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The Theory Of The Business
Hidden assumptions-about the business environment, about mission, and about core competencies-could be crippling your business. So argues the godfather of modern management, Peter F. Drucker, in tihs, his thirty-first article for Harvard Business Review. What you need is a coherent theory of your business. This means you must update your asumptions to fit reality. Those assumptions must also fit together to form a coherent strategy that is clear to and actionable by the whole organization. And the process of testing your assumptions is never-ending but absolutely necessary. CEOs neednot be visionaries or miracle workers, but they must have a clear, consistent, relevant, and focused theory of their business.
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