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The theory of the business must be known and understood throughout the organization. That is easy in an organization’s early days. But as it becomes successful, an organization tends increasingly to take its theory for granted…

Without systematic and purposeful abandonment, an organization will be overtaken by events. It will squander its best resources on things it should enver have been doing or should no longer do.

…although being customer driven is vital, it is not enough. An organization must be market driven too.

Rapid growth is another sure sign of crisis in an organization’s theory. Any organization that doubles or triples in size within a fairly short period of time has necessarily outgrown its theory.

To continue in health, let alone grow, the organization has to again ask itself the questions about its Environments, mission, and core competencies.

There are two more clear signals that an organization’s theory of the business is no longer valid. One is unexpected success… The other is unexpected failure… whether one’s own or a competitor’s.

…unless an organization can be built on [social reform], it is not a valid entrepreneurial idea. The test of the idea is… economic performance and economic results.

…there are few things quite as dangerous as an organization in which promotions are so rapid as to become the accepted reward for doing a decent job.

…organization structure has to be impersonal and task focused. Otherwise it is impossible to have continuity and to have people succeed each other.

…many managers, no matter what the organization chart says, have more than one boss.