keep you moving past difficulties that may appear like impossible obstructions.

– Improve constantly

– Believe in your kin – If you do not bolster the people who work for you, they may take it out on your or your business.

– Maintain your money flow – To abstain from coming up short on cash, consider getting it before you have to so you will have capital.

– Introduce your products to new clients

– Be persevering – You may regularly feel the need to leave the business. Be that as it may, once you quit, you are out.

Build a brand name – Branded items sell better than unbranded ones, and customers are ready to pay more for them.

– Seize the opportunity – You have to snatch your chance when it comes since opportunities wait for no one.

Next, we move on to the key lessons in the form of real cases that illustrate these principles at work.

Key Lessons from “Start Small, Finish Big”:

1.      Hair Today
2.      A Clean Vision
3.      Talking The Way to the Top

Hair Today

The significance of starting out with an idea is represented by Tomina Edmark’s story. She concocted a plan for an inside-out braid clasp she named the Topsy Tail, which ladies can utilize it to form their hair in an assortment of styles without any difficulty. She sought after her thought until the point that it turned into a business achievement.

A Clean Vision

The idea of adopting the thought process of a visionary helped Jim Cavanaugh begin a little business cleaning organization and transform it into the world’s most prominent cleaning organization, Jani-King. In 1968, he started a friendship with the janitor who cleaned the Holiday Inn, and he began showcasing the janitor’s services for a commission. He felt there was a need for professionalism in the cleaning business and built up an establishment program for janitors.

Talking The Way to the Top

Motivational speaker Zig Ziglar exemplifies the rule of persistence. He fizzled 17 times before he prevailed in the matter of being an expert motivational speaker. He says that the one who put him on the track to progress was his supervisor amid the days when he was a sales representative for a cookware organization. The manager, P .C. Merrell, disclosed to Ziglar that he could wind up the organization’s national deals champion if he had faith in himself. With this motivation, Ziglar’s execution instantly shot up and he soon was setting records. He turned into the best salesperson nationally.  At that point, he chose to become a full-time speaker. Although he approached bankruptcy, he was persistent, having a definite conviction that he would make it. Presently he acquires $50,000 for each talking engagement.

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“Start Small, Finish Big” Quotes

Knowing less and actually doing something is far better than knowing everything and never doing anything at all. Click To Tweet

You only fail if you quit. Click To Tweet

Starting small is better than never starting at all! Click To Tweet

Opportunity waits for no one. Click To Tweet

People who give up ultimately have to go back and start all over again. Never give up! Click To Tweet

Our Critical Review

While the book is an enjoyable read, the principles are familiar. The examples depict how entrepreneurs try different approaches, and finally find something that works. However, in the book, there are no lessons you can apply in practice, mainly because of the broadness of the guidelines. Still, it is a fascinating book, if you read it to motivate and entertain you.

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Creative Capital Summary

Creative Capital Summary

Georges Doriot and the Birth of Venture Capital

For all one knows, venture capital was not a recognized term among the Americans, and the world 50 years ago. As the society progressed throughout the 20th century, we all saw the importance of financing and acquiring a start-up capital for transforming an idea and implementing it in real life.

This book summary offers a look into the Georges Doriot’s business life, and how he managed to help other companies for overcoming this issue.

Who Should Read “Creative Capital”? And Why?

Creative Capital is a not a book for people who are living under the belief of mediocrity. Those who think that life is nothing other than luck perhaps should avoid contact with Ante’s classic.

If you are in some way interested in creating a brand, willing to learn some more about financing, and why banks refuse to give support and assistance in the form of financial patronage to start-ups – you should give this book a chance.

We strongly believe that venture capital, is the thing of the future, and the sooner you realize it, the better.

About Spencer E. Ante

Spencer E. AnteSpencer E. Ante is an award-winning and internationally recognized author. He also works as an editor at BusinessWeek, where he obtained his knowledge related to finance, economy, technology and managing a business. It’s worth mentioning that Spencer is one of the few people who founded the International Academy of DigitalArts and Sciences.

“Creative Capital Summary”

Venture capital is the very embodiment of establishing successful businesses and companies. It helped entrepreneurship to grow since the beginning of the New Age, driven by commercially oriented people. In the old days, investors were mostly compared to conquerors, meaning that their capital was a way to enforce new politics and practices into the state.

You might be wondering:

For example, we can go way back in the 15th century, when Spanish royal families and Italian investors financed Christopher Columbus’s expeditions. According to many historians, this trip marked the beginning of the investor’s era. Generally speaking, the New World was founded by the venture capitalists or sometimes even referred as risk-takers. However, we cannot neglect the fact, which connects this concept to the birth of a legitimate industry, soon after the disastrous World War II. Georges Doriot and his fellows transformed the venture capital business idea into a powerhouse field of investment.

Stay tuned to learn more about the first company in the industry:

Doriot is the world’s first ever founder of a public venture capital firm. The American Research and Development Corporation (ARD) located in Boston is the legitimate successor of the medieval vision. Meaning that – Conquering Global Markets is like winning battles.

Are you still not sure about this point? – Let’s make things clear.

In other words, the super-successful company focused on financing technology, science, and medicine. Fortunately, all these industries were among the most prosperous ones, gaining momentum and bringing profits to businesses associated with them.  

Shortly after, Doriot began his campaign as ARD’s president, the nature of finance and investment was strongly linked to the wealthy elite and industrial magnates. This was once in a lifetime opportunity, just waiting to be explored, and that’s what happened.

This is crazy:

The newcomers in the world of business had a tough time finding financiers for their newly established companies. Banks refused to fall under the promise of prosperity which allowed Doriot to grab this possibility and turn it into profits. In fact, the society wasn’t 100% convinced by the innovative, cutting-edge firms, due to entry barriers and intense competition. ARD, despite the risk of untested methods, decided to finance these small companies, that later on became top-notch corporations.

Unlike other things, now, you have a chance to get a closer look at the practices used by Georges Doriot – the father, creator, founder, of the venture capital industry. He was famous for many things; one phrase especially explains what his thoughts on stock maneuvers were – “I don’t know anyone on Wall Street who ever built a company. Our interpretation is unnecessary! We believe that all of you would agree that Creative Capital, is not a book, but a way of life.

The author of “Creative Capital” – Spencer E. Ante deliberately shares some his “secret” habits that indicate nothing other than dedication, discipline, strategy, and energy. He is a man of character, a charismatic individual who followed a simple vision. In reality, many famous high-tech companies owe their success to Doriot.

Key Lessons from “Creative Capital”

1.      The man of the future
2.      Confronting the banks and their aversive attitude towards start-ups
3.      Find out who is the real master

The man of the future

According to the people who met Doriot and communicated with him on a daily basis, they described him as a rational human being. “The General” was a nickname he obtained during his career as a business expert and entrepreneur. The wisdom of playing side by side with danger without getting into trouble was a part of the expertise he delivered.

Confronting the banks and their aversive attitude towards start-ups

Even though the banks refused to make their contribution to the prosperity of these newcomers, leaders like Georges Doriot thought differently. As long as we believe in a certain vision, our strategy stays the same – ARD.

The right investment philosophy

Despite the outside pressure, Doriot observed the firms he backed financially. The reason for doing was his broader view and the adoption of long-term methods. He never claimed to have any interest in instant profits, although some of the tactics were focused around quick ROI.

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“Creative Capital” Quotes

Venture Capitalists are taking over the world Click To Tweet I don’t do the work. I just pick the right, bright men to do it for me. Click To Tweet His manufacturing class attracted 140 students, a 50% jump over the previous year’s enrollment. Click To Tweet Three men were breaking stones. They were asked what they were doing. One said, ‘I earn a living.’ One said, ‘I break stones.’ One said, ‘I help build cathedrals.’ Let us build cathedrals together. Click To Tweet

Our Critical Review

This book provides an insight into the modern history and life of the first venture capitalist Georges Doriot. This is undoubtedly a must-read material that according to us is worthy of your time. It’s not easy to find many drawbacks because it surely is a comprehensive experience.

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The Leaders We Need Summary

The Leaders We Need SummaryAnd What Makes Us Follow

The embodiment of real leadership is having a large base followers. A symbol of trust and self-sacrifice.

The study of leadership reveals secrets unknown to many companies, which may gradually modify all the operations.

The lack of real leaders forced the firms to create a “Monster” within their circle that can cope with various types of issues.

Who Should Read “The Leaders We Need”? And Why?

Companies complain that their motivating techniques don’t produce the expected results. Don’t live on the verge of probability, leave open space for new possibilities but define your goals. Eager leaders have to embrace heart-leadership, to be a symbol of mental clarity, and willingly to solve other people’s problems.

The response they give will shape them as not only as a leader but as humans.

Leadership is an essential asset to the U.S. culture which by all means is the only solution to the health-care crisis that is currently unfolding. “The Leaders We Need” is prescribed not only for Americans but for all young and middle-aged persons all over the world eager to exploit the benefits of true leadership.

About Michael Maccoby

Michael MaccobyMichael Maccoby is an American-born writer, psychoanalyst and an expert in leadership methodology. He was born on March 5th, 1933 in Mt. Vernon. He received his college degree from Harvard and a year after he became the president of the Harvard Crimson.

Michael wrote “The Gamesman” and co-authored several other books.

“The Leaders We Need Summary”

Conservative organizations provided the people with controversial context covering the 20th-century concept of leadership. This literature includes management skills which the bureaucrats used in the industrial era. Its controversy relates to the “shallow” vision back then and their limited knowledge of management stopped the progress of the community.

The U.S companies began to use business strategies that leverage capabilities in the early 20th century which generated a brand-new system. Frederick Winslow Taylor, one of the leading experts on the topic, supported the idea of building standardized tools that according to his beliefs would ease up procedures.

He acknowledged the theory that employees when guided without questioning nor complaining produce the best results. He advocated for unthinking entities which will create a business value for the company.

In the early 20s, syndicates started to form, immigrant workers from all over the world protested for several reasons. They didn’t agree with the leadership stimulated by the industrialists, and they wanted their voice to be heard. The free-minded workforce started to shape, and the owners had little choice but to grant them freedom and other benefits.

This unique framework was subjected to many discussions which ultimately forged a new conclusion. The modern era brought the slow transition from industrialism and bureaucracy to free-minded customer-centric organizations.

Elton Mayo, an expert in all matters of leadership, co-led with focus on discovering two crucial facts linked to some guidance within enterprises. The audience interpreted both theories differently. One of them received widespread adherence, while the other one didn’t gain any credit. The facts were:

  • Money is a trade tool, don’t use it as a motivator for workers. Only an energetic and kind boss could boost the company with high-quality management strategies.
  • Managers who welcome playfulness and entertainment while working on improvements or system designs can boost their businesses even more.

The author of “The Leaders We Need” Michael Maccoby and an anthropologist and psychoanalyst by profession explain his analyzes conducted in the field of leadership. His expertise on the subject (more than three decades of experience) gives him credibility to challenge today’s so-called modern management with concise theories.

The basic thesis is simple – the digital time requires a leadership model which sidesteps the industrialism era with its bureaucratic features. Leaders should carefully select their followers; the selection is a subtly conducted process.

New family structures start to appear, people adapt in all ways possible – physically, mentally, financially, etc. Select the perfect “follower-profile” according to your preferences. In his texts, Maccoby interprets these “high-profile” workers as interactive individuals with a series of demands.

People tend to get suspicious of your intentions if you do not provide them a guide. Leadership is all about that. The way you deal with your closest ones reflects your strength in the office. As our physical part evolved for thousands of years, the same thing awaits every concept that we’ve discovered.

There are many theories based on facts, but the majority of the discoveries gives us space to examine further. Don’t be a closed book, ignite your passion for handling issues and you’ll become the winner at the end of the road.

All you need is a proper guidance, which Michael Maccoby voluntarily provides. You can start by redesigning your to-do list, if you have none, then create it. You’ll be amazed at how a simple sheet of paper can prove useful.

Key Lessons from “The Leaders We Need”

1.      From bureaucracy to cooperation
2.      Understand how to deal with followers
3.      Evaluate your abilities

From bureaucracy to cooperation

The era of the bureaucrats has left this world. Even though we witness traditional families and cultures, efficient leaders give priority to collaboration and team effort.

Reevaluate the real values and see what your business desperately needs.

Understand how to deal with followers

People favor following rather than having followers. Often some individuals are forced to follow leaders, an utterly wrong policy which generally leads to a financial disaster.

Become their friend, let people see your benevolence by promoting a common welfare.

Evaluate your abilities

The organization listens to reason. Measure the organization’s effectiveness on a scale from one to ten.

Use the anonymous results to confront “the party boys” within your group. This procedure will put your intelligence and leadership abilities to the test. That is precisely what every decision-maker needs.

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“The Leaders We Need” Quotes

President George W. Bush has taken big gambles without fully understanding the odds or the consequences of failure. Click To Tweet Would-be organizational leaders: Keep in mind...the people you need to help you succeed aren’t all just like you. Click To Tweet The leaders we want are not always the leaders we need. Click To Tweet The interactive social character has been formed in a world in which we must adapt to constant change, and we can’t count on stable institutions to take care of us. Click To Tweet “The leaders...needed in a given context must engage the social character of followers. Click To Tweet

Our Critical Review

The emphasis is placed on personal intelligence, collaboration among departments and most importantly teamwork. We contribute and endorse the method of tackling leadership issues with a proper education, long-term vision, attitude and ultimately kindness.

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The Art of War Summary

 

MicroSummary: Written by Sun Tzu, a Chinese military general over 2,500 years ago, “The Art of War” has remained the best book on gaining competitive advantage even today. Originally a military treatise, the lessons propagated by the book have been recognized as practical guidelines by modern businessmen, politicians, and athletes all around the world.

Timeless strategies for smartest battles that lead you to victory. The Art of War – Sun Tzu

I postponed reading Sun Tzu ’s book – The Art of Warseveral times. I wasn’t very sure that this is the kind of lecture I was looking for. After reading it, I discovered impressive ideas and timeless advice in The Art of War written by Sun Tzu. I selected best nuggets (visual quotes from books) and put them in the summary below.

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The Balanced Scorecard Summary

The Balanced Scorecard Summary

Translating Strategy into Action

Can you imagine how easier it would be if businesses could balance between customer knowledge, internal business processes, financial measures and learning and growth?

“The Balanced Scorecard” does just that! It converts vision and strategy into an understandable set of performance measures and balances between short and long-term objectives, desired outcomes and actions.

We all remember Abraham Lincoln who once said: The future is exciting, and the best thing that comes from it is the gradual and slow life improvement, not any sudden changes. With no disrespect to Lincoln’s wisdom, Balance Scorecard reveals that future come much sooner than you think, and the digital age that we live in changes every second.

Stay with us on this journey through the pages of this highly useful book.

Who Should Read “The Balanced Scorecard”? and Why?

When we mention the word-Balance Scorecard, it associates us with some business and organizational change. Senior executives and CEOs are the targeted groups of individuals that Robert S. Kaplan and David P. Norton are trying to revive and energize, so they would quickly grasp the benefits that Balance Scorecard has to offer. E-business students fall into the same category.

In almost every Faculty of Economics worldwide, the students are learning the secrets Balance Scorecard. Here, the e-business students especially those eager and thirsty for more knowledge are going to understand the relevant importance of performance measurement changes in every Industry. People in business, students, and executives are welcome to test the effectiveness of the Kaplan and Norton’s performance measures systems and implement their strategies by using Balanced Scorecard’s methods.

About Robert S. Kaplan and David P. Norton

Robert S. Kaplan

Robert S. Kaplan is a professor born in 1940, New York- United States. He is renowned for his development of leadership at Harvard Business School as a professor, and as an executive of the Balanced Scorecard Group.

 

David P. NortonDavid P. Norton (born 1941) is an American-born business theorist, author, senior executive, and a prominent management consultant. He graduated from Harvard University, meanwhile obtaining a Doctorate of Business Administration.
Robert S. Kaplan co-authored The StrategyFocused Organization and Strategy Maps book with his well-renowned fellow executive David P. Norton, which is also the co-founder, and president of the Balanced Scorecard Groupon.

“The Balanced Scorecard Summary”

How can we describe the Balanced Scorecard?

Well, we can say that it is a discretely selected series of quantitative measures that derive from the company’s organizational management system and strategy.

The Balanced Scorecard as a performance measurement book was firstly published back in 1996. It represents a management classic writing that develops a common platform in the middle of conventional and, short-term faced different management system approaches and a more stabilized attitude towards integrating new measurement types that are intertwined into one entire strategy.

Now, let’s talk about what the Balanced Scorecard does and in what ways companies can use it.

Balanced Scorecard has a task to intrigue and challenges senior managers by looking them directly into the eye and telling them, “To reconsider their organizational measurement perspective and start getting ready for the future.” Many executives take this challenge seriously but struggling to apply any change or upgrade their existing performance metrics. However, a small portion of these executives counters company’s traditional management system by enforcing tangible assets and by adding several nonfinancial measurements to the “instrumentation cabin” that clarifies how to improve corporate’s strategic management system.

Of course, despite all the positive features that Balanced Scorecard has to offer, several organizational issues cannot be neglected.

Senior Managers are aware of the fact that for a Balanced Scorecard performance measures to be applied as planned, company’s CEOs must accept every feedback from all organizational layers. Robert S. Kaplan and David P. Norton are encouraging companies to at least try to become one of the 300 significant organizations that tend to reinforce functional silos and that are using this system for more efficient operational activities and future expectations.

The Balanced Scorecard perspectives are insisting on examining different strategies and choosing the most appropriate one. The strategy must be covered by a well-defined and clear long-term vision that would represent one common organizational goal.

Next, we move on to the key lessons that “The Balanced Scorecard” offers.

Key Lessons from “The Balanced Scorecard”

  1.      Understanding customer’s point of view
  2.      Internal operations and business strategist
  3.      Company’s Financial Metrics
  4.      Staff’s learning and growth possibilities

Understanding customer’s point of view

The Balanced Scorecard must assess company’s capacity to reach its outlined strategic and management objectives related to customer’s satisfaction and overall shopping experience in the marketplace. For a company to successfully select the much talked about strategic performance measures it must answer three vital questions: What is our target group of customers?

How can we identify our value proposition in serving those customers? How can we understand customer’s needs, wants, and demands? Sometimes companies experience “bumpy road” to reach their final destination.

Strategic performance measures are an indispensable part of the company’s long-term financial and operational success, The very foundation of these measurements contains “measuring the market share,” “customer retention,” “Reaching new potential customers ” “Pareto’s 80:20 customer satisfaction” and “measuring profitability.”

Internal operations and business strategy

Company’s internal processes are as vital as the external ones. They emphasize how a company designs and develops a new tangible or intangible products and services, and what is the market’s response to them.

Balanced Scorecard helps senior managers to assess business situations more precisely, by enabling them to understand internal business measures as: “the future percentage of sales from these new products and services that the companies are delivering to the end users,” assessing certain internal operations to find out more about your company’s ability to cope with the competitors and their existing products “Having a clear vision about the next product generation”.

The executives may implement several other optional measurements just to make sure that their operational activities are aligned with company’s long and short-term plans.

Company’s Financial Metrics

Financial measurements are probably the most critical element of the Balanced Scorecard system; they are the foundation of profit/loss relations. A company can put all their efforts on satisfying customer’s demands by continually trying to provide more value for the same amount of money and by competing with the competitors, but none of these factors won’t matter if there is no ROI.

Staff’s learning and growth possibilities

To sum it all up, none of these first three perspectives won’t count if there are no highly skilled and trained employees to provide first class products and services.

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“The Balanced Scorecard” Quotes

Today, organizations are competing in complex environments so that an accurate understanding of their goals and the methods for attaining those goals is vital. Click To Tweet The Balanced Scorecard fills the void that exists in most management systems - the lack of a systematic process to implement and obtain feedback about strategy. Click To Tweet Historically, little attention has been devoted to developing performance measures for product design and development processes. Click To Tweet Executives use the many elements of their management system to orchestrate their agendas. By building the management system around the scorecard framework, they can achieve the ultimate payoff - translating strategy into action. Click To Tweet A good Balanced Scorecard should have a mix of outcome measures and performance drivers. Outcome measures without performance drivers do not communicate how the outcomes are to be achieved. Click To Tweet

Our Critical Review

This book is a beautiful read full of information on strategy execution, as well as a range of tools that can be used to measure the success of implementation. However, a portion of the data is outdated and do not work as well in today’s market in which technology advancements immensely increase competition. In any case, it is a good book, which covers the basics that any business person should know.

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Blue Ocean Strategy Summary

Blue Ocean Strategy Summary

How to Create Uncontested Market Space and Make Competition Irrelevant

Did you know that in the marketing world “angels” and “devils” also exist? Did it ever cross your mind to use tools like “fishbowl management” or “atomization” in a field like this? Our “Blue Ocean Strategy Summary” is all-encompassing and intriguing to train the fish from the bowl to make good profits, isn’t it? It’s not precisely like this, but it’s kind of funny, anyway. Continue Reading…

MARKETING 3.0 Summary

MARKETING 3.0

Phillip Kotler is known as the most influent marketing guru in the world. He practically invented marketing as an academic discipline and became its greatest teacher. Some may think he has become a dinosaur, but we find him to be the most influential guy in marketing history and knowing his work is mandatory for anyone who dreams of making great successful marketing campaigns. Marketing 3.0 is an extremely rich and full of unconventional reviews of the future of marketing. Want to start planning your business marketing? Want to plan a long-term marketing career? Do not miss this microbook!

 

A NEW CONSUMER

The way marketing is done evolved a lot over the last few decades. All the research and knowledge created in the field have become simple rules, easy to follow by the marketer. Technology has evolved, and costs have declined. That allows any company to be able to invest in marketing, making ads, pamphlets, campaigns on social networks. And that’s terrible news. As marketing was developing its knowledge and technology, the perception and level of consumer demand changed. They are now bombarded with thousands of marketing pieces every second and this has left them incredulous and questioning. If before what was in the media was true, now they want to be part of the media. If your marketing does not bring engagement, your consumers will stop paying attention, and your efforts will go down. Traditional marketing is not prepared to deal with this new customer. We need to change the way we view the marketing act in contemporary times. Kotler presents the 3 eras of marketing:

 

  • Marketing 1.0 – Product Age: The focus was on the development of functional products and making them mass products;

 

  • Marketing 2.0 – Age of Consumers: The focus shifted to meet and satisfy the consumer through segmentation;

 

  • Marketing 3.0 – Values Era: The focus has shifted to recognizing that the consumer is more than just a buyer.

 

The consumer has other collective, environmental needs and seeks an ever better society. By the middle of the last century, there were few products to be purchased by consumers, and therefore marketing was not necessary. Henry Ford, with his Ford T, was just focused on creating a product. As the industry grew, it became required to understand the customer and his needs better, as more and more companies competed for selling products. Now the internet and social networks have created a new era where consumers communicate with global reach, and this calls for a new type of marketing for a new kind of consumer.

 

CONSUMERS ALSO MAKE MARKETING

Many marketers today have left the customer out of their priorities, and this has made marketing confidence fall dramatically. While this is a problem, it is also an excellent opportunity to resolve the issue, after all, every marketer is also a consumer of products and services. And consumers need to know that they also practice marketing in their daily lives by persuading and influencing other consumers. Marketing is not just something that marketers do for consumers. Marketing also happens from consumer to consumer, because unlike before, today people no longer sit on the couch and just consume news, entertainment and ideas. They are actively participating in everything that happens, not as spectators but as actors as well.

 

TECHNOLOGY HAS TRANSFORMED THE CONSUMER

This change occurred because of the development of technologies that allow us to interact with others easily and quickly and because these technologies have become much cheaper and accessible with the growth of social networks. Open source software also enables more and more collaboration. Today digital collaboration platforms can be divided into two categories:

 

  • Expressive: Blogs, Facebook, Youtube, Twitter and other channels through which people share personal points of view;

 

  • Collaborative: Can be developed and altered by virtually anyone, such as Wikipedia itself.

 

This growth in social networks has transformed the way we do marketing, especially in digital, and has made consumers rely more on people in these networks than on TV ads and banners on the sites they visit. That has made classic advertising methods obsolete and increasingly leads companies to engage in social networks, including using collaborative platforms to create products with their consumers.

 

EMBRACING CO-CREATION

Increasingly, people work in sectors directly related to creation and communication, and video producers, web developers, social networking professionals are creating new things all the time. Although this is still a not so large sector of the economy, they are multipliers and thus has a significant influence on the formation of customer opinions. Creative professionals have sophisticated desires and look for new ways to utilize products. In this new world, values such as making the world a better place, finding a purpose for their lives, being happy and spiritual become more important than the desire to consume. A company that wants to be successful in marketing needs to approach creative professionals and embrace them in their product creation strategy.

 

The new way of creating products is based on the collaboration of companies, consumers, suppliers and interconnected partners in an innovation network. It is the accumulation of individual experiences of each of them that creates a greater value for the product, so it is necessary to be attentive to this transformation. A great example of user empowerment in product design is Dell’s Web site http://www.ideastorm.com where consumers give suggestions for improvements and new product ideas, and Dell interacts directly with them, often adhering to their ideas and launching novelties and innovations.

 

MARKETING 3.0 IS HUMAN

The human being is composed of 4 elements: a physical body, a rational brain, the emotional side and its spiritual side. Modern marketing needs to connect with individuals in all these spheres. Traditional marketing only connects with the customer through your mind (the memory of a brand) and the emotional (trying to create emotions through advertising messages). The rational and the spiritual side tend to be forgotten and become essential in the new marketing. Marketing 3.0 also needs to work on the spiritual side of the consumer. It is necessary to create high trust in the brand and to position itself as something genuinely aligned with the purpose of consumers. Therefore, it is necessary to understand the 3 I’s of a brand:

 

  • Brand identity: It is based on how the brand communicates itself to people and how they perceive those identifying attributes;

 

  • Brand Integrity: It is based on how much people trust and align with your brand;

 

  • Brand Image: It is based on how people see their brand, through their own impressions.

 

To define the 3 I’s and show their commitment to a purpose, it must define a mission, vision and clear values that resonate with the consumer’s wishes. If your company is able to fulfill and realize these principles to the consumer, you gain your trust and an integral identity. Most people seek to make the world a better place and thus satisfy their spiritual yearnings. That is why your company should find a purpose, a goal more significant than just profits to actually create a corporate soul that connects with the consumer. The mission of a company should represent a basic purpose, the reason for existing. Already the vision is the future imagined for the company. Vision is a path which the company wants to take and what it seeks to achieve and, therefore, it is the driver of the long-term strategy. Vision derives from the mission but has a life of its own. Finally, your business needs to define its values. What attitudes guide the day-to-day business, the behavior of people and the type of attitudes with which you communicate to consumers.

 

COMMUNICATE YOUR MISSION

It is crucial for customers to know that your business connects to causes and a greater purpose. Therefore, your mission should transform the lives of customers. For this to happen, one must produce innovations at all times that really change people’s lives. However, a mission is not enough. It is necessary that your company can build a story, a narrative that communicates its purpose. A good tale has a character, a good plot and also a metaphor. Your mark should be to become a character and represent something that is really important to people. When a brand is accepted by customers, it ceases to be the exclusive property of the company. It becomes part of people’s lives, and this story happens to be the popular domain. People want to hear and believe in your purpose, and you can reinforce it all the time through your marketing. For example, rather than simply donating money to some institution attached to your purpose, connect your product to social causes that align with it as well. More than just a donation, make a real effort to communicate this relationship. A great strategy to prove your company’s social responsibility is to link it to social causes that have to do with your product and its purpose, a concept called cause-marketing. Donating money to a cause may seem like a synonym for goodwill, but marketing causes are much more effective because it demonstrates a real commitment of the company and not just a specific effort towards its mission and purpose.

 

VALUES NEED TO BE CONTINUOUSLY STRENGTHENED AND TRANSMITTED

The company values are only true if lived at all times by the leadership and the employees of a brand. They need to be part of the culture, and if a company has a primary value, it must be true to them 100% of the time. When the company fails, people notice and are disappointed, feeling betrayed by the brand. You need always to have standards of conduct aligned with company values, aspirational values, which represent skills the company needs to develop to help you get where you want to achieve your goals. There are also the accidental values that the company assumes from the experiences and the profile of its employees, and you must be attentive to them. Having a clear set of values helps the company to attract and retain great talent, improves internal productivity and the perception of service by the end consumer and integrates the business as a whole.

 

YOUR VALUES ARE ALSO IMPORTANT WHEN WORKING WITH PARTNERS

Choosing the right partners is crucial for business and even more important if you sell through channel structures where partners have contact with the end consumer. Imagine that you produce a product, but it is distributed by a partner A and sold by a partner B. The integrity of the brand with the consumer also passes through these partners and there comes the importance of knowing how to choose your business partners, to ensure that your brand is actually integrated. It is necessary that your partners have a mission, vision, and values similar to those that your company seeks. Especially in the case of companies that have little contact with their end consumer, such as in the hardware industry, channel sales need to share experiences in line with what the company itself would do. In Marketing 3.0, channel management begins with the discovery of the right channel partners for similar purposes and values. Channel partners with compatible values will be able to convey stories to consumers convincingly, and this will ensure a strong brand and customer experience.

 

FOCUS ON THE LONG TERM AND MAKE IT CLEAR CLEAR TO SHAREHOLDERS

Short-term thinking has historically hurt the global economy and led to bad decisions. Some shareholders may push for short-term goals, but it is essential to maintain long-term focus and consistency with their mission, vision, and values. Your strategy needs to be visionary and aligned with the desired future. A management that focuses only on short-term goals is blind and can end up generating disastrous results with the end consumer, with employees and partners. The global economic crisis of 2008 showed clearly and harshly how centennial and seemingly solid companies can be destroyed by focusing only on short-term gains. The immediate view of the managers contradicted the concept of economic and environmental sustainability of the business. In September 2009, a year after the collapse of Lehman Brothers, big-money luminaries, including the famous Warren Buffet, signed a joint letter calling for an end to the immediacy of the financial markets and calling for policies to feed value creation For shareholders and society in the long term. The statement acknowledged the role of immediacy in driving risky strategies that could lead to a collapse in the economy and have huge negative impacts on people’s lives. All members who signed the letter agreed that long-term capitalism will bring significant gains in the future and have encouraged shareholders to be more patient in their investments. Kotler says there are many benefits for companies that adopt long-term focused strategies such as:

 

  • Lower investments in advertising, thanks to the word of mouth by satisfied consumers;

 

  • Better working conditions, increasing productivity and reducing costs with formal training once employees become aligned with company values;

 

  • Increase in sales through new market opportunities, since a good mission, vision, and values facilitate the exploration of new opportunities;

 

  • Increasing the value of the brand itself, since the recognition and trust of a brand by consumers are an essential asset for companies.

 

THE NEW CONSUMER ASKS FOR SUSTAINABILITY

Nowadays, sustainability must be part of the company’s strategy. Executives need to see sustainability as a competitive edge that will define the company in the future, regardless of competition. That is essential if you are to sell the corporate vision of sustainability to shareholders. The interest of shareholders is a greater value of their assets, and the value of the company is determined by future potential performances, so we must demonstrate that companies that will prosper in the future will be able to leverage sustainable energy sources, such as investing In solar power stations. The 3 most persuasive advantages of sustainability are:

 

  • Reduce costs by consuming smaller quantities of expensive resources such as gas and producing less waste. That eliminates the high expense of removing litter;

 

  • Demand for environmentally friendly products. According to the Forrester survey, 73% of customers want brands that are concerned about the environment.

 

  • Sustainable practices improve the company’s reputation and brand, resulting in an obvious financial impact.

 

FINAL NOTES

Traditional theoretical marketing, synthesized by Kotler himself, is being impacted by the accelerated evolution of globalization and technology. More than that, marketing got stuck in a conventional form, as the customer moved away, evolved and started to be a marketer with the advent of social networks. The new way of doing marketing is based on reconnecting with this consumer and embracing the human side of marketing to succeed, always with a true and coherent purpose. That is Marketing 3.0.

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HIGH OUTPUT MANAGEMENT Summary

High Output Management is the essential book of late Andy Grove, the former CEO of Intel, focused on managers, directors, and CEOs. If you have a team, a company or if you relate to many people in your day to day and have to balance the interests of your team, this book is mandatory for you. The focus of High Output Management is to make it clear that the key feature of a good manager is focused on results, output, and thus teach you how you can deliver more results by understanding how a corporation should work. In a company, your personal result is equivalent to the result of all teams and departments under your supervision or influence. Your team will only achieve real high performance if each member has an understanding of their required output and clarity of what their role in the company is.

 

UNDERSTANDING THE PRODUCTION LINES:

Efficient production lines operate on three assumptions: Deliver your products on time, with a clear quality standard and within the defined cost. To ensure that these assumptions are met, you must ensure that your production line follows these steps:

 

  • Manufacturing: the stage in which the elements of your product are grouped;

 

  • Assembly: when the components are grouped together forming a new item;

 

  • Tests: the examination of the characteristics of the product. To optimize your production line, you need to be aware of “bottlenecks” (time-consuming, more resources, where more failures occur, etc.) steps to optimize it. Once the most complex step is optimized, move to the second, third, and so on. To monitoring to be ensured, there are the KPI’s or Key Performance Indicators indicators. Even a basic indicator is better than having no indicator at all. Good indicators measure the result, the output of a process and the number of activities carried out. Choose an indicator for each goal sought and analyze them individually and comparatively, because almost always one indicator impacts directly on others. An example: the number of units produced per day (speed indicator), if increased dramatically, can compromise the number of defective products per day (quality indicator). In addition to follow-up indicators, there are also indicators that can predict outcomes and trends by measuring the results of a process over a period of time. An example of the use of this scenario would be to track one indicator as output per employee per month. Through it, you get to know, over time, whether you’re getting more or less efficient and even design how many employees you’d need to hire to achieve your goal of increasing the parts production.

 

DISCOVER YOUR MANAGEMENT LEVERAGE

Leverage is the measure of the result generated by each manager. Andy uses the following formula to describe it:

 

Manager Output  = output of his direct reports + output of the other teams that benefit from his knowledge.

 

To ensure maximum performance, you need to be aware of your managerial role, which includes collecting information, multiplying information for the team, making decisions, being an example to the team, and compiling reports frequently. Management reports are essential for communication but are even more important to the manager’s self-discipline. Producing them is usually more important than consuming them. To delegate efficiently, it is necessary for a manager to have constantly analyzed information, strategic knowledge about the business, and also communication and leadership skills. According to Andy, a manager must have between 6-8 subordinates. Less than 6 can cause a slowdown in the company, and more than 8 can lead to confusion in the communication.

 

HOW TO HAVE EFFICIENT MEETINGS

Meetings have great leverage when used effectively, but care must also be taken that they do not become a waste of resources. They must be of the following types:

 

  • 1:1’s – Meetings between manager and subordinate to exchange knowledge and feedbacks. The manager should listen, ask questions and try to use the opportunity to find problems and be an effective coach for the team member. The purpose of this meeting is to increase the mentee’s understanding of her role and to help her produce more and grow. Its frequency depends on the experience of the subordinate in the job, but it is generally recommended that it occur once a week for non-experienced staff, lasting less than an hour. This meeting is highlighted by Andy as one of the most important in all types of companies.

 

  • Team Meetings – These should be used to discuss topics that affect more than two people. The role of the manager is to facilitate the meeting, to control its pace and to follow up so that the matter is resolved there. Its role is to help the team make decisions. Mediation of conflicting views is a great exercise for the manager to have more understanding of the issues at stake.

 

  • Operational Reviews – Starts with a presentation and discusses the results of the process. It is also a way to help people who do not necessarily interact on a daily basis to get to know each other and exchange ideas. Having focused and using these practices, it is possible to successfully follow the company’s results and align everyone involved.

 

HOW TO MAKE BETTER DECISIONS

To make wise decisions, it is important always to involve experts on the subject. Not always, as a manager or CEO of a company, you must make all the decisions. In general, decisions must go through 3 stages: Free discussion with stakeholders, clear decision with a plan of action and communication of the total support of the management to the decision maker. Full support does not necessarily mean agreeing with everything but instead communicating that you agree with the plan to be followed. In general, it is best that decisions are made by the middle-tier managers of the company, after all, they combine a mixture of specialized knowledge and authority. The most significant obstacle to good decisions is that people do not always position themselves transparently on the subject. A meeting with only people of the same managerial level does not bring good decisions, as they tend to seek consensus. If there is no manager involved, it is important that the most senior professional approves the final decision in the group. Another critical factor is always to consult others before deciding because if you make decisions without consulting, the other members of your team will also make decisions without consulting their teams.

 

PLANNING WITH A FOCUS ON RESULTS

Planning is critical to results-focused management, and it is important that you do it as a manager, not by an isolated professional. The manager is aware of his resources and understands that planning is to say yes to some projects and no to others. Planning is based on 3 basic steps.

 

  • Understand the demand – What the environment, the company or your team will need you and for how long.

 

  • Understand the current situation – What you are producing now when these projects will be completed and what the impact of adding new projects in the short term.

 

  • Compare the demand with the current situation and derive a plan – What needs to be done to ensure that demand is delivered? How much time and resources are needed? Planning (the strategy) should produce tasks (the tactics) that need to be done now to change future events and meet the needs of the demand raised. The planning process output, therefore, is the set of decisions made based on the planning process. It is important to remember that after planning, it is important to separate some time to consider the impact of that planning and those decisions. Saying yes to one project means saying no to others.

 

UNDERSTAND OBJECTIVE MANAGEMENT CONCEPT (OKR’S)

Management by objectives or OKR’s (Objectives and Key Results) should be used to ensure speed after planning. Set your goals by asking “Where do we want to go?” From there, list the key results you expect to know if you are getting there. Choose critical areas and focus. Also keep the results always specific, so that it is clear what we can do and where we fail.

 

TRAINING YOUR TROOPS

You, as a manager, can improve the performance of your employees and subordinates by developing motivation (developing self-esteem and acknowledging the contributions of individuals) and training. Self-esteem and the development of the individual are the two keys to this process. While self-esteem and motivation are finite resources, not being able to count on them always, the technical and personal development, as well as the ability to acquire new knowledge from people, are infinite. People, in general, develop in different ways:

 

  • Competency development: The member is continuously focused on mastering his task, seeking to become a virtuoso, a great specialist and thus obtain recognition;

 

  • Achievement development: The person is focused on “winning” and “achieving goals” in everything he does. Both approaches lead people to overcome and test their limits, whether at the level of skill or at the level of achievement. Behaviors focused on skill development should not be rewarded with recognition; after all, they are not necessarily aligned with the company’s goals. Development focused on achievements and realizations must be fostered in every organization. An accomplishment is always a result, an output.

 

MATURITY CONCERNING THE TASK: THE SECRET TO DELEGATE

Maturity concerning the task (a term initially coined by Grove as task-relevant maturity) is a criterion used to define how each type of subordinate is managed. It takes into account the level of maturity it presents in order to adopt a different style of management, either through directive management (directions and explanations), objective (focused on goals and results, but offering mentoring) or delegation focused on leadership (involvement of the manager in the execution of the task close to zero, only in monitoring the results and motivation of the individual).

 

  • Low maturity: The individual with low maturity in relation to tasks has little experience in the required area. He may be a new or new employee in that profession and needs to be managed accordingly. It is necessary to explain the task in detail, as well as the expected results, the resources needed and the step-by-step to execute it. The style should be directive, asking the employee to take notes and ask questions. Your first goal with this individual, as a manager, is to make sure that he can complete the task and become effective, competent and trustworthy.

 

  • Average maturity: At the intermediate level, the professional already has some experience with the specific task. They already have a certain level of competence in the area and are more confident in their ability to execute. Still, this experience may be limited and, in this case, its management must follow an objective style. Explain clearly the objectives and expected results of the task and ask this person how they would do the task to meet your expectations. Let them develop the execution plan. Track progress gradually, but leave the burden of discovering the necessary resources and step by step to reach the goal. Ask them to find out for themselves and only come to you if they are absolutely stuck. Otherwise, you may be “reverse delegating”, meaning giving them a job that will just give you more work. Your goal here is to develop in the professional the ability to come up with real solutions without depending on you. Your role is as coach and mentor of this employee.

 

  • High maturity: With high maturity, the individual has great experience in the requested field and can be considered an expert, having, even more, knowledge than you in the area of activity. In this case, the recommended management model is the delegation by leadership. Focus on having a very high alignment in the expected result or let the professional decide for himself the expected result. Make it clear that they will be evaluated for their results only and give them full autonomy to pursue them. Let them run alone and trust. This confidence, of course, comes from the professional’s experience in executing similar projects previously. To develop on team management and your delegating ability, it is important that the responsibilities of each role in your company be very well defined, regardless of the maturity of each person. It is also necessary to make it clear to people that each of them will be evaluated differently at each maturity level. As you develop as a manager, increasingly seek to master your skills to leverage yourself through the delegation of responsibilities. Master the concept of maturity about the task and watch your productivity grow as you help the professionals around you to grow and develop. Your team will thank you.

 

MASTERING PERFORMANCE EVALUATIONS

A talented manager understands the importance of measuring the performance of his team since the performance of all the members of the team added is his performance. Performance analysis is a fundamental tool to provide relevant feedback to the task performed by a subordinate. Your goal is to improve the performance of the individual according to their skill level and also maintain their motivation. For good evaluations, always: clarify in advance the result you are seeking for the professional; Outcome measures (e.g., number of products delivered, number of defects, etc.); Evaluations of internal actions taken (i.e., planning, training, contracting, etc.). During the assessment, stay out, listen attentively, focusing on the individual. Your goal is to be committed to finding solutions. A common pitfall in which many managers fall is to evaluate people based on their potential rather than their results.

 

TWO DIFFICULT TASKS, YOU WILL HAVE TO GET USED…

If you are a manager, there are two extremely difficult tasks that are part of your day-to-day life: hiring qualified professionals and dealing with the exit of talented ones. The key for hiring is to develop the ability to interview candidates. When interviewing candidates, you should always focus on measuring your knowledge, your past performance, and identifying potential cultural discrepancies with company values. Let the candidate talk most of the time and just interrupt and change the subject if the conversation loses focus. Draw scenarios, allow candidates to ask questions but stay focused on the topics above. Saving time in interviews is also important. The other complicated situation is when an essential professional, the guy you absolutely do not want to lose, asks for resignation. When dealing with talented people who resign, give immediate attention to the matter as soon as you know the news. Always seek alternative solutions, offer departmental transfers, consult supervisors and do your best to retain your key talent.

 

TRAINED TEAMS, MOTIVATED TEAMS

For Andy Grove, you as a manager have two main responsibilities: team motivation and training. Training must be incorporated into the culture and business processes in depth. It is extremely important that the training has a clear, documented, consistent and repeatable process within the organization. Training should not be something with a scheduled date, which occurs every month in the first week. The training must be continuous and part of the daily operation of the companies, so that the professional can perform his tasks. Motivation is the complementary tool that helps the professional to improve his performance and acquire his mastery.

 

LET’S TALK ABOUT MONEY? PAYING YOUR TEAM

Managing team compensation is a very common challenge for managers and is where many mistakes happen. There are two classic forms of wage management, one based on the experience of the employee and another based on their merits. Companies generally use a combination of both, but it is necessary that job promotions within the company are always tied to performance, results, aiming to highlight company values. Do not make the mistake of paying for potential or experience!

 

FINAL NOTES

High Output Management is required reading for every manager, director or CEO. The book is such a comprehensive guide that it becomes difficult to summarize all the key points. The most fundamental concept, however, is that the manager’s focus is to monitor the quality and quantity of each department’s deliverables. A very common mistake for managers is to spend too much time on meetings, connections, and forget about focusing on the outcome. The great manager knows exactly what the expected measurable result of his or her job is and always seeks to improve it, either by training his subordinates and educating them about the importance of their role and their metrics in the company as a whole or by promoting them based exclusively on results and never “potential”.

 

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