It’s not sufficient I succeed – everyone else must fail

By Jennifer Reingold via http://management.fortune.cnn.com   Article

Should companies manage like Microsoft or Yahoo?

“After Marissa Mayer came in as Yahoo’s CEO in July 2012, she instituted a ‘rank and yank’ — or ‘stacked ranking’ — system by which employees are graded on a curve, with those in the bottom category being asked to leave. Last week, Yahoo announced that it was laying off 600 workers based on the rankings. A similarly Darwinian system had been in place at Microsoft for many years. But on Nov. 12, the company announced it would abandon it in favor of more frequent and informal types of reviews. …

In the ‘people’ camp are companies like Google (GOOG), The Container Store (TCS), Zappos, and Intuit (INTU), and thinkers like Jim Collins and Peter Drucker. They believe that a company’s ability to create profitable growth is first and foremost a function of its people. Happy people work harder, are more loyal, and are more innovative, which translates to greater success in the marketplaces and — ultimately — the bottom line. …

The ‘process’ group argues that analytics, ruthless competition, and efficiency is more critical to success than anything else. … Human capital is just one input to the system; it’s the numbers, the intense competition, and the drive to cut costs at, well, any cost that leads to success. Just ask Larry Ellison of Oracle (ORCL), whose favorite quote comes from Genghis Khan: ‘It’s not sufficient I succeed. Everyone else must fail.”

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