Aloysius Chan's Blog

To influence human behaviour: manipulate it or inspire it. Novelty can't stay forever, someone will eventually overtake it. Toyota overtook GM by 100% since 1990. Celebrity endorsement are blindly followed. The golden circle What: everyone knows what you are doing. The result. How: how they do what they do. The senior executive who got inspired. Why: why they do what they do. The vision from the leader. Brain Neocortex: rational and analytical, WHAT. Limbic: trust and loyalty: HOW & WHY. If people don't buy what you do, they buy why you do it. Proposing your company with why: "why I love about our company is becase ... all our staff look forward to working because it is an inspiration to ... it is amazing how serve customer because ..." Celery test: buying M&M and celery at supermarket, but why? (For health) School bus test: if the founder or CEO get hit by a bus. will the organisation still be able to run? Follow your why, and others will follow you.

Successful CEOs spend time on: management of operations, capital allocation, and investor relations. 2 basic types of resources that any CEO needs to allocate: financial and human.] To achieve robust operating cash flow using debt, equity, and asset sales. Financial leverage had two important attributes: it magnified financial returns, and it helped shelter the cash flow from taxes through the deductibility of interest payments. 1st to generate cashflow, next to generate margin in each segment. To be successful you have to think like an investor, dispassionately and probabilistically, with a certain coolness.