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The People in Charge of Forming Top-Level Teams to Respond

question 119

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The people in charge of forming top-level teams to respond to sudden crises might be well advised to build devil's advocacy into the decision-making process in order to become aware of the perils hidden in the recommended course of action.


Definitions:

Operating Income

Earnings from a company's principal business activity, excluding expenses and revenues from non-operational sources.

Operating Income

A measure of a company's earning power from ongoing operations, equal to revenues minus operating expenses, but before taxes and interest.

Margin Of Safety

Indicates the possible decrease in sales that may occur before an operating loss results.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

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