Well I armed my list of my 19 favorites and business mistakes of history. Leave all important lessons, We really are in no particular order ... The system needs more people communicating mistakes, sometimes we are tempted to sweep under the rug and people return and make a lack of tackling them.
1. People - Decca Records says NO to The Beatles: After doing the casting to two bands in 1962, the "visionary" Dick Rowe of Decca Records signed the group "Brian Poole and the Tremeloes" instead of The Beatles. He says the manager of The Beatles (Brian Epstein): "We do not like their sound, the guitars are out groups" Oops. Well ... Rowe kept his job, and was vindicated after signed to the Rolling Stones.
Lesson: Take a risk ... if the use that knowledge muddies the second time. Or as they say the countries ... not castrate the dog twice.
2. People - Warren Buffet is not accepted at Harvard Business School. The third richest man in the world (Slim, Gates, Buffet) was not accepted at HBS. Instead he ended up going to Columbia. Recently had to call someone to collect it when Buffett made a gift of $ 100 million to his alma mater.
Lesson: is a good idea to interview people, people that looks bad on paper, but are potential leaders and vice-versa.
3. People - Ross Perot leaves IBM. Ross Perot made his share of sales a year at IBM in the first two weeks. When you go and ask your boss if you pay more if you sell more - and your boss says no - pass the letter of resignation. Case EDS (Electronic Data Systems) and sold several billion years later to GM.
Lesson: If there is a human management consultant who reads this, this is the favorite argument to sell a variable compensation system to retain stars.
Lesson: There creative talents in different organizations, but a creative in the status-quo is out of control.
5. People- Long-Term Capital Management: The famous hedge funds full of superstars, including 2 Nobel prize winners. What happens when one manages U.S. $ 4.8 in resources and in debt 25 to 1? Disaster ... that's what happened with Long-Term Capital Management (LTCM) that had developed a method of buying and selling financial instruments based on historical models. The model did not predict the Russian debt default in 1998 and it all went down, including $ 1.9 billion members. The book by Roger Lowenstein - When Genius Failed account this very well.
Lesson: Beware experts instead leverages the wisdom of the crowd (Surowiecki Thanks.)
6. Strategy - -making Chrysler "no omen." Daimler-Benz acquired for $ 38 billion for Chrysler. Jürgen Schrempp artist washes value in almost everything overnight. His most notable move is to ensure that all management of Chrysler is going after promising fair treatment, remove the power and handle everything from Germany. This really was a cultural shock between Germans and Americans.
Lesson: Click "human due diligence" in a transaction.
7. Strategy - Premier cigarettes. Celebrities do not throw cigarette smoke. RJ Reynolds created a cigarette that heats rather than catch and "smokers inhale flavored hot air. Three quarters of people in test groups say they do not need that product. The translation of a consumer test in Japan literally says that the cigarettes taste like shit "Total loss: $ 325 million - is a very good movie called Barbarians at the Gate that shows this case.
Lesson: Before a product you need a market.
8. Strategy - Buy Patagon Santander .... and returns. Very few know this story! Patagon was the company. Com show, a "broker" personal finance for Latinos online. The owners are selling it for Santander by a sum exceeding $ 100 billion over the boom. Below are the dot-com founders and the takeover by Santander about $ 6 million.
Lesson: not deviate from its core, least in the eyes of a "boom."
9. Strategy - Fox lets the license from Star Wars to George Lucas: When George Lucas convince 20th Century Fox to Star Wars, Fox thought it was a good deal: Lucas runs for only U.S. $ 150.000 and give the rights of following films and merchandising, Fox did not have a merchandising department and therefore did not blink. Having signed the contract with that clause is the equivalent of having given a check for $ 1 Lucas billion.
Lesson: Licensing is the business of the future! which has the rights of intellectual property to be exploited.
10. New Coke explodes! This is my favorite. It was a calculated risk. In the 80's, the cola market segmentation and the cola wars (all remember the Pepsi Challenge), the CEO Roberto Goizueta gives approval to amend the secret formula. In April 1985 New Coke comes out with disastrous results. What went wrong? "The taste tests do not measure the strength of the brand," said Ambar Rao - Professor of Marketing at Washington University. "In research was not included the fact that Coca Cola would supplant the original. One does not know the strength of a brand to which people have to imagine a future without it. "The project dies quickly and in just three months reintroduced Coca Cola Classic. Reaffirmed the equity of the brand and turned it into victory.
Lesson: If a big brand the smearing, there is much equity in order to bring it back, but we must do it quickly.
11. Strategy - IBM given a birthday gift to Bill Gates 1981 after 13 years of fighting with the Department of Justice on its monopoly in the market for mainframes, IBM embraces the Microsoft operating system, MS-DOS, but chooses not to acquire exclusive licensing rights. This lack of initiative and vision gives Microsoft the right to distribute its OS to competitors, leading to the emergence of Microsoft and IBM will cost millions.
Lesson: Do not say as NO!
12. Strategy - Apple will not license its system operativoApple proven that you can get people more creative and better product, but if the strategy is bad .... not the leader. In the 80's Apple was the leader of the PC industry. In the 90's was making losses. Apple was protectionist, no degree your operating system and put in a bubble as they say. IT managers will not be measured at Apple's closed circuit (the same applies today with itunes + ipod) and instead went for software available to hundreds of companies ... another gift to Microsoft.
Lesson: Driving closed circuit is difficult unless there is something truly differentiated.
13. Strategy - Xerox and PC: Many of these disasters occur when the anxiety of acting the part of companies is greater than its ability to predict the future. BUT ... Xerox saw the future and ignored him. His people in the design PARC graphical interface, the laser printer and PC. Networked computer invented !!!!! BUT ... had already invested $ 1 billion in a company called SDS and finally did was copying. Were focused on profits and make profits in day to day, to meet each quarter. BUT the creative process and research and development .... that does not operate on a quarterly basis. Finally, killed the investment and innovation did not capitalize. Lesson
. Sometimes you work so hard they do not have time to make money!
14. Technology - If you are hiring outsourcing, clean your computer Porn's new CEO hired an English bank to do all the HP IT outsourcing. He then inspects all HP computers with special software, including the CEO. Found alarming amounts of pornography and the CEO should resign.
Lesson: NO PORN IN THE COMPUTER STORE OF YOUR OFFICE!
15. Processes - China is the largest exporter of toys ..... Lead! After the great Chinese boom, everyone who made outplacement of its manufacturing plants learn a hard lesson. In the third world there is no such thing as a quality control process. The proof? Millions of toys painted with a painting with toxic lead levels. The collection of toys continues and is costing millions.
Lesson: If you think getting into the big leagues, make sure you have quality processes in place to not end up hanging herself (literally --- RIP the manager who committed suicide)
16. Technology - Airbus A380, all for a piece of really softwarePorque delayed Airbus A380?, This post describes , all for a piece of software. A team designed the 3-dimensional wiring and other equipment in 2 dimensions, then exchange Madrazos because the designs do not fit! A lesson for all micro-managers who want to have everything in Excel.
Lesson: Call your partner and ask ... that software will be used? But sometimes the superstars if ..... ehhhh ....
17. Strategy, Structure, Technology, Processes - Ola forget quality risk and the early 2000 the new company is formed Ola - Colombia Movil. Your CEO should be hired without mercy, to buy all types and technology is put into the task of growing regardless of whether they can provide quality service (risk and quality). Sell \u200b\u200bmore mobile phones that support network, of which the focal points serving and that people need. Even (true and have not tested), sold below market prices (It is true because in underdeveloped countries the worst case scenario is generally true). Users canceled for lack of service, plans full of lies and this leads to the company to deep red. Its CEO is fired and the company sold to the highest bidder.
Lesson: is not just to sell, trying to sell profitably and never forget if you are able to provide a service filled with quality after sales. Selling is easy ... sell it is what is difficult.
18. Strategy - Cementos Tequendama builds a cement plant in the middle of a war that has gone Suesca preciosSi, Cundinamarca, Colombia sure the plant has been idle Tequendama Cementos until recently. Mounted a huge investment amid a price war between Cementos Argos, Cemex and Cementos Andino. The plant is started when the load of cement worth about $ 30.000 pesos and ends when the package is worth about $ 6,000 dollars for the price war. Whoever made the financial model was safe with ulcer. Cementos Andino is finally bought by Argos to stop the war (who had been married for Andino) and idle hard floor a few years until prices return to more reasonable levels.
Lesson: in a price war ... ALL lose.
19. Projects - The Rocks do not manage risk, respond to incidentesAnte the construction boom in Cartagena, a spunky entrepreneur plans to build the tallest building in Colombia. Your project manager (obviously) does not make a risk management plan! (Read vs managing risks. responding to incidents). The most obvious risk on a coast (an external risk of a storm) is implemented and create an incident which doubles the tower. The risk had been identified to mitigate it - in this case by installing the "braces" or a diagonal braces. Stop the project, the tower dismantled and think to do.
Lesson: Managing risk is easier and less costly than reacting to incidents.
20. Strategy - ISAL The Colombian government sells energy prices are for one side (up). With the Colombian state and owns 75% of ISA, has raised its sale to address the national budget. The strategic asset of any nation today (energy) would be auctioned to the highest bidder ... y. .. then pay more for energy every day and would not control a scarce and necessary for growth. Building new cities, airports, etc ... is impossible without power. And the money from the sale? well ... I will leave that to the political blogs, but looming new cars, pay increases and new headquarters for the conference. And in a year is certainly not a penny.
20. Strategy - ISAL The Colombian government sells energy prices are for one side (up). With the Colombian state and owns 75% of ISA, has raised its sale to address the national budget. The strategic asset of any nation today (energy) would be auctioned to the highest bidder ... y. .. then pay more for energy every day and would not control a scarce and necessary for growth. Building new cities, airports, etc ... is impossible without power. And the money from the sale? well ... I will leave that to the political blogs, but looming new cars, pay increases and new headquarters for the conference. And in a year is certainly not a penny.
Lesson: Save energy!
The system needs better collective memory so that history does not repeat!
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