Focus on Costs to Generate Profits

Carnegie's management philosophy prioritizes understanding and controlling costs over pursuing immediate profits. He perceives manufacturing as a complex system requiring continuous retooling, echoing principles from evolutionary theory regarding adaptation and survival through improvement. Carnegie advocates for reinvesting in technology to reduce costs, suggesting that by cutting prices and capturing market share, profits will naturally follow. This approach contrasts sharply with the typical industry focus on revenue and profits, emphasizing a strategy centered on cost management to drive sustainable success.