Thomas Watson

Strategic Concepts & Mechanics

Signature MoveIverson: Four Layers Max, Then Stop Building Hierarchy

Cornerstone MoveIncentives as Architecture, Not Decoration

Strategic PatternStay Half a Step Ahead, Not a Mile

Capital StrategyCash Reinvested for Domination Not Dividends

Cornerstone MoveDominate One Small Thing Before Growing

Signature MoveSchwab: Split Half the Profit and Watch It Multiply

Risk DoctrineTen-Million-Dollar Education, Not Termination

Signature MoveLemann's 3G: Buy the Brewer, Install the Meritocracy

Signature MovePatterson: Educate the Customer Into Needing You

Cornerstone MoveDecentralize Everything Except Culture

Signature MovePrice: Lowest Price as Moral Crusade, Not Marketing Tactic

Risk DoctrineCalculated Bullets Before Cannonballs

Competitive AdvantageCulture as the Only Uncopiable Moat

Signature MoveKelleher: Distill Strategy to Doing, Not Planning

Cornerstone MovePromote From the Ranks, Never Import Generals

Identity & CulturePermanent Dissatisfaction as Fuel

Primary Evidence

"Ken Iverson’s view of risk was similar to a story Herb Kelleher told about Thomas Watson, the disciple of John H. Patterson."

Source:Intelligent Fanatics Project

"What I remember is a story about Thomas Watson. This is what we have followed at Southwest Airlines. A vice president of IBM came in and said, “Mr. Watson, I’ve got a tremendous idea.” (Of course, this was long ago; the original Mr. Watson.) “And I want to set up this little division to work on it. And I need ten million dollars to get it started.” Well, it turned out to be a total failure. And the guy came back to Mr. Watson and he said that this was the original proposal, it cost ten million, and that it was a failure. “Here is my letter of resignation.” Mr. Watson said, “Hell, no! I just spent ten million on your education. I ain’t gonna let you leave.” That is what we do at Southwest Airlines.8"

Source:Intelligent Fanatics Project

Appears In Volumes

Intelligent Fanatics Project