ADR

Strategic Concepts & Mechanics

Signature MoveThirty Percent Turnover as Pruning Not Failure

Signature MoveFormer Bosses Report to Former Subordinates, Same Pay

Capital StrategyConservative Treasury, Radical Operations

Identity & CultureImmigrant Hunger as Hiring Filter

Signature MoveMemos Replaced by Oral OK and a Sharp Pencil

Competitive AdvantagePay What You're Worth, No Salary Schedule

Cornerstone MoveProduct-Owner as Mini-CEO Guillotine

Risk DoctrineDay-One Honesty in Every Acquisition

Decision FrameworkStars to Priorities, Privates to Sergeant

Signature MoveUnmanaged Pigs as Growth Path for Non-Managers

Signature MoveRank Everyone Against Everyone, No Threes Allowed

Cornerstone MoveUndevelop the Product Until Someone Can Afford It

Strategic PatternAcquire the Product, Architect the Bridge

Cornerstone MoveAcquire Products Not Talent, Then Gut the Org Chart

Cornerstone MoveZero-Based Thinking: Restart the Company Every Year

Primary Evidence

"which sold off a money loser like ADR only to watch CA immedi- ately cut out unproductive managers and their even less produc- tive perks—and in so doing pay off the $170 million purchase price not in five years’ worth of revenues but in five months’. To"

Source:Twenty-First-Century Management _ the Revolutionary Strategies That Have Made Computer Associates a Multibillion-Dollar Software Giant

"price not in five years’ worth of revenues but in five months’. To say that CA had some magic formula is to seriously underesti- mate the simple rationality of people who are able to discern that heavy fixed overheads do not add to revenues and that when you have healthy revenues and are still broke, you don’t have to look far for why. ADR’s director of marketing and its entire sales force were actually getting bonuses while the com- pany was seriously in the red. Everyone was getting bonuses. How come? Because this veteran company—the furthest thing from a start-up situation (in which it is understood revenues will not cover costs)—was simply budgeting for a loss. Hey, they were losing less than they had expected, right? Right. That’s worth a bonus, right?"

Source:Twenty-First-Century Management _ the Revolutionary Strategies That Have Made Computer Associates a Multibillion-Dollar Software Giant

Appears In Volumes

Twenty-First-Century Management _ the Revolutionary Strategies That Have Made Computer Associates a Multibillion-Dollar Software Giant