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L

Liability What the company owes.

Life-long learning In a rapidly changing world, life-long learning is no
longer an option – it is a prerequisite for survival. Learning that is not
used, however, is rapidly lost, so forward looking companies develop a
learning strategy that delivers “Life-long learning – Just-in-time”. It is
essential for managers when, for example given the opportunity to attend
or send an employee on say, a training programme to ask how soon can we
usefully apply what is learned. Research by Xerox suggests that 87 per cent
of what is not applied within twelve weeks of learning is lost.

Liquidity The ability of the company to meet its immediate debts.

Long-term loan Any loan that does not have to be repaid in the next
twelve months.

Loss leader Goods sold at a loss or at a reduced profit to attract cus-
tomers. Retailers should be careful not to annoy existing customers by
offering bargains only to new prospects and deny loyal customers who
rightly feel that they deserve recognition for keeping the firm in business
for years. Never underestimate the value of loyal customers. Find ways of
turning loyal customers into proactive advocates of the business.

M

Market leader What every firm should aspire to be whether globally,
locally, in a carefully chosen segment or a niche. Market leaders must
remember, however, that they are there to be “shot at” and they should be
consistently looking to improve their customer service at a lower cost to
make it difficult for others to compete. The value of the “customer for life”
is that they provide employees with the knowledge, motivation and oppor-
tunity to do more for the customer at lower cost.

Market research Analysis of buying intentions. This is often of less
practical use, though far more expensive than, market testing. (Putting an
offer to the customer, quickly and cheaply, and seeing if he “bites your
hand off”.)

Marketing strategy “The biggest single waste of corporate time and
money”, according to one writer, but the most important business activity,
far too important to leave to marketers alone, if you are to believe me. But
be careful not to become so strategically minded that you forget the tacti-
cal actions that will not only bring success today, but will also provide a
sound platform for tomorrow’s strategy. With my clients I always suggest
that we fill the order books with worthwhile business then turn our atten-
tion to a distant strategic horizon rather than leaving today to chance
while we dream about tomorrow.

Glossary (and soapbox) 239