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.
Real benefits come when managers begin to understand the profound difference between "cost cutting" and "eliminating the causes of costs."
A good question for anybody in business to ask is What business are we in? To do well what we are doing-i.e., to turn out a good product, or good service, whatever it be? Yes, of course, but this is not enough. We must keep asking - What product or service would help our customers more? We must think about the future. What will we be making 5 years from now? 10 years from now?
Costs do not exist to be calculated. Costs exist to be reduced.
It's always easier to apologize for something you've already done than to get approval for it in advance.
Does a security guard empower the CEO to enter the building?
Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it.
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.
Quality is more important than quantity. One home run is much better than two doubles.