What We Are About

The First Law of Management is supreme. Yield [on Cost] is a function of the ratio of Value Delivered to Cost Incurred. Value Delivered requires a transaction. A transaction has two sides - sender and accepter. Value is assigned by the accepter, not the sender. Total Value Delivered is defined by the sum of all transactions which have accepters. Cost Incurred is determined by the total cost to the sender of only those transactions that were accepted.

The First Law of Management applies to ALL management situations be they private or public, large or small, product or service, local or global, capitalistic or socialistic, family, corporation, religion, or government.

It makes no difference whether cost goes up, goes down or stays the same. The First Law of Management is inviolate. Managers or management groups that ignore the First Law of Management invariably pay the ultimate price: organizational failure! But, the price is not paid all at once. It is paid slowly and painfully.

No management team willfully ignores the First Law of Management. Most often their best intentions are confounded by the Fog of Management. The Fog emanates from sloppy thinking, particularly about Value Delivered, and manifests itself in a management doctrine of conflicting and confounding policies and practices. Rather than embracing the First Law, these doctrines become anti-processes, that is, processes that are repeated over and over but consistently fail in their intended purpose – to maximize the Yield on Cost.

Those who undertake to clear the Fog of Management must look to the real source: the chaos of analytic activities that populate and perpetuate the anti-process. Streamline and focus these analytics on maximizing the Yield on Cost, and the Fog will clear.

Our mission is to improve the capability of managers to clear the Fog of Management and maximize the Yield on Cost.