The two-minute MBA

Need an MBA, but only have two minutes? Do you need to know how an MBA thinks? Here are some of the big concepts that shape the MBA mind:

1. Time is money. MBAs call it the time value of money. A dollar today is worth more than a dollar tomorrow because if you get it today, you have an extra day to invest it. Remember that when you slip a deadline you cost your company money.

2. What gets measured gets done. If you measure the wrong thing, you get the wrong results. When measuring people or processes, be sure to fully think through how someone might game your system. Want someone to cut costs? How about at the expense of profits, or by moving their costs to another department. Believe me, it happens all the time.

3. Execution is king. What every MBA knows is that there are a lot of good ideas out there. Sometimes it seems like everyone you meet has a good idea to make some money. What we also know is that few actually make money on their ideas. The difference between ideas and success is execution. It is the hard part of business, and the part that takes real work. Nobody wants to hear your ideas, they just want to know you can execute.

4. Decisions matter. Businesses succeed, businesses fail. To be sure part of the difference is the whims of markets and consumers, but most of the what creates success is the cumulative affect of decisions, and the best decision makers can overcome any market whim. When you make a decision at work, you are committing your company to a path. That path has large ramifications down the line. Have respect for the power of a well thought out decision.

5. Fit. In business fit is in. Your business needs to be consistent to be successful. This means internally consistent (the pieces fit together), and externally consistent (it fits with the industry / environment). This translates into smaller parts of the company also. The more things fit, the better the company will be. Think about your own business unit. Do all of the parts fit? If not, examine why.

More big ideas for MBAs? Let me know...