Business Distilled

The Principles of Business Distilled

image of road & trees distilled to shapes

The CEO of a healthcare business read the executive summary of the report I had just delivered as I sat and watched. He was sitting a few inches away from his desk with his chair rocked back, legs crossed with the report on one leg. Looking up over his glasses at me he said, "You're telling me I need to reduce our keystrokes, footsteps and miles. Is that right?"

He had distilled what would be a very successful, year-long project into those few words. As we worked together that year, I learned he had an uncanny way of distilling large amounts of information into a few powerful words. I valued that, and learned to do some of the same.

So the first principle of this blog is to distill important and big ideas into a few words. That not only saves time for you (the reader), but is easier to remember, and easier to apply them to your organization, and easier to stay focused on.

The second principle is there are only two functions of business - acquire customers and innovate. So this content will be focused on and organized around acquiring customers and innovating business.

The credit for the distillation of business into these two functions belongs to the great Peter Drucker. In his 1954 book, The Practice of Management, he wrote: “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”

Building a business is a journey that is full of tumult, complexity, disappointment, hard work, harder thinking, and some glorious victories. Every business must be on, and stay on, its own path even when we don't have the answer and want to use some cookie cutter method. All of these can distract our focus. Business Distilled gives you the minimalist view. You add the detail for your business.

CATEGORY: PRINCIPLES OF BUSINESS
Tagged with: #businessfunctions, #PeterDrucker, #createcustomers, #innovatebusiness, #businessinnovation

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