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Sunday, September 23, 2007

More thoughts

Lesson 25: If you structure the incentives right, people will pursue their personal motivations to the benefit of the overall firm.
Lesson 26: Loading more costs into your inventory can affect any future writedowns, which affects expenses shown in a given year.
Lesson 27: Depreciation schedule changes are often triggered to improve financial statement appearances, but there may be latent economic justifications for doing so.
Lesson 28: Productivity, flexibility, quality: pick two (in some operational situations).
Lesson 29: A single decision upfront may make it impossible to succeed, no matter how sound your decision-making downstream.

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