This document discusses running an agile Fortune 500 company. It argues that the traditional view that revenue must exceed costs is incorrect, and that a more comprehensive view of costs is needed. It presents an alternative "Universal Cost Equation" where costs are much greater than benefits, which are greater than revenue and profits. The key is to maximize benefits by reducing all costs, including non-financial costs like employee disengagement and environmental damage. This reframes the purpose of organizations as optimizing universal costs and benefits through their vision and strategy.

1. *
“Running an Agile Fortune 500 Company”
Aditya Yadav, aditya.yadav@gmail.com
in.linkedin.com/in/adityayadav76

2. * A Typical Global Company
* Fortune 500/1000
* 200 Divisions
* 40 Countries
* 25000 Employees
*

3. *
@ Acme Inc.

4. * Original Question “How do we create a
comprehensive framework for all
Stakeholders?”
* The Correct Question - “All Stakeholders incur
a cost, maybe we should relook at our
definition of cost? And maybe try to create a
unified framework.”
*

5. *
And The Philosophy Behind The Answer

6. * Revenue > Costs (i.e. Revenue = Cost + Profit)
* Management has always focused on Controlling and
Minimizing Costs
* You wish this equation were true.
* No really! I‟m not joking.
* How would you explain concepts like CSR, Green,
Sustainability, Employee (Dis)Engagement,
Customer (Dis)Satisfaction …?
* That equation is Not True!!! And that‟s what this
presentation is all about.
*

7. * [1] Costs >> Benefits > Revenue > Profits
* Though Human Endeavour is to make it into
* [2] Costs > Benefits >> Revenue > Profits
* But the „Form‟ of the equation in both cases holds true and is called “The Universal
Cost Equation” even though at this time I don‟t have the Research to exemplify the
equation in cases of things like Uranium, Gold, Diamonds etc.
* What [1] says is that Costs is hugely greater than benefit which is greater then revenue
which is greater than profits
* What [2] says is Costs should ideally be closer to Benefits which should ideally be way
greater in comparison to Revenue and Profits
* In both cases note The Cost is „Way Greater‟ than Revenue
* It is “Human Endeavor” to move the Benefits on the scale between Revenues and Costs
towards the Costs side so as to maximize it as much as possible.
* Which also means as Benefits increases it gives room on the right hand side for
Revenues and Profits to Expand/Increase.
*

8. * Extraction Industries are known to be near
impossible to make completely Green
* What do Knowledge Companies extract from?...
* Primarily - Human Capital
* And we are seeing how increasingly they are causing
extensive damage to Humans…
* That‟s as much of a fact as is the existence and
need for Business Endeavors in Society
* Our Definition of Financial Cost is a very narrow
definition of Cost which we capture in our balance
sheets and compensate for
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9. * There are two approaches here
* First, figure out ways to Identify & Reduce „Universal‟ Cost
* Second, figure out ways to Maximize Benefit in Everything You Do
* Which brings us back to Innovation which is the only reason why
companies exist
* And which brings us to the Need for Leaders to drive Innovation and
Change
* BTW Damage, Adversity, Healthcare needs, Obesity, Physical Injuries,
Mental Disorders, Poor Experience, Frustration… are costs too
* And it also tells us the real purpose of Organizations is to Optimize
Universal Costs & Benefits, which starts with the Purpose, Values,
Belief‟s, Vision and Philosophy of the Organization.
* That‟s where Strategy starts…
*

10. Aditya!!!
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