Tag - management

October 2012

September 2012

July 2012

The Managerial ~ Leadership Grid ~ What type of manager/leader are you?

Peter Drucker Quotes, Pictures, Inspirational, Leadership, Management, MBA QuotesThe style of management in changing situations is influenced by various factors like organization’s culture, value system, personal history of the manager or chance or opportunity.

The style of the manager, nevertheless, impacts the performance of various stakeholders associated with the organization including the manager himself. 

What management style do you belong to?  Are you driven by results, Are you autocratic or a people man, driven by relationships.. 

The leadership ~ management grid (Source Blake RR & McCanse, A. A, 1991 ~ Leadership Dilemmas ~ Grid Solutions) classifies the leadership styles into 5 distinct types.

(1) Impoverished Management ~ Very little concern for productivity or people
(2) Country Club Management ~ Very great concern for people but very little for productivity
(3) Authority – Compliance Management ~ Great concern for productivity & very less concern for people
(4) Middle of the Road Management ~ Compromising ~ Medium concern for both productivity and people
(5)  Team Management ~ High concern for both people and productivity ~ Considered to be the Ideal Style

Management, Leadership Grid, MBA, Successful manager, Team Management, Leadership Styles,

What category do you fit in? It’s Worth a look……

 

What is Investment Banking~And why is it HOT…..

Investment Banking,Mergers and Acquisition, Raise Capital, Issues, IPO, Venture Capital , Private Equity,

The other day, a doctor was asking me about investment banking and why is it so hot. He was rather perplexed about the sky-high digit salary figures doled out to MBA’s by top notch financial MNC’s. And so..I thought of penning down my thoughts and discussion with him for the benefit of those who would like to know the reasons for the lucrative remuneration of the blue-eyed I-Bankers..

Investment Banking are involved primarily in 2 main businesses : a) Mergers and Acquisitions and b) Merchant Banking

The MnA team advises companies on various aspects when the companies decide to expand and buy another company. The various aspects involved are strategic analysis of the deal, Screening, Due Diligence, Valuation, Structuring of the deal, Negotiation, various approvals, regulatory compliance etc. In essence the MnA team facilitates the process by bringing in expertise. The I-Bank earns a fee which is typically a percentage of the deal. So for eg: In the I-Gate – Patni deal which was about $1Billion, a percentage of the deal amount goes to the I-Bank…

Now here is the sweet part. Typically the team size is small and the bonuses earned are spread in this small team which makes the profile of an I-Banker extremely lucrative and ‘Hot’ ~ Since the team size is small, the hiring is small and hence getting into this profile is low.

The other area is Merchant Banking, which involves raising capital for the businesses. The Banker’s job is to figure out the best way to raise money, keeping into consideration market conditions, duration of requirement, urgency etc. For Eg: IPO or Initial Public Offering is a type of Issue Management which an I Banker would get involved

I Bankers are one of the most sought after professionals and their rewards multiply once they develop a reputation in the circle for their expertise ~ which makes them a HOT property.

 

Peter Drucker Leadership & Management Quotes~ Pictures

Peter Drucker ,Leadership , Management Quotes, Pictures, MBA Quotes, Success Quotes, Financial Management

Peter Drucker ~ Success Advices
– The purpose of business is to create a customer.
– Efficiency is doing things right; effectiveness is going the right things.
– A manager is responsible for the application and performance of knowledge.
– Knowledge has tobe improved, challenged, and increased constantly, or it vanishes.
– The most important thing in communication is hearing what isn’t said.
– Follow effective action with quiet reflection. From the quiet reflection will come even more effective action.

~ Leadership Quotes~

June 2012

How advertising sells us a tradition

Diamonds, Advertising, Marketing, Branding, Management, Leadership, Pictures, Quotes, Positioning, Articles,Nicky Oppenheimer, De Beers chairman, Prior to 20th century, engagement rings were strictly luxury items, rarely contained diamonds. The industry nosedived in 1870s after massive diamond deposits discovery in South Africa. 
 
But in 1939, the De Beers diamond company changed all of that by hiring N.W. Ayer & Son. It Introduced diamond engagement ring and quietly spread the trend through fashion magazines. 
 
In 1948, “A Diamond is Forever” campaign was launched. By sentimentalizing the gems, De Beers ensured that people wouldn’t resell them. 
 
The company vigorously promoted the concept of surprise proposals “Will You Marry Me” as a tradition  thus shifting the purchasing power to men… Voila!!!!
 
This is what Nicky Oppenheimer, De Beers chairman, had to say about Diamonds
“Diamonds are intrinsically worthless, except for the deep psychological need they fill.”
Nicky Oppenheimer, De Beers chairman, 1999
It’s all in the mind…. Nah!!!!! Karma….Advertising…. Branding & Creating Traditions… Amazing.

Brand Position & Brand Image

branding, Brand Position,Brand Positioning,Brand IMage, Marketing, Success, Pictures, Quotes, Management, .
.
What’s a BRAND
A singular idea or a concept that you own inside the mind of the prospect ~ Al Ries ~ Marketing Strategist
 
“Your brand is what people say about you when you are not there”
~ Jeff Bezos – Amazon
 
Remarkable experiences leave a mark, whether the experience is remarkably good or remarkably bad. These memories are mind share, essentially brand equity, the capital of brands
 
A cardinal rule in marketing :
“NEVER position a BRAND based on performance….” 
 
 So what exactly is Brand Positioning, Brand Image and Brand Position and the relationship between them…
 Let us see…..
 
Brand Positioning: Brand Positioning is the SPACE that the company occupies in the consumer’s MIND.
 
Brand Position: Company spends money to own this SPACE…
 
Brand Image: This is what the customers say about the company
 
Successful Brands are the one’s where there is a  match the Brand IMAGE & Brand POSITIONING….. which creates a Brand Experience….
 
Someone has rightly said ” If you are not a Brand… you are a commodity … where price is everything and low cost is the winner”
 
One way to Protect Brand by focussing on customer service here

PEST Strategic Analysis Framework

strategy, plan of action, PEST Analysis, SWOT Analysis, Frameworks, Management, Leadership, Competition, Competitive AdvantageIf you know the enemy and know yourself,
you need not fear the result of a hundred battles.
If you know yourself but not the enemy,
for every victory gained you will also suffer a defeat.
If you know neither the enemy nor yourself, 
you will succumb in every battle 
 ~ Sun Tzu, The Art of War, Special Edition

pest analysis, strategy, management, swot, framework, business, competition, competitive advantage, organization,

PEST analysis is a strategic business measurement tool.

PEST is an acronym for Political, Economic, Social and Technological factors.

These factors are primarily external factors which are used prior to doing a SWOT analysis (which is used to assess both internal and external factors).

PEST is used to assess business/strategy planning, marketing positioning, business and product development, product introduction, new idea, business diversification or to review the strategy or position of a organization.

There are variations to the PEST analysis like the PESTLE (includes Legal and Ecological/Environmental)

There are many situations where systematic PEST analysis gives clarity about the external factors which can affect the decisions such as :

  • Brand in relation to a market
  • Product Launch
  • Merger and Acquisition
  • Entering a new market
  • Potential Partnership
  • Investment opportunity
  • Company assessing the market conditions
  • Product versus competition

More Strategic Frameworks here.

Brand Protection: Evaluate Customer Product/Service Complaints : Impact and Impressions

Brand, Branding, Customer Service, Services, Experience, company,Management,Marketing

“Your entire company should be considered your branding department”

Service – Customer Service – One of the most important touchpoint. But quite often, neglected by many organizations around the world. One attribute is measuring the consumer complaints. Remember “What gets measured get managed and what gets managed gets done”

Here is a mechanism, a company can use to predict the impact/reach  or impressions a customer complaint can potentially create.

The calculations some fair assumptions to make the calculations :

Assume, only 1 of 25 customers make the actual complaint against the product or service. Remaining 24 dissatisfied remain silent due to any reason (not bothered, lack of time etc.)

Assume, each dissatisfied customer speaks bad about the companies products/services to (8 – 16) people, let’s average that to 12 people.

Now, if you receive 1000 complaints in a month, let us calculate the potential bad impressions the complaints can have on the product/services & ultimately the brand

1. Received 1000 complaints / month (by letters/phone/email etc)
2. Translates to (1000 x 12) x 25 = 3,00,000 nos of dissatisfied customers annually
3. Which is 3,00,000 x 12 (Word of Mouth) = 36,00,000 nos of bad impressions …. Wow!!!!
 

In today’s world of ‘Free Economy’ where products are literally marketed as services and experience, a lack of insight into the customer services/experience is spelling disaster (in capital letters, repeated twice, with a dramatic pause in between) for the brand….!!!!

 

 

Financial Measures of performance ~ What gets measured gets managed…

Financial Performance Measures, Cash ,Corporate Finance,  income, Value, Returns, Dupont, ROI, MBA,ROE, EBID, EBIDTA, EVA, NOPAT,

What gets measured, gets managed ~ Peter Drucker

Performance Measures should be linked to Value. Managers are evaluated based on these measures.  Of course, there are extremely important non-performance measures like Customer Satisfaction, Quality, Cycle Time which is important and not captured in the objectivity of the financial measures.

So what are the financial performance of measures which are commonly used….

There are four main categories of financial measures, which are used for performance:
CASH
INCOME
RETURN
VALUE

CASH FLOW MEASURES

Gross cash flow

Earnings before interest, tax and depreciation/amortization (EBITDA)

INCOME MEASURES

Earnings before interest and tax (EBIT)
EBITDA – Depreciation/Amortization

Net operating profit after tax (NOPAT)
EBIT ( 1- tax rate)

Net Income (NI)
EBIT + Interest Income – Interest Expense

Earnings per share (EPS):
Net Income/ # of shares outstanding

RETURN MEASURES

Return on Equity (ROE):
Net income/Total common equity

Dupont ratio:
(NI/Sales) x (Sales/TA) = ROI

Identify value drivers based on different components of ROE

Return on Capital Employed (ROCE) or Return on Net Assets (RONA):
NOPAT/ Net Assets (TA-Current Liabilities)

SINGLE PERIOD VALUE ADDED MEASURES

Residual Income (RI):
EBIT minus a charge for assets

Economic Value Added (EVA):
Stern Stewart measure of economic profit minus a charge for capital employed

Net Operating Profit After Taxes (Stern Stewart) –  (Weighted Average Cost of Capital)  X (Capital  Employed)

Venture Capitalists: What roles do they actually perform in their portfolio companies….

Venture Capital, Funny, Pictures, Private Equity, Roles, Management, Leadership,

Is value creation by Venture Capitalists a reality or myth?….

Whatever it is… there is no denying the fact that Venture Capitalists and Private Equity players have facilitated creation of industries …. accelerated emergence of new age business and led to creation of new breed of entrepreneurs… Here are some of the roles and responsibilities which a VC typically plays across functional areas of a organization in the hopes of a ‘HOME RUN’ blockbuster exit….

Broad functions Roles and Functions of Venture Capitalist in Portfolio Companies
Formal roles Informal roles
Board of director Member
Sounding board
Observer rights
Strategic functions Formulating business strategy Strategy sessions
Managing crises and problems Business advisor
Boundary spanning Selecting vendors and equipments Developing professional support group
Source of professional contacts
Source of Industry contacts
Finance related Obtaining alternative sources of financing
Interfacing with investor group
HR related Management Recruiter (Interviewing and selecting) Searching for candidates of management team
Negotiating employment terms with candidates Motivating personnel
Replacing management personnel
Marketing related Formulating marketing plans Soliciting customers or distributors
Testing or evaluating marketing plans
Operations related Developing actual product or service
Developing production or service technique
Supervisory Monitoring financial performance Phone calls
Monitoring operating performance Non board meetings
Seeking periodical reports
Interpersonal Friend / Confidant
Mentor / Coach

More on the VC here….

Business Today – BT Nielsen report – Top B Schools Ranking in India

MBA, IIM, Business Schools, B Schools, Business Today, Nielsen Ranking, Management, Leadership, 2012

Around 2,500 years ago, Greek philosopher Heraclitus of Ephesus had pronounced: “The only constant in life is change.” Think of change as a never-ending game – ‘The Change Game’

In the context of business education in India, an MBA degree from a premier institute has always been the key to riches, glory and recognition. (Perception……???)

This year’s ranking of the Top 10, too, suggests that at a time of turbulence in the economy, global and local, premier institues like IIM are considered the safe house.

More here Business Today article

IIM Indore 1 year EPGP Program – Full time MBA Courses Conducted Termwise!!!!

IIM Indore, 1 year Full time MBA, EPGP, Executive MBA, Core Subjects, Electives, Katz Business School
 
 
These are the crucial courses, which are conducted as part of the 1 year EPGP – full time MBA program at IIM Indore.
Term IV is conducted as Executive Leadership Program (ELP) in association with Katz Business School, Pittsburgh. The ELP program is offered by the Center for Executive Education (CEE) of the University of Pittsburgh Joseph M. Katz Graduate School of Business.
 
Core Courses Term I, II, III, & IV
>  Theory of Firms and Markets
>  Financial Reporting and Analysis
>  Business Communication
>  Marketing Management
>  Decision Analysis
>  Business Statistics
>  Perspectives on Individual Dimensions
>  Perspectives on Group and Organizational Dimensions
>  Strategic Management
>  Strategy Implementation
>  Corporate Strategy
>  Corporate Governance and Management Control
>  Problem Solving and Creativity
>  Global Management
>  Entrepreneurship & Venture Management
 Elective Courses Terms V & VI
> Business Analytics

> Business Optimization

> Supply Chain Management

> Project Management

> Business Process Redesign

> Pricing and Revenue Management
> Supply Chain Management

> Logistics Management
> Business Analysis & Valuation

> Equity Investment Management

> Project Finance & Structuring

> Behavioral Finance

> Corporate Performance Management
> Options, Futures & Other Derivatives
> Corporate Performance Management
 > Management of Insurance Business

> Alternative Investments
> Strategic Management of Acquisitions & Divestment
> Competing Through Business Models > International Management
> International Marketing

> Brand Management

> Consumer Behavior

> Sales and Distribution Management
> Retail Management
> Integrated Marketing Communications
> Internet Based Platform Strategy
> Enterprise Resource Planning

> Business Intelligence
> Game Theory

> Global Business Environment
> Negotiation
> Venture Capital & Private Equity
> Corporate Banking
> Marketing Strategy
 
 Note: This is list is not exhaustive and lists the crucial courses of the program