“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
“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.
“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,
“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
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
“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
“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
I think I would not be greatly mistaken if I assumed that far from all managers and business owners are satisfied with the results of the motivation models they use. Try to imagine a sales or service department without an
Every entrepreneur knows: without modern marketing tools, it’s extremely difficult to achieve business success. However, their improper use can become a real black hole, consuming huge resources without any return.
