Principles are guidelines meant to be followed but can be ditched to improvise on the proceedings. Rules on the other hand are permanently binding. Management by principle rather than rule was an innovation then ground-breaking made by Lou Gerstner at IBM which has stuck till date. Nordstrom is an example of an organization that has executed this approach to perfection. While rules are directive, principles are merely directional. Every organization must abide by a few principles of its own. In order to get started, first of all, one needs to start by believing in one’s own organization being the best at its tasks. The company must be able to abide by those principles even when the going gets tough. For this, the principles will need to be embedded with the formal corporate strategy itself from the very top. Subsequently these principles, must be made public so that all concerned stakeholders are aware of the principles the firm stands by.

Source:https://www.strategy-business.com/blog/Burn-Your-Rule-Book-and-Unlock-the-Power-of-Principles?gko=3c77f

Uploaded Date:06 October 2017