Top executive of every company wants to run it successfully, on a long term basis. But for this purpose, there is no simple,
easy & fast method available so far. In twelve Chapters contained in three parts, the authors have discussed this important subject, & provided five P's (or keys), viz. Purpose, Performance, Perfection, Priorities, & People. They have carried out research into fifteen companies, which have been giving out
dividends for a century. Interviews conducted with executives of these companies, revealed with honesty & openness, details about their failures & successes, & identified their important characteristics & styles of management etc. These fifteen companies acted more by common sense & patience, created a suitable climate, identified & made the required changes in their styles of management & practices, keeping the basic objective of making profits on a long-term basis in view. This means that it is possible for the companies to survive, & grow over a period of time.
The last Chapter of the book summarizes the points of these companies into six steps, for the guidance of others for growing & surviving in
business on a long-term basis. These are viz. employee feedback i.e. free & frank communication right up to the top, whether for good or bad news, & creating a climate where it is not only heard but also welcomed (without taking any adverse reaction thereto), but sincerely taking the required actions in the interest of the organization. In this way, the collective wisdom of all the employees is taken note of. It also requires restructuring of the organizations, for communication from down below to reach the top executives, who should be visible to the people concerned. The step two is stating the values of the organization in writing, & conveying to all the employees by repetition periodically, creating a suitable climate, honestly respecting the contribution of each employee, keeping the costs low & quality high, following the rules & visualizing on long term basis only. Step three is interacting with, & getting feedback from the customers. These fifteen companies observed the use of their products at their customer's end, & obtained their ideas, & future needs also. They interacted with other customers also, as to why they did not take their products, for the purpose of considering the required modifications. The next step is that we should keep our debt low so that, as & when there is a downward swing in the economy, the company could survive, due to this cushion available. As the step five, we definitely need diversification in products, markets & processes. With strategic thinking these fifteen companies could act quickly. Past history of others & also our own, can be a very useful diagnostic tool. In the step six, we should ask ourselves every day, as to why & what business are we in, & what will we do & what we will not do. Continuous evaluations will help us, in achieving our objectives.
Taken in an overall way, for long-term success our values should be based on honesty, fairness for everybody i.e. employees, customers, suppliers etc. We must strive to make profits, so that investors get dividends regularly. The book offers no magic, miracle or quick shot solutions, but it offers simple principles for long-term successes by going step by step, & not in a hurry. In the opinion of the abstract writer, it is an important contribution in the field of management of businesses, for our study, understanding, analysis & implementation by the other companies, for their eventual benefits on a long-term basis.