In The Ten Commandments for Business Failures Donald Keough promulgates the principles or "Commandments" which he guarantees will lead to Business Failure. Keough draws heavily on his 60 years in business, including time as the President of the Coca-Cola Company,one of the world's best-known companies.

Keough does not directly give advice on how to succeed in business.However, in dealing with the subject of Failure, he inevitably touches upon the subject of Success. Bill Gates, Chairman of Microsoft, says of this book: "Don's commandments for business failures will teach you more about business success than a whole shelf full of books."

The Ten Commandments for Busness Failures is published by Penguin Books (2008) of Camberwell, Vic. In this review I will mention only 6 of Keough's Ten Commandments. It is not ethical for me to summarise all ten of Keough's Commandments. I recommend the reader to check out the book for the other four Commandments as well as the many case studies cited by the author.

Commandment #1---Stop Taking Risks

You will limit your growth if you stop taking risks, says Keough.

Keough attributes much of Coca-Cola's world-wide success to the establishment of the Coca-Cola Export Corporation in 1930. It was immediately after the stock market crash of 1929, and everyone was very risk averse. Had Chairman Robert Woodruff proposed the establishment of such an entity to his Board the proposal would most certainly have been rejected. To circumvent objection from his Board Woodruff incorporated a firm which was independent of the mother corporation.The Coca-Cola Export Corp. remained substantially independent of the Coca-Cola Company until as recently as 1973.

By undertaking this singular risky act of establishing the Coca-Cola Export Corp. at a chaotic time in American history, Woodruff launched the iconic American beverage into remote corners of the world, paving the way for Coca-Cola's present day domination of the global market.

Commandment #2---Be inflexible

Being inflexible and being overly risk averse are shortcomings which are closely related. However, there is an important shade of difference. Truly inflexible people do not merely avoid risk. They are so set in their ways that they refuse to see any alternative way of doing things.

Take the example of the Ford Motor Company. Henry Ford was the visionary who had a headstart over other car makers. But by the 1920s Ford's Model T was little changed from the model launched in 1908.

You must have heard of the statement allegedly made by Henry Ford that the Customer could have any colour he wanted as long as it was black. While Ford stubbornly resisted change, his competitors were giving American Consumers plenty of choice by the 1920s---faster cars, more appointments and more colourful paintwork.

Finally, in 1928 Ford succumbed to consumers' demand and launched the model A. But it was too little too late---and the company lost its lead forever.

Commandment  #3---Isolate yourself

CEOs and Company Directors who isolate themselves from their staff lose touch with their business.

Keough says: " Unfortunately  for those who wish to remain isolated, the history of most successful businesses runs counter to this disposition. In fact, one of the traits of many of the legendary builders of business was that they had an uncanny ability to know and to relate to their employees at every level...." 

Commandment #4---Assume infallibility

  Keough cites several case studies to illustrate this failing, including an example involving him.

Shortly after the fall of the Berlin Wall Keough, the then Company President, was at a meeting of his German managers. The German managers proposed an investment of half a billion dollars in the newly-opened East German market. Keough wanted nothing to do with such a scheme. He did not even listen to his German managers when they revealed that German bottlers or franchisees were prepared to put up most of the investment, minimising Coca-Cola's exposure to risk. 

Fortunately, the German-born Head of Coca-Cola's International Operations managed to persuade Keough to travel to East Germany for a first hand look. Keough saw for himself the huge potential in East Germany,following which he announced an investment of a billion dollars in Europe, with a big proportion for East Germany. Thanks to that trip around the East German market, Coca-Cola is now the leading brand in its category.

Commandment  #5---Play the Game too close to the foul line

In the recent past America has been rocked by several cases of illegal or unethical practices by companies.

Keough especially abhors the financial juggling that occurs in many American companies. Instead of steering clear of dubious accounting practice, many companies attempt to get away with as much as possible. In so doing many companies fall over the line of what is legal or ethical.

Commandment #6---Put all your faith in outside experts and consultants

Businesses must not be insular that they do not consider advice from external consultants. However, such advice must be assessed  in the light of your own experience and good old  common sense.

Keough was a leading character in the saga of the introduction of the New Coke. Extensive consumer testing convinced Keough and the top management of the Coca-Cola Company to replace Classic Coke with a sweeter formulation. But, as you well know, the New Coke had to be withdrawn from the market.

Coca-Cola's failure was to listen to consultants without taking into account the unique iconic and cultural meanings of the brand.

In this review I mention only 6 of Don Keough's Ten Commandments. I recommend that you read the book for the other 4 principles or " Commandments". The author also cites many examples to illustrate his points. Most of the examples are from the world of Big Business. Nevertheles, owners of Small and Medium Enterprises are able able to take away many useful tips from slim volume.