Thursday, May 18, 2006

The 525-Rule

The '525' rule says that 25 per cent of a company's sales revenue should accrue from products launched during the last 5 years.

This rule was invented by Sumantra Ghoshal, a Strategic and International Management Professor at the London Business School. Ghoshal was also the founding Dean of the Indian School of Business in Hyderabad. He held doctoral degrees in management from MIT and Harvard. The Economist described him once as the 'Euroguru'. (He died March 2004.)