1 Profit should always be the first charge against sales. This determines the costs that the business can afford.
2 Any business that does not constantly emphasise profit will ultimately make a loss.
3 Any organisation, system, procedure or individual left undisturbed for three years will become inefficient.
4 Managers should treat all overhead costs as variable. If volumes fall, overheads should be cut: if volumes rise, overheads should be held.
5 People tend to elaborate rather than simplify their work.
6 Human resources functions (tend to) cluster on tasks that have a minimal impact on profitability.
7 Any activity managed only on technical criteria will be unprofitable.
8 The optional extras demanded by people can double the costs and timescale for any development.