Mba Quotes

Business schools don't create successful people. They simply accept them, then take credit for their success.

You can't make positive discoveries that make your life better if you never try anything new.

Whoever best describes the problem is the one most likely to solve it. —

Every successful business (1) creates or provides something of value that (2) other people want or need (3) at a price they're willing to pay, in a way that (4) satisfies the purchaser's needs and expectations and (5) provides the business sufficient revenue to make it worthwhile for the owners to continue operation.

Business is supposed to be fun. We're supposed to love what we're doing. Don't let these old folks convince you that business is about spreadsheets and MBA's and metics and all that stuff. That's all good, but ultimately business is just about adding value to other peoples lives and getting them to pay you for it.

Let me be brutally honest. Being an insider, I know exactly how these MBA guys think. And because I know who they really are, I have nothing but utter contempt for these professionals. Now you might think I am stereotyping and generalizing. Yes, I am, indeed. But get this thing straight. Only highly competitive people prepare for these entrance exams to these top-notch B-schools. Only those who have excessive cupidity for money, power and status, only such people enter these highly reputed management colleges. These people don’t have friends, instead, they have connections. It’s all about Moolah. It’s all about usefulness. You scratch my back, and I will scratch yours. You be my ladder, and I will be yours.

Business is supposed to be fun. We're supposed to love what we're doing. Don't let these old folks convince you that business is about spreadsheets and MBA's and metrics and all that stuff. That's all good, but ultimately business is just about adding value to other peoples lives and getting them to pay you for it.

Tommy moved on. "Lash, your people have been oppressed for hundreds of years. It's time to strike back. Look, you don't have your MBA yet - they haven't completely juiced you of your usefulness yet. Would Martin Luther King back down from this challenge? Malcolm X? James Brown? Don't you have a dream? Don't you feel good, like you knew that you would, now?

Every time your customers purchase from you, they’re deciding that they value what you have to offer more than they value anything else their money could buy at that moment.

MBA students are not the only ones overconfident about their abilities. The “above average” effect is pervasive. Ninety percent of all drivers think they are above average behind the wheel,

Retired general Colin Powell famously advocates collecting half of the information available, then making a decision, even though your information is clearly incomplete.

Ideas are cheap—what counts is the ability to translate an idea into reality, which is much more difficult than recognizing a good idea.

Improve by 1% a day, and in just 70 days, you’re twice as good.

Focus on Options, not issues, and you’ll be able to handle any situation life throws at you.

You don’t need an MBA, a certificate, a fancy suit, a briefcase, or an above-average tolerance for risk. You just need an idea, a touch of confidence, and a push to get started.

You're the one with almost an MBA," Barry, the short balding one, said to Lash. "You should know what to do." "They don't cover what to do with a dead hooker," Lash countered. "That's a whole different program. Political science, I think.

Once you eliminate your number one problem, number two gets a promotion. —GERALD WEINBERG,

If you want an audience, start a fight. —IRISH PROVERB

Learn everything you can from your competition, and then create something even more valuable.

As much as possible, avoid hiring MBAs. MBA programs don’t teach people how to create companies … Our position is that we hire someone in spite of an MBA, not because of one …

There is only one boss: the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. —SAM WALTON, FOUNDER OF WALMART A

In the business people with expertise, experience and evidence will make more profitable decisions than people with instinct, intuition and imagination.

Here’s a curious fact about human beings: we have a really hard time realizing that something isn’t there.

Experimentation is the essence of living a satisfying, productive, fulfilling life. The more you Experiment, the more you learn, and the more you’ll achieve.

College: two hundred people reading the same book. An obvious mistake. Two hundred people can read two hundred books.

Paradoxically, then, network effects businesses must start with especially small markets. Facebook started with just Harvard students—Mark Zuckerberg’s first product was designed to get all his classmates signed up, not to attract all people of Earth. This is why successful network businesses rarely get started by MBA types: the initial markets are so small that they often don’t even appear to be business opportunities at

You can tell if a discipline is BS if the degree depends severely on the prestige of the school granting it. I remember when I applied to MBA programs being told that anything outside the top ten or twenty would be a waste of time. On the other hand a degree in mathematics is much less dependent on the school (conditional on being above a certain level, so the heuristic would apply to the difference between top ten and top two thousand schools). The same applies to research papers. In math and physics, a result posted on the repository site arXiv (with a minimum hurdle) is fine. In low-quality fields like academic finance (where papers are usually some form of complicated storytelling), the “prestige” of the journal is the sole criterion.

When you feel at peace with your troubles, they turn into lessons and ladders to help you climb to the next level of your evolution

Hustling is to work what surfing the Internet is to reading. If you add up how much you read in a year on the Internet—tweets, Facebook posts, lists—you’ve read the equivalent of a shit ton of books, but in fact you’ve read no books in a year. When I look back on it, that’s what hustling was. It’s maximal effort put into minimal gain. It’s a hamster wheel. If I’d put all that energy into studying I’d have earned an MBA.

Cliché: "The MBA changed my life." What it really means: "A fantastic career, a great social life and a healthy bank balance...three of the things I had before I started the program.

Options are often an overlooked form of value—flexibility is one of the Three Universal Currencies (discussed later). Find a way to give people more flexibility, and you may discover a viable business model.

Goods in any storehouse are useless until somebody takes them out and puts them to the use they were meant for. That applies to what man stores away in his brain, too. —THOMAS J. WATSON, FORMER PRESIDENT OF IBM

Yes, we were given the free-will to choose how to be, but we can still go back to the one who gave it to us for guidance on how to use it.

Discoveries are often made by not following instructions, by going off the main road, by trying the untried. —FRANK TYGER, POLITICAL CARTOONIST AND COLUMNIST I

Focus on creating Forms of Value that require the least end-user effort to get the best possible End Result—they will have the highest perceived value.

there’s often a huge difference between an interesting idea and a solid business.

I am, before, during and after all conditions. I am a constant that is never altered by the temporal. I am!

Estrogen deficient woman are nothing but the walking dead.

A good salesman, as the old (and politically incorrect) saying goes, can sell a refrigerator to an Eskimo. It's a cliché, but there's some truth to it: Inuit who live above the Arctic Circle use insulated refrigerators to keep their food from freezing in subzero temperatures

look back on it, that’s what hustling was. It’s maximal effort put into minimal gain. It’s a hamster wheel. If I’d put all that energy into studying I’d have earned an MBA. Instead I was majoring in hustling, something no university would give me a degree for.

Page holds Musk up as a model he wishes others would emulate—a figure that should be replicated during a time in which the businessmen and politicians have fixated on short-term, inconsequential goals. “I don’t think we’re doing a good job as a society deciding what things are really important to do,” Page said. “I think like we’re just not educating people in this kind of general way. You should have a pretty broad engineering and scientific background. You should have some leadership training and a bit of MBA training or knowledge of how to run things, organize stuff, and raise money. I don’t think most people are doing that, and it’s a big problem. Engineers are usually trained in a very fixed area. When you’re able to think about all of these disciplines together, you kind of think differently and can dream of much crazier things and how they might work. I think that’s really an important thing for the world. That’s how we make progress.

Do not wait for the green light. You are the green light.

Getting into the habit of changing who you are to please others, is setting a lifetime marathon of running away from yourself.

Being "nowhere" is a step towards getting somewhere. Today, if you feel like you are nowhere, you are in a powerful position to choose the "somewhere" you want to go.

The moment you make a mistake in pricing, you’re eating into your reputation or your profits. —KATHARINE PAINE, FOUNDER

All hurt is founded on attachment to anything regardless of its nature. When we detach we vibrationally send ourselves back into the flow of life.

Ramit Sethi recommends applying what he calls the “85% Solution.” So many people get wrapped up in making the perfect decision that they wind up overwhelming themselves and doing nothing.

Good Stories Always Beat Good Spreadsheets” “Whether you are raising money, pitching your product to customers, selling the company, or recruiting employees, never forget that underneath all the math and the MBA bullshit talk, we are all still emotionally driven human beings. We want to attach ourselves to narratives. We don’t act because of equations. We follow our beliefs. We get behind leaders who stir our feelings. In the early days of your venture, if you find someone diving too deep into the numbers, that means they are struggling to find a reason to deeply care about you.

By making offers Modular, the business can create and improve each offer in isolation, then mix and match offers as necessary to better serve their customers. It’s like playing with LEGOS: once you have a set of pieces to work with, you can put them together in all sorts of interesting ways.

people assume that they need to attend business school to learn how to build a successful business or advance in their career. That’s simply not true.

Thinking about what's beyond thought, is opening up your mind to tap into infinite intelligence designed to expand your consciousness.

Business is not (and has never been) rocket science—it

By choosing to innovate instead of compete, Apple successfully captured a leadership share of a very competitive market.

It's time to stop grouping up and complaining about all our estrogen deficient symptoms and demand real answers and plenty of estrogen.

Quality, quality, quality: never waver from it, even when you don’t see how you can afford to keep it up. When you compromise, you become a commodity and then you die.

Beware of little expenses; a small leak will sink a great ship.

If you leave your mind unattended, the world will do it for you, and you will have to deal with the related insanity.

People buy because they believe they’re getting more value in the Transaction than they’re spending.

Perimenopausal women don't make eye contact, don't want to be touched, they slouch, they scuff, and avoid any social interaction if possible.

Self-education is, I firmly believe, the only kind of education there is.

I'm jealous of nature. It just expresses itself without judgment, the comparison with others, worry or complaints. And because of this very fact, it heals us in ways we can't even imagine.

1. Value Creation. Discovering what people need or want, then creating it. 2. Marketing. Attracting attention and building demand for what you’ve created. 3. Sales. Turning prospective customers into paying customers. 4. Value Delivery. Giving your customers what you’ve promised and ensuring that they’re satisfied. 5. Finance. Bringing in enough money to keep going and make your effort worthwhile.

And for the glorious honor of being bitched at constantly and the esteemed title of Claims Investigator, he’d given up five years of his life as he went to college, created a debt his great-grandkids would curse him over, and got the holy honor of MBA. More Bullshit Allowed. (Zeke)

A friend who attended a prestigious MBA program once told me about the business ethics course he took there. The professor counseled honest business practices for two reasons. First, if you lie or cheat you may be caught, and that would be bad for business. Second, if people in the company know they ae working in an honest business, that will boost morale . . . "Tell the truth--because it's to your own advantage," was the counsel. What happens, however, when you inevitable come to situations in which telling the truth would cost you dearly? What happens when telling a particular lie would be stupendously advantageous to you?

A great example of Guiding Structure is the “Sterile Cockpit Rule” that the Federal Aviation Administration (FAA) instituted in 1981. Most airline accidents happen below ten thousand feet, where distractions can be deadly. Above ten thousand feet, pilots can talk about anything they want, but below ten thousand feet, the only discussion permitted is about information directly related to the flight in progress. By eliminating distractions, the Sterile Cockpit Rule reduces errors and accidents.

To attach to a goal is to mentally protect it because of a negative story running at the back of your mind. To surrender is to tap into your faith and believe that something bigger than you can do the work without the interruption of your human condition.

man! Can you believe they actually allow this stuff to be sold over there? Glad we got laws against that crap in this country." I remind him that the socialist party is probably the largest political party on the planet. "Aw bullshit!" he said. I asked, "Then what the hell do you think is the largest party?" "The Republican Party of course! We're the only country with real political parties." Now this is from a guy who has an MBA from one of the South's universities, holds local office, and has influenced public affairs.

البقاء ليس للأقوى أو اكثر ذكاء من الأجناس، لكنه للأكثر تجاوبا وتكيفا مع التغيير - تشارلز داروين

أولا، اتقن استخدام آلتك. وبعد ذلك، انس كل الهراء، وابدأ العزف. - تشارلي باركر

Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth. —MARCUS AURELIUS, ROMAN EMPEROR AND PHILOSOPHER

Consciously sending a mental “message received, safe to proceed” signal to your brain is a simple and surprisingly effective way to make yourself stop fixating on the issue

Even the thinnest anything, has two sides to it. Let's seek to examine both sides to everything before we judge

Approach making changes to a complex system with extreme caution: what you get may be the opposite of what you expect.

Paradox of Automation: the more efficient the Automated system, the more crucial the contribution of the human operators of that system.

It is better to have an approximate answer to the right question than an exact answer to the wrong question. —JOHN TUKEY,

How do I know what I think until I hear what I say? —E. M. FORSTER, NOVELIST AND SOCIAL ACTIVIST E

Don’t waste time trying to predict an unknowable future—construct the most likely scenarios and plan what you’ll do if they occur, and you’ll be prepared for whatever actually happens.

You can’t operate a company by fear, because the way to eliminate fear is to avoid criticism, and the best way to avoid criticism is to do nothing. —STEVE ROSS, FORMER CEO OF TIME WARNER

A world full of "certainties" All the plans, all the vanities. Where black covers the white Suited in "confidence"- the constant fight. A million roads I dream to take One destination, knowing not I turn where. A green veil covers for two years, some two decades. But the "plan" awaits, new roads to make. I pant, I struggle, I do my best While they say, "You are, dear, but so inadequate".

I’ll be as loving as you will be, as stubborn as I know you are, as passionate as I’m thankful you are and as supportive and understanding as I’ve known you to be. You are my best friend and I love you

Economic Values that people typically consider when evaluating a potential purchase. They are: 1. Efficacy—How well does it work? 2. Speed—How quickly does it work? 3. Reliability—Can I depend on it to do what I want? 4. Ease of Use—How much effort does it require? 5. Flexibility—How many things does it do? 6. Status—How does this affect the way others perceive me? 7. Aesthetic Appeal—How attractive or otherwise aesthetically pleasing is it? 8. Emotion—How does it make me feel? 9. Cost—How much do I have to give up to get this?

Motivation is an emotion—NOT a logical, rational activity. Just because your forebrain thinks you should be motivated to do something does not mean you’ll automatically become motivated to do that thing. (If only it were that easy, right?) Very often, Mental Simulations, Patterns, Conflicts, and Interpretations hidden in the midbrain can get in the way of making progress toward what we want to accomplish. As long as there are “move away from” signals being sent, you’ll have a hard time feeling motivated to move toward what you want.

Today is the starting line for the rest of your life. Yes, today is the tomorrow you worried about yesterday. The problem with the past is that we remember memories we shouldn't, and we don't forget what we should“ If your eyes are stuck in the rearview mirror, you're stuck in the past. If you're stuck in the past, you're not looking ahead. If you're not looking ahead, you can't hit the mark of your future. The universe doesn't care about your past. It is blind to it. The universe doesn't care that I wore pink pants in high school. (Hey, remember Miami Vice?) The universe doesn't care that I got in a fight with Francis Franken and lost. The universe doesn't care about your MBA from UCLA, your drug-dealing father, or that you wet your bed in junior high. The universe simply doesn't care. One person and one person only weaponizes past transgressions: you.

Engineers want to produce something,” said Wallach. “I didn’t go to school for six years just to get a paycheck. I thought that if this is what engineering’s all about, the hell with it.” He went to night school, to get a master’s in business administration. “I was always looking for the buck. I’d get the M.B.A., go back to New York, and make some money,” he figured. But he didn’t really want to do that. He wanted to build computers.

As to methods, there may be a million and then some, but principles are few. The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble.

Your people give their days (and sometimes their nights) to you. They give their hands, brains, and hearts. Sure, the company pays them. It fills their wallets. But as a leader, you need to fill their souls. You can do that by getting in their skin, by giving the work meaning, by clearing obstacles, and by demonstrating the generosity gene. And you can do it, perhaps most powerfully, by creating an environment that’s exciting and enjoyable.

1. Watch—What’s happening? What’s working and what’s not? 2. Ideate—What could you improve? What are your options? 3. Guess—Based on what you’ve learned so far, which of your ideas do you think will make the biggest impact? 4. Which?—Decide which change to make. 5. Act—Actually make the change. 6. Measure—What happened? Was the change positive or negative? Should you keep the change, or go back to how things were before this iteration? Iteration is a cycle—

The best businesses in the world are the ones that create the most value for other people. Some businesses thrive by providing a little value to many, and others focus on providing a lot of value to only a few people. Regardless, the more real value you create for other people, the better your business will be and the more prosperous you’ll become.

Here’s Gall’s Law : all complex systems that work evolved from simpler systems that worked. Complex systems are full of variables and Interdependencies (discussed later) that must be arranged just right in order to function. Complex systems designed from scratch will never work in the real world, since they haven’t been subject to environmental selection forces while being designed.

A Checklist is an Externalized, predefined Standard Operating Procedure for completing a specific task. Creating a Checklist is enormously valuable for two reasons. First, Checklisting will help you define a System for a process that hasn’t yet been formalized—once the Checklist has been created, it’s easier to see how to improve or Automate the system. Second, using Checklists as a normal part of working can help ensure that you don’t forget to handle important steps that are easily overlooked when things get busy.

Value can’t be created without understanding what people want (market research). Attracting customers first requires getting their attention, then making them interested (marketing). In order to close a sale, people must first trust your ability to deliver on what’s promised (value delivery and operations). Customer satisfaction depends on reliably exceeding the customer’s expectations (customer service). Profit sufficiency requires bringing in more money than is spent (finance).

True, she never got a real M.B.A., but she had taken courses online and worked her way through list after list of so-called Great Books. She read the newspaper carefully. She was better informed on current events than almost anyone she knew. To have Sophie laugh at her, to throw her lack of formal education in her face— That

Every successful business (1) creates or provides something of value that (2) other people want or need (3) at a price they’re willing to pay, in a way that (4) satisfies the purchaser’s needs and expectations and (5) provides the business sufficient revenue to make it worthwhile for the owners to continue operation. Take away any of

STATE model to communicate without provoking anger or defensiveness: 1. Share your facts—Facts are less controversial, more persuasive, and less insulting than conclusions, so lead with them first. 2. Tell your story—Explain the situation from your point of view, taking care to avoid insulting or judging, which makes the other person feel less safe. 3. Ask for others’ paths—Ask for the other person’s side of the situation, what they intended, and what they want. 4. Talk tentatively—Avoid conclusions, judgments, and ultimatums. 5. Encourage testing—Make suggestions, ask for input, and discuss until you reach a productive and mutually satisfactory course of action.

Fitbit is a company that knows the value of Shadow Testing. Founded by Eric Friedman and James Park in September 2008, Fitbit makes a small clip-on exercise and sleep data-gathering device. The Fitbit device tracks your activity levels throughout the day and night, then automatically uploads your data to the Web, where it analyzes your health, fitness, and sleep patterns. It’s a neat concept, but creating new hardware is time-consuming, expensive, and fraught with risk, so here’s what Friedman and Park did. The same day they announced the Fitbit idea to the world, they started allowing customers to preorder a Fitbit on their Web site, based on little more than a description of what the device would do and a few renderings of what the product would look like. The billing system collected names, addresses, and verified credit card numbers, but no charges were actually processed until the product was ready to ship, which gave the company an out in case their plans fell through. Orders started rolling in, and one month later, investors had the confidence to pony up $2 million dollars to make the Fitbit a reality. A year later, the first real Fitbit was shipped to customers. That’s the power of Shadow Testing.

Not if you’ve been where we have. Forty years ago, in Südwest, we were nearly exterminated. There was no reason. Can you understand that? No reason. We couldn’t even find comfort in the Will of God Theory. These were Germans with names and service records, men in blue uniforms who killed clumsily and not without guilt. Search-and-destroy missions, every day. It went on for two years. The orders came down from a human being, a scrupulous butcher named von Trotha. The thumb of mercy never touched his scales.” “We have a word that we whisper, a mantra for times that threaten to be bad. Mba-kayere. You may find it will work for you. Mba-kayere. It means ‘I am passed over.’ To those of us who survived von Trotha, it also means that we have learned to stand outside our history and watch it, without feeling too much. A little schizoid. A sense for the statistics of our being. One reason we grew so close to the Rocket, I think, was this sharp awareness of how contingent, like ourselves, the Aggregat 4 could be—how at the mercy of small things…dust that gets in a timer and breaks electrical contact…a film of grease you can’t even see, oil from the touch of human fingers, left inside a liquid-oxygen valve, flaring up soon as the stuff hits and setting the whole thing off—I’ve seen that happen…rain that swells the bushings in the servos or leaks into a switch: corrosion, a short, a signal grounded out, Brennschluss too soon, and what was alive is only an Aggregat again, an Aggregat of pieces of dead matter, no longer anything that can move, or that has a Destiny with a shape—stop doing that with your eyebrows, Scuffling. I may have gone a bit native out here, that’s all. Stay in the Zone long enough and you’ll start getting ideas about Destiny yourself.

After several rounds of interviews with Google’s founders, they offered me a job. My bank account was diminishing quickly, so it was time to get back to paid employment, and fast. In typical—and yes, annoying—MBA fashion, I made a spreadsheet and listed my various opportunities in the rows and my selection criteria in the columns. I compared the roles, the level of responsibility, and so on. My heart wanted to join Google in its mission to provide the world with access to information, but in the spreadsheet game, the Google job fared the worst by far. I went back to Eric and explained my dilemma. The other companies were recruiting me for real jobs with teams to run and goals to hit. At Google, I would be the first “business unit general manager,” which sounded great except for the glaring fact that Google had no business units and therefore nothing to actually manage. Not only was the role lower in level than my other options, but it was entirely unclear what the job was in the first place. Eric responded with perhaps the best piece of career advice that I have ever heard. He covered my spreadsheet with his hand and told me not to be an idiot (also a great piece of advice). Then he explained that only one criterion mattered when picking a job—fast growth. When

Sheepwalking I define “sheepwalking” as the outcome of hiring people who have been raised to be obedient and giving them a brain-dead job and enough fear to keep them in line. You’ve probably encountered someone who is sheepwalking. The TSA “screener” who forces a mom to drink from a bottle of breast milk because any other action is not in the manual. A “customer service” rep who will happily reread a company policy six or seven times but never stop to actually consider what the policy means. A marketing executive who buys millions of dollars’ worth of TV time even though she knows it’s not working—she does it because her boss told her to. It’s ironic but not surprising that in our age of increased reliance on new ideas, rapid change, and innovation, sheepwalking is actually on the rise. That’s because we can no longer rely on machines to do the brain-dead stuff. We’ve mechanized what we could mechanize. What’s left is to cost-reduce the manual labor that must be done by a human. So we write manuals and race to the bottom in our search for the cheapest possible labor. And it’s not surprising that when we go to hire that labor, we search for people who have already been trained to be sheepish. Training a student to be sheepish is a lot easier than the alternative. Teaching to the test, ensuring compliant behavior, and using fear as a motivator are the easiest and fastest ways to get a kid through school. So why does it surprise us that we graduate so many sheep? And graduate school? Since the stakes are higher (opportunity cost, tuition, and the job market), students fall back on what they’ve been taught. To be sheep. Well-educated, of course, but compliant nonetheless. And many organizations go out of their way to hire people that color inside the lines, that demonstrate consistency and compliance. And then they give these people jobs where they are managed via fear. Which leads to sheepwalking. (“I might get fired!”) The fault doesn’t lie with the employee, at least not at first. And of course, the pain is often shouldered by both the employee and the customer. Is it less efficient to pursue the alternative? What happens when you build an organization like W. L. Gore and Associates (makers of Gore-Tex) or the Acumen Fund? At first, it seems crazy. There’s too much overhead, there are too many cats to herd, there is too little predictability, and there is way too much noise. Then, over and over, we see something happen. When you hire amazing people and give them freedom, they do amazing stuff. And the sheepwalkers and their bosses just watch and shake their heads, certain that this is just an exception, and that it is way too risky for their industry or their customer base. I was at a Google conference last month, and I spent some time in a room filled with (pretty newly minted) Google sales reps. I talked to a few of them for a while about the state of the industry. And it broke my heart to discover that they were sheepwalking. Just like the receptionist at a company I visited a week later. She acknowledged that the front office is very slow, and that she just sits there, reading romance novels and waiting. And she’s been doing it for two years. Just like the MBA student I met yesterday who is taking a job at a major packaged-goods company…because they offered her a great salary and promised her a well-known brand. She’s going to stay “for just ten years, then have a baby and leave and start my own gig.…” She’ll get really good at running coupons in the Sunday paper, but not particularly good at solving new problems. What a waste. Step one is to give the problem a name. Done. Step two is for anyone who sees themselves in this mirror to realize that you can always stop. You can always claim the career you deserve merely by refusing to walk down the same path as everyone else just because everyone else is already doing it.

1. Recruit the smallest group of people who can accomplish what must be done quickly and with high quality. Comparative Advantage means that some people will be better than others at accomplishing certain tasks, so it pays to invest time and resources in recruiting the best team for the job. Don’t make that team too large, however—Communication Overhead makes each additional team member beyond a core of three to eight people a drag on performance. Small, elite teams are best. 2. Clearly communicate the desired End Result, who is responsible for what, and the current status. Everyone on the team must know the Commander’s Intent of the project, the Reason Why it’s important, and must clearly know the specific parts of the project they’re individually responsible for completing—otherwise, you’re risking Bystander Apathy. 3. Treat people with respect. Consistently using the Golden Trifecta—appreciation, courtesy, and respect—is the best way to make the individuals on your team feel Important and is also the best way to ensure that they respect you as a leader and manager. The more your team works together under mutually supportive conditions, the more Clanning will naturally occur, and the more cohesive the team will become. 4. Create an Environment where everyone can be as productive as possible, then let people do their work. The best working Environment takes full advantage of Guiding Structure—provide the best equipment and tools possible and ensure that the Environment reinforces the work the team is doing. To avoid having energy sapped by the Cognitive Switching Penalty, shield your team from as many distractions as possible, which includes nonessential bureaucracy and meetings. 5. Refrain from having unrealistic expectations regarding certainty and prediction. Create an aggressive plan to complete the project, but be aware in advance that Uncertainty and the Planning Fallacy mean your initial plan will almost certainly be incomplete or inaccurate in a few important respects. Update your plan as you go along, using what you learn along the way, and continually reapply Parkinson’s Law to find the shortest feasible path to completion that works, given the necessary Trade-offs required by the work. 6. Measure to see if what you’re doing is working—if not, try another approach. One of the primary fallacies of effective Management is that it makes learning unnecessary. This mind-set assumes your initial plan should be 100 percent perfect and followed to the letter. The exact opposite is true: effective Management means planning for learning, which requires constant adjustments along the way. Constantly Measure your performance across a small set of Key Performance Indicators (discussed later)—if what you’re doing doesn’t appear to be working, Experiment with another approach.

In order to find and eliminate a Constraint, Goldratt proposes the “Five Focusing Steps,” a method you can use to improve the Throughput of any System: 1. Identification: examining the system to find the limiting factor. If your automotive assembly line is constantly waiting on engines in order to proceed, engines are your Constraint. 2. Exploitation: ensuring that the resources related to the Constraint aren’t wasted. If the employees responsible for making engines are also building windshields, or stop building engines during lunchtime, exploiting the Constraint would be having the engine employees spend 100 percent of their available time and energy producing engines, and having them work in shifts so breaks can be taken without slowing down production. 3. Subordination: redesigning the entire system to support the Constraint. Let’s assume you’ve done everything you can to get the most out of the engine production system, but you’re still behind. Subordination would be rearranging the factory so everything needed to build the engine is close at hand, instead of requiring certain materials to come from the other end of the factory. Other subsystems may have to move or lose resources, but that’s not a huge deal, since they’re not the Constraint. 4. Elevation: permanently increasing the capacity of the Constraint. In the case of the factory, elevation would be buying another engine-making machine and hiring more workers to operate it. Elevation is very effective, but it’s expensive—you don’t want to spend millions on more equipment if you don’t have to. That’s why Exploitation and Subordination come first: you can often alleviate a Constraint quickly, without resorting to spending more money. 5. Reevaluation: after making a change, reevaluating the system to see where the Constraint is located. Inertia is your enemy: don’t assume engines will always be the Constraint: once you make a few Changes, the limiting factor might become windshields. In that case, it doesn’t make sense to continue focusing on increasing engine production—the system won’t improve until windshields become the focus of improvement. The “Five Focusing Steps” are very similar to Iteration Velocity—the more quickly you move through this process and the more cycles you complete, the more your system’s Throughput will improve.