[ Sergey Filianin's blog and reflections ]
The Architecture of Survival: 5 Fundamental Laws of Existence for Any Business
“There is only one true definition of the purpose of business—to create a customer.” Peter Drucker 1. Why the “Laws of Existence” are the First Line In the LAM methodology, everything that happens in an organization is distributed across four
The Law of Subjectivity: Why Losing Control Turns Business into an Object of Other People’s Interests
“If you don’t manage your business,someone else will.”Henry Ford 1. Formulation and Essence of the Law The Law of Subjectivity (Law No. 5): A business must maintain subjectivity over the market, and a manager must maintain subjectivity over their business.
The Law of Profit: Why Paper Profits Don’t Save You from Bankruptcy
“Profit is the ultimate measure of the entire system’s effectiveness.”Eliyahu Goldratt 1. Formulation and Essence of the Law The Law of Profit (Law No. 4): Profit is the energetic form of business sustainability. It is not simply a company’s goal,
The Law of Self-Interest: Why Appeals to “Company Patriotism” Always Lose to Alternatives
“People are driven by self-interest—it’s the only motive force you can trust.”Adam Smith 1. Formulation and Essence of the Law The Law of Self-Interest (Law No. 3): Each participant in a business system remains in it only as long as
The Law of Exchange: Why Imbalance Destroys Partnerships, Teams, and Sales
We live in a world of exchange. Everything has a price! Ralph Emerson 1. Formulation and essence of the law The Law of Exchange (Law No. 2): Value is realized only through exchange: a sale, a deal, an agreement. Without
The Law of Value: Why Businesses Die by Creating a “Good Product”
“Price is what you pay.Value is what you get.” Warren Buffett 1. Formulation and essence of the law The Law of Value (Law No. 1): A business exists only where it creates value that exceeds its costs. If value doesn’t
Introduction to the fundamental laws of business
“Everything flows, everything changes.But there are laws according to which this happens”(Heraclitus) Imagine a typical situation. A company has been operating for several years under a well-established system: clear KPIs, regulations, monthly planning, proven management tools. Everything looks stable. And
