Different temptations, same rules

Different temptations, same rules

Do the Three Rules of exceptional performance apply to smaller companies? Differences in size and ownership structure, as well as resources and the demands of explosive growth, can make for a very different set of pressures and opportunities.

  Our nearly decade-long research project into the determinants of superior, long-term profitability has led us to conclude that when it comes to at least three critical choices, exceptional performance is indeed a function of a company’s ability to follow these rules:

  Rule No. 1: Better before cheaper. When deciding how to create value for customers, compete on value, not on price.

  Rule No. 2: Revenue before cost. When deciding how to drive profitability, focus on higher revenue, not lower cost.


  Rule No. 3: There are no other rules. When adapting to a changing competitive environment, be willing to change anything except your adherence to the first two rules.

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