“Red” Scott’s Business Cardinals

Charles “Red” Scott’s business career spans more than 50 years, with some 20 of those serving as either a President or CEO of a public company.

Red Scott served as CEO of publicly traded companies for more than 20 years, was named recipient of the coveted Horatio Alger Award for Distinguished Americans, honored as California’s CEO of the 1980’s Decade, has been a member of Vistage #7 in California since 1975, and owns the license for Vistage Florida –  definitely an iconic figure in the history of our 55-year-old international organization.  “Red” Scott’s Business Cardinals” which reflect his philosophy and experience in achieving success in an increasingly competitive world.  Most were memorialized as a result of mistakes, errors of judgment and/or unfortunate experiences.  Reviewing this list on a regular basis is a good habit to establish.

1. Don’t run out of cash – no matter what.
2. No surprises – give me fair warning.
3. Create basic values – not paper earnings.
4. Keep your eggs in at least 5 baskets.
5. The boss should be the head salesman.
6. Never get organized by a trade union.
7. Always tell the bad news first – never last.
8. Never compromise quality for price.
9. Concentrate on the customer – not the brick and mortar.
10. Don’t confuse brightness with judgment.
11. Plan strategy and set objectives before fixing structure.
12. Study the environment – things you can’t control.
13. Before making a “function” manager a CEO — first put him/her over a profit center.
14. Understand what really makes a company“tick.”
15. Be careful of “quick-fix” or “part-time” managers.
16. “About right” now is better than “exactly wrong” later.
17. Creativity is great – but not in accounting.
18. Only one big risk and/or “life change” at a time.
19. Always play “what if.”
20. A professional manager is someone who gets the job done.
21. Hire smart rather than manage tough.
22. Don’t put a new person (to me) into a new job (to him/her).
23. Do the “right thing” rather than “things right.”
24. Do 1st things 1st and 2nd things never.
25. Bet on a person – not a product, plant or idea.
26. Beware of making the successful “task” achiever a manager.
27. Invest in businesses with a low cost of exit.
28. Invest your time with winners… not losers.
29. Be careful – a little success can create a whole lot of overhead.
30. To understand a company, spend time with its customers.
31. The boss is responsible for the momentum.
32. “I WILL” beats IQ – every time!
33. Hire for attitude – train for skills.
34. Bet on a brown rat – not a white rat.
35. 87% of Executive failures are due to personality.
36. Light travels faster than sound. That is why some people appear bright until you hear them speak.