Economic topics contains full of interesting information on Companies’s strategy.
This day, I read with interest the Virgin policy regarding holidays, as explained by Richard Branson himself.
Richard Branson admitted that he picked the idea from Netflix.
My attention was grabbed by a sentence on the Daily Telegraph article. The person from Netflix explains :
Results are what matter. How you got there, or how long it took, is less relevant.
You should see a red light in your mind each and every time you see the word « result« . So I checked the articles further, and came up with the following sentences :
the guidance is simpler: act in Netflix’s best interest.
We should focus on what people get done, not on how many hours or days worked.
The view of Netflix takes all those unecessary frustrations away and allows all the energy to be directed into the job of making the company efficient and profitable.
People who don’t produce are shown the door.
I have a friend whose company has done the same thing and they’ve apparently experienced a marked upward spike in everything – morale, creativity and productivity have all gone through the roof.
From all these sentences taken from both articles, you quickly understand that what is presented as a human step forward more liberty is dictated by financial considerations. From this, and regardless of any further investigations stating otherwise, finance seems to be the criterium on which the economic performance of both Virgin and Netflix is appreciated.
Such information on a Company’s strategy provides you knowledge on three levels :
- If you are a sales person, should you wish your financial prospect become or remain your customer, you will have to argument around the figured profit your prospect will get from your product or your service : money earned, time saved…You should not be surprised if the final decision belongs to someone from the Financial Department, or if someone from this Department becomes part of the negociation.
- If you apply for a job : you wish to be part of a Company where the Financial Department will lead the others. This means that all you institutional communication (resume, covering letter…) and your job interview will emphase on your efficiency, your personal productivity the profit the Company will gain by hiring you. Do not expect high wages, as it will not be in the Company’s politic. And be aware that the HR Department will not hesitate to make you redundent if delocalisation makes the porduction cost cheaper. Unless they offer you to work at local conditions. The perfect example is given by the closure of Imperial Tobacco in Nottingham.
- If you are a subcontractor or a supplier : you will have to work hard to provide the best product or service at the cheapest price.
This shows how interesting is the understanding of an organization’s strategy. And elements of this can be found online…for those who know what to search, and how to search it.
This is part of what I teach.