Introduction

When IBM ran into financial trouble the early 1990s, the company brought in a new president, Lou Gerstner. He immediately called in his friends from McKinsey & Company, one of the largest and most respected management consultancies in the world. He asked them to use their investigative skills to determine why IBM sales, market share, and profits were falling. They immediately went to work.

In less than six months, the consultants were back. They assembled the senior executives and told them, “We have found your problem.”

They asked, “What is it?”

The McKinsey consultants replied, “Low sales.”

The executives agreed that this was the problem and then asked, “What is the solution?”

The McKinsey consultants said simply, “High sales.” ...

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