Successful Companies Sell Successful Products

Before I discuss the gritty realities of business management, I feel compelled to establish a foundation. In our daily routines, we frequently forget that the real cornerstone of business success is product. As simple as it sounds, it's easy to lose focus when we realize that "business school" teaches administration. Real business happens in research labs, design shops, production plants, and in prospective customer offices. Successful, sustainable business depends on engineers, scientists, product designers, salespeople, machinists, and skilled tradesmen.

The core business activities of any modern company live in innovation, design, manufacturing, and sales. Without success in these four activities, you are simply a short-term hobby. Even commodity suppliers need continuous innovation in process and equipment to remain competitive in a global market.

Now, I do not imply that administration is unimportant. Administrative employees provide critical controls over the protection, allocation, and integrity of company assets. Administrative activities, however, exist only to support your core business - product. Business history is full of companies that sacrificed product integrity for administrative growth. The U.S. automotive industry is currently paying for their loss of focus through reduced market share.

As I discuss measurement, keep in mind that Reliability's value must be measured in it's ability to support core business activities, too.