"Where do profits come from?
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the real answer is that profits come from risk.
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When a business engages in innovation, it is taking a risk.
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In other words, risk is an economic positive. There are five possible responses when confronted with risk: avoid it, reduce it, transfer it, accept it or increase it.
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A business cannot eliminate risk, because that would eliminate profits. The goal is to take calculated risks and choose them prudently. The dilemma in many companies is that they are allocating a disproportionate share of their resources in perpetuating yesterday and today rather than creating tomorrow.
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There is no theory -- in economics or finance -- that measures the cost of not taking a risk. Yet, it is precisely these losses that cost the most.
For a company to be truly innovative, it must not only do new things, it must stop doing old things. It is not possible to create tomorrow unless one first disposes of yesterday.
Maintaining yesterday is always expensive. The human body has an automatic mechanism to discharge waste, but it appears the corporate body does not -- that requires leadership and vision."
Trecho retirado de "Where do profits come from?"
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