There are some quick tests which can be applied to see whether the company that is going to employ you is in good shape. It is always good to check the yearly per share earnings. A company that shows consistency and exhibiting an upward trend will always excel in business. Erratic earnings are not a good sign. Absence of long term debts will also serve as an indicator to the health quotient of the company. By gauging the debt load of the company one will know the strength of the company. These companies will have a long term serving history. The company also should have high competitive interests and excess capital. The managerial opportunities of the company should also be good because that will prevent the company from going under. The most important that should be considered is the DCA – Durable competitive advantage. It is long term and helps the company to stay afloat maintaining the competitive edge.
The book also discusses the idea of delegation. Delegation becomes more important when one is involved in more diverse businesses. There is a philosophy behind the art of delegation. It is all about delegating the authority. Delegating to a certain extent can be equated with the idea of abdicating. Delegation is not a desirable idea in micro-managing. It is always good to delegate the job to better job and manager. Delegation involves a certain amount of decision power also. Once you are delegated a task you are wholly responsible for the decisions that you make. There are three rules governing the application of rules in delegation.
1) Every business culture is unique
2) Competent managers should be left alone to run their own businesses.
3) Managers should be hardworking, passionate and intelligent. They should also have great deal of integrity – This rule applies to the concept of making the right choice when selecting a manager to delegate your work
The manager chosen for the task should possess proven track record. He should be ready to take chances. He should possess the managerial talent to become the turnaround artist. A manager should increase the revenues and free up the capital for diverse investments. The most important thing is not to change the managers frequently.
The next chapter discusses the concepts of victor or victim. We should also be true to ourselves. There is always an inner and outer report card. Warren was deeply influenced by his father – Howard. The ‘internal locus of control’ is the catch phrase that shows how responsible you are for your actions and words. When you win you are the one who will win and when you lose you are the one lost it. It is better not to dwell too long on failures and also take responsibility for the failures. Victors always make good managers. Victims meanwhile are busy blaming the world and finding lame excuses. To be a victor it is always good to work at a job you love – You will jump out of your bed early in the morning because the love for your job will beat even the best alarm clock available in the market. What we love in the name of greed is a bad management. Victors likes doing what they love, money is not driving them. People who rise to the top are the ones who love what they do. People love to hire individuals who will take pride in their work.
The next chapter discusses how to put a winning sales team together. The team essentially should have a passion for the product that they are selling. The team should comprise of people who believes in the product. One question that any employer would like to ask to his prospective employee will be – How obsessed are you with the job? The anecdote of a lady who lived till the age of 104 taking care of her store is the best example of a passionate being who loved what she did. In fact she didn’t go for any vacation because she felt miserable when she stayed away from the store. Her only hobby was to drive around the town checking the competition level from other stores. All the top managers in any firm are obsessed with their work. They are all love the business. If you are smart manager than that is the icing on the obsessively delicious cake.
The next chapter talks about how honest plays a major part in today’s business. The words candor and candid plays a big role in making your business establishment a success. This is one of the key character traits to aspire to. A CEO who misleads others in public will also mislead them in private. Managers who promise to make the numbers will also make up the numbers.
There is a chapter devoted to the concept of managing costs. Profit is the life blood of the business. Managers should be cost conscious but should not be fanatical about the same. Benjamin Franklin has remarked that if you know how to spend less than what you get, and then you can have the philosopher’s stone. Cutting cost is the fastest and easiest way to increase the bottom line.
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