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then stabilizes at 88% and 81% in the final two stages Corporate profits, however, follow the Endgames curve, albeit with a slight time lag (see Figure 2-3) In the Opening Stage, profitability is high as new industries grow quickly For example, companies in the biotech and nanotechnology industries are currently enjoying an open field of players and solid profits But the news isn t all good The exception to high profitability in Stage 1 is with companies in older state-run industries that have been recently privatized, such as railroads Often, these companies use monopolistic prices to fund fat organizational structures that suffer from built-in redundancy As companies move through the Scale Stage, profitability decreases dramatically In fact, it drops to its lowest point of the curve, because consolidation reaches maximum speed The reason Many companies respond to the increased competition with severe cost-cutting measures, but there is an embedded danger in this approach: It often drives companies into a profitability trap that does not allow for future growth Eventually key employees begin leaving and the organization adopts a conservative, risk-averse, profit-first culture In the last two stages Focus, and Balance and Alliance an oligopolistic competitive model emerges and allows the surviving players to set prices for healthy profits Companies reach their highest margin of profitability in the Balance and Alliance Stage, simply because these market titans have eliminated many of their competitors Yet they must keep in mind that resting on their laurels, no matter how expertly won, can lead to corporate inertia that will attract new, more costefficient and innovative competitors The bottom line CEOs must move their companies as quickly as possible through Stage 2, both to improve profit margins and to gain a favorable final Endgames position 4 Long-term success depends on riding up the Endgames curve As the previous point touched on, speed is everything: Companies that move up the Endgames curve the fastest are the most successful They capture critical ground early on and are destined to be first in the consolidation race Slower companies eventually become acquisition targets and disappear from the curve In other words, there is.

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This restriction does not apply to domain accounts. It also does not apply to the local Guest account. If the Guest account is enabled and has a blank password, it will be permitted to log on and access any resource authorized for access by the Guest account. For more information about managing network logons using the Guest account, see 17, Managing Authorization and Access Control.

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If you want to disable the restriction against logging on to the network without a password, you can do so through Local Security Policy. The policy setting that controls blank password restriction can be modified using the Local Security Policy or Group Policy MMC snap-ins. You can use either tool to find this policy option at Security Settings\Local Policies\Security Options. The name of the policy is Accounts: Limit local account use of blank passwords to console logon only. It is enabled by default. Caution Disabling this policy setting might degrade the security of your Windows XP Professional computer. Before disabling this policy setting, ensure that all local accounts have strong passwords, or that the computer is in a secure and trusted environment where it will not be subject to attack.

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You can use User Accounts in Control Panel or the Local Users and Groups MMC snap-in to add and remove local user accounts, add and remove users from groups, and work with passwords. When the Windows XP Professional based computer is connected to a Windows NT, Windows 2000, or Windows Server 2003 domain, you can use Local Users and Groups to assign domain user accounts to local groups. When the Windows XP Professional based computer is not connected to a domain, you can use User Accounts to add and remove local user accounts and assign users to local groups. To change the password for a user 1. In Control Panel, open User Accounts. In the User Accounts dialog box, click the user s name, and then click Reset Password. 2. Enter the new password twice in the Reset Password dialog box. 3. If desired, type in a word or phrase in the box provided for password hints. To perform advanced password-related tasks 1. In the Local Users and Groups MMC snap-in, double-click the Users folder. 2. Select and right-click the name of the user who has a local account that you want to manage, and then select Properties.

no niche position that serves as a consolation prize Companies simply will not survive the Endgames curve by trying to stay out of it or, worse, by ignoring it Niche players are aggressively There is no niche position challenged in the Balance and Alliance Stage that serves as a consolaand are invariably too weak to seriously defend tion prize Companies simply will not survive the their positions (see sidebar, Finding Their Endgames curve by trying Endgames Pace: Commerzbank and MedQuist ) to stay out of it, or worse, Being the first to embark on key strategies is by ignoring it also critical For example, companies in deconsolidating industries must time when (or if) they should divest business units to reap the most

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3. On the user s Properties page, select one or more of the following options:

User must change password at next logon. User cannot change password. Password never expires. Account is disabled. Account is locked out.

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You can use Group Policy to perform more advanced password management tasks, such as setting a minimum password length or the interval between password changes. When you review your password security policies, establish your Account Lockout Policy at the same time. This policy locks a user account after a certain number of incorrect passwords are tried in succession. For more information about password-related policy options, see Account Policies later in this chapter. Note

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