What are the three rules for success? Michael E. Raynor and Mumtaz Ahmed discuss what makes companies great.
The April issue of Harvard Business Review features a cover story written by Michael E. Raynor, a director in Eminence, Deloitte Services LP, and Mumtaz Ahmed, principal, Deloitte Consulting LLP and chief strategy officer, Deloitte LLP.
Raynor and Ahmed provide insights into how exceptional companies deliver superior long-term performance, even as they face similar obstacles to their competitors.
The scope of Raynor and Ahmed’s study is pioneering. They draw on “big data” – hard financial information on more than 25,000 companies that spans nearly half a century. They identify 344 exceptional companies—either Miracle Workers or Long Runners using rigorous statistical methods to identify them and analytics to determine what makes them great..
What are The Three Rules?
- Better before cheaper—compete on differentiators not price
- Revenue before cost—prioritize increasing revenues over reducing costs
- There are no other rules. Change anything/everything in order to abide by the first two rules