Quotes in business
There are four prongs of quality and four ways to improve quality of product and service:
- Innovation in product and service
- Innovation in process
- Improvement of existing product and service
- Improvement of existing process
The common mistake is the supposition that quality is ensured by No. 4, improvement of process, that operations going off without blemish on the factory floor, in the bank, in the hotel will ensure quality. Good operations are essential, yet they do not ensure quality. Quality is made in the boardroom.
A bank that failed last week may have had excellent operations— speed at the tellers’ windows with few mistakes; few mistakes in bank statements; likewise in the calculation of interest and of penalties and loans. The cause of failure at the bank was bad management, not operations.
Nothing can do you so much harm as a lousy competitor. Be thankful for a good competitor.
Profit in business comes from repeat customers, customers that boast about your product and service, and that bring friends with them.
It will not suffice to have customers that are merely satisfied. An unhappy customer will switch. Unfortunately, a satisfied customer may also switch, on the theory that he could not lose much, and might gain.
A company could put a top man at every position and be swallowed by a competitor with people only half as good, but who are working together.
I achieved my goal by not my aim. That happens a lot, we honestly translate aims to goals. And then we do stupid things in the name of the goal that gets it the way of the aim. We forget the aim sometimes and put the goal in its place.
The gambling known as business looks with austere disfavor upon the business known as gambling.
Go for a business that any idiot can run - because sooner or later, any idiot probably is going to run it.
In the business world, the rearview mirror is always clearer than the windshield.
I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.