Why Guiding Principles?
Fast companies that have
demonstrated the ability to sustain surge and velocity all have established
sets of guiding principles to help them make
Abandoning bureaucratic procedures in favor of
a practical, down-to-earth list of guiding principles will help your company
make the decision-making process much faster. Only one question will need to
be asked of any proposed course of action: Does it fit our guiding
Guiding Principles Defined
Guiding principles are the law that serves as a
basis of reasoning and action, a personal code of conduct that leads, shows
the way and directs the movements of your organization.
A set of guiding principles has value and makes
you faster only if the do the things this definition implies.
pioneered seamless stock trading on Internet in 1996 – much faster than
their large competitors – and went from a tiny firm to the world's largest
financial services company. The company's leaders believed that online
trading was going to become huge. Acting with lightning speed in accordance
with Charles Schwab's Guiding Principles – always own
the core technology; reinvent the business; and constantly improve what you
do, – the company made fast decisions and was able to introduce online
trading service e.schwab to the market within months of conception.1
Initially, Schwab offered two separate
products: the new e.schwab online product where customers paid a flat $29.95
per trade and regular online accounts where customers were charged 20% less
than is a Schwab rep did the deal. Schwab's front-line personnel felt that
customers were confused about the dual pricing structure, and they wanted
both full service and $29.95 trades.
Pottruck and Schwab, the company leaders
decided to end the dual pricing structure and merge e.schwab into the
organization. Though internal documents showed that by moving to flat-rate
pricing the company could take a first-year financial hit of $125 million,
the Pottruck and Schwab were able to make this tough decision quickly as one
of the Schwab's guiding principles stated that they would be willing to risk
short-term revenue growth if it was right for the customer and ensured
Google's 10 Guiding Principles
Focus on the user and all else will follow.
It's best to do one thing really, really well.
Fast is better than slow...
Living the Guiding Principles...
Making Quick Decisions...
Letting The Best Idea Win...
Fast Decision Making
Techniques for Fast
Evaluation of Ideas...
Three Non-financial Investment Criteria...