https://frrl.wordpress.com

A site of endless curiosity

When to Quit and When to Stick

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Complements of the mind of Seth Godin…

“If you are not going to put in the effort to be the best possible choice, why bother?  Is, “Well, no one better showed up” a valid strategy for success?  Are you hoping to become a success because you’re the only one being considered?

The reason big companies almost always fail when they try to enter new markets is their willingness to compromise.  The figure that because they are big and powerful, they can settle, do less, stop improving something before it is truly remarkable.

They compromise to avoid offending other divisions or to minimize their exposure.  So, they fail.  They fail because they don’t know when to quit and when to refuse to settle.

What Jack Knew

When Jack Welch remade GE,  the most fabled decision he made was this: If we can’t be #1 or #2 in an industry, we must get out.

Why sell a billion dollar division that’s making a profit quite happily while ranking #4 in market share?  Easy.  Because it distracts management attention.  It sucks resources and capital and focus and energy.  And most of all, it teaches people in the organization that it’s Okay not to be the best in the world.”

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Written by frrl

April 6, 2010 at 4:55 pm

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