An established company's primary performance measures may revolve around operational excellence: squeezing out ever‐greater volume, quality, and service at declining cost, say. New staircases [new product/ business line development efforts], by contrast, must create revenue where none yet exists. Profitability may be years away. Holding the leaders of a new staircase accountable for goals they cannot achieve is a sure way to kill the business, and misses the point: if a new staircase is growing well, it should be a net cash consumer. Its goal is not making a profit but meeting project milestones, and ultimately generating high revenue growth. By exempting such a staircase from standard performance measures and giving it a different target, managers can foster growth.
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1 March 1999
Review Article|
March 01 1999
CLIPPINGS Available to Purchase
Publisher: Emerald Publishing
Online ISSN: 2052-1197
Print ISSN: 0275-6668
© MCB UP Limited
1999
Journal of Business Strategy (1999) 20 (3): 5–7.
Citation
(1999), "CLIPPINGS". Journal of Business Strategy, Vol. 20 No. 3 pp. 5–7, doi: https://doi.org/10.1108/eb039998
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