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8. Financial/management controls are critical to understanding complex businesses 9. “In the end, all business operations can be reduced to three words: people, product, and profits. People come first. Unless you’ve got a good team, you can’t do much with the other two.” 4/4
Re: 2, did Iacocca explain in detail how they worked? Something like this? 1. Employee sets goal 2. Boss approves goal 3. Quarterly, employee gives a report during a meeting about whether or not they achieved that
Yes, you meet and discuss, then the manager (employee) writes down the goals, and the supervisor signs off on them.
“The quarterly review system sounds almost too simple—except that it works. And it works for several reasons. First, it allows a man to be his own boss and to set his own goals. Second, it makes him more productive and gets him motivated on his own. Third, it helps new ideas...
“If our stockholders had a quarterly review system, why shouldn’t our executives? I asked myself. I began to develop the management system I still use today. Over the years, I’ve regularly asked my key people—and I’ve had them ask their key people, and so on down the line—1/3
a few basic questions: “What are your objectives for the next ninety days? What are your plans, your priorities, your hopes? And how do you intend to go about achieving them?” On the surface, this procedure may seem like little more than a tough-minded way to make employees 2/3
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