ManagementRules

McCormack'sManagement Rules

#1 Revenues MustExceed Expenses

Revenue - Expenses = Profit

Revenues must exceedexpenses. Every business,every individual, and evengovernment, must balance theirbooks. Every entity must earnmore than it spends. Businesshas to take in more revenueand sends out in expenses. Itis the primary responsibility ofevery manager, in everybusiness, to increaseshareholder value, as profits,so long as it does so fairlyand by the rules.

#2 No Plan SurvivesContact with Reality

So Have a Contingency Plan

So you need to have acontingency plan, the abilityto adjust, and to adapt, asthe situation impacts yourplan. You can't plan what yourcompetition got to do, exactlywhat you're customers aregoing to do, what's going tohappen in the market, in thegeneral environment. Plan yourwork is best can, but havecontingency plans in placeand bid ready to adjust fire.

#3 Business SuccessCreates Competition

Competition Will Follow You

If you're successful inbusiness, competition willfollow. If you find asuccessful niche for yourbusiness, someone will comealong a look at your successsand think that they can do abetter job, they can do itfaster, cheaper, better. Successinvites competition, be readyfor it.

#4 When You areThrough Improving

You Are ThroughWhen you stop improving, youstart dying. We stopped tryingto make your business andyour self better, start to fallbehind, giving competition achance to beat you.Continuous improvement is away of life or business andfor individuals. You have toimprove to continue tosucceed.

#5 Change Is InevitableEveryone Resists Change

2 Basic Truths in Life

There are two basic truths life:change is inevitable andeveryone resists change. Knowthat the market, your business,your consumers, are always ina state of change, whetherslow or fast. And when youbring about change, everyonehates it, because everybody'scomfortable with the statusquo. Know the change isinevitable, and people resistyour new ideas, but you needto move forward and keep onchanging.

#6 When You AreThrough Changing

You Are ThroughRemember this: when you aredone changing… You arethrough. This is related to #4 and # 5. Change isinevitable, and businesses needto work through the changeand adapt.

#7 Hire Like Your LifeDepends Upon It

It DoesHigher like your life dependson it. It does. Don’t settle forthe quick hire, don’t settlefor cheap hire, don’t grab thetrendy hire, and above alldon’t hire yourself-a yes man.In organization can onlyfunction as well as its teamdoes, managers need to hirethe best team they can. Don’tbe afraid to hire somebodybetter than you and makesyou better, not look worse.And if you do make that badhire don’t hesitate to make agood fire.

#8 You Never HaveEnough Resources

Make the best of themYou never have enough money,time or resources. Make thebest use of what you have.Managers are coffee trying tobalance effectiveness andefficiency in their jobs, andthis is using your valuableresources to reach yourbusiness objectives. You'renever going to have enough,so use them wisely, and quitcomplaining that you don'thave enough. Nobody does.

#9 When You Assume,You Make An AssOut of You & Me

Unless You have Good DataYou have good data to make yourassumptions with. Most businessmodels start with assumptions onhow much the cost of goods willcost, how much product to besold for, how much will be sold,what total expenses will be. Agood business model makes goodassumptions on all of thesenumbers. Make good assumptionsputting good data, and if you runthe business right, you mayachieve role number one.

#10

Don't make DFD'sData FreeDecisions

When there are multiple options tochoose from, left to their own, thewrong choice will be made. Don'tmake DFD-data free decisions.Gather facts and information aboutthe situation, conducts analysis ofwhat's going on, developed a setof choices, weigh the pros andcons of each choice and finallymake the right choice for thecurrent situation. Don't go withyour gut, check your facts first,then make a decision.