Posted by Jefferey Bridges on June 24, 2002 at 14:04:53:

In Reply to: Business Rules: Thought for the day posted by Martyn Richard Jones on June 24, 2002 at 10:12:13:

I believe there are three rules, rather universal laws of knowledge management and all other kinds of management that are applicable to all service entities - profit or non-profit, business or non-business, government or non-government:

Rule 1: Rule of Survival: All service entities need to generate revenues and profits to pay for services that they deliver. If they do not make revenues and profits they are governed by the Rule of Inevitables.

Rule 2: Rule of Growth: All service entities need to generate revenues and profits to generate resources for growth beyond paying for expenses as growth results in better services at better value that benefits the service entity and all its consumers. Without such growth, competition will make sure that the Rule of Inevitables applies.

Rule 3: Rule of Inevitables: In the short term and long term, there are only two 'certain' factors - taxes and death. If businesses do not follow Rule 1 and Rule 2, they are governed by Rule 3. In the big money era, application of Rule 3 could be postponed for some time. In the normal era, it cannot be postponed. In the era of tight money, the longer Rule 1 and Rule 2 are not followed, the sooner Rule 3 applies.

Here is a recent story of Cisco how it is adapting to these universal rules:

Cisco learns to adjust to new reality

Regardless, these universals apply to all service entities, wherever they are on the totem pole of market caps, revenues, profits, or manpower.

Jefferey Bridges

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Follow Ups:

• Is growth an inevitable rule? Riva Gianluca 11:35:39 06/25/02 (2)
  • Re: Is growth an inevitable rule? Daan de Koning 05:07:03 06/26/02 (0)
  • Re: Is growth an inevitable rule? Jefferey Bridges 23:19:19 06/25/02 (0)

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