New Products, continued
Management Makes Success Happen
"Management is what used to be required to run a company. Today it's leadership. A manager basically controls, establishes plans, makes a budget, allocates work and tracks results. A leader is much more focused on vision and beliefs. He or she inspires people and breaks roadblocks so that people can accomplish more."
-- Robert Eaton, ex co-chairman,
DaimlerChrysler.
You've probably heard about super-executives who rescue companies from the brink of bankruptcy or take them to astonishing heights. Visionaries such as these can be responsible for a powerful stock move. Apple Computer was faltering in 1997, when co-founder Steve Jobs returned to lead the company back into profitability. Under his leadership, Apple shares more than quadrupled over the next couple of years.
What makes management outstanding? There's more to successful management than inventing the next personal computer or coming up with the next big trend in fast food. Executives must also be adept at guiding companies through difficult times, adjusting to changing market conditions, taking advantage of new opportunities. Good managers are visionaries, able to redefine business models. Often, other companies emulate their successful strategies. These leaders demonstrate the ability to deliver on promises, meet growth projections and deadlines, building a reputation for credibility and integrity. Communication skills in today's corporate America are vital if managers are to reach workers at each layer of their organizations.
To better understand the traits of successful management, take a look at IBD's 10 Secrets To Success. These principles form the basis for the Leaders & Success page, which showcases individuals who have achieved outstanding success and overcome obstacles in business and other fields.
Top corporate executives frequently offer management advice in Leaders & Success:
- Michael Dell, CEO of Dell Computer, on customer service: "It's important to deal directly with the customer. In an industry that changes as fast as ours, where product innovation is a constant, if you don't know how your customer feels you're in trouble."
- Bill Gates, Chairman of Microsoft, on time management: "I generally have a pretty good idea of what lies ahead each day, so I can start thinking about what I'll need to do as soon as I wake."
But while companies with popular products often make good investments, you shouldn't pick a stock based on products or CEOs alone. Keep in mind that the best companies have solid earnings, sales, sponsorship and other factors that make them attractive stock buys. A company's fundamentals should be foremost. After all, the fundamentals reflect the management team's effectiveness and the demand for its products or services.
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