The Three Rules

What are the attributes that differentiate exceptional from mediocre organizations? Most business books focus on the behavioral aspects of successful organizations (great customer service, innovation, engaged employees, etc.) Michael Raynor amd Mumtz Ahmed have found, however, that it is often what organizations think rather than what they do that makes the difference between success and failure. In their book The Three Rules: How Exceptional Companies Think they identify three decision rules that seem to drive organizational effectiveness. They include:

1. Better Before Cheaper - Rather than focus on being low cost providers, the most successful organizations focus on the quality of their product or service. They compete on quality rather than price.

2. Revenue Before Cost - The best organizations focus their attention on generating revenue rather than cutting costs. Even if it costs more, these companies continually look to increased revenue for growth and sustainability.

3. There are No Other Rules - Regardless of what's happening internally or in the competitive environment they operate in, the best companies don't stray from the first two core beliefs.

As camps where do we find ourselves on the Better-Cheaper and Revenue-Cost continuum's? Would we be better off if we focused on quality and revenue and ignored the other options?