Value billing – Peter Drucker

Don’t leave value to an unknown in your firm.

Thus starts the headline by Ron Baker, quoting Peter Drucker:  "The final question needed in order to come to grips with business purpose and business mission is" ‘What is value to the customer?’ It may be the most important question. Yet it is the one least often asked. One reason is that managers are quite sure that they know the answer. Value is what they, in their business, define as quality. But this is almost always the wrong definition. The customer never buys a product. By definition the customer buys the satisfaction of a want. He buys value.

Peter Drucker, Management: Tasks, Responsibilities, Practices, 1993


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