Ohmae's Key success factors LO11963

Myers, Kent (myers@carsoninc.com)
Wed, 15 Jan 1997 13:39:31 -0500

Replying to LO11919 --

Stafford Beer argues that the Pareto curve is misunderstood. (My Beer
books are gone, so I can't give the citation.) The idea is that a
particular shape persists, no matter what. Yet many managers, when they
are told that a proportion of activities contribute very little, decide
that they need to find those activities and eliminate them. After a few
rounds of chopping the tail off, only to see the same curve with the same
tail reappear, the result is a much smaller operation. Since the
operation isn't necessarily more productive or profitable, downsizing
eventually loses its appeal. This focusing mechanism, however dressed up
in science, is a poor substitute for strategy.


Kent Myers myersk@us.net Alexandria, VA

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