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Constantly Reacting Is Very Expensive

Constantly reacting companies are poorly managed companies - continuous course changes, changes in speed, and changes in assignments, all of which are inefficient and very, very costly.

Well-managed companies on the other hand, are characterized by effective planning and the ability to execute those plans. Because of their effective planning and executing, they have no need to react and they make plan every month, quarter, and year.

Because well-managed companies have a clear understanding of their strategic direction, they act rather than react. Because their leader has stated the company's vision clearly, specifying the next one, two, three, and four years in quantitative fashion, the company can act rather than react.

Those companies which proactively execute in a planned, controlled, and professional manner stand in stark contrast to those companies that are constantly reacting because of poor planning and even poorer execution.
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