Sublime

(margin, productivity, or leverage).

Managing, by the former head of ITT, Harold Geneen.

As organizations succeed and grow, they become more formalized, more bureaucratic, more careful, more remote from customers, and slower to act. Diseconomies of scale begin to work, overshadowing the cost advantages of size. Overhead grows, decision-making slows. Direct feedback from customers is reduced, filtered, and often ignored. The demon of af

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There’s nothing wrong with investing in the entrepreneurs of the world, as long as you know what you’re getting into. A profitability matrix can help you separate your long shots from your core holdings.

In executing its strategy responsibility, the firm’s management should review policies (“rules of the game”) such as the following: Performance appraisals (For what do we hold people accountable?) Profitability and other measurement systems (How do we keep score?) Systems for salary, bonus, and profit allocations (What incentives drive the behavior

every aspect of a practice group’s affairs, from practice development to hiring, from economic structure to governance, will be affected by its relative positioning on this spectrum.

Simple calculations such as these show that, with eight seniors, the firm would need sixteen managers and forty juniors. The proportions remain constant: one senior to every two managers, to every five juniors. Unless there is a change in either the project team structure (i.e., the types of projects the firm undertakes), or the target utilization