How (not) to send to hell a multinational

Page 1

HOW (NOT) TO SEND TO HELL A MULTINATIONAL Josep Soler i Casanellas www.mgmt2feedbrains.com

15 years of experiences in the automotive sector. I left it in 2005 at 42 years old.


INDEX 1. Abstract 2. Acting the management -- Not check along the chain -- Relax the pressure on second management -- Refer to external advice -- The interrelations -- Not commitment the decision after the door -- Step by step -- Knowing read the numbers -- Personal risk -- Changed everything done by predecessor -- Make crazy your agencies -- Do not involve -- Logorrhea and English -- Meeting follies -- Bureaucracy numbers -- Be First in class -- Remain closed in your office -- Power of middle and assistants -- Junior managers 3. Acting on the management -- Entrust to the youngsters -- Continually change the top management -- Restructure continuously -- Throw out the elder -- Payment policy Management -- Payment policy staff -- Many assessment... -- DPO to DHR to DR&G -- Who is to blame? -- Take an accountant and not a controller -- Management by navigation on sight -- Management by production -- Management by crash tests -- Management by autonomy 4. Forgetting the business basics -- Losing “the essence� -- Diversion of core business


-- Not to act quickly and strongly -- Local vs Worldwide -- Losing the ambitions of the objectives -- Spendthrift -- Different cultures / country -- MKT to MKTCOM to MKTCOMAS -- Trade unions -- Access to information 5.Forgetting of what the company does -- The product needs -- Forgetting the distribution chain: suppliers -- Forgetting the chain of distribution: Distributors -- The quality -- Certify the quality 6. Forgetting the consumer -- Do not test customers -- Knowledge of the market -- Consumer at the same time -- Customers gone -- Conduct of customers 7. Living from others -- Politics and Industry -- Impact of economic cycles and the strategy -- National "Soberbia" (arrogance) -- Living from aids -- New Technologies -- Back to innovation 8. 10 cazzate (bullshit) to avoid

Finished 25.8.2005


1. ABSTRACT

The aim is to set the goal and to collect in these pages more than 15 years of experience in at least two big multinationals of the car. I think it also has a form of explain concepts, with a certain mood, in fact humoristic. Do not try to find comparisons with reality, surely there are because experience I need to gather all these circumstances, but many times will be mixed or masked. I do not think that these comments can only apply to one industry, I tried to enlarge it to any multinational to try to make a compendium of a manual management. A manual of management fruit of experience, of what I saw, what on which I thought. Not a manual of school management, but I claim that it can be a complement to the formation of a manager. The intention is that the take and read a single shot. Hardly the Manuals will resume a second time unless it forced its six because they you have a question. Time is it, but there is no desire. So my goal and make something lighter, go to


the essential and leave space for reflection after bed, and perhaps then go back to reread some chapter. I do not enlarge it artificially to make it more beautiful, is not in my style. I remember my first meeting, say Manager importantly, with all my team managers and executives, about a fortnight in my office. First meeting to make presentations and the first contact, that was the goal of meeting, the duration? That required not more than an hour! All remained amazed! Standing up I ask: But? How? Only an hour of meeting? Just so? The response was cordial, because need more? We had a goal and we reached! From that moment this was a rule that I imposed: discusses the time needed, not more! This brought me to many misunderstandings and feeling parts of colleagues to be shy, not wanting to share ideas, work alone‌ All because they arrive late to the meeting, but decided an hour. All because they dedicate the first few minutes to chat and take coffee. All because when a repeated arguments passed, they shake me. All because when a repeated the same arguments at the same meeting shake me even more. All because when a meeting lasts more than one hour and will not decide anything! To facilitate those who are holding a better convenience of a Booklet, at the end of each topic you can write as circulation in your company corresponds to that argument Treaty or do the most good analysis of his department in order to improve their managerial style. That there should facilitate upstream contribute to better functioning of your company, down to better manage your resources. Once again excuse me for the direct translation in English by internet tools. Keep the idea!


2. ACTING THE MANAGEMENT Try to understand the concept. English version not reviewed.

Not check along the chain In large organization and sometimes complex pressure falls into step by step without ensuring that the step following that direct contact receives the same pressure. Often, we use the metaphors of a cascade of water in several staircases, the quantity of water and power is not the same at the end of that commencement, when natural law the amount of water and power should be the same. The Top management is so busy sending water down the cascade that dedicates not enough time to ensure that this water arrives at all levels. One could say that the important are the results, which finally arrives water in the ocean. But this is not the question. The question is: came across the water as possible? came with enough force? It has lost to the river? Why? How to fix Me? The other set of questions are: why deal with lower levels if all are professionals and pass the information? The problem is that not all are equal and we understand the same, the problem is that often the information is a voice and


unwritten, the problem is that they are issued in multiple meetings in which most of the time there is a record, the problem is that these meetings are long and one no longer remembers what is said at the outset, the problem is that we are after the interests of personal growth, the problem is that there are more interest because the other has not success, the problem is that we are managers "human been." Being human been is not just computers have the difficulty to forward information in the same amount, in the same words and with the same impetus / pressure from one level to another. And the degree of experience varies down to levels and consequently it will vary the quantity, quality and pressure information. This is not annual methodology, but the easiest thing is that all information that must be forwarded it is in writing. Today companies have Intranet or Internet. Write a text is simple, forward ideas to writing too. Few words and clear assures us that the message is the same throughout the chain. To which I want to signal the importance of supervision, not what to do, but how to behave. Today is not enough to have a direct relationship between a level and another. Today, we skip this hierarchy to ensure that there is the same level of information and pressure. It does not mean disavow the level immediately below, means bear and ensure that the company works in full revolutions. Today we are too strategy, moving on plans for the tactic, to verify the results, but we do not know how the soldiers or marshals interpret everything and how it run. In the past the generals, they could see the entire field of battle and understand how his orders were executed, the results in real time and act changing tactics. Today is no longer possible in a global marketplace and complex. We are completely Czechs on what actually happens beyond words, we reconnect in Chapter false recount numbers. We need to know how the second management works, even


the third. Without knowing how is the feeling, as interpret things to do, how do we have an efficient company that works to reach its full potential, at most have a company from the results, and at worst a company to which comes to work at a time and if it comes to another. The more negative confluence of circumstances, circumstances or internal market already told in different chapters, a form of saving the company to send to hell and know what it happens at all levels to intent to address the situation. Let us not forget that companies are not made of strategies, but of men who apply the tactics and execute a working knowledge of how people is basic. The leadership should not be only to immediately lower levels, but at all levels lower. You can have a strong leadership on a first level that is unable to operate the same to its respective level. So the whole effect is lost. The leadership should be measured in concentric circles that group all lower levels, so yes you can get brilliant results. And not only those business, but also those of distribution in any case is one. Companies tend to forget the existence of the distribution, reference to chapter. How many times we find ourselves with managers closed its offices leaving only to close in meeting rooms! The manager must leave, must know, must be sure that was interpreted correctly and the organization of men below.

Relax pressure on the second level This chapter discusses the reports second pressure on management and is closely linked to chapter be sure that the information flows and the chapter on interrelationships. There are three different aspects of everything around the management of people: pressure, quantity and sharing. Let the company becomes an anarchy, and so reach faster your goal, namely to send to hell the company. A company must be governed and ensure that all are in tension, what


the French call "flu tendu" is basic. Knowing that you can account on every one of the managers for discuss tactics and to receive good information, good and fundamental analysis to happen. This does not mean doing all the usual day meeting at 8.30 h to see what you did the day earlier and trim. This does not mean call to report every five minutes for raid. This is not to say repeatedly that all of you are incapable. This does not mean that all will be made redundant. This does not mean send rivers of negativity. There are forms for not relaxing the pressure to maintain the tension on the second management. They are the ones who transmit the tactics to performers, will be with them that the commitment will transform into deeds tactics. So maintain a constant pressure is basic.

Refer advice to externals Sometimes it is not a decision but a daughter needs of poor choices management or strategic decisions wrong. The "lean" organisation led to the end of the folly of 90 outsource everything that could outsourcing and more. More if the choice is not only strategic to be more competitive in core business, but also derivative of a restructuring to reduce costs that bring them outsource even know how the core business. Paying for something that you must do, the best form to destroy confidence in yourself and in your company men. I have never seen a meeting so motivating, when a managing director, said in its first meeting in front of the whole management consultant that enough! What he is confident internal management! What has found that people capable and know how you can not miss! It was the only fact applause from hundreds of managers of a speech


that will have lasted about one hour and a meeting of four! Even me some skin goose came to me. Finally someone recognized stupid pay for things that had to be made in the company to pay for things that had already been proposed or were only putting into beautiful ideas collected. I do not do a crusade against advice. Indeed, consultations should serve to make knowledge in fields where one did not know how. But they can not be a replacement of management of a company. Why ends up not knowing what should be done because they need someone to go the pipi. The best confirmation of this and when at a meeting a consultant there said: "The work so you have to do you, I am just here to re-lance if not presented when, but .." This "asshole" repeated, "the work you have to do you! " Two reactions: those intelligent there are no longer produced, others were so embarrassed seemed that the zombies.

The human links On the premise that all spoke Manager are "human been", this belief and a feature that you can not forget the world of business. The Managers, the CEO are not abstract people are human and as such act. They have the same virtues and faults that we humans: we are irascible, we have preferences, sometimes we are happy with small things, like details, dislike disorder and many other things and feelings. Why not 'a structure, not' a internal rules that could define the interrelationships among Managers. The can encourage, facilitate the can, but you may never adjust. Or, better. you can adjust to, but not a sure success, because Managers us humans, unfortunately. Yes, I say unfortunately because this for me and one of the most important factors for send to happen in a company whores. No matter whether multinational or small. Make sure there is a good interrelations among managers is essential for the smooth


operation of a company. Let's agree what want to say interrelationship. I am not saying that must be "ass and shit," I do not want to say to be friends, I do not want that should be together from morning to night, not to say that should share ideas or policies of management, not to say that must have the same hobby. Non e 'and need all that. For interrelationships mean that must work to pursue that for which they are paid: growth of the company in most cases our goal that we set the company. I intend to have business and to create fear in the best conditions pursue the goals. I mean you must talk, must share ideas and solutions, which must work professionally, each with a its goals and personal characteristics, but at the service of svi1uppo and achievement of objectives. In one of my early work I have been in a situation that put in danger the company. My great contribution was not made ideas, management issues, My contribution was largely promote the interrelation between the three managers more important. Spending hours not to do my job, but to promote interconnection between the three. Take a company with a classical structure, a managing director, a commercial and marketing director and a director Financial. Classic. Take these three functions really managed by three top-level professional with deep knowledge of business and his work. Take that their three "human been" with different characteristics personal, and even different geographical proceeding. We take that as such does not communicate sufficiently in order to succeed. Forget it or like, what is important is the significance of the importance of interrelationships to succeed or send a whores' s business. They arrive in the morning and worked with middle management and director and marketing to analyse the situation, make of ideas, news, solving the problems, inform and inform, help in what soma I could. Fine afternoon visit to the managing director to see the conclusions, to talk about the "mood" of the director, to enhance dialogue and what we did. That was the first link to weld, and know how were informed of things. The second ring was the one with director Financial, to transfer


the "mood" of managing director on the financial aspects and collect sales and the chief financial officer, will understand that there ' was a lot of information from one part to another. Do not think at this point that was specific to that company this situation. This is an applicant, Think about it a moment and see that happen to you the same, or greater less. And when I talk about transmission of information, talking to talk, not make available information on the Intranet!. I had to take back the 'mood' of financial director to send the director and managing director. Yes, why not the day ended there, unfortunately. Unfortunately because when one is young and visiting countries, which want the evening and live night that country. Instead, my job was not finished! I had virtually close another ring, so the commercial and marketing director asked me always go to dinner or have a beer with them beer or the opportunity to dinner with the director had more to express the "mood" with the managing director and chief financial officer. Finally sleep. But what I I made to be more a psychologist than a commercial or marketeer! The next day, once collected all combinations of "moods" my work consisted of remaking the tour to try to pass information, "moods" of each other and to ensure that there was a minimum working together to to my next visit. I must say that function and that especially mark I behave as a manager in the future: very open, very quiet, much to try to get people together, the work was hard because it was not applied or technical knowledge, but of "common sense" intermediary to pass information to try to run a machine from the outside and without continuity as possible. Not having done this work would have meant that the company was going to whores why not 'was a joint action, each by a party paddle believed would do it, sometimes the actions were antagonistic and cancel each other IF thinking that ... a disaster. Until the story, the solution? Apparently easy, the Managers must be professionals and talk and act. I think too easy! Another could be to create a new figure that could be the facilitator between the managers. I think the


trend is not complicated structures but simplify! We advance a cutting ideas throughout the book. A new mission the management of human resources or Relationship resources or whatever we call. I am convinced This is a fundamental work of this Directorate, not only recruit, not only structure not only manage appointments, but encourage interrelations. Not It takes more resources, we do not want more time. What we need and a new "mission". Some years ago I have experienced with a manager of resources human, that for himself, possibly encouraged by the character of the President an Italian business, had taken for himself. Part of his job was first collect the "mood" and facilitate the transmission d 'information, Knowledge of different Managers, the terms that were common. He had understood that promote these interrelationships beyond the physicality of the meetings, contributed to work together in a new complex structure formed by entities with different new managers who had to integrate, He had understood everything. We must understand that at all levels: bottom up and top down, the interplay, the benefits of working for the same goals business and a factor certain to send to a company or whores have success.

Not commitment Meeting the first level to approve a strategic project after months of the spring pulls on the details of who does what, how to do it, where do, where everyone is not always agree regardless of his position, sometimes not convinced the director, wrapped and marketing, other times the commercial, sometimes support functions, but after months it comes to meeting final approval. The managing director, after a long debate with all the functions of the first and second level after that everyone has their opinions expressed the support or softness but detail without ever issue a "niet" to the project, turn right


and asks one of its first two levels must take the project forward, you agree? Why are you that you must continue, all other students will receive support? Do you agree? Dry Answer: yes. It turns to his left, his second first level that should continue the initiative and made the application, well you agree to run it? This is a big step, you agree? Answer less dry: yes, I agree and important, we need to adjust something‌ but if. Looking to the rest of managers around the table both support functions that operational now to work and help these two gentlemen who were compromises to pursue the project, because it is they who must sell it and do it! Do you agree, eh? Yes, yes, all satisfaction, rice after a long process of carrying out a project so ambitious. All encompassing, interchange of views, relaxation, convinced to go ahead. Everyone, not despite the tough moments passed to advance the project, with the reluctance of each other and with involvement in various different stages? In a normal company, where no one lives in a Democratic Republic, but where there is a hierarchy, the normal outcome of a meeting of this type must forcibly transformed into actions, work hard to achieve the expected results of a strategic project. That in a normal company, but where we are wanting to send to hell the company, there is no better result than to return every one to question the decision taken, and that there is no consequence. This and another standard for effective send to hell a company, to promote a republic where every one must decide what to do, it would be more correct to speak of Anarchy, but the word seems a little distant, I would prefer that the Democratic Republic where he acts on votes, and not always so in all countries. because these votes are "dancers". But will we go in another category. A Top Manager can encourage that decisions are taken as a team to promote motivation, promote the struggle for a goal, encourage that decisions are not a job, but a machine in which each one contributes with his experience. This is


very European, but ineffective, because the risk that is taken for "let's things happen" and that encourages every one face after what he wants and too risky. We talk about work in teams and in any proposals for work and this ability to work in a team that prevails, low important assessment and dedicated to this feature, but the reality and that we are not capable. We are not able to listen, occasionally taking a step back and let someone or some idea forward and share it even if it is not ours. We are not able to stay silent and listen to what they say colleagues or those who work with us, it seems that only we know everything. In fact, with our colleagues and our employees as we behave Monarchy, when at the same time we must submit to a CEO, we behave of the Republic. We want to decide us, we can do, be able to challenge its decision, to act as we want. So a company does not work, the only thing that you and destroy value because the targets are no longer common, there is no transfer of ideas, not working in the same direction. A certain amount of discretion, the opportunity to bring ideas, participate in strategic decisions miss more than there were at these levels, but later, we must work in one sense, with a unique strength of attack. It destroys the medium-term operation because each arm and leg of trying to move independently, and to experience physical, we know that if there is no coordination between our bodies engines, we will not forward it back. The most effective organizations are those that behave as a monarchy, let us say no absolutist, but monarchy however, where there is a strong CEO, who will receive advice but who decides and which judgement and no appeal, as well as its decisions. There is another body to which they can appeal, what it involves judges sometimes wrong or errors over time. There is only a shareholder upon him, to him their confidence and he manages and order. Thus the company and safe to go in a single direction, sometimes even wrong, but sure that if has to replace the Top Manager because the results arriving consequence that the


direction was actually wrong, you can be sure that the structure that troops are trained as a single army prepared to give battle without fissure without several fields, without motivation, without "let's happen." Let lassitude too, even in good faith to motivate your people, and you get a boat without direction. It could be the syndrome of olive tree.

Step by Step This is the syndrome of wanting to go to Mars without first be left to the Moon. It is clear that in an organization throughout the Management want to go to Mars as a symbol of wanting to undertake major projects of perfect and complete. Knowing the existence of Mars, why go on the Moon? Better go directly to Mars, so that they have reached the place and successes. Wanting to start at any price a project with everything completely calculated and work with the objectives that can not be overcome because they are the greatest of the greatest of those known not only leads to immovability Office, the destruction of value because no project comes to light at a speed of reaction that needs the market, because everything will be perfect and reach the highest level of perfection. We are talking about perfection of the project, not talk about not reach the highest levels of quality on a product for example. The best form of do nothing and add and add to an initial toll which had an order to start a project, to make it become a project so complex that will never see the light. Two theories confront: what projects are to be developed and evolve, and what are the projects with an end in


themselves and not closed because developed and already fully anticipated in that project. Take the second is there ever arrive, or your organization and so strong, powerful, structured and with human and economic resources infinite and perhaps we will arrive or if not why not make any strategic project. Please things of a day to day be managed, but never, never a strategic project that gives a shake your company. At times, is the leading managerial inability to build these projects pharaonic who do not ever see the light, the inability to take concrete decision, the inability to want to decide to want to control by force of ideas rather than with acts individuals. And so easy to hide in big companies to create monsters that will not be light and consuming capital, human resources and economic indescribably, but at the same time create de-motivation those who work in the project. In doing so not likely ever to commit any mistake, to be criticized because something has not worked perfectly. And so easy to contribute to this constant destruction of value! There is no better project that what is born and develops. We need to have goals simple, clear, ambitious but not impossible, financiers solidly but not with unlimited profit targets and immediate. Projects must consolidate, and the result of its findings with the project goes redeveloped, rethought, redeployed. Creating constantly, constantly do not stop for indeterminate time to build without achieve. It is clear that in the early stages there may be errors, improvements to be done, for projects that are born to get results during the time. Do, do, and then, the outcome of any activity based on the principle of doing. If there is anything, one day or other activity will die, either because it is aged, there is more demand, other competitors have come, the market and changed, any reason that will make that our business is dead by gangrene. To do it takes ideas, transformed into simple projects that are beginning to work. To act and


react. The manual will be in any serious Management, but also in any manual of life. The perfection in actions and not necessary if the risk is the immobility, if the risk and leave things as they are or worse do and make damn meeting to do something so complex that will never be light. The best results are obtained to make the projects constantly, to make things, sometimes well-aimed other not, but making many, sure that those to be successful will be higher than those who do not have had. As there is monitoring, react, the redo. Do not you trust those Managers who ask and demand changes and / or improvements, so to say to each project. Do not you trust those who continue to constantly say we can add this, that there not perfect and can do so, we would like to add this other thing, we want this mechanism more complex, we want, we want‌ A cock! This should be the answer convincing. We all want different mechanisms, but we have to find the balance between what we will do that as a result as is and what we do not coast. Why few times reasons in the company as to what is not doing something. We are capable of making wonderful business case on what will give us the projects, but never what we already do not coast, or what it cost while the project is not completed. The cost of not doing well is another ratio to assess the effectiveness of a manager. Its cost of not doing things! You will be as there will be a race to do, to act, not to hide the doubts, the inability, on fears a mistake, not to see that that place was not deserved on fear to see who can make things simple without need to build cathedrals. There trusted because the anti-camera not to do anything, not to bring any results to the derivative action and not flow Market, demand or the mistakes of competitors. Ask for of projects see the light, even incomplete, clearly with a minimum basis of quality and profit or loss, but made do, keep the company alive, with dynamic, active, as we do


with our body to which we do gymnastics to prevent heart attacks or other illnesses. Yes, the projects are the gymnastics of our body. Stimulate people who want to do small things or great things one at a time but never all together. Why those here will give you the results over time. Those who want absolute perfection of the first to do one thing, defiled if not conclude anything, you will lose only part of the value of your company. Make and correct, so you go forward.

Knowing how to read numbers In larger companies the amount of information available than really used, I dare say that only a small part is used. At this limiting factor we have to add that when higher is the information is repeatedly reworked. Grouping the two we find ourselves with little Information and multiply reworked for the Top Management. Let us tell the numbers and you will find in the street to send to hell the company. It important to know read the numbers, meet the contradictions that will highlight a clumsy reworking of the numbers. The possibility to say different things to the same numbers when you have a mountain information is fairly simple, just connect several to show a part as you want. Just to explain personally as possible surfing between different numbers and sources. Wanting to have all the information to decide is not the solution, want concentrate all the information in order to set a strategy is not the solution. This applies to the top management, but especially for the middle management that sees the information, access to information and


retention of information power. Applies to all levels, because inability to have the suit information is also evident with the tools most advanced information technology. What if one can not have all the same information to take an idea and decide? The answer is as simple as difficult to put into practice: trust of employees. It is useless to want to know all the numbers, all the details. Being a Manager does not mean being the first class because demand has almost an answer with the numbers. Being a manager means having ideas, know what we speak, manage the numbers, have an opinion on what appears to be part of another or one of the same means to know on that subject. Too many times both confuse things, know about a topic and know how to respond by giving a number. The more complex a company that has the greatest need all the gears functions to be efficient, it means that we need oil, it certainly numbers are that oil. We must take care that the oil is necessary, but we need more care that the gears are those that we need. I never understood Top Manager those who need to have tons of small data for making decisions, which in the end and do not take that as We saw those little data who knows how many times will be been handled. Not I want to pass the hours watching the data, when companies must move to define actions and for the act instead of hours to go review and revise the numbers presented once colour, the other white and black, the other in a circle, the other in another geometric figure. No good estrcitly to nothing. What we need is what responsibility by the numbers, which are the numbers correct, then the importance of knowing how to read the numbers, and after discussing openly about what to do. I saw Top Manager blinded by engineering numbers, for the flow of numbers that ultimately led to escape any other manager that I wanted to work with the Directorate and confined to a contact via email or even stop projects to avoid torture of itemize any


figure. A certain levels is necessary know where the egg comes, the important thing is to produce many eggs! And instead there are Managers unsure of his position to know how much hope of more Possible details on them will be best Managers. Managers which force his collaborators to produce numbers instead of ideas and actions, perhaps because there is a produce numbers output in terms of hours, that is not the same and in terms of ideas or actions. Managers who do not establish that trust necessary because a team functions, I say to you something is because I am sure and I want the company progress. I do not want to tell you one thing because then you've plaster information, you ugly figure and so I will win points. So I also I am a manager. Other Managers blinded to get as many numbers as possible to have all the information was as a reward you have a ton of information, but no idea on the part of his collaborators, or little ideas of those who have the time to think, and above all a mountain of rubbish, not a mountain Consolidated land. The Manager must have the requisite information, but must trust that Information given by its employees. The manager must know well good business, which is to be able to recognize the contradictions of numbers that have them and questioning Managers on the other topics, not on the detail of a number or another. The important and show the inconsistencies, the numbers do not change a day for another, there are hardly events in a company that do make leaps of a terrible day to another. They can make them a few months in some months, but if a day to another there is a strong change in the numbers put them in better evidence is you ask the reasons why they have changed, no other numbers that justify changes. The numbers are just numbers, what is important for a number is what it says, from where it is, as he came, where wants to go.


That is why take the Managers who speak only of numbers, collect numbers and you have a company that innovates not more, likely to go to hell. For me was the syndrome version r32.

Personal risk to be done Do not talk so much by the risk of sending whores to the company, but the risk that sometimes takes on a manager when accepting a position that does not like them or not deemed suitable for his career, but that he was suggested in bona faith for his head or an even higher.

To change everything done by predecessor The manager who wants to create value for the shareholder and which claims only professional growth characterizes yes because the first thing he does it and erase the past or say that everything that made the first were made cazzate evil. In books management company says the first listen to the market, after listening your team and finally decide. The reality many times and that no one listens to the Market, feels the team (listen must have the value that one and willing to absorb what they hear, feel and instead only be in front of a face with of listening), and finally changes everything, even if there were results. The ill-manager believes that only by changing the shareholder will that has done something, after if things


vain evil always there will be some explanation, juncture, other departments ... the important and show that things are inversely or for different people. By doing so only destroys, unfortunately for Schopenhauer, is not a destruction to create something better. There are those who think that always we can From that fact to construct, perhaps it should be destroyed somewhere, but not the all. And easier because there is already an inertia, costs less than redo everything,results arrive faster. Instead these things that seem common sense, Businesses in unstructured, those Latin normally, what are ordinary. That slows down the process of decision, the management managed not moved more and burn resources of the shareholder. And there I turn to the chapter to whom and the fault, to him or who has them. A company like read and a interaction constant, fragile that to be effective it is necessary that the maximum "issues" functions. Take the case of a new Top Manager arrives and the first thing he does and bring his men, both enterprise-wide or affiliated should be. Fatal for the motivation of those who have worked. Fatal because they know that will last as long that will last the top management and collaboration is limited to minimum essential in hopes of a new manager or take advantage of this opportunity to connecting with the shoes and be able to ascend, which happens rarely. Fatal but happens often, the elephant in the crystal, and after all roto rarely manages to rebuild. This first form of change management, if Combined and change take all actions implemented or implementations cause failure paralysis, only justified because not having to change everything and could focus in the strategy and actions to gain. Too easy! But there until the destruction of value for the shareholder and low. It elevates because after this period that normally carries six months of loss, begin to implement new policies, because as everything and reported, surely this manager will not have analysed the past and because of results, less


concerned will be listened to the market, and at that point his Shares may not only be disastrous both in time and for the future survival. I call him the syndrome of chicken!survival. I call him the syndrome of chicken!

Make crazy your agencies There is no more pleasure than to decide what one wants without impunity that responsibility that should have every manager. Not understand that the advertising agency and to advise them to give you the best product they have that and creativity. Understand that only are there to make money, who do not understand anything of what you ask them and giving only what they want. So you become creative campaigns, with the advantage that the responsibility of failure and the Agency. Revenue in a chasm of change or decision-making endless and will never have a campaign that will correspond to the briefing. Yes, this word should be the focus of any action of Marketing. Briefing means explain clearly what are the objectives of the campaign, because you do, what we want to achieve tangible or not, make available all the statistical material or research in order to do a thorough work-up of the creative. Explain and explain what you want. Too spent the briefing and only a chat "chiacchierona" (blabber) generic on anything in practice, only that you want to launch a product for a specific target, but spent it means for all. And until they would already be a step forward, but then adds that this briefing is not shared who


will take the final decision, the casino and served, because at that point the agency will never submit a result that reflects the acceptance of who decides. For example: When a Director of Central Publicity from a briefing more or less agreed with the Marketing Director Central and if its hierarchical, the agency responds with various proposals to the Director Advertising, why should submit to Marketing Director Central, which is to make them share with the leaders of markets or the Director of Marketing / of the most important markets, which must be approved by the Director of Division that has to see the administrator delegate, who must submit to a councillor, CEO of a leader and finally to this . What the result, and if the campaign a success and pure luck. Imagine how many decision are taken without knowing the source, without knowing the briefing. This link briefing / campaign should be inseparable. There are beautiful or ugly campaigns. There are campaigns that correspond to a briefing and others that are the result of unilateral decisions. If creativity as we are all in football coaches the national team in the selection of means that this publicity will be launched are aberrations largest, where the small power becomes more evident, where the plans submitted by technicians after a briefing become adjustments to the pleasure staff. Even the briefing them and indissociable the result that a central media must submit. Have a good briefing once a year to plan all actions and after fix it hand man, but create at least a trace of a fair investment, when that means and adapt it to go after. Instead, not planned anything, go every month to plan, not briefing the agency, choose only the media so, without a study affinity, and so obtain a waste value for the shareholder. And finally choose depending on the little power you have, those magazines because then every so often I go to lunch or invite me to evenings, radio because those are the ones


listening, or one hour because I am in the car, because those newspapers are those who read I and I want to see the same form I will have my friends, but consumers will see me, logically so, because they have to do the same things to me. In these two arguments are played million Euro of value for the shareholder: about 4% of turnover? Going to watch them to understand how it spends, as you do, how briefing, as you decide, and understand how strong and firm. Let you do spot millionaires than ever to be aired because they finally are not liked, thrown millions on media that do not correspond to the targets of the product, made sponsorship without a strategic line, left to each country to spend as he wishes, and then spots He will. Found administrator of the delegates to not having given them a budget to make what he wants, the end results are the fruit of many combination and easy to say that advertising expenditure or in the media has no influence. There is always the distribution network that are settlers who do not understand anything. Found of CEO who think that the agencies are just machines to make money on spalli customers and which are execute for them and not to propose. So the cocktail to send to hell a result are made. Found small Hitler who "buttino" (throw) the work done previously.

Do not involve Surely one of the most difficult Manager and to involve. As humans, at least in the Western world, our ability to involve merely a partner or a partner at a time, at least in situations normal, lets say, and during certain space storms. We can conclude that in nature we are only able to


involve and share so much for him with another human being and limited in time. If when we are surrounded by thousands of other serious human only are we able to involve and share only with another person, why do have to already in the company and with more people? The answer to this question leads us to two conclusions: first, the difficulty of finding a manager who is able to involve and share, and the other, when we find this extraordinary, however, the booklet is to demonstrate that the non - involve, even that is difficult, leads to bad results. A company is not nature. A company and a group of people that produce output and that this output should be profitable to continue to produce and develop the activity. A company is free, it belongs to us by the will and a company formed to make the most of 'addition of persons participating. And as the 'output and product only if there are a collaboration in adding of individuality, when they are involved at most, even the' output will be the most, both in terms of quality, volume, to design or any measure. This involvement must be in all levels and in all interrelated. Whether in small team, is looking for other in the individuality individuality, both in top management wings to involve all stakeholders in a company involved But, it means involving means participate in the life of the company, means sharing actions, means to participate in decisions, in the construction of themselves, means that 'goal el' output. Before talking about the factors that prevent this involvement, and for both natural factors that impel us to work alone, counterproductive, I want to try to define that involve not say will participate in the festival, the great


style autarchy or fascist. Organize a meeting annual holiday with all staff, eating something together, invite the families, exchanging greetings and gifts, and then "small discourses" with which thanked the work done is not involved. And then the feast enough. And satisfied with the superficiality, self esteem for nothing. And pure bazzofia! I hate these cars promotions that do not serve for more than self esteem of those organisations and not bring anything to the collective enterprise. Another thing would be if they were the end of a process, the time to share the fruit of results, the time to say we shared, we got involved and we have this or the other one. Involve and difficult, I repeat, the manager must make an effort against nature. But those who succeed us are those that are really big a company. Failure to do what he does is to destroy value. Of them, and this is another chapter that talk of ER, the importance that there is someone in the company that ensures that involve management, which shares, which decides with. It must form part of the DNA of 'business style to involve at all levels, a cancer positive for negative contrast to cancer that eats everything and destroy everything. Encourage this involvement with concrete actions that can only bring benefits. There is no need for so long, there is only need constancy with the goals We need to use small tools to maintain this goal always in sight and always active. At this point, I am convinced that diverted some are already thinking that what I propose are more working groups, more meetings, more stages, more courses and thousands cavolate. None of this! To involve and 'and something so simple and speak, communicate voice, so simple that no costs. When we talk express doubts, desires, what we want, where we want to go, feelings and grudges. By doing so you share, way to involve and even easier, only one question: you, do you think? In this application focuses everything involving and


sharing. Make it means that we almost, to be at all, we need continuity in it, repeat it over time. At that point we have. Not to say it wants to close in their knowledge, as such, limited. It means the close in their experiences, as such, limited. It means not take advantage of all that experience and knowledge that surrounds us for this reason that the fate of a company is also in the ability of Management in involve and share, in tare one thing so simple as to ask and you, do you think " , And another time, and you, do you think?

Logorrhea and English The Latin have two things on which succumb. One for pleasure and the other by default. Please find a manager who is a "logoroide" and something that fascinates us. By default, finding a manager who speaks English perfectly fascinates us. If one or both of these characteristics that must have a manager is not well assessed the risks of making a bad choice are terrible for the company. We choose the first manager loggerhead. Every time we use fewer words, whenever we read less, every time we use more new tools like the Internet where you write more automatic, sometimes without accents, we have no more of the secretaries who put the texts in proper language, each time more we exchange emails with colleagues from all part of Europe or the world by writing ourselves how we can‌ grammar becomes an option! So since we meet with someone who speaks and speaks and speaks a little too good orgasm us. It is not complete as to be with a "Anglophile" but we are there.


The problem is that orgasm is likely to cost expensive in terms of value for the company. No logorrhea always speak well and are complements results. Indeed, I have more confidence in a concrete, which goes directly to questions, which decides who does not lose time, than in those that the first twenty minutes they devote to "autohearing" (hearing himself) on any topic, after which when in a moment of distraction six successful thread to the theme for which you were there, try "balbuzzeare" (babble) something, to resume its argument and leave without having resolved nothing. Indeed, certainly having created a misunderstanding future, because you go forward, he will not have understood nothing and say that had never been in agreement or even that never was informed it had a meeting on the subject. Only because he had not heard anything! We choose after what speaks good English. The orgasm and even more easy and satisfactory, is not like being with a beautiful gives? is the gratitude of years and years of work that one had to do to learn the language and face with someone from the right intonation, which speaks flowered‌ that leaves you as a coglione! ("ball break man") What leaves you completely destroyed because he speaks so well. I could say that English in our corporate world is the woman in real life. One wants to be the best, give the most satisfaction, have the most beautiful, to have the most "nice"‌ good! This will be a booklet of management, not more. This in itself would not be destructible for a company, I am talking to speak good English. What can be destructed is when you take a manager or Anglo-Saxon or all of his training has grown in a country Anglo-Saxon. Li, since we are in full orgasm, we confuse mixing and what are the ideas or the experience of Manager with the proper expression of them. Unfortunately, this moment of madness, as in real life copy, leads to having to pay for mistakes.


I do not believe there must be more explanations. Do not let delude yourself. The call syndrome of socks.

Meeting foolishness to be done What will it take to talk about....? Go for a meeting?

Bureaucracy numbers 530 pages of numbers and letters to set up a Budget that all know has nothing to do with what really happens. This is my personal record. The more details we want to go further away aperture of us. Even rhyme ago! Wanting and want more numbers and only sign of insecurity, a sign of little sleeps decision. What important is not so much the quantity of numbers that justify a project, but the quality of the project. We have already said that the numbers should be able to read the same form that the numbers and letters can tell them what we want. Just slightly modify a parameter and the colour of the project changed completely. There will be a great manager or have dozens of years of experience, namely only be smart. Reducing a little market and our shares rise, increasing slightly the market and our plan will seem more attainable. We have changed our strategy, or "rational" of the plan? No, simply with a change in either direction, our plan seems different. This nonsense, and that, and so in the same organizations that in the end no one knows if he does conscious or unconscious. And this market and only one example, how many times we have not increased or reduced the prices of one hundredth, or changed the


product mix or allocated a fixed investment over here or there, an endless list. Unfortunately organisations turn around these tons of numbers and letters. We will not take a decision without a beautiful presentation full of numbers and letters. Indeed, not take a decision without being the third or fourth release of the same presentation. Of colleagues, I too would in the end, to give more significance to the project underline that that project was the release 3 or 4 or 2.10 or 2.13 ... and so nominate the file, even though the end of a release and another had changed only a coma or type of lettering. But what helped that the Senior Management was prepared to ask less change. Stupid when we talk about the investments or projects or cost reductions of millions of Euro? Yes, but the big companies move so. And as these incredible things that are "common sense", instead are so drawn. But it would not be so easy to limit the number of presentations, the quantity of numbers and letters, of the profit? But if that were the case? What will we do with all the time available? Move the ass! Oh no! It is so well in the office, with the assistant, with the coffee, directing, calling to be this or that other, going to another office, a room for a meeting to see numbers, not to think, only to criticise this or that other project, to show the juniors because they are intelligent my empty phrases ... There is a lack of "rules"! In modern organisations lack of "rules". It seems contradictory that we ask to limit the initiative in a world like that of Liberal, where it should prevail freedom. But no! Establish rules would gain in productivity, in reality, truthfulness, "do it", "be smart", in "execution". Having time and space have the enemy of these three terms that express because a company must be competitive and oriented to create value. Not more than 10 pages, no more than 5 lines per page, no more than 10 words per line. Not more than 1 per page chart or table, no more than 5 rows and 5 columns for table


or graph. Simple! The presentations are vehicles for expressing an idea. The idea must be expressed by managers support numbers simple and irrefutable. How many presentations move seen with tiny numbers, with dozens of charts on one page, with the lettering larger or smaller. A tide to demonstrate what? That our idea works? Bullshit! Not for the quantity of numbers or letters show that the idea works! At the end what leads to approval of an idea does not depend on it for numbers of letters they will of their quantity, depends on just two things: the degree of confidence that the CEO has in senior management and in the degree of "matching" of this idea with his conceptions of business. And that suits the stairs to the shop. Tonnes of numbers and letters that ultimately did not used to anything, yes, to lose value to the company. How many times have we asked to redo the numbers or recomplete it only because we are not safe to take that decision at that time? Just to wait to be convinced that the right thing to do? It will be the numbers that they told us to wait or was the idea that there convinced? The second, secure. Our organizations lack of "do it", "be smart", "execution". Both actions are the opposite of work for tons of numbers and letters. The twenty-first century will be those organizations capable of doing, not to say! Sara of those managers able to move on is so because she always done so, and I would add, so we went! Cut these interminable budget processes that serve only to dilute responsibility. I have written you because you gave me input, but you you have not declined, but yes, but not, but that! Cut these processes plans to 3 years or 5 years, which be born to create a discussion on the future, trends, a reflection on the market where it goes on innovation, on us, on competitors, and finally only a mass of numbers and Letters to justify that follow growing and gain more between 5 years! But we are mad? But still we believe these things? How many plans have "matching" prediction


with reality? Someone I can give an example, the we'll pay well! Let me assure! Ah, but not? It was not possible that the plan was reached in the meantime because there was an innovation, because there is a new competitor, because the left won, because, because ... Because there was a war or a major attack, perhaps these are exceptions, or sometimes the justification for a situation that was already degraded and that in the end we went too well to justify poor performance. Cut tons of numbers and letters that do not serve only to obtain a commitment or a justification for "caning" because the numbers were not met or to reward because they were. There need to rethink the processes of budget and plan to 5 years, simplify, always keeping in mind the three actions. Responding to questions simple: - What the Market, where and where it goes? - The competitors, what they do, where vain? - We, where we are, where can we go? - What goals we set? - What should we do to achieve the goals? - We can do this? - Let us do! It takes so many numbers and letters for something so simple? But by case missing a demand to do? We are not mica managers that landing from Mars in this organization and we do not know anything! We know the past, we know of this sense the future. At this point what we lack? And always the first idea of the numbers that justify it. It is true that the idea was born from an analysis of numbers and letters, but not a presentation that the warrants. We are truly innovative and we devote our energies to manager managers, to move the ass to do, to be fast.


Be first in class Here is more effective to send to hell a company to make this commitment to be the number one when you're away than that. Indeed, it exists once more dangerous, so as quickly as possible next year. Indeed, there still want to be in everything: sales, quality, commitment, satisfaction, image ... This illusion and widespread in the CEO, as they know that the chances of success in office during a period of time more or less goes along to decline as it finds that the large multinational European and American at that point there are two strategies depending on the situation of 'Company: 1 .- if the company is at a comfortable level of internal and external results in a position of the first level, the CEO will tend to retain the post by applying a strategy accommodative, this and risk 0. 2 .- if the company is losing share, losing result and its position is not the first level, the CEO will tend to apply the policy of all or nothing, as the saviour of the homeland. Let me anticipate, that both policies are disastrous, the first because it captures the benefits that can offer the market or your company and for so long-term tend to lose positions, and second because clearly there are cases of companies in a period of one to three years become gone from darkness to be number one. It takes a little 'more. We analyse the first case more interesting, what you want to be number one now. Start taking the CEO is not "stupid" and much and conscious and convinced that the setting an ambitious goal this comes to an interim goal that was not the real goal confessed. In theory also seems to assume in practice and nefarious. Why?


And bad because its first level there believes aware of the difficulties of target so high in so little time with the limited resources that do exist. So already part with a lack of trust and commitment and with the objectives of each confession not the first level up to what he believes is already a good result. Result: first, every one to his personal goal that does not coincide with others, asymmetry of goals; second, moved to its first levels lacks commitment and motivation which in turn transmit their staff resulting in a lack of motivation for achieve the goal and end up doing "as usual". And because the nefarious system of variable pay can not be modular form other than copying his lens on paper. How not yet believe it, it does not expect that there is a variable remuneration and correctness in which more results, more pay. Not reaching the objectives crazy, there pay. Multiplying this effect along the chain ends to work "as usual". More as usual as the dependence of their salary on both the variable. And how we know that staff commercial, what invoice, and the most exposed, will also what will work as usual more or less. Even less, because the first reflection of senior managers and their DRH will be: "do not worry, that we know and ambitious, if not reach, we will find forms of remunerate." With these simple words, the whole tension that the CEO wanted to introduce in disappears in less than hour. And bad because the P & L result of the exercise with that of the end of the year will not have nothing to see. Being number one means that the P & L will be number one, that is with a turnover of number one, with planned investments of a number, with marketing expenditure of number one, with expenditure commercial number one, with an increase of staff or a number of productivity and so forth. The more this P & L is rigid, that is as fixed charges, there is need and how much more this expenditure is necessary to more risk will result at the end of the year and the faster the fall going on a downward spiral reversed and profound. More time management plaice in finding cost reductions, keeping the turnover in that called "bubble effect snow" or "Snow",


that is bringing results brightest towards the end of ricovering sales not made with more resources. Cost reductions that have its own limit, increase in turnover which has its same. Everything to go to a spiral of even bigger losses. And bad because it creates tensions between departments because each one tends to blame the nearby when the CEO is searching for responsibility in the first levels because the results so well planned, well-presented by all, so well prepared by all, so now accepted by all not arrive. The commercial accuses the marketing campaigns not offer winners, accuses the production of products not give them as competitors. The Marketing accuses the commercial not be efficient, not to control the distribution network, accuses the production of not being able to meet their specifications. The production accuses Marketing to ask impossible things and commercial order of things impossible. And so on, away, away. The war and served, and from that moment the juniors will more than justify the words of their leaders in comparison with other departments, instead of concentrating energies in "doing" in attacking the market. All the tension that the CEO wanted in common objective was transformed into a myriad of small personal goals for survival as manager. But so difficult to set a goal after another? It really requires that the shareholder be the number one throughout or ego of managers wanting to be paid more and more powerful? The answer clearly in the second part. There but also a risk, that is the point 1 accommodative to the status-quo. Clearly decorated with beautiful words, beautiful strategies, forward thinking, but in time, P & L conservative and risks in innovation 0. And dangerous, because the assumption behind this strategy and that we are the market and that we are so strong in our management and product or service, that we are able to react to changing market and clothes for both consumers. More true that we as a company leader, with


good results, it means that we are capable of. Wrong! Too much soberbia! (arrogance) In a market frozen, that does not change at all and remains eternally how and would be true. But unfortunately the market, the World and subject to change, and sometimes sharp. Still there is a socio political factor somewhere, there is always a step ahead in innovation, there is always someone who finds a new process, there is always change. And many times this change seems so stupid, so failed, not that we realize that in some years becomes a success and transforms the market. We think only as an examples of the low cost airlines. Initially it was thought a thing of the internet as the purchase of a book rather than a company truly air with air true. In some years have transformed the market for aircraft. We think the example so simple and trivial, now and today, Dell, something so simple as changing the distribution method! There are large and small examples that shattered this other Market. In another order, not due to innovation but the rules of the market, the disappearance of Arthur Andersen! Where I want to get and which tried very easy ways for one or another of the two policies possible, and that any strategy must sit to the situation of the company, not that of CEO. So must be very vigilant shareholder, the Management Board. And so easy to send to hell a company and so difficult retore, which wants the "common sense" then to apply the strategies. Someone argues seem them, they feel that is not possible to apply a strategy like that of wanting to be number one in everything and now. I can assure you that is not so trivial.

Remain closed in your office to be done Yes, remain your day on your office, to receive people, mail and phone calls. You do not see with your eyes what's


happening in your branches, let’s tell you and you will go down quickly.

Power of middle management and assistants to be done You do not ever forget the power that the middle management and assistants may have.

Juniors From the categories of managers that I have divided a company these are the most in "limbo", not the one hand or another, they have not privileges it benefits of being managers, but all bonds to be used. The Division I established in the four categories: the CEO, senior managers, middle management and juniors. In theory, bottom looking up, that should be the logical progression, and one was a junior, and became a middle to later be a senior and one day wake up as CEO. But this novel depends on factors such as tan different quality, in which a company and for how long one has been there, for friends outside or inside of the company and much more, and all in a positive or negative.

Female equality to be done


Politicians in Spain have a fever for equality between sexes. Like everything in Spain is becoming extreme. I do not believe in the equality in law. In most prefer to be away from any imposition of politicians; it can only hurt the company.


3. ACT ON THE MANAGEMENT Try to understand the concept. English version not reviewed.

Entrust to the youngsters It is certainly the fastest way to send a company to fry. It is said that the third generation and that which destroys it. Let's analyse why happens in big corporations that should be protected more small and medium-sized companies where management being more direct impact on several decisions. There is no need for direct intervention in decision-making, is just be there somewhere to stumble across the mechanism for management. The mechanisms of authority via hierarchy are upset, the mechanisms of authority via consent are upset, the mechanisms of authority via knowledge are finished. Just say to the shareholder said that because the doubts settle, the malicious take advantage of to get their ideas, and what is worse, and that so slowly that says that the shareholder or have stated that said the shareholder


become the Cazzate (bullshit) that finally make the distrustful between troops installing, you lose team spirit, confidence in that there is a management capable for the company becomes a joke. But should not always happen so, whether the inclusion in company structure and did so with intelligence. For intelligence mean that a career is made and executed with a guardian of this can be fatal, can be beneficial. But when and done only for walking and when the legend becomes a boomerang against it. When you are abroad, more for fun or learning a language that working, going to work with because skateboarding and fashion, or do a lap in state at the factory or assigned tasks as ill-defined role and / or insertion in structure in positions that have a direct impact in the lives of the company, without any more experience with them is to shade him a hand in decisions, revise or stimulate the disaster and served. The company becomes a more sympathetic for toys that the shareholder. It is creating tensions at the top of the structure if the placement is not in the top because the moral weight of an opinion worth more than the view of another manager, in low because workers do not understand anything and threaten the position of work they have finally at the same level as the specific weight of the shareholder and largest of the views of those who have earned the job. However, so far the damage can be contained if the decisions do not have a strong impact outside the company if customers or prospective customers perceive and connect the work of the shareholder with the results of its decisions. We always talk about the case in negative, because clearly if the level of the couple action / outcome has consequences because we are good on strategic, high management decisions, the results can be fair, and there America teaches us much if we take for Ford example. A step by step, no game, no boy games, a career that leads to professional maturity.


Here you play, and becomes a protagonist both programs "gossip" well as those of satire, but never interviewed by large generalists or economic network to discuss strategy. And in these cases the question and always the same, but his guilt or those who put in that position? You will see him in the chapter. But so difficult? No, should not have all the means available so why not, when a large and surrounded by men, knows from small to large men, something has to stick. One must not concern other than learning to live and govern.

Continually change the top management Well! Without doubt this is the fastest and most efficient way to send whores to the company. There is no doubt possible to find. In this case when speaking of top management speak CEO of the company, although it is a normal consequence the first level, another practice that we have already analysed how harmful and added that the first has devastating effects, it is almost always without return. The company consists of shareholders, but the daily management and strategic is left to a CEO. This is what can lead to the failure of the company. I do not speak of the positive part of the fallen, because if the company consists of an initial level of capable managers can survive without difficulty, perhaps not grow as it might grow, but unlikely there will be danger of destruction. The CEO accompanies growth, but accelerating destruction. Being its strongest impact to the destruction that is not the growth of its importance. If we add this factor to the change of CEO and consequently the succession of characters, we understand that the acceleration is worse than that of particles of an atom that comply atomic explosion.


What happens when you change a CEO? When we ask why, we do so because the answer many times a little rational. The change of CEO entails a change of strategy because you assume from that there was a change was made because the shares before they have worked. And there we could stay, provided that the former CEO had at least long enough to prove that actions have worked. And that will depend on industry to industry and very attached to the cycle of the product, specifically the time of renewal that is needed there. Knowing the cycle of the product or their renewal can measure time that one needs to be able to collect the actions implemented. So many changes of CEO, so many changes in strategy because yes, adding confusion in management and customers in the rear because the different products or actions that will come out completely barbaric. Second thing that happens, adjust structure, so that as the former did not work (not objectivity) need to change. Even small changes are that the company remains immobilized to understand, to learn how interrelation in the new structure. The third thing that happens, the new CEO declares that counts with the management in place, it found motivated and able to address new networks, which will not bring anyone. Well! Only time to organize, make calls and allow time to resign to new managers who must go. So, first dance levels. People who go (to motivate), new arriving. Who need time to adapt, the more we come from different countries, whether arriving for various industries. Each time you add an adjective in most explosive effect. Fourth, but a consequence of earlier immobility on the part of the company, motivation, loss of the compass ... Let's happen and the effect in the chain that if it produces: change in strategy, change of structure, change management, immobility of the rest of the people who comply with the company. For every time an explosion, you


must multiply by every new CEO arriving, and power should be elevated to the square or three times as short as is the period in which remains in place the new CEO, the result is the destruction of ' company. If you take a company in 3 years has seen successive 4 CEO can find a formula destructive type: (changing strategy change management structure change immobility) 2 (changing strategy change management structure change immobility) 3 (changing strategy change management structure change immobility) 3 (changing strategy change management structure change immobility) 2. * 2 being more than one year and 3 position in less than one. Devastating! The why? They do not understand very well, no one can expect a CEO of a miracle in months, if they can somehow have to wait, but not in months. There are times in business necessary if this happens more in times of recession, you can add to the formula power to another front. Why should I be the results if there are inside of times, yes change, absolutely yes. But is not the only one who reaches the shareholder and send to the company whores. This must be a process indefinitely until the final death? Not necessarily, we need only to stop the chain of San Antonio. We need to stop and leave the time to spend, can not be worse, even if ever there. We risk leaving less see what happens, that jumping in full race. I will be pedantic, but always using football as a reference, which could be more like a business, because there is a shareholder who is the chairman, there is a coach who is the CEO, there are players who are the managers different level and the remaining staff that are employed. In this case the product is what I am capable of doing


together, to mark the most goals possible and leave as little to do. How many companies change and change coach during the season and again in subsequent? How many of these companies have seen win the championship or at least the positions of honour? None! No, because you can not, you can not change continuously as a coach for players! The companies that win are those that have strong nerves, working on average with a good coach, with a solid team that is renewed in positions where there are opportunities that solidifies over the years. This win, not because they are large, benefit because they are constants in the basic rules of any business, working over time!

Restructure continuously. Leave the new CEO decide the structure We boarded in different chapters, all in relationship to a lack of control of a directorate of human resources and organization. The company made and reporting, not just hierarchical, but the relationships at various levels, the company and made of "human being." These, we, we are pursuing with references, if we lack these references, we lose and we do not act efficiently. The most important reference in a company and structure, know where you are, what you do, things that you need to do to move forward, to improve things, where you can get. We all have ambitions, small or large ones that are, but they are passions. The desire to earn more, being more recognized, to take a less heavy work, to do a job more rewarding monetary or just morally, these are the factors that we do have some references. There is nothing worse for motivating people, not only of managerial subgroup, there nothing worse than to work hard because you have access to that place or the other, and that delay there is a change in organizational structure


for which you do not know more than what you will be rewarded. Note that not speak of the destructive effects that clearly has a reorganization on the same if this affects them to the same form of negative or positive. I speak even if it is to form positive because in some form this reorganization will also moderate the expectations that one could have. The management of human resources and organization should be very careful with these organizational changes. Let me tell you, and more nefarious organizational change of exchange of persons. The change of persons affected morally their expectations, their motivation, but he does now and short. And a hard blow, yes, but the past few days, you return to work knowing that it was an accident of location, perhaps one realizes that the other person chosen has more experience or best for the position, indeed, that may be and an opportunity for a person working in teams, leaving space, which will occupy more of its employees. Expectations have been slowed, but not erased, its location, its ambitions on that place on that or else remain intact and because the structure remained intact. If so and acted on a structural change all references to whores are gone and they have to find new references. This will mean time, this will also ensure that the skills required for positions of this new organization are different, that will lead to that one is no longer suited to these new positions. What can not try different format or learning other things is appropriate for these new positions. It may be that either partially or totally unfit, that will cause a motivation that will be difficult recoverable. The opposite view may be that the management oversuited is also required because the position fell to its responsibilities. The problem is the same, one feels demotivated, infra-valued and realized the new job to perfection, can only do so not without justification, no motivation after that is transmitted to the team and the rest of the people with whom we have relations.


The more you change the structure of the organization, either completely or in some sections of the company, this will be the largest loss of reference will be the greatest motivation, will be the largest loss of efficiency, the more we will destroy value for shareholders . I want to emphasize that I speak of organizational changes at all levels, including those in small sections, because they work the same mechanisms of motivation. Clearly if a company is acting on changes to the Top, translated them down, has earned the Grand Prix to become a nonmanaged, inefficient and not substantiated. Inefficiency that will result in the results.

Throw out the elder I think this is a fashion started at the beginning of the new century, probably for a rapprochement to the U.S. where the management of youth and middle much higher in Europe, you can easily find jobs in first-line managers who just come to 40. In Europe access to the first level of management had always been a factor in achieving step by step and the pyramidal structure of the organization could correspond to the pyramidal structure of age. Hardly the first 45 or 50 years were not of top-level managers, not to be those of companies say family-controlled, as well as cases were counted. But since the beginning of 2000, the age of management and began to decline and was within 45 to 50, now we have to find the exaggeration of top-level managers before 40! That experience may have? 15-year career, all at most, not for having accumulated knowledge, methods, capabilities to be at the front of the first level of responsibility.


The answer, not the correct answer, may be the import of Top Managers Anglo-Saxon of precedence, especially American, and the increase in American affiliations in Europe, and the boom of new American economy, where we find them Managers say the short age . But I say that is not correct because the American system of universities is that the company is completely different than Europe. If one is based in competition, let's say, asylum, that is low in European mediocrity. From a small in the U.S. is entering a competitive battle in what is school, either sport, is entering into "cheer leaders", both in theatre school, the magazine ... In Europe there is this spirit that they a battle, an orderly study, is a sport or two because you must develop, if occasionally writes also of interest, but the reality and that a study per se, not against the other best positioned to exit. And a study at all if, to appear later in a labour market that will protect you. That and the other big difference, in front of a labour market that is based in the results, the constant turnover of position or work in mobility, in search of new opportunities is forced to poor results or to find better opportunities, the European ti The contract provides for life. Yes, you need to compete for a job and you have to have studied something, maybe it will take two or three different jobs until you find the right one, but after six left for a job for life made from small steps in the protection of a great mother, and that the Continental European market. A system that does not help mobility, which is not conducive to the work objectives, that does not help in some way the insecurity that makes you grow, and prefers the Protection of all of the growth generated by greater motivation and push caused because everyone is looking growth opportunities. It is clear that a manager from a U.S. system or a continental European can not give the same results even if it has the same age or years of experience. The European manager to 40 years is not so consolidated as it may be an American. I believe this conclusion irrefutable.


Not surprisingly, the U.S. and the only company in the world that by its constitution and permanently at war with anyone. There is no country in the world that is constantly at war with any country, both under UN mandate, the coalition or alone. This means that the spirit of survival and that the fight, both in that form part of the DNA of American citizens. If the flooding in more in a battle as is the market, logic tells us that by their very young can give more. THE European society and conformant too, too social, too protectionist, more anxious to avoid anything that the risk for having more. I am not making an apology for the war, I'm only meaning of the facts. I'm also indicates that not only serves to get a copy, if you do not analyse the reason for those results. So now we find ourselves with the ascension of European managers in the early stages with age "young" facilitated for a lower cost of labour between them and those placed in older people. Yes, with the need to adjust costs and management began after 2001, that trend imported from the U.S., Europe and accelerated the need to reduce costs by sacrificing the experience, for a badly misunderstood "want to go," the young Europeans do not come out climbing virtuous circle of the USA. Thinking that only wants a company can go forward. So the managers of 5055 were seen quickly replaced for those 45 and the first to reach aberration of below 40! See that there are more references month after month, to see that when one questions on an issue, closed his eyes and wondered who can consult and mind were in two or three names that only a preferred use them to be sure of what was to ask for fear of not being seen as an ignorant, and now do the same to close your eyes and say, bah! Better decide that myself because if I have to ask them that the only risk losing time or who tow me what I would do so not because they are wrong. The problem remains and you the frustration of no longer belong to a team, you want arranger for yourself. That's true motivation within a system, because the company and a system. But


demotivating and when you can not grow with the rest. Doing so because the risk of mistakes increases, control decreases, and the possibility of failure increases. And as always the fault can not be themselves if they have not happened, how and who so impossible, because the authorities failed by Top Management and important but not sufficient unless combined with the daughter of knowledge, experience Of knowing how to manage resources, "leadership"! The fault can not be that the lack of control by the shareholder on the Top Management. Why the destruction of value not only from error that it had assigned the responsibility to managers so young, but if the consequences resulting there from motivation of the rest of management, normally there will be more experienced managers above his age not below, corporate paralysis if it comes, the necessary reorganization resulting in nonoperating and non-success, dual motivation of its managers in this situation because after the euphoria should be reduced and replaced find other positions, ultimately a nonsense after another . This call the syndrome of orange belt. In judo you progress in the belts that go gaining as much experience you have: white, yellow, orange, green, blue, brown, black and after several "dan". Or at least was when I started so young, more than thirty years ago. There were two schools of thought at that: schools in several different governing the passage of a belt to age, and those who freely left the kids progress. My school was the first, and remember that frustrate was not able to go to that orange dream, it maintained a yellow with a black tire different form of "dan". Frustrate was going to tournaments and see that other kids the same age that had already orange. This frustration came to less, because to be the fight for weight and not for belts, this frustration disappeared and the outcome depended upon one and not the colour of the belt, was sometimes an advantage, because the opponent is believed strongest. To say that the formation and accumulation of experience are the two important pillars of


a Top Manager and that these may not be mature in age couples. I want to emphasize that I speak of organizational changes at all levels, including those in small sections, because they work the same mechanisms of motivation. Clearly if a company is acting on changes to the Top, translated them down, has earned the Grand Prix to become a nonmanaged, inefficient and not substantiated. Inefficiency that will result in the results.

Payment policy of management There is no more effective method to create a beautiful pay policy based on leadership and results on targets that will never be done! These should be the pillars of a salary management: their leadership and results that can bring home against the objectives assigned. The management and not other distributors, if they do not have targets set at the beginning of each measurement period, is the year, quarter or other space in time, can hardly act according to the results, but will only receive the salary or earn what you are set to gain in the case of distributors. Let us return to the concept of a directorate of human resources, and if sufficiently strong and has the commitment of shareholders to be able to act, we will be with systems that will last over time and are a reference for a motivated management to grow the company by making results, the usual "gagnant, gagnant". I like to help managers improve the outcome of this and I pays on the basis of that.


The method and a: a premium for targets. The way must be constant over time. The objectives will vary year to year according to the results and new challenges that the company has. A manager who is approached for the first time a company will say: Obviously, nothing easier. Instead there is a person like complication, not bad faith, but because each one wants to change things done by his predecessor, we already spoken about it. One can not settle for take and adjust the targets, are in volume or type of targets, the method must change. So the manager does not understand what more would your chances of reaching those goals and will only manage, not to pursue a goal because it does not know how it will be measured. This is in the best cases, the motivation is higher when you do not know the goals at the beginning of the evaluation period until the year or even the end of the year in order by the DHR, show that there is a premium and that there targets were set. A farce! The problem, and that the company and a body that must function in all its part, and that in a moment that is the danger of gangrene extension to the whole body and high, encouraging their death. The problem is not already the achievement of objectives, the famous crossbar, but the system. The Top Management agree embarks in discussions on the method each time, the DHR contemporaneity on the schedule, the communication method and objective instead of being made "one to one" eye to eye over the waterfall, is spread by e-mail, so the most important moment and that is to say to a person you're paying for this and so do you give so much more, is completely trivialized. Not only that, but as the perception that management and fraud, no longer works for goals and the demand for higher salaries fixed by whom already work or new entrants is increased because the carrot of variable we believe no one. Other added value for the shareholder smoked.


Worse wrong when a new Top Manager arrives and to motivate the troops use the argument of a new method of variable pay. Ala! We are allocated for another round! That and the response of more efficient managers, that of inefficient you can not play. Knowing that there is a method to pay for what you do and one of the most frustrating things in the company. Knowing that you both will work or not you have the same assessment that your colleague and frustrating. Instead know that yes you exceed what you do you sari rewarded, even with a symbolic Euro contributes to the motivation of the people. But friends, talk about method, the objectives and achievements must be measurable. After not begin at the end of the process of putting poles. And we do not begin to announce that the reward and management by 10% or that the stock and distribution of x% with a value y% of a similar and so forth. Cazzate that are contributing to any work on goals, just to please someone more for what he did that not because I have worked to achieve its objectives. Not to mention that everyone should have the first prize in the company and not as a competitive sport where the jack pot and for the first. In business and the team that contributes to success, and therefore better pay less in value at all, all those that have achieved the goals that do not distort competition and give more unless it is not known why or how. The same form, that even if the company in difficult situation and there will be departments that have worked better than others, and therefore always good to the method works and is maintained over time with a reference and reward, always less economically, but reward to those who have achieved what if they had requested. Finally, the "cerise" on the cake and when the premiums do not communicate, but the tam-tam and that makes you spread communication and genres, such as tam-tam and that, of the information or slanted party of what he did


playing the drum . The process of remuneration should be transparent, and companies hate him. Instead this and the cultural leap to go. We work because we pay at the end of the month, there another reason. The rest "craps" from wealthy! We work better because we want to earn more in the future. The rest of "craps" False! If the system and diaphanous by up to the delegate of the workers, can only be beneficial to create a competition for best results and access to higher levels of responsibility and salary. All assume a greater responsibility, higher wages. The problem, and when there is a policy of wage stability, and that made by men who command more than a company policy or market. When we find a liability equal wages many different or even lower to a higher compared to a lower lever of the most important reasons are that the money disappears, because there is no competition. Worse when the tam-tam, not only when communicating the premiums, but also for spreading word about salaries, and then served the motivation of those who believe that is not right that they earn less and the competition disappears because clearly non-transparent policy and not the DHR can equalize salaries. The game no transparency to cancel the leverage of salary and plays into the hands of eliminating competition for targets, favouring the need to pay more in salaries, when a clear and announced policy of pay restraint favours the requests because every one knows what will. Like everything it takes work, but once established, management of resources over time becomes easier, being able to focus in their assessment that in most case management and constant changes of method or constant recalculation of objectives and results. Let the management alive with high salaries in some cases, with disproportionately low salaries in others, not motivate


them to pay for goals and the result will be a management that works only for a take-home salary, and so the company goes wrong , Well! It's just that not enough is so evil as to disappear. One solution, the DHR is always send via managers and replace them by new ones. Normally, these are intelligent as the process of accelerating the innovation and commitment takes time to realize that the system of variable remuneration and a farce. This usually lasts one quarter. Since then the manager becomes like the others, and the result for the value and which have decreased because the new manager and so paid a ticket fixed and greater motivation and increased.

Payment policy for personnel One aspect so easy to treat, how difficult is transformed into reality. I do not want to go into various aspects of managers personnel in depth, just a few brush because what I want to focus and as an element so simple can be a very important factor in helping the company to take the path of excellence or that of disaster . I think because the management there are two schools: that the staff and a mere executor and must thank the company for a salary later this month, and what will the staff as a resource to the greatest ' Company, at any size is concrete image, outcome, with the commitment around... It seems so obvious that the second form of Management and proper not go beyond that. I just wanted to pin that first there, and very present in our reality. I do not think it is that the road to excellence, but that for the company to send whores because at the end as in politics, selfsufficiency and dictatorships end sooner or later.


You want to talk about the shape of managers pay policy, which may even be in both cases exposed, even in the second. The beginning of my professional life has been in a department of trade and both were motivated by a highly variable part, by the way you tell what led to disastrous consequences in me as manager, from that moment I did not believe in more variable and not I have talked as variable pay, you get good, if not the "same". The fact that in a moment of difficulty the company has decided to cut the bonus, which is fully assume for a junior manager or the staff. Do not like it, can not be your fault directly, but if the company goes bad, you understand that something must be sacrificed. The problem and the explanation. Our boss, senior manager is present at the meeting by saying: "I am sorry to report that this year there will be bonuses that the situation does not permit" to them so good, so a guess, was preparing an all could remain there. No! He added "I understand that hard, I had to go to the bank this morning to renegotiate my second mortgage on the house that I bought!" Son of the great ...! As you are not able to extrapolate that the effect is not the same for you and for us as persons ninth on an assembly line! As you are not able to understand that what you and an optional, for the rest of the staff and a need to live! I must say that was a very good manager, but these "ticks" are very often present when deciding whether and how the party will be variable. We are not yet able to understand what the staff needs to be paid, not optional, hindsight to live. And as this tiny part may be important to motivate him and the rest to produce more or better, to grow the company. Point one, pay too little motivates more than anything. Point two, must pay those who know the merits of one or another. I have already spoken in other chapters that a company is not a democracy. But the very fact that deciding the remuneration of individual staff in Great


pyramid Committees which are reducing in attendance to measure up to pay out. Some may object that a company made up of interrelated and that the result of team work, yes, I agree, but not all levels. The more salt if, as most important in low and work within their team. And if this true, and that, as can be evaluated by a manager who will have seen him maybe once coming through a corridor or entering or getting the job? And so instead. Grotesque, a spectacle that turns into a struggle between departments to see who to award more people and how much in value. A fratricidal struggle between managers explaining why or why not is completely absurd. After a year and someone able to say "if, I agree, because one day he saw me in corridors and seem very active" or "if we ask one thing one day and we responded kindly and quickly!" Once After 24 hours, after 365 days! How many times can we have in this space time! And this in the positive side, if another manager supports a candidate. But what happens when the same experience and negative? War, resentment, preparations for the next game. Why this crime can not go unpunished! So when will the next manager of return, according to its answers, the battle will be more or less harsh in contrast to opinions on the candidates, going to take the same subjects. But not impossible! There narrative of fiction! A certain levels of management and experience so things are not possible! There will be someone who does nothing! No, No, No! Even the coldest of managers, even those that most people, even more than that "passes" in a moment or another explodes! It participates in the "sarao". (soirĂŠe hot) A process this committee laudable the willingness of transparency and sharing, but deeply wrong in the application. Only generates battle, bad mood and little equity. Demotivating for the management, demotivating for people because the criteria are not clear why that is and I not? The other one because one day you saw in corridors and do not


have it hailed! I've seen you? We had greeted him? ... Because even if what is discussed in committees should remain there, nothing further after minutes you know everything already, the interest the business launch is to conquer what is lost. As a lever so important as staff remuneration becomes a motivating factor to get something that is good and if not, "the same". Rather than take any responsibility for an as is paid, the responsibility of taking that decision means to reward and a warning to another. And too good share bread and fish to all equally, but at that point that serve? And too good not to have to explain it to you and you will not. And too good to survive. But then, what do you pay to the company! The policy responsibility in pay means pay and otherwise justified. So easy! Yes. One thinks that the DHR should be the guarantor of a transparent process, well! I am referring to the already long chapter on the DPO. Instead I was also contrary to the process. As the pay policy was creating a spirit of belonging to the company, loyalty to the company, and to fight for better results and to stimulate close to obtain better results. The fact that he is in a company that each year shared a portion of the profits among workers was that they were motivated. And that was true in France and the law so that it provides. But being in that situation was that one is left in that branch because the results were better than the others, let me say a similar market conditions. And an application was in the fact that to motivate staff with two, sometimes even three months' salary to do all that is building a spirit of work to do that the oars were all moved in the same direction. Some may consider that this state intervention in the economy. And true, and so. But having lived the experience makes me think and that should be in the rules of good management of a breakdown of that type, resulting from


the development and redistributed equally. To punish those who had paddleo against there in the business daily. I have so valiant, which the company later at the same time, suffered the opposite case. The true situation and that was less successful, partly because the company had a child, but also because the strategies were different affiliates, applying for the transfer costs much higher than that or at least should be and why I always thought Or kidnapped certain costs over-market. As the staff knew, and as logically there were no profits to be distributed, the effort to motivate the management and staff was very strong, most of the time was not motivate more focus on its goals to grow the company via turnover . Knowing that one can enjoy a social benefit derived to the extent of his own political effort to multinational and not enjoy was very frustrating for staff. France and intervention, and public and so, but in some respects to labour issues that should incorporate the managerial conduct for not sending whores to a company. One we discussed how the 'la participation et "l'interessement", the other "l'entretien annuel "as part of the process of MPP, "Management du Potentiel et de la performance".

Too many assessments to be done I will develop the concept of assessments, many for nothing!

DPO to DHR to DR&G


In several chapters of this booklet I have addressed this change of direction of staff exclusively focused on operational aspects of traditional personnel management and building organizational structures to a more modern human resources management to consider also its progression and interrelation resources to create structures for future direction that not only manages the resources and interrelation people to build structures but acting as guarantor for the shareholder of the essence. In fact, is the addition of the word guarantee that introduces this news in the future development of farm structures. Today in company guarantee on products, whether legal or complementary to reassure customers about product quality manufactured. Then why not give up a guarantee to shareholders on human resources management and organization? Why give this assurance to shareholders? What? In modern management there is only one figure who is elected by the shareholders who is the chairman or chief executive depending on the organizational form that will be given in each case on a single figure has concentrated all power to decide on fate of the company. This logic resulted in a business where around these Top Managers were poor, usually with a lot of experience before moving on to positions of command and probably only intended to stay for long periods under the command where the loyalty the company was a core value of Top Manager. Today this has changed around, the Top Managers will happen every time are younger with less experience and consolidated them internally with less loyalty to a company and more available to mobility, there is more blind loyalty, a part of it in the other. In the sense that even today the shareholder is willing to grant more than a chance at a Top Manager grown on the farm and faithful if the shareholder is another substitute known or commits some mistake. This change of attitude on the part of the Top Manager causes that are required to achieve short to consolidate their positions super Top Managers are able to solve any


problem at the expense of the consolidation of the company for future generations. So in this frenzy to produce results all the power and concentrated them and can devote themselves to change everything. Not only are dedicated to establish a strategy and implement it, but they have a tendency to create everything again to achieve results as quickly as possible. I say that this is normal, well, not so much, achieve results quickly can not always be significant that these results will strengthen the business and ensure the future of the company. Cut costs for granting a profit can be very important, but do so without delay an investment plan or ideas may cause behind putting in doubt the future by helping to send to the company whores. In the past these Top Managers merely changing positions and trade marketing for the most times so people can have confidence with which act on the operating arm of the company, to develop the Commercial and Marketing. Up to here a certain normality, normality to which I have always been opposed because it provokes a strong motivation in troops and staff, so to say. Li is where the DHR should intervene now, that is, highlighting internal resources, alert on the dissatisfactions that might create, ensuring a passage not traumatic, encouraging the integration of the Top Manager and not isolation. This action by the DHR is certainly easier in the event of a Top Manager from within meanwhile knows forms of implementation and Management. Becomes more difficult when outside with a desire to cut with the past. This is not the first words despite a Managers Top Management to present a company are always the same: I come here to help, I know the current management, I have known these days of Managers and are convinced that good you are, I do not want to bring people away because I am convinced that if there is enough staff, bla, bla bla. Finally come across a new troupe, why and as a result of this new elite of Top Managers.


But back to the point, so far these changes were only in operational areas, is unlikely in the back office, difficult financial position, guardian of the true numbers and unlikely that DHR because the custodian of history of people and organization. That, precisely because this elite had enough with the changes of individual Managers, wanted to redesign organizations, invent new structures, changing everything. At this point, in front of a DHR that could seek to discuss options are structural or people, have preferred to enter into this dance also the Management of the DHR. So doing have destroyed all that may involve the Human Resources word in the sense of being the story of relationships in business and structures that made the company to become a mere instrument of reorganization and thus reclassification people. But the resources were made available to the structure and not according to a story, but again feeling with the Top Management. The whole essence of a DHR has lost to a management day by day, so the mirror day by day management of the Top Management. Nothing you can create meanwhile has created a new link DHR and top management fully dependent than between shareholder and Top Management, therefore the activity of DHR is subordinated to that of the Top Management, but the most serious is that time is conditional on the basis or stay of the mandate of the Top Management. On one side of the product was subjected to a new Top Manager, but now also the essence of the company and its best value are the people who work there, is also subjected to short, not the consolidation of 'Business. Witnessing a change of organization for change, more rational than those that last more bizarre as it hoped. Witnessing a pyramidal structures for those business units other than those in other matrix flattened and then retransform in other hybrids, all this in a time so fast that the company is permanently without rumble. Without rumble because during a period of several months is still to understand how the new structure and how to position


themselves, once made official the new structure you try to figure out where one is and who should relate, at this very moment all trying to stay understand why the same in other months of operation as a group, only isolated actions less effective if implemented in that group. Once it begins to operate in this new reality, new air of change, new months of waiting, new understand month and so on. Process accelerated and strengthened if accompanied by changes in top management and DHR to be clear symbols of new changes. If more is not realized any training to learn to work with the new structures will get two negative effects: first, that the management will continue to work as before vanishing, and so the effects that you wanted to try with the new structure, the second the de-motivation why not go ahead promoting a new change and crippling its business. If this happens several times within a few years, the result is obvious, the company remains paralysed in its policy and decision and go to whores irretrievably. If this is allowed to multiply at all levels and also in an affiliated company disappears. Top Manager will always remain the pretext that the market has fallen, that the conditions were impossible, that has not been able to do what he wanted to do because the internal impediments Management did not understand ... cazzate! He led the Management that he wanted, changed the structure as he wanted! The problem was perhaps that was not capable for such a large company or industry! The company is not a military entity to which the General commands and obey the other as a single body, the company is made up of individuals who agree to cooperate or ambush until the arrival of a new general or for life. In large companies and very simple to do so, so you should seek the cooperation of all to advance the project. To avoid this, this loss of resources, not only in the sense of loss because seek other realities, but of motivational loss of a direct impact because each one produces both a product or management or have ideas, the shareholder must ensure control over this function, the same form that keeps


the Top Manager. For this reason my suggestion and make a double change management. The first, that the DHR is transformed into DR&G, which is Direction in the management of resources, as a result of them, and you add the factor of GUARANTEE, namely implementing the Guarantor for the shareholder management of resources and ' organization to ensure the survival of a long time. This first step should not be difficult organizational, just the Top Manager knows that what he wants done needs to be shared with an institution such as DR&G to act on long-term average is not just about short. To deliver means more weight to the DR&G, which has lost in recent years. Another thing and find current DHR professionals wishing this new function as a partnership, let's say, two-man Top with the manager and not as its "virrei" (vice King) where do what one wants. The second, that this new DR&G, is directly invested by the shareholder of (executive board). Still structurally under a structure in which the Top Manager is the host, but where a figure such as DR & G ensures that the medium-term work on the resources and organization. Could not be invested by the shareholder, because on the contrary there would be no security for collaborative action, not subordination. So in case of conflict, the decision is not only derivative of the power structure, but having to do escalation on the Board of Directors for elucidate the strategy to follow. Focusing on absolute power on the strategy and resources in one person by the shareholder around today seems too risky, and recent experiences show that the continuing structural changes since the last Top Manager, the accompaniment of new managers lasting as the Top Manager of Directors of HR lasting as the Top Managers have demonstrated the ability to send a whores a company despite the market has fallen.

Who is to blame?


This is one of the most fascinating to see who has the ability of top management to identify elements such as the ability of a strong direction of Human Resources able to coordinate the growth plan. A strong direction of Human Resources, for me and the key to a company, the success of a company. Many put the emphasis in the product, the ability to guide a leader, built into a brand, in an aggressive commercial strength. I put it in the direction of human resources. After the birth of an idea from someone who represents the company, and after searching in empowering the people, structure, in dealing with them grow or produce them, in succession to create focuses on "savoir faire". Strong safety DHR by the shareholder because he knows that the management of men and in good hands and that the structural adjustment to changes from environment will be managed to seek the maximum return for investment. From a safety who also works because we know they have an independent and referencing that the mood changes or superiors. In times of crisis already has internal causes or is so because the crisis in and around the trend and change and change all the functions and create a domino effect when a Top Manager changes. These natural forces are to be thwarted by a strong DHR making prevail the construction of new strategies with internal resources and that ensures a process of evaluation of the entire management and staff rigorous. In these significant changes the individual story is lost, the individual work is lost. Not having more history will clear the gas that a better and motivation of management and staff. If one does not feel more later if he does not know that his previous work has been appreciated, if it can not trust his superior and know what they will settle for a pact giving / donor motivation collapses, the intensity of work collapses, the discontent in installing person easily spread to her around, this is the cancer and is spreading.


What company can endure in a time span of time at least changes in all aspects of Top Management, by at least five CEO of the group leader, at least three in the subsidiary, at least three commercial directors, at least three directors of human resources, at least in many production In the product, at least two rounds in the heads of markets and markets within the same event? If no more conform to a change of people, but we put ourselves in a more fundamental change in the form of work, i.e. and structures and easy to understand that the disaster and served. This can be avoided if the DHR and who has authority for the shareholder to be the guarantor of the proper functioning of society. If this is overtaken in this tsunami, the tsunami moves the company via a metro a metro. Why later and easy to find other responsibilities. But the product is not there? But there are no investments? But there are no people? Many cock, because the products they are people, investments are always there, and people there are always more or less valid, and not possible that all those Top Manager in turn has made the hilt in seats. Perhaps think that I lost the thread, passing of the central and who to blame, other than the strength of DHR, but like that and at the heart of this process and logical path. This fault and who is two conceptions of how to structure the career of a manager: multidisciplinary or discipline. A bit the debate among European university systems generalists or specialists those Americans. I know some famous' all or very little of both. This simplicity in speech may also be simplicity in the solution. Indeed, companies are structured to macro sometimes have points of connection and a cognitive function of managing director. The career path being done to reach the Top. A multifunctional path suited to a profile out the forms, someone really bright that it may become CEO. The path mono-functional and suitable for those one step below


those brilliant to be the first levels. Unfortunately for the CEO or one there, and experience with two matrix structure to become difficult to manage in the Latin countries and smashed many times. I lost it again? No. Indeed, if one takes let me say a good manager, but not a brilliant and makes a multi-functional consequences can be disastrous. This often happens when you want to exchange staff functions with commercial ones or those with technical trading. Exclude cases reversed because they are less frequent, being the trend of business managers more reluctant to lose the privileges of the area. When the commercial marketing or operates as an accountant, safely under control poison, the bureaucratic function that are part of the body dynamics, this ends up swelling and the results accordingly. Same result when management is engineered.

Take an accountant and not a controller Difficult to find the difference, because today a name means little, is the attitude that defines behaviour. It is not so important that technical training is the same as the ability to manage a job. Earlier, accountant and controller have the same education origin: the accounts. The management of numbers, budget management, management of P & L. On what work is always the same numbers moving from one part of the budget, analysis of these numbers and propositions de la solutions to improve the P & L. The techniques are always the same, applying the accounting standards. Their output is always to a P & L. The big difference is the performance to cope with their work. That is, the difference between being a mere


photograph of a situation and an actor of a film. This in these years of professional experience was crucial, find an accountant or an accounting photographer plaintiff that the work of Marketing and Sales has been facilitated and consequently more efficient or not. The P & L can simplify it into two broad macro activities: the turnover as revenue and what we need to bill as exit (Marketing costs and expenses in Commercial incentives and / or discounts). If we consider that the former is included in our control Meanwhile depends on the condition of the market and can fluctuate, that expenditure is endogenous to the company, you can reduce or increase more easily, simply cut spending is reducing costs. I'm very simplifying the speech, but I need to go back to the concept, it is clear that cutting is not always possible because there are commitments, it is clear that there are other costs such as R & D or personnel or others, and clearly that the turnover is not a which is obtained without investing and spending. What interests me is to highlight how an attitude accountant or controller can support the business or take it to disaster. No need to say that even the best controller can not prevent the disaster. We said that we need to bill of costs. In large companies it is difficult to establish cause effect between spending and results. The most famous is the publicity. There are so many variables that affect that make a mathematical formula is a fun exercise for a young graduate, but unfortunately after that is useless. One now invests in advertising on a product, but it will impact them in the coming months, or will have secondary effects on other products, or will not have had any effect is not increased despite the turnover was because a competing product that has generated a general question or a political / economic is generated at that time, or a scarcity of product competitors in that period, or dozens of other reasons, from there the difficulty of translating all this into a mathematical model. But the same form that is difficult to translate into a mathematical model is difficult to interpret who must be accounted for.


The accounting photograph and have since faced with a spending x has produced a turnover y. And that this phenomenon can be repeated so. A controller analyse, records, the whole process, will seek to understand what has or has not worked. The traditional position of defensive and Marketing and Sales can say that whoever has done well is the accounting officer. That and just photograph. That they should not care less what you do with the money, those who have responsibility for P & L them, the accounting shut up and do not break. And here we are in the classic situation in which the company makes or relegated to lower division on the basis of conflict of interest, the struggles of mistrust between managers, with more or less hidden, little transparency because each one makes. It appears that each one makes the accounts in your pocket to another, instead of attacking the competition. It appears that every little expenditure should be delegated to the administrator who must mediate between one or other ends and that most of the time on accounting unbalanced because at the end but it must be a trust who is running the numbers and was nominated for that. This position is also quite handy for Marketing and Sales, at the end if you can not go forward is the fault of accounting that prevents any new spending, any new form of spending, which only calls numbers hardly related only to be able to say no worked. The fault moves or try to transfer, the numbers are beginning to fix (in the sense of make up, not of "tricher"). Steps a part of your time to find formulas and ideas to go around the obstacle which ones not to get results. Every small battle becomes a war. Each victory a great satisfaction. Every defeat a big disappointment. The accounting remains closed as a spectator in his budget, there is no proposition. Summary of accounting, not advancing, you lose only reaction time, it creates distrust inside, no positive proposition. Instead, find a controller, an actor of the film is much harder for Marketing and Sales, however, much more


satisfactory. Unfortunately, this second part is not yet considered by managers Marketing and Sales, will elaborate more on the primary. Why? In some form if one is a photographer is an external, takes a plan, the shows and after the show. Being an actor means to participate, is to participate actively, it means for the controller because of having to participate? Of how? Of what? Of those activities that are the subject of the film. So that must mean "balls" to break the Marketing and Sales to understand. Party, the latter means feel a part of his power, means sharing of the choices in theory, in an ancient world, would be solely and exclusively responsible for them because of their responsibility is the result. This short view means that it is a castling in these placements we can be even more tension in the case of accounting. More tension in this case because the controller was invested as an actor and not a mere photographer, creating more conflicts, from a spectator has become an integral part of the film. It is true that explain the Top Management is already hard, and that it also becomes a controller to break, but there's nothing more advanced for a company that a flow of constructive exchange of views. It is clear that not calling the controller immobility, which asks them whether it is a solvent-existing problems.

Management by navigation on sight to be done One of the best forms to send to the company whores.


Management by production The Art of Management of people do not unexpected, is not the same manage a factory or a production entity, which manage a team of managers. The same is true conversely. This simple argument I need to give due importance to the ability to manage people when choosing a manager of the. It is not enough that the manager has a strong ability to work or is a large technical or who has a large experience in a field of activity or activity. In the early business levels we need managers who have the ability to Manage other managers. This should be the fundamental quality. From a top-level manager should require leadership, the ability to drive, the ability to lead, the ability to extract the best and most of the team that manages. One of the clearest examples is the different management of a small team of managers but very wide range of workers can be like a factory or an institution of production, and management of a team mainly of managers and employees, white collar workers to understand. In the first primate has the ability to pursue the organization, with very precise rules leaving little margin for the initiative hindsight when that individual initiative and channelled or request personal strengths to run production. Strict very much guided by regulations and internal rules. Certainly very complicated to manage because it has to be very disciplined, margin of tolerance must be very small to maintain the number and quality of production. There is little room for strokes of genius, the ideas that transform the situation, the personnel contributing to a success. And mostly small contributions that improve the productive around or quality as the Toyota method teaches us, but everything and channelled. Instead, when running a team of managers must be given freedom to create the team, to bring ideas for change, for improvement. Integrate them in decision-making and information flow top down, in the end all we almost always


a head above not to be that same as main shareholder and manager. To integrate at the same time they can motivate his team of managers or employees to be able to unlock situations, to bring new ideas, in order to grow the company. If your company is structured as it should be those managers who make up the team will be younger and more technical in their sector that its Manager of the first level, so fundamental and motivating them to form part of a team that will give opportunities for growth and so to have their full commitment. To this date we need leadership not know but the "savoir faire" with the managers, who do not drive integrating drive obedience. When a top level manager has to constantly appeal to me decide, you must do this because you did not, it goes now, not because I want to inform you remember the professions and what I want every one, the voice which raises the questions that are stronger, doors that are beaten, the answers dried, the constant bad mood, the fist on the table we are ahead of what I call the syndrome of the hole in the wall. So named because in a moment of high pressure is likely that one makes a fist on a wall to get pressure, and you find that has a hole because the wall was plasterboard. And from that moment there is no longer returning back, not po 'recover more confidence, not po' most support the daily humiliations or aggressive management style. There is no return back more than to find an exit, not despite this manager has the technical ability and also interrelationships with their managers the same excellent and out of town. A stylus of "military barracks" that will be perfect in a factory but impossible for a team of managers, because these one time have left, have long been adapted only to suffer, and have not contributed anything that is not what they was requested without confrontation and without interest. So in the early levels is important to the leadership, the ability to extract a supplement. In the next chapter we will


manage to crash test, an example of how to maintain the tension getting the best.

Management by crash test Ah, if there is a method of management that I was so christened as the crash test. The name is given to middle management meeting with the CEO that were held regularly every Friday morning. Let's positioning in context for greater understanding of the substance. A subsidiary, a managing director, a classic toplevel (sales, marketing, PR, HR, controller ...) and a second level of managers fairly extended because the subsidiary managing various products. In terms of age as a CEO should be experienced on 45, a first level on 38 and a middle management on 31. Stile management from CEO with the first level of full integration, but comparable tough, a while 'away, looking from above but also relaxed. Hard body to body in individual soft meeting in session. In fact, every Friday afternoon we had the meeting of council relaxed rather than to colleagues after the snowstorm of the morning with middle management. We act, every Friday morning in middle management with the operational part of the first level had to do individually the report of the week, results, goals, diverts ... Routine normal for a business to not be for a small difference. The difference was that it did before the administrator delegate at least 14 years of experience in surplus, noted that all the important numbers in his notebook organized better than a computer. 14 years of surplus are many, so do not apply the usual excuses, the usual problems, the usual inaccuracies, I did not know the usual, was not there, it had said another.


The middle management was fully aware of its subjects, the possible questions, why or why not it was a consideration in university rule, but without the ability to think and without the possibility of watching from hidden solutions. Who lived there was more good that bad, if you had a real examination, for those who had a chance to browse and grow. Even we ourselves could be subjected to crash tests in a kind of escalation. Yes, you understood why grow just did not know enough about the topic, those who knew him but was unable to pass on all that he knew who knew him and what he had general knowledge is allowed to navigate. Navigate to a certain extent, until the captain wanted, so he had 14 years more! The tension is breathed by Thursday evening, more than one is asleep, I assure you. On Friday morning as the meeting was many times for groups, we saw the care of relaxation or even more tension because there was the crash itself. Sometimes those who could and we played it risky to give some numbers or some comment agreed to show his "valentia" (courage), his power to be above parties, someone jokes with the colleague who always looked the numbers on your computer and do not was, or what transpire and transpire or one that you hid. The important thing is that each one had to play its role among us. The CEO had to be iron, we do not intervene to save not be a situation of sinking, the middle management had prepared the subject with us and try to navigate. With clear rules was the best assessment of everyday middle management for us to identify those who could and really grew. For middle management that had the potential to grow each crash test and can grow professionally. In the afternoon, the first few minutes were used to evacuate the results of crash tests to evaluate not just the numbers that would be at the meeting, but the evolution of management, both personal, such as integration, as per team. A bit to assess the pulse by the staff.


This method based on clear rules, I think what gave more results fruit of a constant tension, clear rules, results, opportunities for comparison at the highest level. A constant training in which companies now middle management will be more failure. One could say that there is no difference between this method is that of management for production. Instead we find, is profoundly different. In method the crash test is intended to grow the middle management, not to sink the first level. In method the crash test is intended to achieve the best result of preparation, not because you get asked to do such a thing. In method the crash test is more a game rol, not obedience. In method of crash test teach to do everything right, for more details, you give the addresses, not the "consign" to be performed without a why.

Management by autonomy The form of management is acquired through the years, the long experience of what a manager has lived in various stages of his career. It should be modelling during the time that manages teams each time more complex, more interdisciplinary, with more levels. I take a difficult one manual management is saying now apply this method of management. It seems easier to implement strategies, tactics or structures that no methods of management which is the aunt person who exercises. A character that was formed during the time it affect the style of management, one can hardly separate the way they work in and out, will be softness, but I do not think that could be the opposite. If one is a "good man" out will work, if one likes them do things for himself outside it will work, if one is out it will be hard at work, if searching friendships always find out the inside even if a speaks and speaks out makes it work, if one is closed off will tend to


isolate themselves in work, if one is greyed out will work even if it is an expansive off will also work and so on. Softness, but hardly a work may be the opposite of how it is outside. This character forged during years of experience in the work will determine the method of management. I focus on one of autonomy, to a certain extent. But before we talk to management autonomy. Delegate, this is the keyword. But how? This is the real question because everyone is talking about delegate, to leave work, to give all the confidence, but most often it is more a protectorate not an autonomy. Why? Why leave in the hands of everyone on which we are responsible is not in human DNA. Here is the whole key to a good management for autonomy. The ability to fool the human nature. Who would leave her newborn child to another during a few days without any concern? Who let the machine just bought during a weekend to someone else? Who leaves his apartment for a few months to someone else? Who falls asleep at the airport with the suitcase without taking one eye open? Nobody, or almost none. One will say that I do so at some familiar, but is not the answer. And I am convinced that even so one eye is always open. It's easy to say, difficult to implement. Normally we have with managers who speak of teamwork, what always has the authority and is responsible for the team. Normally we are talking you must delegate and work independently with full confidence, always what is the responsibility of others. Delegating does not mean only to say, does not monitor, does not assume the entire leadership "per se", does not mean giving culpability who has managed, does not mean deciding without listening, do not mean rivers of meetings with the team, does not have ten hundred presentations, does not mean always be present in every meeting, does not mean having to decide on everything ... Delegating means that employees may apply the necessary actions to meet the strategy, it means they can do the


necessary meetings without the presence of the head, it means that may decide, mean that any decision is wrong the consequences will assume the responsibility Means that can go days without seeing with the controller, you do not need to report every step, it means bringing results fruit of their work, you do not need to meetings just to keep the river together, it means acting without the need for even reporting the first, but because there was a need at that time. For all this will not only have a manager capable of deceiving its nature, but it means you have explained well as the strategy and what the goals. And here is perhaps the greatest difficulty. Clarify where we want to go, as we want to go. Without these two basic assertions is impossible to give autonomy, because it will be a more anarchy because each one would believe what he would be the best to go where we believe he should go and how. This is difficult, to say clearly where we go and how. Once explained that we need a next step, to learn to act independently to its employees and such as yours. If not the engaging remains not to run efficiently as it could. How? Doing. Leaving. Assuming. Three simple, but difficult to follow. Let us do it with an example: a new advertising campaign. How many times before beginning the creation of a new advertising campaign we want to control the whole process, be in all meetings with the agency and decide until last detail. No more wrong, because doing so makes someone or more than anyone: the director of marketing, advertising manager, who has contacts with the agency ... It takes a first meeting to give a good briefing, it is clear what we want, This is the most important phase of any building, say clearly what we want, so as not to come at the end of a complex process to something that is not what you wanted. If all function and the employees are competent, there should be no need for more meeting until the finished work,


it also going through different story board or proposed ... the final campaign. Why not a campaign we must pleasure, should please those who are addressed and also, should encourage people to buy is addressed. And that does not need direct attendance. And if the campaign fails, take the responsibility that perhaps it was wrong in what they wanted to go where they wanted and how. Autonomy does not mean impunity. Until now we have seen autonomy from the point of view of responsible versus its employees. When we speak of impunity we refer the attitude of employees versus the head. Dare to have. Giving autonomy to a more efficient and more important commitment. Once adopted a strategy where you want to go and how to go. From that moment there is no more impunity. It will go! You can not make a decision and after leaving the meeting to do other things. The gear works if the gearing remains attached to the other, it is impossible to remove that run everything. Autonomy must therefore go strongly linked to Rigour, a Non Impunity. We must all act according to that decision and work to achieve what we want. When you work well in team there is a double effect. On the one hand the motivation that one feels really being something that can really act in it. The abandonment of the other. Abandonment because it may be that there is a constant relationship with the head of every five minutes feel called, controlled visited. This new feeling of having to assume responsibility for what is being done without the responsible must intervene leaves much alone. Therefore it is important to maintain a hot, distant and soft, but hot pursuit. That the employee knows that we are there. Talking about autonomy, but to a certain extent. In fact, somewhere there must be the responsibility of the person responsible, unless it serves only to coordinate. No, this being however, the most crucial function which is to coordinate those teams, there is the inherent responsibility of his work. So the "up to a point." It is clear that when you


define where you want to go and how come there is the responsibility of the person responsible. It is clear that when employees are acting to go there and are the responsibility of the person responsible. The responsibility for when you need to do so now. After discussion, after analysing together, if there is a shared vision, if the analysis failed to convince, if the explanations are not enough, you must decide, you will not decide that the person responsible. This is a tribute to have autonomy, which must pay the employee, if that was not capable of convincing to do on that, it must follow as taught by his manager. And do it with rigour. So how does it works better a team, as it becomes more close. Try! is the best method of management not to send a company to whores. Instead, check everything, followed all gone by for all, you break the "balls" by all. So do not get managers motivated and you do not have time to reflect where you are going, how we are going. Follow only what you will, or worse, you want to see for keep you happy.


4. FORGETTING THE BUSINESS BASICS Try to understand the concept. English version not reviewed.

Losing the essence To discuss material essence of what makes the company, its corporate purpose. Part of the intangible we will of its symbols. Both form part of a company. A holding to a central object for which it is born. And the success of that object that may develop after the company in that sector or in others. It takes years to be successful in the industrial sector, there are other areas where a technological advantage can make that success is fast, but in the traditional world of producing physical products to be successful means to conquer the market, after the other, increase the range of products, innovate, discover, create, beyond the economic cycles as well as possible, diversify if the market is saturated and so on. Years and years of consolidation and growth, not that periods downgraded. When a company is "focused" in what he has always done, in what was his management, in what has invested in innovation for years, is unlikely to be sent to whores of a


CEO or different. Concentrating focus, to focus, concentrate resources. Because ultimately this is what we speak of resources. The resources generated should be partly reinvested partly redistributed among the shareholders. Have resources means strengthening the company. The problems come when you always want to diversify, and it was a good diversification in their business, vertical, the more difficult it is when you want to attack other areas, horizontal. At the end control the whole chain of a sector is a logical process of integration and exploit fully the opportunities shop. If this vertical integration is done in this regard can only be beneficial for the company. The verticality, for their way of life involves trade interrelations between various companies participating from the same shareholder. When these interrelationships are guided by a hand only if there are two pockets and a trouser. At the end of a profit and spending another remains in the same trousers. This works if it is headed if managed in terms of the exchange market. Just so you can find efficiencies. The process is rotten when there's more centralized management of the group and who is dominant over the other implements to make profit at the expense of price and service level of the market. What happens is that a pocket is filled not, the other will pit more and pants are shorter. What happens is that the Group becomes inefficient, and the central business finances all other vertical business, when what should he be benefited, the business centre. It thus produces a double effect: on the one hand a "strip the flesh off" resources from the central business impoverishing; the other is an inefficiency in what compared to competitors who get down in a loss of market. Then the circle is well-party to go down and down. Why? Because every time the price they pay the business centre is higher to cover the inefficiencies of vertical business, the need of resources is higher, the inefficiency in business Translational upper centre, the gap with its major competitors, the resources available to focus in business Central and the lower end chaos and destruction.


Ultimately sell all the pieces for vertical focus in the central business. But the worst is to come is when one wants to make a strategy in the form of a cross, vertical and horizontal. The possibility of ending up like the strategy, namely crucified are many. And the speed to get there is very high. A strategy of vertical diversification is already difficult because it means putting together many pieces, the advantage is that more or less the job you know. Instead of a strategy of horizontal diversification, to seek new areas is outside of what the company has done for years. Doing so, it means completely changing the "focus" of the company. It means that the management will focus on other things, that devote less time to what was the business that has enabled this change of strategy. It means that the resources generated by the business centre is devoted to acquisitions of other companies renovations. To do so ambitious strategy means that this company not only has to be in a dominant position in its field that allows them not to suffer the economic cycles or new intervening in the market. It means to create unlimited profits for assuming other companies and the market shocks that these same companies will be submerged. It means to have balls of steel. Unfortunately, a strategy of this kind can only be in the hands of one or two companies in the world. Want to imitate most often means having to resell what you bought, and in worst cases, there is always the worst of cases, sell the business center, in whole or in part. As explained earlier, the drainage of money is all that is that too little time is not spent on the business center, which recover what has made the competition is unattainable and will result in brine. The essence is the material basis of a company, consolidate, to make it grow, expand, that is what has happened. Why venture beyond when it was still not


dominant or the danger of losing the dominant position is great? Consolidate and grow and grow. But there is another essence, is what I call intangible, that is not linked to the product or service covered by the company, but one that identifies. I have always given a great emphasis on this aspect intangible, to what consumers recognize that the company beyond the product, beyond communication. Beyond the product and communication because these are very attached to the new desires of consumers, let's say not very attached, must be absolutely related to succeed. So the product evolves and how to communicate evolves according to the different lifestyles of consumers, countries. Instead, the logo is what the company is pursuing for years, is what it is. And what makes naked between company and consumer, is the intangible essence of a company. The products will change more or less quickly, communication also, and a consumer today can not remember a product of thirty years ago, what we need is to have in front of a product suitable for him and the knowledge of an identifiable logo a brand that has sent emotions. I do not want to talk about Coca Cola, Google, Microsoft, Toyota, to ... think about the many brands which is tied to a logo. A logo is the essence and that endures over time, the years pass and the logo is always the same, a little more refined, rounded, coloured according to the fashion, but essentially the same. Keep the roots, graphic symbols contributes better than spending millions in advertising to consolidate the products of that brand. Leave the mark and slowly consumers abandon your products. Ever think your product to better brand image. At that point one must react and reinforce the brand. It does not order the products. Comply sell, not despite the brand image and sales difficulties that face these deviate be helped means more bread for today and hunger for tomorrow, then fall and fall.


Take a Brand, to make afterwards another for your products, to use afterwards another for your sales network, afterwards to use yet another part of your products and so on... You will create such a confusion in consumers to abandon the product. The consumer needs certainties and receive emotions. For the companies that work for the future, work on trademark, logo, that is sacred, not to change any moment, do not use any way. Take a company that makes the one described earlier. Can only lose and lose market. But you can react is not an eternal sentence. And it can be done. What does it take? We want to start with a search for what it is and what you want to be as a company, it defines what is the purpose of what we want to convey in the coming decades, a logo should last at least a decade for the integration into the people. After finding different solution from specialist firms. Once you have, is to test on consumers goal of our products. They break down this research, we made the changes leaving the perception of them and proceed to the final logo. Then, as this is a historic event for a company, is his DNA itself, you must make a strong launch in the company. Later outside and make sure that the rules of use of the logo are clear and making the exchange palate of the previous logo on all sides. It does not seem complicated, it seems that no company can do it. It takes only rigour in what you want, listen to the recipients, rigorous in its application. Be! Some people in this can contribute to sink a company. Gathered around the management company for the event, linked by video all countries with their management of all countries in the world, what is still known, who is about to get the new day. Prepare the first day all staff to say that is about to get a new day, a historic change, a step more for business success. Tell them that ended the confusion that now is the DNA together, that we have found again, already done work agencies, architects to be ready for the day time D H. Let it reaches this time, create the necessary pathos,


hold the secret looked at the most. The meeting began with speeches access, strong, the past is over, you switch to the new, to success! Discover the logo! You like it or not, applaud, greet the new born. In the end the important thing is not whether you like it, the important thing is that the process was rigorous and that is what pleases consumers. I have put into the atmosphere? Close your eyes for a moment and thought at this ceremony, more or less spectacular in form, but strong emotion because there is something that will accompany us in years, and we were there, at that precise moment of birth and rebirth. Calling all managers scenario because Wrap the new logo, why do you see all the other colleagues in the world, to certify that we are all together behind this birth. Finite access with other speeches, a good buffet and work. To work to convey to your employees good nova. Made the small ceremony, describe the new logo, what we say, what it means, the commitment to change quickly the old ... Begin to move those who must move in the coming days to transform what is in your skills. Let go a week is the new logo do not see it inside them outside. They start the first noise, maybe the logo came not so good, maybe we have analysed all the consequences, and perhaps maybe. Sink the logo and leave things as before, with the logos of confusion. So sink the morale and motivation of your employees, so they understand that they are not governed, that are only meat cannon! So destroy the company. But it gets worse, I have already said at the beginning of this chapter. It gets worse, because this confusion may be those who invent yet another logo, and without it nothing so much ceremony, he does leave one day for each other, and this time out. Does not care about them also to explain why in that wonderful logo is no longer there. Ago and that was it.


So before they had understood nothing inside, now we create more confusion outside. Bravi! There is no need for competition we face life difficult, there is the do alone. Miss these essences, play with it and you will destroy a company.

Diversion from core business Nefarious! Nefarious! Nefarious! The market today and so complex and so competitive that the slightest distraction you thrown out. Today, a company must be the most competitive, it must be concentrated at its maximum around and devote its resources to ensure future growth. And can not slow down the investment because the profit generated is addressed to other companies is a form of overt or with discharges of intra for inefficient services, masking the true efficiency of the company. The famous "does not matter, the pockets are different, but the pants are the same as" not true. Not the case because doing so would risk losing the pants or that he be shorter each time. Why? Because in many cases, the transfer prices are artificial and not based on a market price. The market price requires you to be efficient, the price artificially to live comfortably jeopardizing your internal customer, distracting resources essential for its growth. Every company needs to be efficient, you can not create artificial value. Yes, you can do short, but medium-term survival of the core business will suffer and will be sentenced. This time the condition of become branded, clearly expansive in situations that may be vitiated circle while this cycle lasts, but will fall quickly as the cycle turning into recession. The vicious spin that resources are going to increase the profit of associates instead of being reinvested in more efficient or create new products or R & D to ensure the future leads that the company is no longer


ready to act, that the time for act because it extend there are new products or by products and all ports to the circle of defeat, less sales, fewer resources to support sales, R & D less and less new products and less sales, loss ... But this vision Inexpensive is not the worst. Many times in business we look to the economic results, but often do not look at the engine of any company, its management. My belief and blind. I believe blindly that a management motivated and able to meet even the worst moments and can get out. I think that companies are made up of men and these are those that determine the long-term success, rather than when they are sentenced to their cycles or market. The man does not suffer any cycle, and he consistently does not depend on the market, does not depend de himself (Excluding diseases), depends on one thing: motivation! Motivate management and will be effective for long. Back to say that is not the worst. The worst and where the lack of transparency and lack of defining the strategic import. When you do not say clearly, we must now help this company or that other strategically because we agree or because there is a clear design, and allow management to the motivation grows. The permanently squeezed able to get results while other managers enjoy the book without any real contribution fosters motivation and the "left". We're talking about cases where clearly the non-core holdings are not efficient or do not provide services to the core company in market conditions. The case, namely that companies do not work in core prices or markets in terms of market efficiency, could not be that aid and bearing a multiplier effect in the grounds because the results could not only be positive and your responsibilities increase because you would be aware that other companies are working to get the best possible conditions for success. And you yourself would be crucial for the rest of your holdings and their success, the virtuous circle. But here we talk about what should be done to send to the company whores.


Create this whole array of subsidiaries and positive control all the business generated around a product and positive, extract the maximum and not let others take advantage of your product and positive. And what negative and do so without a proper check on the conditions in which the services or products are offered. What is negative and not sharing with management operating the business strategy for which it acts in one form or another. In large organizations that control and difficult, the possibility to hide or "make-up" the data are immense. If there is no direction or independent committee to monitor the efficiency of each subsidiary and the risk that each one tends to gain the maximum on the shoulders of others, generates only a notional benefit society in some short, but that is only that these hours profitable companies will evolve into inefficient because they have lost the comparison with the market, and when someone will wake up and ask services market the trauma will be so strong as not recovered. The easy money and too great a temptation within large companies, apply to transfer pricing for products or services higher or less efficient than those of other directions to the market only creates inefficiencies in the direction because generating and falls asleep in what they receive because its difficulty to transform these by-products and services to suit the market and more and more difficult to market, more difficult to obtain results, sometimes having to generate additional costs for marketing through promotions, communications exceeding those would be necessary to introduce the product. And only a generation of inefficiencies. In recent years we worry so much of control of the company's accounting system and monitoring of ethical management, but today there are large holdings in a direction that will assess these transfer pricing or not to leave importance to efficiency services. I am not talking about price between matrix and affiliates that well controls the Finance Directorate, or control of companies in the


group that manages the Finance Directorate. I refer to the Financial Management does not analyse that these prices are actually Market or to the more convenient because there is a strategy. The Financial Management does not analyse which are efficient services paid, which analyses not work efficiently. Does not it also the directions purchases usually more oriented to the purchase of products and services where and more difficult to assess the efficiency or price. The Directorate purchases and usually more focused on value not on the service. Many times these contracts are beyond its intra-trading of buyer's, concentrated in the product itself and not with the services or products generated by its product. It leaves the internal power struggle between Top Managers to try to get better or worse less, but the result of a relationship of power, not a joint action to be all more efficient. Masking efficiency and too easy because there is a supervisory body. Using surveys show an efficiency or another and so easy that there must be a common objective. Have a body to monitor the effectiveness of these products or services must add the shareholder value. The syndrome D. The so called because

Not to act quickly and strongly In a global market with multiple competitors and constant change of habits and tastes of consumers there's nothing better to sink a company that immobility. Today, we need to act quickly and strongly. You can not explore the result with a mid to wait and see whether or not efficient. One hit and strong. Like all things common sense should be easy to act on this principle. Like all things common sense that we know are those who do not respect ever. Are so obvious, so easy to do, so simple ... we have to find another hidden thing, to


do more complicated and more difficult to pursue. Only then we feel safe in case of defeat there. We can always say that we had behaved in a more complex and more analytical as possible, which at that point or has the misfortune or the market. As you are fortunate and the market were the subject! In large companies this is the best game of middle management hindsight is properly stimulated. Indeed, my greatest concern was always to act, with the consequent refusal by the rest of management. But one and another time I reacted, with the consequent refusal accordingly. It seems contradictory but really is so. The management has a strong aversion to risk. The management prefers to go for roads already travelled prove that no new ones. The research is already head hunters or in the newspaper ads, will always the words, we seek a manager with the spirit of innovation, creativity, with new ideas... bla, bla... At the end who is successful is the manager gloomy and gray will do the same things. We want to look for new roads, but we are happy with what we have. And strange that this feature is found mainly in middle management, not in the level of CEO. The CEO who is successful is that it manages to transform this natural immobility in a powerful machine of war. The CEO who manages to make the middle management or the first and second level of things, quickly and strongly. We can really discern between a CEO and a brilliant CEO for the event. It is not really easy to change people, it is not easy to make them leave the shell. But are the brilliant CEO who will succeed are those that follow its strategies to the action of the first and second level. In fact is they who move troops and do make a company. Place CEO of soft, the CEO of too much consensus, the CEO who become involve a bit for the daily office of the CEO, CEO of Conceptual and you get a company undergoing resection.


Place the CEO with balls, the aggressive CEO, the CEO who in most of the strategy are in the field alongside the troops, the CEO with authority, which gives the CEO and punish those who do not is you get a company ready to challenge the Market . Because I have taken this step on the CEO? LO I did because to act quickly and strongly there is a need for a guide that encourages against decency not to act and / or close the results. Why does not act is the brother of concealing the results of make-up results. You can see month to lose sales months and the only thing that you and speak on the concealment or make-up cutting reserves for the future of investment for the future, obscuring effects of markets on joint unfavourable, on the one hand strikes or another, but not acting on the bottom of the problem on the front of the problem: why not bill more. And so easy because make-up that address the difficulties of finding new solutions, new roads to be addressed. Only you should give a look to fields as fast as changes in automotive or distribution to realize that there is practically no transfer of management. In almost any industry there is transfer of management. It prefers to continue with things that are forever. I witnessed the transfer of experience and management must also recognize that ended in a no result. So why defend this case? Because the outcome or the racket must be analysed. In some cases, the causes are to be found in their manager who thought that only in transplant techniques to another area was enough to wish for its success. Once one of these managers have given them three months, at its first meeting had promised to cut the lead time from two months to fifteen days in three months, because he came from was so, unfortunate that the industry was that this was an industrial product only and not a complex range of commercial products, in the end it hard four months! That has been the lack of time to


produce something. Yes, because in cases of transfer of area we need to give managers time to understand why this new field and no intent transplant, but from earlier experience suggest new strategies. And the key to them. The experience of taking the field and propose new in the new field. Only this way can be successful. And this applies to positions of CEO position as a first or second level. It seems easier integration in business or specializing highly technical, but even there it takes the honesty of wanting to understand the new industry and innovate. I was on a CEO, another on changes in the field in a chapter that speaks to act quickly and strongly. And it is conditioning to act, on the one hand because there must be an environment created by the CEO to act and another to the inherent characteristics of each manager that foster or impede action. Simplify the information, the information is the best friend in the nativity because the information makes it possible to explain all the things from which angle you prefer. Simplify structures, complex structures strands decisions. Simplify the objectives in multiple goals is the excuse to act on one and not another. Simplify the need for presentations to make a decision, in multiple presentations is the excuse to be in progress or in draft and never running. Create a simple round or lean if you want to call it so, but as a real lean and you have a company that will act quickly, that will change to anticipate the market, so will be winning and not losing. To require hundreds of data before taking a decision, ask that everyone in the company are in agreement on what action to take, create a structure of dozens of first levels, you run all in all directions with dozens of goals, made and made meetings to present and to decide, so whores sent to the company.


Local vs worldwide This is one of the first elections that must make a firm, be directed to a local market or a global market. If you decide on a local market must have local attitudes, if the choice is for a supranational market will behave differently and should adopt appropriate strategies. Mix the two can only lead to disaster. Acting on a world market with local attitudes and, conversely, act in a market with local attitudes to adopt the world only leads to disaster. But what it means to take these two attitudes? In what characterizes a local versus a worldwide? Basically in the way we behave towards customers and how to structure the company. Let us first looks at how to score. In the end, the response of the customer with the purchase of goods or services that reason or not a company. Occur locally in focus means good and bad of a community. It means giving the community what they want and how has it that if you give. In the end one can say that to act worldwide must act in the same shape because the end is a rule of the market giving the customer what they want. But the difference is especially come. One tends to think that when smaller is the reality or group of customers will be easier to communicate. This is true whether one can communicate only locally, without having to go to fish more universal values. Let's make a practical example. After more than ten years back in my community in my country. I turned on the television. I saw the same faces that give the news, I saw the same faces that give the weather, I saw the same players who made the soap, I saw the same popular characters, I saw the same shape to do, I saw that the players of the debate are the same. True, all ten years old!


There I thought a while ', so I moved to the village where I lived till now, and I saw that the reality was the same. The same faces on television, the same soap, the same forms to do the same forms to be conducted on the same themes. True, but clearly different to those of the country. From this comparison, no comparison, I thought this rises on local vs worldwide. To attack this market and the other is we are a local company we must emphasize that form of do, those issues that are contextual to that market, to go with universal subjects would be wrong that it would not answer because it would not be recognized as the company brings these values. From there the strong advice to a company to define what good is it and act in accordance with this area. If it is local to local issues: tits and ass in Italy, and folk "Toreros" (bull fighters) in Spain, France mood chauvinist, British spirit in UK, and "chucrut" carnival and beer in Germany. It will be easy? No, bitch marketing! It simplistic and over? No, pure logic. The problem of not recognizing this simplicity that is in your marketing and targeting, in this case a country, and wants to offer them as the product is pure logic of market. But we do not recognize this logic because it mixes the fact of wanting to be universal, to think that we should involve more worldwide, we must build campaign more beautiful, more universal, we can not be "trash", if we want to trash what we see every day on television or in print or in social debates. In some form we fly to redeem the sin of being so local. Wrong. How wrong is the case of a multinational act with local attitudes. The effect is devastating. Wanting some power to impose a vision of how to communicate in different communities so as there are in Europe or the world if we stretch our geographic scope are crazy. If we are a company that wants to sell to the world we find the universal values on which all citizens can be found above the everyday life of the country. Coca Cola, Nike, Benetton, but also Barilla may be examples of companies with a single product, but in its statement tried to cross the values


talking to everyone. When I refer to universal values I indiscriminately values inherent in the product is that its origin of the product, not only at the end value as a universal idea. The problem is that sometimes a company does not know what he wants, does not find this universal value or think that is too simple, as was previously the case of a company for a local market. At that point begins to complicate life and go on two directions. The first, creating campaigns for their domestic market after that will be launched in other countries and the result is a successful internal and external disaster. The second, less evil, if this failure occurs outside the law of the pendulum, you go to campaign country by country, bringing to an indubitable success in every country. At that point one is saying that this is the option from the point of view better marketing. True, relatively true. Regarding the application after it is in economic terms. It can take an investment so fragmented? The answer is definitely no. Next question: at what point would be more efficient to act as the point of being a company that addresses the world find the universal values? The answer is undoubtedly yes. Following are the shifts that what has become a universal country temporarily or universal, nothing worse and more destructive. So we are analysing shrink with chickens that are universal and that they only damage the image of a mark, just because someone is smiling. Or when the fight against the bad becomes universal and incomprehensible to separate peoples. Or when the Italian or the essence of a country is thought to be well received by other communities because nationalism does not exist, because the sense of belonging there. Wrong, our brain develops increasingly negative impulses in the first of those positives. Finally, bread and circus. Do not mix never what we like with what they like or to our target audience. If we are local to the bottom of the explode "faiblesse" of our country. If we act with total global messages. Otherwise send it to whores.


Earlier I spoke of two fronts, that of how to communicate is that of internal organization. The first was clear, we pass the second, even briefly. The organization must also adapt to the type of conduct that as a company we want to follow. If we are to be local, not go to seek managers with projection worldwide, is merely a waste of money and efficiency, because these managers were tempted to act as worldwide instead of being efficient and act locally. If we want to be worldwide, we must have a business structure that incorporates the managers worldwide, by contrast will be tempted to believe that our local messages must be received by other countries with the same naturalness. Simple, huh? No! O yes? The problem is the drift, as usual. With the simple or that it would be white or black or red or blue or yellow. No, we always go on gray or green, or orange, or any combination out of the primary colours. Take the will to renew a company that wants to become world, renewed the management and seek experienced projecting worldwide and have been successful. But at this point what is the benefit, it seems only logical. The drift occurs when at that point you do renovation work locally, the fixed, forced him to act locally. Destroy not only make, but also destroy the management. Thus accelerating the destruction of the company. Second conclusion, for every simple management strategy that matches them. Nothing unnecessary testing, no work!

Losing the ambitions for the objectives to be done The process of Budget, where we can lose the ambition to achieve the objectives.


Spendthrift The big companies are the kind of large scale spending. Expenditure for the need of raw materials, the supply, manufacturing, personnel, resources... expenditure in Marketing and Sales. Marketing and sales, that they are entering "a large amount of expenditure". Although the two very sleep-related, we leave for a moment out of the debate those who intend to trade more directly allocated to a product or a distributor in order to improve the performance of the product or company or image, finally the goal set by 'Business. Let me talk about those Marketing, mountains of money available to people of Marketing. Mountains full of tunnels, galleries on which it is difficult to drive due to lack of light. Precisely because of the size of Mountain and the number of galleries in charge of monitoring these expenditures deserves special attention. These costs may also represent 5% of turnover or more depending on the sector. First call these expenses, after mentioning their control, who should do it, how to do it. If the nature of expenditure is clear, do not let its management. We talk about advertising, talking about buying spaces, talking about buying promotional material, purchase of creativity, sponsorships, events, public relations, direct marketing or relational ... A world of diverse as spending enough so as not to target hats. All these costs are often difficult to assess correctly, even with the collaboration of the directions of purchases more efficient, it is always difficult to assess the quality of an idea, the quality of production, the quality of an event, the results of a sponsorship . And to "help" we are both Managers of Marketing as agencies around like that has to do with creation. A helping quotation marks because there is a tendency to maintain certain levels of spending going


on when production will understand that the efforts in cost could be done, everything is going to the economy. The average expenditure on we can say that those are more controllable by the central purchasing, keeping in these races you can always find something to save a Euro level of commission, another thing is in their purchasing power. It is one part of the buying traditional media are highly regulated in France as in other markets reigns negotiation one to one, is over there where there may be areas of savings or buying better. On the other hand these stations to purchase the more regulated is the purchase and you have less margin, tend to offer non-traditional media where you can recover the money. And where they enter the professional manager, can choose among the proposals, evaluate the costs well, knowing how to compare them, know how to find the means to assess their effectiveness, knowing how to talk directly with the presence of the central media in order to obtain the best price. But even if the purchase of traditional media, the Manager has an important part to manage the cheapest possible, this is called planning. Schedule time means savings, costs more change in a campaign minute, finding space when it is not planned, costs more in relations with the Media, how much better relationship is established between a manager, the power to purchase and the Media, easier set of negotiations will be satisfactory to all, every one can rely on. So planning must be the main goal of the Marketing Manager, including the first objective of buying property. The second, to determine the components of pretest and post test the efficiency of Media, not only in terms of results for products or image, but in terms of results to the campaign. Today we have all the numbers you want in terms of GRP, in terms of penetration, in terms of target, in terms of final cost. It is not inconceivable not to do this work systematically, and instead it lends little attention. It prefers to consider advertising as an expense, not investment, more that 50% consider that the other. Instead, a careful management of these aspects of investment can differentiate the success to the defeat. Spending the right, where it is most effective is always an


excellent result. Instead, we limit ourselves to vaguely say this campaign has worked or not. Why? Well, more or less because we have sold more! But it was thanks to the mix of media used? It was through the promotion included? It was thanks to the price? Was that we were in a dominant competitive position? It was through that? I am convinced that the Top Management devotes little space to analyse why? Analyse only the numbers of product, but does not give adequate attention to the most important part of something like 5% or more of revenues that can represent the cost of Marketing! The costs in creativity are a part of this small but significant 5%, the fee will also be controlled through the opening to competition of different agencies and even the cost of production through production and after subjected to "cuttcontrollers" professionals. But there is also room for them bravura of a Manager of Marketing, in time to plan the production costs of less than done at the last moment having to spend inside the urgency, planning the future use of this production already turning adjustments for future promotions costs less, finding a wire awareness that builds over time is even better. Obviously but on which we are confront day to day and always at the last moment, not just in television, but radio, even the press. In this moment of the debate leaves the necessary coordination between Marketing and Sales, but this will leave him for a specific chapter, is too important to send a company to whores. The costs in public relations in sponsoring events that are more difficult to control, but even there we want to go into details, and what he can do only those who work there, can not do it the best direction purchases unless it is specialized in this type of products. You can not make a negotiation with an agency as if I were buying a supply. You can not do essentially because in the second case the product and physical and responds to a set and each supplier offers the same product, however, in the first case there is the same product or there would be so hard to achieve the technical specifications that are not products on which we seek originality, but pre-purchased in a supermarket. The


techniques of negotiation leading to a decline of the negotiation that required, has a demanded a great spectacle, and slowly we found that there is no longer that, that other less substantial or so on, having to settle after being execution, and certainly saving them a few leaves, because there was more negotiation. This relationship between expenditure and Marketing wants Purchases of goodwill between the parties, putting the price to pull the price in this type of expenditure is not the best form of savings. After measure is another complex but needs to be done, if only in terms of image found, how to assess a convention? How to evaluate the result of a sponsorship? An event? If one expresses some 'the brain finds it is important to do a statistical later able to see the evolution or correct action, I assure you is Marketing expenses in relational are easier to control, to end talk of mailing, production of materials and creativity on the material. Perhaps in this last reseed the difficulty most important for better management, what is true? Even the best method there is always put into competition agencies. I have spent talking to competing agencies, when in a similar chapter speak of the need to establish stable tie. One thing does not preclude the other, putting the agency in competition it means watching the market without having to pitch, it means controlling the costs of its suppliers, it means that after a few years you can put in the budget pitch the action and so on. It is not an easy job, as it is not easy to avoid the tendency not to have the best professionals as a matter of cost. What I do not have to sacrifice is the best or the best professional agencies, because the only things you can do at home to lower costs. The costs will probably be no fewer results. Today we want professionalism, have the resources available to produce or to buy that you can not get at home. We can not fall in sub-syndrome cousin. For this syndrome mean that any work of creativity or layout or production can be done with any medium. Unfortunately,


after the results are obvious, given that advertising must sell a product, but enhance his image and that of the company, it is better to do less but better. Spending for spending is not good, that sometimes the best results are obtained using alternative means, at most targeting products and therefore the media used by the few exits but with the very material impact, using the good testimonial or sponsoring very focused, not do everything and no matter where, these trends do and do to make doing so because you get more results, no further than the reality, only a scattering of resources. But as anyone in the company after it analyses the results of a professional, and professional and objective statistical mean, it does not matter at all. At this point we have come to control, given the complexity of the expenditure, durability, the small amount of expenditure, it is not easy its control. Normally the Finance Director merely itemized from the Marketing who feels controlled. A 5% spending can make a difference in the results that the Manager of Marketing said. I consider that having regard to the importance of expenditure should be asked more to the Directorate of Finance, but also greater awareness commercial, but especially in the profits of a company itemized alone is very little ... There are many arguments explode on Marketing, to which I wanted to include it as a fundamental part by check or send a check for a company whores, certainly a booklet to all its Marketing deserves.

Different cultures/countries This is a subject most of reflection not really a cause that causes the effect of destroying a business. There are examples of all types that can lead to defend the option of maintaining a strictly national management, like that of a fully international management or even a mix of national


Headquarters with a combination of wise management in local affiliates. Personally I believe in the benefits of internationalization of companies. I do not particularly like football, but the inspiration can come of this example where there needs at least 11 people who each play an at least at some level, they have some more waiting to come out that put the pressure. Not a company but can easily be a management structure for business: there is the leader there who has a mission offensive, some defensive, others specific ... Today there is a team made only by national players, clubs are looking to their level of the best players available for the best positions. If there is a business advantage in the internationalization of additional management, and that the company not only plays in his nation, but playing in other nations. Knowing the different cultures and basic, learn, is not easy to do that we need so much television and reading newspapers. Come back after my technique. It is believed that all countries can apply the same principles, the same practices, the same products, the same communications. Wrong, say that should not be radically different or that and always so. What I mean and that should be considered different identity before taking a decisive action miles to kilometres. Not just in time to make decisions on products, on trade, but also in the field of human resource management. One of the most funny episodes and to whom I had more difficulties and adapt to the French greeting of giving his hand as a meet for the first time and when they Va. My work habits are starting very soon, if not yet arrived and almost anyone and do not leave very late. I see no point in artificially extend the working day. I risked the first conflict of human resources when I started to get healthy and not giving his hand to anyone, but merely a hello from a distance and so on, even when you leave healthy. I had a few days and after a conversation with my beloved leader


that he too was surprised by my attitude changing the conduct and greet everyone with his hand to avoid a mutiny, entering the office, doing the rounds of tables, which enter or leave in my office to greet me. Because there was a specific cultural knowledge of interpersonal relations in France. I must say that I have never adapted so that interruptions of someone entering while another is focused only destruction efficiency, but so. This funny example of cultural knowledge, and an indication that not all the surroundings or markets are equal, there are some consumer behaviour that can not known to be effective. I speak not only of the various regulations that can affect a product, an action or a communication campaign, speaking of the general behaviour of a company, a target. It seems easy enough to know and also of common sense that we are not all equal. The Managers we are quite accustomed to travel or to meet other managers from other countries and see that we are not the same culturally. Not despite these obvious nothing easier to feel in power decided that in general is good for everyone. And in that moment that this loss of sense for the particular, to work only on generic and more dangerous for the company doing just that destroy value. How? Not only with the loss of effectiveness of the messages or products, not only with the motivation of local management, not only with the loss of results, but also with the destruction of its value. How many times have been made for the television spot with monstrous costs and after that could not go on the air because it unfit for the market or the rules of that market. One might think that these levels of management may not be so stupid. They say that the stupidity there limit. Unfortunately, this mechanism to take into account the fact that when you build something not natural. It is difficult to teach and it takes only having lived in different cultural realities that one can peep to have a certain automatism to ask: but even this will work them? But it will be easy to


adapt? But we can do differently, complete it? We can give other possibilities? I assure you is not easy and have this ability to think about what you're doing must be as efficient as possible and something rare. We spoke of television and read newspapers to get something straight about how are consumers of a country. The comment of a manager with more experience than I told me early in my career that you learn on advertising for what was arriving to the hotel and was in tune on the spot. It was zapping of commercials! This apparent absurdity gives you an overview of what consumers want those, it clearly part of the principle that advertising and made to convince to buy or dream in the product or service and that on average must be effective because if you do not make it differently. I wider the concept to chew during the first months of any television program, hours before any program. The wider because I did not want to just copy a stylus, but I wanted to be able to understand better. Seeing hours of television a readily understand the cultures of each country. Reading the newspapers, apart from trying to improve the language, one understands what goes into that country and how and its political structure, since much of the newspaper devoted to life and politics. Understanding the political structure of a country you already said so much of the cultural particularities of that country. Cultural knowledge you can Manage better resources, better integrate into a team, you can adjust your decisions to those that are more efficient arrangements to be there. All decisions must be taken in light of consumers to whom we turn and therefore there needs a cultural knowledge of that around. Act according to their beliefs is not only wrong, but leads to destroy value for the company. Europe is not one, is different, which in part are similar but largely are also very distant. Do not take this attitude of openness that things are not forcibly must be equal in all countries condemned the company. Have the honesty to


say to me so I do not like, but it should please you who are in the country! And the attitude that leads to performance and success.

MKT to MKTCOM to MKTCOMAS That title would be more proper to a military manual that not a manual of management. I say this because for a fact his military service in communication is to familiarize yourself with all the acronyms that identify the different commandments. What I want mean, I mean the trend, rather, the integration more important that there should be between the different directions that generate business or affect the business. The three coals are generating business marketing more or less in its expanded powers that be, but that defines the product, pricing, communication and sometimes even the commercial operations, the business operates or commercial called these actions, which implements , Who leads the distribution network, which he calls after sales, half sister of the two front, which generates the after-sales business is through the sale of spare parts or hours to repair the machines, such as by cost control guarantee. Call after sales stepsister to the role completely secondary that had until now, little of which took care and the lack of trained managers for top-level manage that. But they will talk later, after he had addressed the need for integration of Marketing and Sales. In all the companies in which I have worked I have always found this great conflict between Marketing and Sales, which was stronger as the results were worse. A conflict between Managers, but also cultural, because the same middle management. Not a conflict for ambitions, but its roots in both functions. In theory, one that defines and one


acting, good for giving you the results are not good or fault of Marketing, which has not clearly defined the actions of Commercial or fault that has not been able to deploy and vice versa depending on who defends an option or the other. It seems so rooted that it is in our DNA to develop when an after entering a function or the other. This increases since there is a strong intersection in the working life of a function and another, when a start in Marketing will remain, and the same with the Commercial. This is already one of the first to send Finally whores to a company, keep a strong tired of functions, not the managers developed cutting is the only thing you get is yes manager of specialists, but by working if not common goals. U no say that at certain levels this does not happen, that top-level Managers are well trained to ensure that the corporate interest and work in teams. Cazzatte! In the DNA And unfortunately, and so being withdrawing and very difficult if one has not experienced both situations, then you can realize the work that has choked only by the Marketing or Business. Example of this was one of my first job interviews with a top-level Commercial, I told them that given the situation of the company that lost volume, that the picture was less each time, that the quality was not the level, that communication was confused, that the products were strange, they said lacked the marketing in that company. He, offended, told me that the only missing were good with the balls, that companies are made of commercial selling and the rest sleep Fuck! I told them that at that time the proposal to place a trade I am not interested, that I believed that in order to grow the company lacked the marketing. After I returned from a Marketing company, unfortunately, the results were worse in the meantime. Deteriorated again, already missing two things: a good good Marketing and Sales. We want to work together, but what good marketing and good commercial. It means first of all to work together. Better if we have trained managers in both disciplines, but


it is mainly talk. Speaking a word so simple and so difficult to apply in the top levels. We were an equal footing, in a corridor and we can not talk! And not because we wanted to, if not because there are forces that are pushing for not doing so. Set of meetings, but there was always something that prevented us from doing so. Only in the meeting of Directors fail to establish a dialogue, but also their part. At this point, say maybe that was me or had them, but at that stage I met with two commercial directors, one other another and the same difficulties. Maybe I was. But I never closed the door or the information or confrontation, and instead it was not possible dialogue. In order to soften this decision to duplicate positions in each structure, so every product or brand was a man who depended Marketing Director of Marketing and at the same time a man under the Commercial director, so to be able to experiment that if the two directors could not see because of work and agenda, there was a steady flow between them. Miet, not to say Niet. There was not enough communication. Second step, we put them all in the same office, cabbage! You and a front or next to you talk. Better, but Miet. Finally, we in the DNA, and it amplifies along the chain if it is training hard in a single operation. However, these changes could partially because the results were better than the past and better than in other countries where it maintained rigid structures. So the second conclusion is that you must force the interrelation, which is not sufficiently defined, we need to make that happen. That was a good experience, that if not managed that two directors talk more, is that at least the proposals that came to both men were seen by both employees. I began perhaps the ceiling for giving assumption that we need interrelationship, which is better interrelation not work for every one his way. It seems to me absolutely obvious, but I would still rather develop it '. The two functions should be obliged to work together, if not the engine fails, if the teeth of greenhouse Gear not match,


and impossible to rotation and movement. Marketing must create, needs, but should not do so only through the analysis of research or testing clinic closed all its information, you should take cue of what they transmit the commercial direction that he turn must be open to receive network distribution or its competitors. Only with your ears open and transferring and comparing the different signals can be applied as a strategy-off possible, at least in intention, shared by all and so more easily transmissible to the distribution network and more easily to push troops from across the business. Once over this obstacle of cooperation between Sales and Marketing, remains one of the most productive by integrating the company, after the sales. In this case it is not DNA of Managers, but most of the DNA companies. Companies are geared to sell a product and do everything possible to sell more doing work at most directions Marketing and Sales. Whereas the more one sells more profit and you must do the rest, in this case after the sales, it benefits from this job because you sell spare parts, hours of work ... In it is true and that is how it has always worked in company. This meant that the directions After Sales have always been run by engineers with a vision of secondary technical and business. Being and technical secondary with salaries far below the other two areas did they also create an interest in management to access these positions, remaining a part of this decision, strategies, from the heart of the company. Without interest for these middle management positions to enlarge the knowledge in the company has done is that the quality management of these are very specific on technical and completely poor in management and corporate strategy, being with mediocre Managers and operators of a situation created, working on the wheel of the other two areas. Completely wrong, when the competition is tough is the situation of markets it is not rosy effort is needed across the company to create profit that serves to invest in areas most subject to competition. The after sales is one of the


areas that already is more profitable for an effect on sales of spare parts, already has a cost control guarantee. In large companies have hundreds of millions who today are only managed. I say managed because the actions you are taking techniques, aimed at consolidating what you have, but are not geared to grow by innovating. In addition it is easy to innovate in an area that does the same things I always did. This mainly for two reasons: a management without technical knowledge of company management, not driven to innovate in its profile and used to follow closely the rest of the holding, companies that do not harm the strategic importance and space to this area and have not commercial or tried profiles did not follow a policy of professional growth of its managers traverse all areas of the company. However, even in these cases to cross, the Managers are much stronger with a much broader vision of business and therefore more chance of success, but for which the shift in sales after it was only a bridge to be able to reach positions the most important, so in his step in the after sales at the end you are involved as technical. So we had a "bon" Manager tier format to 360 degrees but that is not expressed at most in his step. In times of declining sales from the position that the business can lose money, and rather than make a sales from the after. It is not a contradiction, it can happen and is happening. Now there are two forms of action: first, the traditional management which to consider what comes from after sales as a down payment at the end of the budget, which comes this way, is fine because it helps to balance the budget, and the , Which does not exist, is to make sure that what reaches the maximum possible, to help it grow and regard it as a source of resources to be able to reinvest to attack the market. A passive, another active. It is clear that such a transformation is not enough to say stop. We want the company considers the after sales in all its actions and implementation, we want to create a team of skilled managers with a profile commercial and is so demanding as in other areas. Managers do not improvise, but you can build with time promoting the cross-passage between functions.


Today we need a further step to the traditional Marketing & Sales or called by MKTCOM, we need the effective integration from after sales to define the MKTCOM&AS. I experienced first hand the beginning of this experience for aborted after a change in top management. This experience would make from after sales of knowledge of Marketing and Sales experience came from its products. Ben stimulated by the Top Management has had to suffer the reluctance of the other two areas, especially Marketing. The statement was more closed than to say: "but where we saw a Marketing from after sales." That was the great innovation, create the strategy from after sales to grow this business, integrating it with other directions of marketing and communications. To yield a sleepy business from the business. But if this statement was the most managerial areas, the guards were also by technicians after sales of its own: "but what is this marketing, here are selling spare parts and repair machinery." If more was beginning to work with agencies and the beautiful girls arrived, as we all know come from agencies, this time in spring is the dress white shirts, I leave you to imagine the emotion between the technicians so far only worked with mechanics !, Well, the same effect as a Pirelli calendar in Office! There are experiences, but all focus on themselves, the novelty of this experience was to work together with other areas to create synergies to develop the business from after sales, but also making this one of the product through new customer loyalty or offering new services that differentiate a product than its competitors, at the end add value to a product. Like all innovative experience ended with the disappearance of those who introduce organization. And this is the way to work all the areas that create value and create more often if 2+2 can make 3+2+2+2 should be able to give 10. The top management often lends little attention to those areas of business success or consolidated from time to concentrate on those who suffer most during that are more


visible: the product, sales, communication ... A big mistake, just all analysis areas and expressing the maximum you can get value for the shareholder. Integration rather than disintegration, to work together, locate the Manager with experience in multidisciplinary all areas of a company only so you'll obtain companies efficiently.

Trade Unions The traditional action of a union in a large company must evolve. It is no longer sufficient that this is confined to its traditional job of protecting the achievements vindictive new job or better for workers. This action may make sense nationally, at the political level, but no longer in business. The union must be integrated into the process of consultation, decision-making still seems too strong a word, but at least on an advisory basis in the definition of corporate strategy. This opportunity that the company has to offer, then why will must be counterbalanced by an action at the workers. What I intend to contact with the workers, I mean improve those things that the employee may improve, if we speak clearly of an industrial enterprise, must be in the production process. It means a commitment to doing things as we should do, then engage in improving the processes, then engage in increased productivity, it means doing more quality. Today, the union does not do anything that is dedicated only to improve the quality of life in work, improve remuneration, improve the conditions, save the rotten elements that do not contribute to improving processes and products, defend the status quo, defend those who take refuge on a statute rather weak and that only exploit the social safety net. I am convinced that an active action based improvements in manufacturing processes, the resulting improvement in productivity and certainly the improvement of product quality, without giving up the sacred duties of general


social protection of workers involved, it could open a chink in the winning company. Male could not do much good. I agree that unions are not prepared, but we are never in the news. So it is started, you start to take responsibility. The traditional separation between ownership and each worker and more obsolete as time table for comparison. With economic growth, with growth even with the capital increase in the price of homes, the workers began to have some savings put in funds, funds that invest in stock market and therefore businesses, property. With the liberalization of pension funds as complementary revenue to retirement, investing in these companies and consequently the future income in retirement of worker depend on the good management of the fund manager's board that has invested in property, becoming in some form they also owner . There is more than separation for which a worker was born and died, but today, fortunately can arise the worker, but improve its conditions for taking part with his savings in funds and consequently is small owner as the saver and retired. I agree that the company is not ready, which could easily result in a single excuse to say, I have consulted you, now you do your work to the workers, pierced the responsibility to review, when the company who must always have. But having Top Manager who devote part of his time to improve these relations, to be able to involve trade unions in strategic processes, not only to present them, but to discuss them and improve them in areas where the union can be more effective than can add differentiation to competitors. Today very difficult to differentiate with competitors in terms of product, in the output say that a company produces. You can still find differentiation within the company. Able to be more productive, able to constantly innovate in the processes, work producing better quality products are sufficiently differentiated aspects of how to increase the value for the shareholder.


This policy proposals, including foreclosure, not resale, meaning that at that table should not mix the fact that one is over there, and at the same time are open to those who want to participate and should not be because all debt for them, but which forms part of a longer process in the definition of a strategy as are the meetings of Top Managers of different levels or business can significantly improve the product output of that company. That would be a big step that does not question anything traditional relations between unions and company, for instance those run in the direction of human resources. In fact, I do not want to talk about appointments institutionalized fixed, which must necessarily be twice a year, informed when there is a general meeting or what it is. I talk to establish points of contact to improve our products, cabbage something that will make the building! Oh no? In this old Europe we need to do this jump, it is imperative if we are to survive in this world surrounded by two giants: the American one in which there is no unionism in Europe and China where there is no respect for the rights of workers as Europeans will want them. And imperative to realize that only protect ago that we are more easily prey of others. Unfortunately we are not alone, we have to fight with others, and is at risk throughout our system if we do not react. And the union they can not get by and simply say that's not my responsibility, so we are shareholders, so there is the Top Management and so on. What is lacking vision in a changing world, that is not the same ten years, twenty or thirty and will not be the same in ten years. I do not know how different, but it will be safe. So I insist unions to reflect on what should be its action: passive limited its action to traditional political or let me say also, stress is also proactive in strategic focus to bring it forward? I do not see contradictions, we see complementarity in a fight, because always speak of struggle, a struggle for the general rights of workers and another fight in microeconomics to improve the production of which is that which advances their workers and The company in general.


I have talked little about the change of attitude that is needed by Top Management, but I think it easier to develop the necessary change in this part than in the union subject to a policy around which you move. A Top Manager can not benefiting have a productive force better, more productive providing ideas, processes and products of best quality. I do not see the contraindications, I do not see why not use all available resources, managerial really the whole process, integrating one of the key parts in the whole company that is productive, because if the product is not competitive, good company and good workers.

Access to information In the business basics, there is a basic need: that of information. The bigger the company is, as more international the company is, as more products or services offered, the more need there is about information. Without information we can not take the decision, or yes, but who knows what the result will only result of gambling. With the partial information is likely to take decision is consistent with providing the information, but completely wrong because the information which you have not complete or wrong. There are two schools: the first to have information on everything, from the smallest to largest particular, the second for which there is no need because of the CEO knows everything and the truth to him, the rest Information There is only because they need official accounting, to tell the bag ... Speaking of the second school and very fast, usually the result of the culture of self-made man. He had the idea, he did grow the company, he knows what he wants, he knows what consumers want, does not need anything, his ideas and his insights are those that apply. This is good, and


usually does, in so far as the founder coincides with the executive management of the company. As a successor, whether family, both professional, it happens and wants them to apply the same criteria and when the company goes to whores. That and the difference between the brilliance that have little, with the nonsense that many more. Not worth it to devote more time because the cases are few and obvious results. Speaking of the first and far more complex even though the definition and very simple: get all information. And from this Asseveration that can be different questions: what it means to all information? How do I make available? Who has access to information? What information? Address information for the business daily occurrence in with P & L and more informative to let me repeat. But I'm especially the first. Let me explain with an example. A large multinational company decides to have a tool in which a click, the CEO can look across the commercial and economic information from aggregating or confound it at all levels to the market or by product or economic variable. Every morning from a click can see how the business is going. As CEO of access to information and segmented according to the needs that he has every one. Explained in a few sentences, but imagine the power of a tool such, the screen, consulting, you have all the details business (sales, stock, sales channels, product, distributors Orders, customer orders, factory orders, orders in transportation. .. everything) and all the details economic derivatives (profit per product, sales, stock value, product cost, cost of marketing and other costs ... everything), with all this, you can do simulations of changing when and how each one of parameters, almost almost in real time, depending on the time to introduce the economic and commercial data. I repeat everything. A panacea! And instead ... And instead two things that happen at the end are basic in any innovation process: education and understanding. I say


that one result of the training was well made, but as the understanding and subjective one can see that does not understand, even that will not understand. The great difficulty and was the training on how to use the data, and the origin of the data. The training was done to those who must enter the data, with no seniors managers who have a traditional use of lack of tools. What has happened and that those who enter data or had to check the consistency when they saw that the amount of work required was inverse proportion to what it looked at the senior management have begun to less waiting. Li began to doubt the reliability of the instrument, because even if everything possible to insert it, and clearly that there is always some little thing missing (a new channel for example), from there begins to seem some doubt and that is not the maximum ... Not having training in detail the senior management trusts that the middle and does not believe the amount of work and ends gradually left a will, or rather, imposition of a CEO and not as a planning tool for its users, basically for what he was born, a tool bottom up. An instrument that data on product and market, aggregation, data is processed in the company. The key lies in the word taxation. To become an imposition, the instrument loses its main value of planning. Losing this becomes a tool for the CEO to be able to watch every morning performance of this product or market. To be so, the senior management and the middle management understand that what should be included should not oppose the CEO, this usually means that will be more willing than what actually are the numbers. Being more willing input numbers no longer needed to simulate because they are distant reality, that is the truth. Next step: How does not reflect the reality, is useless. To be an imposition not reflect the reality, as the CEO normally not stupid and, for more simulations, becoming a permanent rolling, more office work, the more bullshit and ends with a large "shit in shit out."


Crazy this situation, we could resume if the CEO intervened and did a bit of order, as normally happens. But if the CEO change? As with many things, and how not have the time to understand, but only to act, they say that what is useless and you die. I make the short, that puts the data tells them to middle management that you lose the time, the middle to senior and the senior who does not want his work to be checked only if he so decides, in escalation is concerned that is useless. And finally the instrument off. This example says much of the information, the power of information and the power of who uses it. Courses: In a company the bottom up rarely works. Only if the bottom and concerned that it will function and if things go well. Not in vain as well indefinitely, the bottom never not reflect the whole truth and that other CEO will not know sometimes. The formation, understanding of what an instrument of what, how and fundamental works. Explaining the gaps or shortcomings and almost more important than what they really there inside. If the tool requires a lot of work and then not used is lost. The information tools and simulation must be part of the heart of the strategic, and therefore the responsibility of the CEO in promoting their use. Have a very powerful tool does not mean to express beyond what is born. This has been an example of a commercial and administrative always valid would talk about instruments of pure information, without direct consequences in the P & L. The information must be available to all, as much information more corporate commitment we will. Know where you go, as you're not going to be beneficial, provided


that the information is truthful and consistent. This risk, inform you, but be consistent. If today tells you one thing and tomorrow another of different or if it says one thing but acts contrary, better turn off the speaker resonance. The information should be distributed and explained. Without explanation and counter-productive because every one will understand one thing that will discuss this with another that ultimately will not understand anything. Therefore information, but careful.


5. FORGETTING OF WHAT THE COMPANY DOES Try to understand the concept. English version not reviewed.

The product, the need This chapter begins and ends with Output. I prefer to talk about output because the product is often treats with something physical, when l 'output and more generic and can be any product or service. Having established this, I think that to say that not send a whores and not a company 'and more to do than drive l' output. And so obvious that I am afraid. And instead and so easy to divert 1'attenzione product! And when this happens to send the whores' s business and very close. Having said that the chapter could be closed, it takes only a few rit1ettere 'on whether or not we are forgetting' s output to reach the conclusion if our company if they go to whores


or not. But my job and write a little 'more, you rit1ettere yes, but also give you the evidence. Forget the Output is to decrease investment in technology development in order to be abreast or ahead of competitors. Forget the Output means to disperse energy in other investments that are not core to the development and promotion of the product. Forget the product does relax the pressure on management. Forget the product does have fun or to change management structures at every moment that 'output appears not increase as expected, Forgetting' s output does not listen to the market, do not listen to consumers and rely only to the sense of the EC (Forgetting) the output does not talk to the management. You can add as many as you like. Without Output the company does not exist. We do everything we can to remove the attention to Output and will be a step in the disaster.

Forgetting the distribution chain: the suppliers In the 90s it imposed the theory of cutting production costs as the most effective way to become competitive. Started in the U.S. by a Spanish Top Manager, this theory of cutting the costs of helping suppliers at the same time to work together and be more efficient was quickly adopted for all those companies that were using the same cost structure, in which the factor Cost of production was important. It is clear that the idea of working up the industry was novelty as novelty was to involve companies or managers who until then were considered as a cost factor in the pejorative sense of the word that includes them that they were will benefit even if the company was in crisis or its products are not selling as expected. Like all the ideas behind us are the men who apply and the resulting application of the results more or less harmful or


more or less best. Working so, is the work knowing that each one must get a result, may not only look for one that will get a result, because in doing so somewhere you will destroy value. It is clear that if the cost reduction is not for better efficiency of the process in house provider and the company also provided, and that large companies are working efficiently control the prices of supplies, there can be two consequences: the first in quality of supply, is already in use of materials or of lower quality for greater flexibility in control of this quality. The second, if the pressure and still have not found efficiencies in products or processes sufficient to offset the loss of profit from falling prices or not and followed an increase in sales and consequently production volumes because compensate for the loss unit, the only consequence and the economic strangulation of the supplier. So by passing a difficult situation to a situation worse. The supplier, without resources threatens its survival, to survive must do with all of the risks to the quality of finished products in case deliveries are of lesser quality, or receive compensation that may affect related products, which in turn may become more expensive and reduce the volume of sales, generating a vicious circle to explode quickly, if demand for that company does not recover. This is a clear signal that leads to thinking that maybe the problem upstream, but in the company. Sure that improve processes or products delivered and always possible and we must continue in this strategy, but since this fact and putting into question the survival of other companies, it is only worsen its implementation. This should be an important signal of alarm. To send a whores a company there anything easier than to show that there has been a reduction in costs of a supplier that has not existed. Is not difficult, it makes a nice meeting with all those who spend on a particular product, for example, take one of the voice of Marketing that can be printed. Managers agreed with those who must provide all


costs to the direction the purchases because this analysis and the supplier will help to reduce x% of the purchase, so to be more efficient. Up to which everything and logical. The logic breaks down when the direction purchases asks what projects close to that percentage of cost savings! But not talked to improve the cost of purchases? But we should not be able to do the same things, but at a lower cost because there was an improvement of conditions of purchase? No, cut spending, so we will see that we cut costs, many times there is confusion between expenditure and cost outgoing calls. The problem with this nonsense and that instead of helping them be more competitive in our actions, it hampers efforts to unavailability of expenditure. Not the contrary, that is, be able to do more with the same or less cost in absolute terms, i.e. with the same amount or less willingness to spend. Such decisions are only for to cover the ass from one direction or another must be completely eradicate in a company. The top management of a company may not have some short-term goals. Although the company and the situation of life or death, the Top Management can not act only according to save his ass and calling the act provided. Because as much IMPOSSIBLE demands, plus the Management act covering the results are not generating a spiral for the worst. For the worse because the Top Management will have been banquet of the results, act with new shares Whereas these false results, will require more effort because the former have been reached, putting even more difficulty in the management, covering more results falsehoods adding to the numbers and causing the collapse of the system. The Top Management Instruments must act strongly, but considering that the company must maintain, can not act without considering what will be effects in the medium term. The excuse that decisions are taken because she alive or dead are always damaging the excuse for a single show in doubt if there are some results that you brought home, although this result and only paper, no real.


Forgetting the distribution chain: the distributors Without knowing the mechanisms of distribution can not be successful. For a manager to know how and the industry as a product and manufacture up to that and sold to consumers and vital. If this report and evident in small and medium businesses, because we can not do without the physical contact, almost personal, in large companies and sometimes almost non-existent. Acting as a producer and seller and at the same time without being actually leads the company to crash. Leading to the crash because what one thinks that should be done or how it should be done, without sharing in many cases, or control network deployments in other, it is that the reality departing from deep thought. The capacity of interrelation a Top Manager or a Manager with the distribution network and one of the most important to be efficient in front of the consumer, and at the same time and one of the least valued. The interrelationship is allowed only to commercial manager, sometimes those of Marketing, but most times this interrelationship and distant, with the formal meetings, a few visits, many calls later this month to achieve the goals and that was it. Too often manages the central, the movements are minimal, the creation of opportunities to stretch avoided so to avoid questions that do not like. For me, efficient organization and not one that confines itself to be efficient in it, but one that is able to extend this performance throughout its distribution chain and supply. There, the wily there is the capacity of a manager, because clearly we can not do in the same terms that domestic being in with the principle of hierarchy, but with the conviction. That can only be fostered in the informality of informality true, the contact between or among Managers Managers and entrepreneurs. I want to emphasize the


informality, because I do not mean replacing a meeting for a dinner, but really to come into contact interchange of ideas and experiences that will lead to an improvement of the whole company and distributor and provider or company. I attended a dinner distributor and CEO, where the fear generated among distributors by the managing director was such that the dialogue was so hard that there was a genuine exchange of ideas because the answers were the managing director dried and the questions or the answers of the distributors were in operation not to Fuck it. It was more a dinner of survival than of construction. When asked, some private distributors, how it was going or how the meeting went? The answer was: bufff! And soon! I hope they have not said anything inconvenience! Of course, the results were invalid because only served to each party for stale in their conviction: the other party does not understand, we do not understand. So, those of companies dependent on a network of distribution does not own, can not go forward, are destined to suffer and lose. The results can only come from a true collaboration throughout the supply chain. Settle this conjunction of views and action must be one of the most important issues in the daily management of a company. There should be a requirement for participation in physical activity by the distributor of the entire management, is to learn how it works, how the reports are small in scale, is to have any contact with the consumer. I speak of real contact, not through statistics or more or less established. See how you physically handle a client, manage physically, answering your questions and having to give explanations and not care tortuous high-Marketing, these are actions that help to grow at a manager and an organization. Knowledge through experience physical, and the best way to grow, giving you the ability to learn later able to create new projects or products that are much more suited to their distribution and sale.


How can we manage without contact with those who distribute your products or who buys them? Easy, you and the results are disastrous. For a time could not be because there is the chance, but this is not permanent, so the only result that the company goes to whores. It seems that you can not do so without contact or with only sporadic counted in formal meetings, and instead, and characters. With the excuse that there is much to do, so many meetings to prepare, so internal management, and essentially, that we know well what it is to our distribution, you avoid contact with it. And live better protected within our structure to address the body to body, to give concrete answers, just this or that. The reports are delegated to management that operates the only day by day, trying to correct the actions balancing the forces between the company and the distributor, most of the time led to his sense that not a strategy derived from the company .

The quality So simple to say, so difficult to obtain. All agree that our products and services must have the quality. That without the quality we can not sell, customers refuse our products and this will lead to the destruction of value for the shareholder. And so easy to talk about it, the Top Manager talks about it so easily that many times it is difficult to see where we talk about something real or something fictitious. We see two different approaches to this infamous quality: The first is a factory, it even in a country that we all agree as the birth of quality. Indeed, we conversely, take my conversation with a Top Manager and Head of DHR after my first three weeks of incorporation to another company coming to the one on which I began the speech. In front of their two I asked what had surprised me more than these


three weeks. The I said so many laps without "spoken quality, we have a big problem, but we are concentrate all our efforts in improving the quality ... but I do not see anything." "How?" I will stop. "You see, I made the rounds at the factory and anywhere I saw the signs with the quality level achieved is the objective to reach, namely with the number of defects in each section, the only thing I saw immediately at and the number of product accumulated done until then!, so we can not improve quality. " "But no!" They said in unison. "Sure there are the graphics quality in the sessions, in a panel!" Li said, "no, not just in a hidden panel in an A4 sheet that go to tell how much is updated, everyone must really like working, what to do if you do not reach the goal. " The debate ends, with the usual thought, this young man is good, but will grow, how can it afford to jeopardize our project, one of the industry leader! I passed six years, and there is always the usual billboard, there are no signs to date with the second level and quality goal. But it's a big difference from then, now the pace of units produced changes more slowly and even some model does not move more! Do not just talk, not enough to implement methods Japanese or German or simply methods. The most important and those who are responsible for the quality, and here I speak of productive force, the workers, not white-collar controlling, that step within the responsibility to workers, unions that normally pull out only by a protectionist policy. It is the workers should be aware that they are the ones who determine the quality, and it is they who determine the quality, they must know how performance second to second. Have drawn the best training possible, the best methods, better tools, if they do not know if what at that time was right or not, we can not improve quality. My first experience at a factory visit to Germany, it was precisely these LED lights of billboards placed in all sections and for which flowed continuously the level of defects at the


time the objective. Almost paranoid, but in every section, in all corners, visible to all. So as you can, in retrospect one can hardly do anything. Without seeing one is carrying and how others are implementing and improving impossible. The only thing we can do and survive, blame others instead of causing and continue to do shoddy products because after there will be someone else to whom to blame, there are many tiles, it is easy to load the blame on a other. Know to act, this is a first step towards improving quality. I want to leave aside the goal of better training, better tools, processes, promote the participation of workers in the best processes and so on. They are absolute obviously to do, but I want to focus more on the strategic quality. The second and be strong enough to stop the production process until the products do not come out with the required levels. That is, work to ensure the future of a product and not the result immediately. This is even more difficult to achieve the first, which in the end there are costs, it takes only a small investment and the courage to wade on the eyes. In the latter case it takes its not just look in the eye, but also take the losses or earnings expected at that time to preserve the future return on investment. In a normal situation, let me say that I intend to normal when a company to a Top Management consolidated without much turnover and a strong reference shareholder who controls near or far from the Top Management, said, in a normal situation the decision should be simple provoking Stop the launch of the product, take the loss and send home the director of production if it is at that stage that the quality materializes as a problem. In abnormal situations, does not stop anything, it launches the product, the first responses of journalists and distributors are negative, do not do anything, the response of the public are negative, it sells well because there was a phenomenon waiting, but Once past this, sales fall and the product has a life cycle in free fall.


The answer to these abnormal Top Managers give you and that you can not, that the machine is already launched and that the losses include a launch are too large and that after we put quality problems, that a life cycle and so long , That time is all that one wants. Frankly, even I was of that opinion. But I have lived both experiences and I like the first. Always with the same examples. In the first case we need the most important product for us. The old was too old, demand for the new was very strong because we were still with a certain competitive advantage, investment for the launch were already so massive compromises and agreements with the demand. Signal the arrival of all detentions. The launch will postpone, I remember the pressure that lees demonstrating the high cost of not running, not only for loss of unity, but also investment not recoverable. We wanted to run it at any price, but despite all the markets did the same pressure, the order of the Headquarters was clear, we postpone that until the product reaches the desired levels. That year we suffered in a big lost of sales, investments in smoke, but the lesson was clear: the image of that product and the brand grows in coming years allowing us to consolidate and increase our revenues. The level of quality perceived by customers increased. In step the director of the factory was dismissed. The negative signal data beginning to postpone a launch because the quality was not desired, becomes a positive signal for the entire chain: the management saw that as not reaching those goals and sanctioned, distributors who see the commitment of the public perceives that better products and regains finally the workers who see that they are responsible for the destiny of evil because if they work, do not you deploy the production, unless you deploy does not sell, if you do not sells not cash ... The results in the company will let you imagine, not ever improves enough when the product is already in distribution, and quality continues to be low, because these values, quality and value, are not transmitted to all participants in production cycle.


Let me call the syndrome of quality zero. Why? In an international meeting to give more value to efforts that the company was doing to improve began with an introduction by the director of quality. What was my surprise when a Top Manager next to me lees note: "You saw the title of the slide? Quality zero "In fact, he spoke of zero defects, but the title was clear to them as zero! Not zero defects!.

Certify the quality Yes, the quality and certify all happy! So there I put a nice exclamation mark. We do a lot of attention in this fashion came from Germany to certify all ISO processes with its beautiful "small" numbers 9000, 9001... Middle of 90’s there was this race to certify. Any process in the company itself had to be certified because otherwise consumers reject our products. I am ten years and certification fortunately did not influence the purchasing behaviour of consumers. Probably more transactions between large corporations and suppliers, but nothing more and spend generator waste of time that these certification processes. The quality or process should not be certified for an independent institute. A process or quality 'certificate is for output to the result, product or service, a company. The rest lose money, time and opportunity I lived three processes of certification processes directly in two importers and a headquarters. Indirectly I have lived the process of certification of commercial networks. In the first three cases of jokes, the second most serious economic consequences. While a multinational certify did not endanger them. At the end advancing people and makes time to waste in completing documents, fix, make verification meetings are also putting everything together, other meetings for a vision of joint, other exchanges of email to change the


words or numbers because everything has a consistency . Ah! Forget! C 'you need to write processes, to make beautiful flowcharts, to write no matter what because nothing written that correspond to a real process. The reality exceeds the rigidity of writing processes. Ah, I forgot! And it is a large multinational company get through a few consulting firms to help clean the documents, to mix them to become beautiful. But what we are certifying process? Or are we certifying the beauty of the written expression of the process? The second of course. Ah! Forget! After you find a book with all the processes, or go to update processes have changed since the functions of reference or processes themselves. Ah forgot! And after explain to your employees know that the heart and when to get a new look for the book and learn these beautiful "to do" processes. I can say, fuck! But, I said that nothing happens in a multinational, there are economic, rather severed "break balls" them, to remake in order to meet, but we say that is normal administration. But a small company can be truly dramatic. The small businessman motion tends to take these issues seriously and requires its employees an absolute commitment to strictly fill the documents, a well-defined processes, to learn the processes well for the exam. The small businessman always puts us in the heart have certificates, that raise licenses his ego. Nothing wrong in theory. In practice becomes a disaster. Become a disaster because it is a concentration of resources during weeks and sometimes months in achieving this damn book. And while the few resources are focused on this, because you forgot what every morning you open the damper. It opens for business. Not to fill a paper precisely because it focuses on other things, the risk is put in danger 's company, send a whores. Are not jokes. In one of the countries we had to stop the process of certifying the distribution network, despite there was no strong pressure headquarters in the sense of speed, because we cost that companies which focused on the


certification, after a while 'disappointing results obtained and in more than a case filed the budget. Yes, a performing company, after losing time in writing things that had to do, if they went to whores. The output is crucial in business. L 'output is the' only thing important. Doing well l 'output and what a difference from another company, not writing in a beautiful book with beautiful diagrams of processes that will never be realized. The quality is in 'output, whatever they may be! Sure that the processes we want to get all output and better quality of the output. And sure we will write to output this amount. But this is very far to write all the daily life of a company for the mere pleasure of having a book where everything is explained. Purists will say to me that if things are written at the same time serve to improve or change things that remain doing. To share with others what you're doing and understand the business better. Bla, bla, bla! It is not necessary to put on a company for certified under the pretext that this will bring improvements. It is better to have them! It's best to take things that do not work and improve them, but that it needs it 's company to do a better output, not because it has to write a damn book. Improving output and process forms part of the business, so it should be done continuously. There is no need for a book or worse than a title that says that we are very good at writing, when it 's disgusting or output has nothing to do with the process described in the book of certification. One company did not have other than its output. Protect it!


6. FORGETTING THE CONSUMER Try to understand the concept. English version not reviewed.

Do not test the customer The principle of Almighty, to know everything. Effective and fast way to send the company to hell, more and so dangerous that was exercised by the top management easily expands to scrub oil for middle management and each one becomes a viceroy. Acquire the capacity to know everything, what is good for the client, what the customer must buy, must understand and must know, so the first thing we do and just before you teach in a school of commerce or certainly in a class economy in the third media, that is, not listen to what they say customers, and indeed to be more effective delete any research, and if someone gambling to make it I'll put him aside. The department of consumer research in a company should be the brain of a body, as we said that the sales and


marketing were the joints. Without knowing what the customer wants, as evolve its wishes and not give them what they want, another thing and get it occasionally, but certainly the law of probability it can not become a rule of conduct. Cancel testing clinic during the creation of a product, cancel the tests after the creation of the product are actions that can lead only to failure, destruction of value. They generate products that are suitable to the taste of a single or several, but which are completely distant from those who are the desires of consumers. Many times he confuses past performance with future performance. The stronger and competition and more numerous, more important and knowledge of the tastes of customers, as short and the product portfolio or the number of products to play the success of a company all the more important and knowledge of those who must buy the same products or new. In just one decision or a set of decisions or individual that is the definition of a product, there is the survival of a company. Be wrong and the company will begin to limp be wrong twice and it will be announced its death. The time of death and many fast higher investments for the renewal or the creation of a product in question to one or two years the shift to the operating room and done. This death and resulted not only in error in the product, but in the consequences at the level managerial and decision de cha annexe to go wrong in the product. Easily installing in top management the belief that the managers who must carry out the policies of marketing and communications are unable to sell who do not know, it begins to change and new beginning to be incapable and so forth. But there could be different! There is no manager who is capable of making a consumer to buy one thing that he does not want to! In company installing the conviction that something wrong, the motivation increases, managers ask how and can not ask the consumer must rely on intuition of a Top Manager.


We talked about the product, the aim of the company, but there is also the possibility of contributing to death slow or accelerate the death of whether the standard not ask customers for products extend to other important areas of a as a company and advertising. That same rule taught in the first lesson: listen to the market, take it and throw it in the trash. We do advertising that we like to us or that pleases the decision makers. Not take account of the story board, because both the customer can not understand what we want to say, which serves? He just needs to buy it and go! So we have the possibility to choose between different proposals depending on which the customer considers most effective way of bringing it to purchase the product if that is the purpose or improve the image and if the purpose or otherwise. Ultimately, always put in relation purpose, half (advertising) and consumer reaction. So out of advertising away from score in the best of cases without causing sales and the worst will help to destroy the image of a brand. And really easy, leave more intervening on the possibility of communicating with the public, several different messages and have more capacity for destruction manage to create. But the most important advice, and not post-test the advertising. Eyes that do not see, heart that can not hear! So, even if there are no results, it will be easy to say that is not the fault of advertising, you know that advertising and something so ethereal that can not be guilty of not having the results, what should I do it and go on. Cazzate! Cazzate! Cazzate! (bullshit) Everything must be measured in a company, not tell already by shareholders, but boards administrations. Today what we are analysing the results of sale, billing, operating income ... but difficult to analyse the three or four rules for success, namely what are the processes put in place to achieve those results. There 'and need to do every time, but to make sure that have been put into practice three or


four processes common sense to make sure that the results will come. The post tests and an excellent feature that allows you to correct messages, images to be more efficient. Too often is underestimated. Large companies invest cask of 1 million Euro in a campaign without the most minimal knowledge of what the client will think. For ten of thousands of Euro may set a standard pre-and post-test that can make the difference between throw earning millions or sales. The pride and one of the most withered themselves, to know everything about everyone and everything. Being professional means to make better use of the knowledge in order to achieve the best results. In another chapter I mentioned that the advertising and the most important game that has a managing director for the volume of investment that represents and for the visibility they gives. Well, give this game and leave it in his hands without that this is so professional pre test and post test the publicity campaigns, so give a further boost to death. Product, advertising, but also customer satisfaction, results of image, satisfaction of our distributors and so on, not analysed anything, or do it just to have data later without making it a continuation or not distributed the results to all those concerned to contribute ' failure. In fact, the opposite of this situation we find ourselves that large companies accumulating thousands of data that difficult after they are able to make available a form that serve to be able to give answers. The easiest and get organized and give all departments concerned or put it in an Intranet available. By doing so you leave the professionalism of the whole management the ability to go and take them, analyse them and bring answers in their area. This and Manual, the problem and that the reality does not work in this way, most of the time you take when you take, by a glance whether it should be good or evil, and no plan follows behind. This is because the amount of information and that becomes impossible to digest. More


complicated and when these tests have periodicals, then the ability to go every time to read the data and inversely proportional to time, every time you go less to see the data, until it goes there is the risk that someone else decides to investigate again the same thing on which you already have the information. The department of analysis should not be an appendix that spends on research statistics, but that the true voice of the customer, offering them tests to be done, which ensures that the information there for making it available to decision-makers, that there are processes and provides an analysis of these data, not purely data, because at that point there need an intermediary. There must be an awareness that this department provides the data to a form aseptic, which reads answers, and interprets a form aseptic not biased, there worse than a department analysis on which we can have a doubt of partiality. Limp with the analysis and best form to the discretion reign in the company and keep it off the market. And the quickest way to send to hell the company. I is sometimes thought that a possibility would be that the State, the Government, helps the sector but requires the restructuring of the same. Apart from the difficulty of entering into a company to decide what are or are not the reforms, changes or choices to make. Apart from the problem of having double the people to do it, their knowledge of persons in order to act. Apart from the impossibility to act throughout the sector also because companies are not intervening only the national ones. It will introduce just another factor equalizer governor and which could not help but impoverish the system. Indeed, the liberal system and based on differentiation, in the opportunities generated for this differentiation. Never forget that the bread for today may be the hunger for tomorrow. In cases of areas in crisis, aid mechanisms more or less permanent, with attention to laying the foundations for a new strategy.


Knowledge of the market to be done Know and understand and still know the market. There is nothing more basic. Beware of the genes that guide the eye only.

All are customers It's amazing, but this thing so simple that consists in thinking that we ourselves are consumers of the same product we produce or other, it's difficult to establish in a company. This thing is so simple that would really make a jump to a company. If in any decisions, if any action, if in any way to implement, if at any time we put in bread instead of a consumer to decide how the managers outside the everyday you gain in efficiency and effectiveness. If we wonder how we react to a product or an action of our company before taking a decision it will avoid many mistakes. I very much engaged in this form of management, to see my co-workers or employees at any time you had to take a decision which will affect to our customers, to ask first how affection to us, what you do, what would happen. But this statement is not enough many times, wanted to go forward as if we know what it is to score and putting as if the action or product should have a different response from them towards us. An unjust action on them has no effect, the same action unfair on us has no effect. No square. Unfortunately, it is not so, if some of the same company acting form on us, we


pissed. At this point, why should not pissed customers? And the same thing I always wonder and wonder forever. And instead, a simple reflection so it is impossible to have it become automatic. This lack of automation is not unique to the Top Management, is widespread throughout. How many wrong decisions are avoided only with this simple attitude: "what we are doing for customers, if I were customer, I should be okay?" Or to be more precise for the purists of Marketing, "what we are doing to this target, if I were the target, I should be okay? " Easy questions that have immediate answers, most of the time for common sense. For example if we decide to have a call centre who answers the phone in case of failure of our product that has cost us several months' salary and that prevents us from using it or a disc that begins to give us different possibilities and that we can save some Euro as a company. The decision automatically is to make the hard, spare, is the customer who is wrong is wrong number of option, he does everything he ... But if you automatically think, if I find in the middle of nowhere and I need help, if call the number and began to hear a voice of welcome, saying that after I press 1 or 2 or 3, and after that still have to press other buttons and after a bit I have a person on the phone, I think I would be very angry as to be courteous and repeat purchase of the brand, not because the product has left me, but because I have not found any follow "personal" to my purchase. For this reason, the report satisfaction versus savings that can do the balance goes its satisfaction. Littleness are the ones who build the relationship with customers, are the smallness those that help to build a product and / or service. These are the same ones that smallness may lose value to the company.


Let’s a customer gone The claim is strong, but it is so. There is nothing wanting to keep the price all customers. For, let us say, the law of life is born, lives and dies. With customers is the same thing, there are customers are loyal and later disenchanted. I always wanted to avoid the syndrome Malussène when I had to manage the customer care of a large company. Malussène is a character of fiction by Daniel Pennac, French writer who has had success with a series of novels in which the protagonist is Mr. Malussène and his whole family particular inhabitant of Barbez district of Paris. The employment of Mr Malussène is to be the "goat atoning" of customer care in a department store. When a customer complains, called Mr. Malussène affected all improper for customers so they feel listened to and can stay customers. So the desire to maintain all customers called the syndrome Malussène. It completely inefficient from an economic standpoint. A dissatisfied customer will cost very expensive in terms of compensation, will cost very expensive to maintain a structure that can dedicate to keep all customers, already is internal or outsourced, will cost very expensive in motivating people who work in these facilities to customer care, may to make wrong decisions in the Top Management and a minor ownership of the distribution network. See it a little bit. The first thing to say is that despite no companies in recent years have made enormous efforts in CRM (Customer Relationship Management) and in a part of this is that relating to customer care, it is not possible, or it is, the information available is not sufficiently treated to make concrete decisions for a score concrete. The dream would be to make an assessment of one to one for that customer dissatisfied statistically assess whether duly compensated and / or satisfied will be a loyal customer. If cost is not expensive, because there are not enough studies that indicate that a dissatisfied customer who was compensated after return to buy our products. Keep an


unhappy customer will cost us dearly in time, because every problem its demand will exceed our cost or guarantees will be monstrous. Will cost us dear because we will have to devote a major part in dealing with a limited number of cases documented in vain because, should be called in, followed compartment must be checked ... a lot of people for a few cases. Will cost us dearly in terms of justification of that staff that manages the cases or those involved in the practice, in what are called into question for their decision. The first talk because they have always doing good smile at people sometimes too rude and this day was No. day. The latter because it calls into question his professionalism, for the love of God, you can always go wrong, but then not stay talking to a customer lost, but a customer recoverable. Moreover, the continuing pressure to close cases quickly in solving them makes changes to plans and processes of normal work. Will cost us dearly in terms of wrong decisions of the Top Management, because nobody wants to see and write less if an answer was negative. This leads to pressure to follow up, sometimes more to a desire for a secretary concerned about closing a practice that not Top Manager sees it as a formality. But not limited to, the information derived reports of customer care can lead to errors hindsight compared with the volumes of customer portfolio. Many times you see x cases of customers, but it was not aware of the infinitesimal part that they represent as a whole. Bringing to think that we have a problem bigger than what it is. Finally, a relaxing in our distributors. If their healthy that there is always a further application solutions that cases may take action on two forms: the first referring to the sender, that is causing the action of customer care producer and the second by default, acting slightly more knowing that you c ' is a problem can always count with a producer who will fix it. In both cases we lose the


responsibility of those who must act so that all work processes and is efficient. I know that a dissatisfied customer will speak to his male friends or to the press and that this will generate a further loss, but as in battle, unfortunately the losses we are and we must take. What you do is that these losses are acceptable. Why are acceptable is that we need a clear policy of customer care, defined in its processes and its decisions, only then can be efficient. Processes and decisions that should be known by all the players that have to do with customers, so to be able to give them the responsibility for managing the customer and not hide or omission does not manage customers. Ultimately, not to send a whores a company, even if this sounds to be heard, some customers had to be lost.

How the customer acts I wanted to devote a chapter to the curve of the product for the simplicity of the subject and why and one of the most important factors to send a company to whores. In the end, the companies supported what and who sell the product. And of course the first of his career, but also of common sense among all people, a product that began as a novelty and so everyone wants to keep it that after the aging product "per se" or because of other competitors offering superior products and for both sales decline and finally the product becomes obsolete, it sells for less, to inequality. This happens with all products and what is called the curve of the product, with industries or products with curves more or less extensive in time, but ultimately exponential growth, reduction gradually and death. It is true that within the curve of the product is changed slightly to recover sales, but an intermediate stage and that


no prejudice the end irremediably of the product. I do not want to go too in this detail because the important thing and the concept intrinsic of curve. If these three steps are true and they are, why we continue to make plans "flat"? This and plans on which our product is not subject or almost never only slightly, this inexorable law as strong as that of gravity! This was a form to send a quick whores the company. To think that our product will remain unchanged stable happen what happens in the market, thinking that with more promotions, restyling with intermediate or more advertising our product will always sell anyway. We build budgets of these premises and we can bring our product to die even before the death of the natural curve of the product. How? And simple, consider the revenue on the product that never arrive, when not getting the revenue it needs to reduce investment in advertising and the product comes out of the consumer's shopping list, we must recover the exit with those few consumers who are approaching and we must give them more commercial advantages, giving more benefits to commercial viability decreases even more so until that can not sustain below cost and the product begins to rot, to sell less and the exponential curve inverts. The trend of junior managers and think that these things only come in theory, that there is always time to recover a product and that the fall is not so fast as ever think that you can not react. And instead there are curves that produced last two years when the life of the product and at least 7. Fast growth, tired and falling fast. At this point we have already sacrificed a product. And in the end one could say that should be, and only a product. But what happens with the product that will replace it? Li There are two theories: the possibility that the CEO has to deliver results and what happens in reality the fruit of history. The possibility, the idea that the new product will sell the same levels of the launch of the first, that we learned of


errors, usually made by a predecessor, and with what we have learned a curve nearly flat for the next few years of life of the product. Too many assumptions! Too easy! If it were so there would be only successful products in the market, and this would be infinity. Instead what happens? First, the new product will start from a lower from the former product knowledge that he has lost over time. Second, the image of the product that will be replaced because that will lower enjoyed incredible for such discounts de sell it and the base of consumers who buy at last be so few that the rest of thinking potential consumers that the product and poor. Third, being so poor that basis, the potential renewal of the product among consumers who have already purchased the previous declines, having to go to conquer other consumers who have other products. Fourth, the value for those consumers who have purchased the previous product will be so low due to discounts final of life, which will not be able to buy the new and remain unhappy moving to other products. Fifth, there can campaign in a month or two to upset the consciences of consumers if we are talking about a market where there are multiple products, only if we are faced with a product and a new technology in the market, but overwhelming a novelty. Sixth, there can generate enough financial means to support a launch able to recover the lost awareness during four, five or six years. Where all this leads us? Leads us to that if the CEO has pledged to have a flat curve or you're with him or you will go or send you away. For the company that happens and that the market and market rules were always there. If you were lucky and there was a growing global market, you've grown at least in terms of volume and manage to field for a while 'until the next phase of the market. If you have not been lucky and the market remained stable, you have helped greatly to burn cash, to spend more than they had planned to send whores and the P & L. If this is already weak, then send to the company whores.


Planning and important, but good planning and revenues and the costs even more. Are obvious, but there will always a more "sage or wise" who may believe that with the obvious. The curves are a product of economic regulation, and as price elasticity. There are rules that must be interpreted and how best to interpret the best value and generate more opportunities for success we have. And so easy to put the numbers in an excel, which sometimes think someone with no implication that only after enough change and that affect only to excel, which does not affect the reality, and instead the consequences are very real.


7. LIVING FROM OTHERS Try to understand the concept. English version not reviewed.

Politics and industry Nothing could indicate that a relationship between politics and industry is negative for the good of a country and for the good of the industry itself. We use the term policy to refer to the action of the state to traverse its government. Advance not discuss which of the possible relations that can be diverted to produce between politics and industry as illegal financing of political parties or purchase of favours. They are relations that are negative, but let me talk more of the conditions that one, politics, can create over the industry. The industries create wealth, create jobs, create production, helping to structure the territory, contributing to welfare. An action policy that encourages these conditions could not only be profitable. Using the conditional because ultimately what it produces the opposite effect to that desired.


The intervention of government to create the conditions for development of an industry can be of two types: completely liberal or regulator in any way. Completely Liberals means that the government implements simple spectator, merely create a regulatory mark, used to any industry and establishing the rules of the game the same for all industries and all regions. There is no facilitation of any kind, any kind of discrimination between industries, between territories. Regulator means any government intervention to a minimum which is on general conditions, exceptions to the rules to understand. When establishing conditions for economic advantage for establishment in a territory, when creating conditions for tax advantage for recruitment of workers, when establishing economic conditions for the product, when creating certain aid training or looking for a particular industry when establishing customs barriers, etc.. One could say that these second can be made with all good intentions to protect the use, to foster productivity growth in the country, to improve non-industrialised areas of the country and so on. Yes, it's true. Assume also that behind these regulations there are no partisan interests of that party or the other in the government. Assume that governments are Leviathan. But it is so true that this aid in the medium and long term will not only impoverish the industry and send to hell. Why? The aid, regulation of government is not always the same and indefinite, one day or another will change the priorities, the budget will have dried, the external pressure has facilitated the reduction of these regulations, competition will have found other ways to compete , The interests of voters have changed and so on. Why this regulation is effective and should be indefinite adaptation to new condition to continue to support the industry. Unfortunately, the first conclusion is that there's nothing indefinite, probably only death. In fact, the death connects perfectly to us, because it is so that ends the industry. Because the industry becomes as a


boy always cuddled at the end grows flawed and weak. Because the industry becomes like a sick who can not do without its probe. Without wanting the industry becomes less competitive, the industry falls asleep slowly, the industry undertake new investments knowing that is covered, the industry does not invest more in itself but is expanding, the industry spends more resources for innovation, industry builds factories where it is inefficient, the industry takes the workers where there is no training and territorial competitive conditions, the industry believes to make profits where only had aid, the industry believes to be efficient only where it was covered with aid, the industry believes that we have a top-level management and efficient when it was mainly helped create regulations, the industry believes to have competitive products when they are stimulated to the offer and not a spontaneous application. All that seemed to beneficial becomes an unhealthy at the end because you lose not only what was protected, but you lose the whole industry.

Impact of economic cycles All chapters were dedicated within a company, its essence, its management, its form of organized, and no one and perhaps one of the most critical on the outside. In terms academics have spoken of endogenous factors, but not those exogenous. A company can have a great management, a large organization, a great product, but if the economic cycle rather than helps, will not have the success that it could have. Instead a company that has a poor management, an organization disorganized and an average yield, but with a favourable economic cycle can have a success that is not the result of his action, but of the economic cycle. Hence the importance of stress this aspect.


Luck, which I prefer to call in this case favourable economic cycle is more basic in the success of a company. But for the purposes of trying to analyse how a company must organize and act, this is a factor to extrapolate sense because there would lead to wrong conclusions. To bring a similar and how to talk about current prices or prices deflated. If not remove this effect exogenous we can conclude that this or that other managers are brilliant or that company or that are a perfect machine when maybe it's the opposite. Cuidadito! (be very careful) How would say a Spanish.(Be careful but with an ironic and advice tone). In mature sectors with a strong competition this is even more true, just have the renewal of products in moments that the economy is growing or that market or that otherwise grow to succeed. The ill-thinking can tell me that the cycle must try, unfortunately in mature markets, but today in the global economic cycle and hardly put up for a great innovation. Unfortunately, globalisation is that we are or can we adapt that not be a company or a single sector of the economy driving growth cycle. The economic crises or descents of the economic cycle are more exogenous factor for the economy than for a wearily of this. You can have a smart management, a simple structure, a product suitable for new markets in the developing world, but if the economic cycle reverses the trend and derail, the company if they can not go to hell despite everything has been well done . When I speak in this booklet on how to send a company to hell I do not mean this type of management, indeed, this chapter, unique and perhaps short, is a strong cry to be able to discern between endogenous and exogenous factors. You can have a management incapable, or even capable, with a complex structure that should only simplify, with a series of products in the oven that only needs to simplify,


with a series of no synergies at the cost, with a presence that only must simplify and have a favourable economic cycle to be exalted as the best manager or the best case of school. Attention! Cuidadito! Extrapolate the cycle is seeing what it remains. Everything to conclude that the factor is necessary to do the things you must do, act, simplify, lead, everything that we saw that not be done, we can create the conditions and prevent mediocre that flourish. But this is not sufficient for success, the missing factor favourable economic cycle. In any case act as we must act even in times of unfavourable economic cycle will help keep the company alive, if not only will be a factor accelerator to send to hell the company.

National "soberbia" to be done In this chapter does not speak the national pride or "soberbia" (arrogance) on, but of the country's national soberbia affecting over manner managers in the company. The Nationalist around (belonging to a nation and culture) influences the managers.

Living from aids In a market economy and the latter who should regulate the activities. At the time that the State intervenes in support for effect or defect in a sector condemns this same area.


Living protected, apart from being easier to survive, creates a false sense of success. The problem, and that this is not the result of forces but an artificially created around favourable and is intended to end one day or another. There is a need for direct aid to a company in particular, it must be a sector because the national leader to whom you want to protect can survive. Implementing so, the State, the only one who does and postpone the death. It postpones death, because during this time the company does not undertake structural changes which is expected to meet, because something must change if the company and in crisis and had to help the sector. This intervention instead of leaving that market conditions had left accelerate the pace of change, causing this false illusion that everything will now be better and better forever with the same structure and the same strategy. No more distant, perhaps one that will accelerate and deepen and death since this aid will end. It will accelerate the death not only because the company will continue to be unsuited to new market conditions, but because the management has been asleep, has worked to get the best during this period of protection, has continued with its strategy loser and will no longer be dynamic, fast thinking to move up a gear and find other strategies in these new conditions. These aids are normally addressed to maintain the structure, keep the jobs, for this same reason the government can not allow one part that is giving aid and the other will involve a restructuring involving reductions of staff. But inevitably must be. So instead of moving over time a crisis and better business deal soon to be better prepared in the future. The economy and made by cycles, each one higher than the previous year, so in some form shock of the previous year. If we accept this principle we should give the necessary flexibility so companies can adapt to these cycles accompanying the not sinking them.


Not undertake these adaptations at the time that a company compares to the difficulty of Market and ordered to medium term. Not to do so because there is an intervention by the state and even worse. That the state pressure to keep a foot organization preventing its restructuring can not do is encourage death. Keep always under assisted respiration is not possible, both for costs that generates the rest of the system, both because ultimately governments have mandates of four or five years. This "welfarism" generates two other perverse effects: first, they can not help a company but a sector, and not said that it is the leading company that benefits more, it may be that the entire industry grow and instead in terms of the share 'Company helped supposedly is maintaining or even lose it. It this happens, and clearly that the situation is not so derived from the market as a failure adequacy of the new situation. The second perverse effect, less visible and less perceptible, and the decrease of image helped in that area. Not an immediate effect, but this aid is extended in time and in some form someone must be paying them, and can not be more than the community of citizens, sowing a refusal to this company and its Brands. This refusal was not deliberately generated, but on the contrary, what was claimed to protect jobs and damage effects more collateral. The most damage because the soundness of a company is low in its image and that of its products. It is this feeling prevails that the only thing that you and help a company rather than harmful to society and for the continuity of that company. Having lost the image or having built its image as a negative accuracy what was aided and helped by everyone, but we have got a result for all, increases the aversion to products and clearly favours the descent of shares Market. In addition produces two other factors: first, how and so imperceptible and difficult to surface in the investigation, what does and concentrate in other aspects of the image and not acting on the root, and this expulsion between the


company and consumers. The second factor and that this refusal generating and thanks to aid the industry, these consumers have easier access to other products of other competitors in the market, favouring an increase in demand, but let me say that not desired. Client lost in many cases definitively production in the country lost forever. Why so doing has also strengthened the presence of these competitors in the best possible situation helped the company have strengthened in that market without the need to devote considerable strain because the state and those who are enduring for all, but also by improving their competitiveness in other markets because those resources originally intended for that market may be destined for other markets on which to improve their positions to the detriment of the same company helped. There best regulator that the market, both in the case of aid to a sector because it wants to help a particular or simply want to help a single sector. We analysed the effects in the first case that are harmful to the company who wanted to help. In the second case and an entire industry, which is fixed, not innovation, not restructuring, not adapts to the changes and finally ends conducting us to hell when that aid is finished. Living permanently under any form of assisted breathing can not be good, just that the company does not address the changes he must do and act on the areas identified as those that led to that critical situation. And hard to say that, but there other forms known to act. Many times we hear the argument when we have to help someone or some country in hunger that we should not give the money to eat or directly from the eating, that what we do and teach him to fish, to cultivate to produce, so to teach him to be after independent and grow from their own resources. This that and said governments of every political symbol, because it is from the domestic market, a sector in crisis or a company in crisis is forgotten. What we must do governments and create the conditions for overall growth of a country where every citizen encounters them the chance


to flourish, is already individually is already in the form of company. The Government must create the mark where you can play an individual, must create the best teaching adapted to a changing world, the best medical facilities to prevent and treat its citizens, ensure a mark legal ensure the conditions of citizenship and security, create the infrastructure that will enable the development of trade, mobility of people, a fair tax structure that no brakes development, etc, etc.. But in any case it must intervene in evolution of the economy, must leave that companies may emerge, produce, die, rebirth in various forms, will turn ... that would be the chimney virtuous for which you can create wealth. Once one can ask what does that make this chapter more general policy in a Booklet to send to hell a company. Did you understand, move in terms of protectionism ago that the Management has overshadowed those for immediate results and not undertake changes or changes needed to adapt to after aid. Worse and when these aids are institutionalized over time. The Management knowing that can always count on them to act in two forms: first, not doing nothing and letting death arrivals slowly having at least madly lived during that period more or less long; second, divert that profit generated for other activities not focusing on real problems and / or errors made in the company and cause death faster, even with the same battery of aid. I is sometimes thought that a possibility would be that the State, the Government, helps the sector but requires the restructuring of the same. Apart from the difficulty of entering into a company to decide what are or are not the reforms, changes or choices to make. Apart from the problem of having double the people to do it, their knowledge of persons in order to act. Apart from the impossibility to act throughout the sector also because companies are not intervening only the national ones. To introduce just another factor equalize governor and which could not help but impoverish the system. Indeed, the


liberal system and based on differentiation, opportunities generated for this differentiation.

in

the

Never forget that the bread for today may be the hunger for tomorrow. In cases of areas in crisis, aid mechanisms more or less permanent, with attention to laying the foundations for a new strategy.

New technologies Speaking of exogenous factors, not to mention the new technology would forget the factor that has influenced more in productivity of managers. Not to mention in this last part of the effect of new technologies such as the purchase of hardware or software by companies or the struggles between the departments of IT (Information Technology in simple terms!) With the rest of 'holding of different views between departments with those who want to trade all at once and those who want IT but step by step. It is true that this is always a source of discussion and "move away". It is true that these investments are very strong and that may put at risk the sustainability of companies. It is true that affect how managers can get around in front of the information that IT provides them. It's all true, but I proposed to do some of mood throughout the booklet and I would end up with this. I would end up with an example of 'absurd that is not familiar with the new technology to its most basic level by the first levels of management. I'll will not invent, not dramatize, I'll simply show a direct and recent experiences. The most serious is that it is recent (2004), not all 'beginning' s Internet. Take a play at any large company that among its objectives are: 1, working with minimal resources therefore the management shares the secretary when an absent; 2, Use of 'email as a source of conversation and business decision


so the use of Outlook or Lotus Notes or any other means of electronic mail; 3, not to mention Intranet as a source d 'information. Take a secretary who assists his head, a first level, and at the same time the secretary of his superior, a President, because his secretary that day is on leave. "Current business." The two leaders are not working with outlook. The two leaders are of intermediate age 45-55. The two leaders ask to print all mail. The two leaders once printed or written notes to respond or dictate notes to the secretary to answer. "Current business." The offices are neighbours separated only by a wall "Current business." The computers are different, and clearly on one you can not read the mail of others. "Current business." All too regular, is the most beautiful scene. Director who calls his secretary, asking them to send an email to the President requesting a response. The secretary from his office, that his computer with the post of chief wrote the email. Secretary ranging from computers in the office next President and print email from the Director. Email that the President is that it responds to the Director. Secretary who writes the answer in the computer's email President. Secretary running to another office, opening mail and print the response to its President Director! And so on... not to mention the comments orally or moods of one or the other. Absurd? True! It is so that you send to whores companies. Not do it!

Back to innovation to be done In times of change, for a new Top Manager, it is easier to cancel a program rather than understand it.


8. 10 CAZZATE* (BULLSHIT) TO AVOID Try to understand the concept. English version not reviewed.

The application and more time for what? But I leave that to every one, although I think that more time to move your ass and create more value for the shareholder. Of "cazzate" there are many to be eliminated and each one can make its list, really simple, wait a moment to think and try to eliminate, finally, 10 "cazzate" that every one knows that does and prevent them to move the ass by the chair. I said finally, because so often remove the "cazzate", but after returning. 1 .2 .3 .4 .5 .6 .-


7 .8 .9 .10 .Small steps, but decisions which will take us to improve our management, have created value for the company, and managed to send less to hell the company eliminating our "cazzate". *Cazzate, a very popular italian word that means bullshit


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.