Wednesday, February 28, 2007
BLUE OCEAN Strategy
Blue Ocean Strategy provides a holistic approach to make competition irrelevant. It highlights six principles that every company can use to formulate and execute blue ocean strategies. The six principles shows how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy. Ocean refers to the market and Blue Ocean refers to the uncontested markets, which provides little or no competition. The main idea behind Blue Ocean is to create a product or service, which does not exist, and can attract customers. An essential concept is that the innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. A million dollar page or gmail is a good example to Blue Ocean Strategy. The blue oceans denote an environment where products are not yet well-defined, competitors are not structured and the market is relatively unknown. Companies that sail in the blue oceans are those adept at beating the competition by focusing on developing compelling value innovations that create uncontested market space.
Monday, February 26, 2007
Brand Equity Quiz 2007
Finally,Brand Equity Quiz is back with a bang.The Brand Equity Quiz is an advertising and marketing quiz targeted at corporates all over the country. This knowledge war, one of its own kind, is the largest quiz Corporate India has ever seen, and in terms of participation, is one of the world’s biggest.Corporate honchos churning their grey cells!!
read more | digg story
read more | digg story
Wednesday, February 21, 2007
Sneak peek into STRATEGIC PLANNING
Strategic planning is a mix of financial and non-financial goals. Some focus on financial targets from the beginning and assess what other efforts will be needed to meet them. Others start with market analyses or a desire for innovation and get to financial targets as outputs of the process. The former could be explained as mapping out the financial performance that would be expected over the next five years and comparing this against baseline projections and examining the gaps. The later could be explained as focusing first on markets, then the distinctive value proposition in these markets/services, then whether the firm has the right initiatives to deliver this value proposition. Either way, non-financial goals generally support the financial ones. A company's planning process actively involves employees whose potential to excel is high (regardless of their current responsibilities), along with the most senior executives and, usually, a strategy team. Any strategy has an array of measurable quantitative factors like achievement of cost/revenue match or unit cost objectives. In some cases they involve the achievement of milestones during the course of a year. Important strategic decisions are made by a small group of senior managers, including the CEO. Company's board of directors focuses on a few roles in planning strategy. Boards are seen to be most active in challenging strategy during the development process and in approving the final strategy. Implementation of strategic planning is crucial to an organization’s success. Integration of strategic-planning group and its human-resources group is one of the key factors to successful implementation. In most of the cases, they are slightly integrated or not at all. Companies don't particularly focus their strategic planning on new opportunities for growth. To be on the top, strategic decision makers should spend more time on business development. By structuring the strategic-planning process to focus on what the company wishes to achieve and by improving the informal side of developing strategy, companies can be better prepared to make real-time strategies in an uncertain world.
Courtesy: Mc Kinsey
Courtesy: Mc Kinsey
Tuesday, February 20, 2007
Shopping for VALUE
Retailing is the next big thing to happen in India. While foreign players like Walmart and Auchan are planning strategies to win a big consumer chunk, domestic players like Reliance have also played their part in attracting consumers. The consumers are more informed about the products available in the market. They just do not buy products but also add value to their shopping experience. With easy reach to multiple channels offering the same brands at cheaper prices, consumers have taken wise decisions on their purchases. While shopping, the consumers look for the one who offer value the most. Even if the consumers have everything filled inside their bags, still they prefer to go for something if they find discounts. Sometimes, window-shopping turns out to be an expensive shopping. This “cherry-picking” behavior is becoming increasingly prevalent, with a growing number of sales coming from promotional items. What should be the strategy to retain your loyal and attract the new customers? Just offering a low price or discount does not guarantee the retention of loyal customers. The retailers need to plan a price strategy for the products to attract customers. To improve their price image among shoppers, most value retailers follow a five-pronged pricing strategy:
·Offer attractive prices on image-enhancing brands and items
·Create opening price points in each category, sometimes through private-label brands
·Appeal to shoppers’ “treasure hunting” mindset by establishing a highly visible discount price on a unique or limited item
·Offer large sizes and value packs
·Communicate an everyday low price to establish price credibility
Apart from price, which adds value to the shopping experience, there are factors like location, ambience and service. The thing, which matters, is the communication that exists between the retailers and consumers. They should clearly make their consumer understand of their moves. To win consumers, certain things needs to be taken care of:
1.A complete observation on the products, which sells the most.
2.The kind of products, which sells, small or large. For example, a customer goes for a big shampoo bottle or a sachet.
3.Where to place the products. May be perfumes and accessories at the entrance can attract customers to enter the shop.
4.How to make the customers buy even if they come for window-shopping.
Source: AT Kearney
·Offer attractive prices on image-enhancing brands and items
·Create opening price points in each category, sometimes through private-label brands
·Appeal to shoppers’ “treasure hunting” mindset by establishing a highly visible discount price on a unique or limited item
·Offer large sizes and value packs
·Communicate an everyday low price to establish price credibility
Apart from price, which adds value to the shopping experience, there are factors like location, ambience and service. The thing, which matters, is the communication that exists between the retailers and consumers. They should clearly make their consumer understand of their moves. To win consumers, certain things needs to be taken care of:
1.A complete observation on the products, which sells the most.
2.The kind of products, which sells, small or large. For example, a customer goes for a big shampoo bottle or a sachet.
3.Where to place the products. May be perfumes and accessories at the entrance can attract customers to enter the shop.
4.How to make the customers buy even if they come for window-shopping.
Source: AT Kearney
Wednesday, February 14, 2007
LEADERSHIP Qualities,a MUST
This is a post in continuation to the post on Sourav Ganguly. I would have posted it earlier but the good thing is the post will appear ahead of the post on Ganguly. If there is a person who can do justification to the word LEADER, then he is undoubtedly Sourav. Rather than saying about Leadership, I’ll say about Sourav in person, as Sourav and Leadership are synonymous. Rather, this post is more of a Case Study on Sourav.
1.If there is one thing, which differentiates him from the rest of the team, it’s his “AGGRESSIVENESS”. Being aggressive is something which every leader should have it in him. It means you should not be aggressive on your team members, but aggressive on the way you do your work.
2.“NEVER-SAY-DIE” attitude is something, which Sourav personifies. Despite critics, he made a comeback, a royal comeback. There were lot of articles written on him on his attitude and poor performance and end of his career, but, finally, he is back.
3.PERFORMER: A leader should always be a performer. Being able to perform needs to determination and hard work. A leader should perform before he asks others to set an example.
4.DIGNITY: A leader should be a person of dignity. There will be times when everyone will point a finger at you or raise eyebrows, this is time to ignore everything and just concentrate on your performance.
Once a LEADER, always a LEADER.
1.If there is one thing, which differentiates him from the rest of the team, it’s his “AGGRESSIVENESS”. Being aggressive is something which every leader should have it in him. It means you should not be aggressive on your team members, but aggressive on the way you do your work.
2.“NEVER-SAY-DIE” attitude is something, which Sourav personifies. Despite critics, he made a comeback, a royal comeback. There were lot of articles written on him on his attitude and poor performance and end of his career, but, finally, he is back.
3.PERFORMER: A leader should always be a performer. Being able to perform needs to determination and hard work. A leader should perform before he asks others to set an example.
4.DIGNITY: A leader should be a person of dignity. There will be times when everyone will point a finger at you or raise eyebrows, this is time to ignore everything and just concentrate on your performance.
Once a LEADER, always a LEADER.
Sourav,Leader is back!!
After lots of apprehensions,he is back with a back with an extra zing.He has shut his critics with his performance.Its time to see,whether the brand he endorsed once will be seen on TV again.He is a celebrity who has the power to attract.Its time to see how the companies brand him and use his celebrity status to brand the product.
read more | digg story
read more | digg story
Tuesday, February 13, 2007
Who is a MANAGER?
It’s true that people do not leave jobs but Managers. I was quite unknown to the term “Manager” until I had one. I interacted with few team members and the experience is shocking. I used to believe that my Manager is the best but to my surprise, it’s just my opinion and my team’s opinion is just the opposite. Why is it so?? Is it so that my manager behaves improperly with others? No. As far as my personal experience goes, there are few things, which the Managers should keep in mind:
1.They should be participative. When I say “Participative”, it means they should show keenness in discussing problems with the teams. There are problems faced by the team members and they do not speak to their managers. The reasons could be numerous. The managers should personally try to keep a note of their team members. A monthly one-to-one meeting is enough to make your employees comfortable.
2.Feedback Session: The manager should conduct feedback session by distributing feedback forms to his employees. No one is perfect and there is room for improvement.
3.Visiting Tables: The manager should sometimes visit his employee’s desk. Two benefits. You spent time with your employee and discuss something apart from work and the subject should be of employee’s interest area. Secondly, you know what your employees do when they do not work. It’s a good way to keep an eye.
4.Manager should conduct some knowledge workshops or conduct presentation and discuss on topics, which are either work related, or topics of interest to engage his employees.
5.Sometimes, managers are too engrossed with their work and they forget to ask whether his employees feel comfortable with the project or want a change. And, if he feels that the change cannot occur, he should discuss all the valid reasons.
Trying to be a good MANAGER.. Work Smart!!!
1.They should be participative. When I say “Participative”, it means they should show keenness in discussing problems with the teams. There are problems faced by the team members and they do not speak to their managers. The reasons could be numerous. The managers should personally try to keep a note of their team members. A monthly one-to-one meeting is enough to make your employees comfortable.
2.Feedback Session: The manager should conduct feedback session by distributing feedback forms to his employees. No one is perfect and there is room for improvement.
3.Visiting Tables: The manager should sometimes visit his employee’s desk. Two benefits. You spent time with your employee and discuss something apart from work and the subject should be of employee’s interest area. Secondly, you know what your employees do when they do not work. It’s a good way to keep an eye.
4.Manager should conduct some knowledge workshops or conduct presentation and discuss on topics, which are either work related, or topics of interest to engage his employees.
5.Sometimes, managers are too engrossed with their work and they forget to ask whether his employees feel comfortable with the project or want a change. And, if he feels that the change cannot occur, he should discuss all the valid reasons.
Trying to be a good MANAGER.. Work Smart!!!
Monday, February 12, 2007
Problem SOLVING
Clients are required for a business to sustain. The organization makes strategies to retain the existing clients and acquire new clients. What’s important in the whole process is the basic understanding that exists between the client and the organization. The crux is on the problems faced by the clients. An organization applies a lot of techniques, principles and hypothesis to solve the problems of the client. Here are some basic rules, which the organization should keep in mind while solving problems:
1.Breaking the problem: The problem might exist due to a number of reasons. It’s advisable either to follow a Top-Down Approach or a Bottom-Up Approach.
Top-Down Approach: Break the problem into smaller problems and then try to find a reason behind every problem that exists. It’s always good to break a complex issue into simpler ones.
Bottom-Up Approach: Sometimes, it’s said that starting from the end is a good point to start in solving the problem. Here, the trivial issues should be collected based on the facts available. These issues might cause a second issue and in the same way, we can each the main problem.
2.Prepare a YES-NO Questionnaire: Prepare a YES-NO Questionnaire and put the entire questionnaire in the format of yes/no. This will help to understand the problems that could be solved, and the problem that will take time to solve.
3.Brainstorming: Involve the team while discussing the problems. The team members should be given the problem along with the facts available beforehand, so that they come prepared in the discussion. This will help to generate new ideas.
4.Prepare a PROS-CONS Chart: The idea, which comes from the discussion, should be mapped in a chart along with the pros and cons. This will help us to alienate the viable options.
5.Structure of the Problem: The problem solving should be done in a structured way. It means nothing should be overlooked while solving the problem. A logical tree could be mapped while discussing the problem. All the entities should be inter-linked and their effect on each other should be shown.
1.Breaking the problem: The problem might exist due to a number of reasons. It’s advisable either to follow a Top-Down Approach or a Bottom-Up Approach.
Top-Down Approach: Break the problem into smaller problems and then try to find a reason behind every problem that exists. It’s always good to break a complex issue into simpler ones.
Bottom-Up Approach: Sometimes, it’s said that starting from the end is a good point to start in solving the problem. Here, the trivial issues should be collected based on the facts available. These issues might cause a second issue and in the same way, we can each the main problem.
2.Prepare a YES-NO Questionnaire: Prepare a YES-NO Questionnaire and put the entire questionnaire in the format of yes/no. This will help to understand the problems that could be solved, and the problem that will take time to solve.
3.Brainstorming: Involve the team while discussing the problems. The team members should be given the problem along with the facts available beforehand, so that they come prepared in the discussion. This will help to generate new ideas.
4.Prepare a PROS-CONS Chart: The idea, which comes from the discussion, should be mapped in a chart along with the pros and cons. This will help us to alienate the viable options.
5.Structure of the Problem: The problem solving should be done in a structured way. It means nothing should be overlooked while solving the problem. A logical tree could be mapped while discussing the problem. All the entities should be inter-linked and their effect on each other should be shown.
Friday, February 9, 2007
Financial Planning..UNTOUCHED!!
There is a lot of consulting and advice for people. You take a look and 100 of institutions are around to help you in reviving your life. There’s one thing, which is looked at more seriously, and that is Investments. Catchy punchlines like "Secure your life" is not new. Stocks, bonds, derivates, futures and options are not more on the Glossary; they have become common man's language. There have been diversities in the products offered by these financial institutions. Investment in stocks, insurance, government funds, are very common. The websites of these institutions give knowledge on the performing stocks in the market and information on financial products in the market. But, one thing which is untouched is complete financial planning for an individual. There are very few players in the market who do financial planning for individuals. The market is still untapped. There are mutual fund managers who manage just the portfolio of an individual. But,the question arises does that link to complete planning. If anyone is interested on this topic, please give your comments and I'll help you the case more clearly.
How to Manage RISK:For Start-up Companies
Risk is an event that may affect the overall business objectives of an enterprise. It should be viewed as an opportunity rather than a threat that every enterprise should try to foresee so that the effects of the events can be optimized. Sometimes, risks make the organization more alert and responsible to create value for shareholders. If an organization is able to properly define risks and articulate them, then most of the objectives are achieved. To gain a sustainable competitive advantage, companies facilitate proper risk. Firms keeping its culture, strategies, and economic conditions in mind should develop a proper framework for management of risks. A framework gives a clear picture of the risks faced and the strategy to mitigate it.I am unable to show the picture of the framework as it does not support it.The five steps involved in preparing VOWEL framework for Risk Management are:
1.Understanding risks.
2.Identifying risks.
3.Analyzing risks.
4.Exploiting risk opportunities.
5.Optimizing or mitigating risks.
The A, E, I, O, U framework takes into consideration various factors like Organization’s strategies, culture, objectives and various external and internal conditions. The proposed framework is the best approach as it helps the organizations in turning an uncertain event to an opportunity where it could reap the maximum benefits. The framework proposes Integration of Risks in exploiting risk opportunities. VOWEL Framework discuss in gaining the profits out of an event and then mitigating the negative effects. When the organization starts risk management process, influence of risks on the organization is high and the probability of returns is low but as soon as the process moves forward, influence of risks becomes low and probability of returns is high.
Understanding Risks:
Proper understanding of risks is a pre-requisite for an effective Enterprise Risk Management framework. Understanding of risks doesn’t involve knowing the risks and its impact on the organization but assessing the historical and current performance along with focusing on future performance in the context of the risks. Understanding of risks also includes the risk appetite of an organization. If an organization is in profit for some years and have enough capital, then it can expose itself to greater amount of risks. Understanding of risks also involves evaluating company’s current strategy and management’s capability to implement a different strategy if the company faces some difficult situations due to risk exposure.
Identifying Risks: The next most crucial step in Enterprise Risk Management is identifying key risk areas in the organization. The risks faced by the organizations today are enormous, varied and of different frequencies. Involving employees from various departments in the organization helps in better identification of risks, as their involvement in the job and opinions about the future and current risks is known. The risk identification techniques adopted by organizations are Brainstorming Sessions, Questionnaires, Interviews, Feedback forms, Workshops and SWOT analysis. The organization can also take the help of external agents like risk consultants, consultancy agencies, auditors etc. Other alternatives like flowcharts, process mapping, scenario analysis helps a lot in identifying risks.
Analyzing Risks:Analyzing and assessing risks helps in understanding the effect of identified risks on the objectives of the organization. There are various techniques of analyzing risks. Some of the most effective ways are:
ØProbability-Impact Chart: Probability- Impact Chart is basically used for assessing hazard risks and operational risks, which occur due to, failed systems and processes and human errors. Before analyzing the probability and impact, organization should list down all the possible emergencies that may occur in a particular course of time and then make a chart of probability and impact.
ØMonte Carlo Simulation: Monte Carlo Simulation means analyzing a large number of market scenarios with the same underlying distribution. For each scenario the value of position is calculated. These are widely used in pricing and risk management of complex instruments.
ØHistorical Simulation: Historical simulation is the simplest and most transparent method of calculation. This involves running the current portfolio across a set of historical price changes to yield a distribution of changes in portfolio value, and computing a percentile (the VaR). The Historical Simulation method requires that the user obtain historical information on the movement of market factors (share prices, interest rate yield curve, exchange rates, commodity prices etc), which determine the performance of the financial instruments that are in the current portfolio.
ØStress Testing: Stress testing is a Risk Management tool used to evaluate the potential impact of a specific event on a firm. Stress tests generally fall into two categories: scenario tests and sensitivity tests. In scenarios, the source of the shock, or stress event and its effects on the financial risk parameters are well defined. In contrast, sensitivity tests specify financial risk parameters; the source of the shock is not identified. Moreover, the time horizon for sensitivity tests is generally shorter in comparison with scenarios. Stress testing is used by the organizations to:
·Understand portfolio performance during abnormal market conditions.
·Understand the risk profile.
·Make proper decisions regarding the risk tolerance and allocation of capital to optimize risks.
·Evaluate the business risks.
Exploiting Risk Opportunities:The term risk has two aspects i.e. risk as a threat and risk as an opportunity. Organizations are aware of the fact that viewing risk as an opportunity can give them a competitive advantage and can fetch rewards. Risks should be exploited in such a way that maximum advantage can be taken from any unexpected event. Exploiting risks can be done by:
1.Understanding the nature of the risks.
2.Responding to the risks
Every organization should adopt PEST approach for understanding the nature of risks. PEST represents political, economical, social and technological.Not only external factors play a role in understanding the nature of risks but also the organization itself can be a cause for the risks to arise. The business objectives, the skill set of managers and employees, mergers and acquisitions etc. can be a contributing factor to the evolution of risks in an organization. Continuous monitoring and review should be done for Enterprise Risk Management to be successful. Monitoring involves reviewing information and taking appropriate actions.
Monitoring processes include reviewing and acting on performance and risk information, auditing of control systems, processes and financial and operational information, self-assessments, updating the risk information. After the monitoring process, reporting should be done to management and staff, board of directors and regulatory agencies and other stakeholders etc. Monitoring ensures that the components of enterprise risk management are applied at all levels.One of the best ways to exploit risks is Integration of Risks. Integration gives an overall view of the risks faced by the company and their interrelation. Risks are interrelated and interdependent in some form of or the other. Integrating them under one platform and applying metrics to quantify those makes easy for the organizations to exploit the best from the uncertainty.
Optimizing Risks:Optimization of risks is done to minimize the effects of risks on the organizations. In this step the organizations try to lessen the negative effects of risks that may affect the business processes. Optimization of risks can be done in various ways:
ØThe risks frequently faced by the organization and the solutions to mitigate should be properly documented and stored in the database so that every new employee joining the organization could know about it and make themselves prepared to face it.
ØThe Senior Management should take a pivotal role in training every employee on the importance and understanding of risks. Transfer of knowledge is essential for Risk Management.
ØProper metrics should be defined on how the organization mitigates the risks so that the employee can look forward to improve on the processes they use to minimize the effects of risks in an organization.
ØThe employees should be encouraged to “Change”. Sometimes, the employees are resisted to Change and want the things to happen in the same way. Sometimes, a major risk may force an organization to change its strategies, organization culture etc.
ØThe organizations should have their processes and systems in place so that the risks can be mitigated immediately and business processes of the organization are not affected.
ØThe shareholders should be notified of the risks faced by an organizations and the approach the organization follows in mitigating the risks so that they have faith on the organization and continuously show support and inclination towards the organization policies.
1.Understanding risks.
2.Identifying risks.
3.Analyzing risks.
4.Exploiting risk opportunities.
5.Optimizing or mitigating risks.
The A, E, I, O, U framework takes into consideration various factors like Organization’s strategies, culture, objectives and various external and internal conditions. The proposed framework is the best approach as it helps the organizations in turning an uncertain event to an opportunity where it could reap the maximum benefits. The framework proposes Integration of Risks in exploiting risk opportunities. VOWEL Framework discuss in gaining the profits out of an event and then mitigating the negative effects. When the organization starts risk management process, influence of risks on the organization is high and the probability of returns is low but as soon as the process moves forward, influence of risks becomes low and probability of returns is high.
Understanding Risks:
Proper understanding of risks is a pre-requisite for an effective Enterprise Risk Management framework. Understanding of risks doesn’t involve knowing the risks and its impact on the organization but assessing the historical and current performance along with focusing on future performance in the context of the risks. Understanding of risks also includes the risk appetite of an organization. If an organization is in profit for some years and have enough capital, then it can expose itself to greater amount of risks. Understanding of risks also involves evaluating company’s current strategy and management’s capability to implement a different strategy if the company faces some difficult situations due to risk exposure.
Identifying Risks: The next most crucial step in Enterprise Risk Management is identifying key risk areas in the organization. The risks faced by the organizations today are enormous, varied and of different frequencies. Involving employees from various departments in the organization helps in better identification of risks, as their involvement in the job and opinions about the future and current risks is known. The risk identification techniques adopted by organizations are Brainstorming Sessions, Questionnaires, Interviews, Feedback forms, Workshops and SWOT analysis. The organization can also take the help of external agents like risk consultants, consultancy agencies, auditors etc. Other alternatives like flowcharts, process mapping, scenario analysis helps a lot in identifying risks.
Analyzing Risks:Analyzing and assessing risks helps in understanding the effect of identified risks on the objectives of the organization. There are various techniques of analyzing risks. Some of the most effective ways are:
ØProbability-Impact Chart: Probability- Impact Chart is basically used for assessing hazard risks and operational risks, which occur due to, failed systems and processes and human errors. Before analyzing the probability and impact, organization should list down all the possible emergencies that may occur in a particular course of time and then make a chart of probability and impact.
ØMonte Carlo Simulation: Monte Carlo Simulation means analyzing a large number of market scenarios with the same underlying distribution. For each scenario the value of position is calculated. These are widely used in pricing and risk management of complex instruments.
ØHistorical Simulation: Historical simulation is the simplest and most transparent method of calculation. This involves running the current portfolio across a set of historical price changes to yield a distribution of changes in portfolio value, and computing a percentile (the VaR). The Historical Simulation method requires that the user obtain historical information on the movement of market factors (share prices, interest rate yield curve, exchange rates, commodity prices etc), which determine the performance of the financial instruments that are in the current portfolio.
ØStress Testing: Stress testing is a Risk Management tool used to evaluate the potential impact of a specific event on a firm. Stress tests generally fall into two categories: scenario tests and sensitivity tests. In scenarios, the source of the shock, or stress event and its effects on the financial risk parameters are well defined. In contrast, sensitivity tests specify financial risk parameters; the source of the shock is not identified. Moreover, the time horizon for sensitivity tests is generally shorter in comparison with scenarios. Stress testing is used by the organizations to:
·Understand portfolio performance during abnormal market conditions.
·Understand the risk profile.
·Make proper decisions regarding the risk tolerance and allocation of capital to optimize risks.
·Evaluate the business risks.
Exploiting Risk Opportunities:The term risk has two aspects i.e. risk as a threat and risk as an opportunity. Organizations are aware of the fact that viewing risk as an opportunity can give them a competitive advantage and can fetch rewards. Risks should be exploited in such a way that maximum advantage can be taken from any unexpected event. Exploiting risks can be done by:
1.Understanding the nature of the risks.
2.Responding to the risks
Every organization should adopt PEST approach for understanding the nature of risks. PEST represents political, economical, social and technological.Not only external factors play a role in understanding the nature of risks but also the organization itself can be a cause for the risks to arise. The business objectives, the skill set of managers and employees, mergers and acquisitions etc. can be a contributing factor to the evolution of risks in an organization. Continuous monitoring and review should be done for Enterprise Risk Management to be successful. Monitoring involves reviewing information and taking appropriate actions.
Monitoring processes include reviewing and acting on performance and risk information, auditing of control systems, processes and financial and operational information, self-assessments, updating the risk information. After the monitoring process, reporting should be done to management and staff, board of directors and regulatory agencies and other stakeholders etc. Monitoring ensures that the components of enterprise risk management are applied at all levels.One of the best ways to exploit risks is Integration of Risks. Integration gives an overall view of the risks faced by the company and their interrelation. Risks are interrelated and interdependent in some form of or the other. Integrating them under one platform and applying metrics to quantify those makes easy for the organizations to exploit the best from the uncertainty.
Optimizing Risks:Optimization of risks is done to minimize the effects of risks on the organizations. In this step the organizations try to lessen the negative effects of risks that may affect the business processes. Optimization of risks can be done in various ways:
ØThe risks frequently faced by the organization and the solutions to mitigate should be properly documented and stored in the database so that every new employee joining the organization could know about it and make themselves prepared to face it.
ØThe Senior Management should take a pivotal role in training every employee on the importance and understanding of risks. Transfer of knowledge is essential for Risk Management.
ØProper metrics should be defined on how the organization mitigates the risks so that the employee can look forward to improve on the processes they use to minimize the effects of risks in an organization.
ØThe employees should be encouraged to “Change”. Sometimes, the employees are resisted to Change and want the things to happen in the same way. Sometimes, a major risk may force an organization to change its strategies, organization culture etc.
ØThe organizations should have their processes and systems in place so that the risks can be mitigated immediately and business processes of the organization are not affected.
ØThe shareholders should be notified of the risks faced by an organizations and the approach the organization follows in mitigating the risks so that they have faith on the organization and continuously show support and inclination towards the organization policies.
KNOWLEDGE TRIANGLE
Knowledge is imperative. Knowledge appetite is different for different people. Every individual goes to the transition process of knowledge. Especially, when an individual joins an organization, the thought process develops as he undergoes the process of knowledge transition. Every individual is in the center of the Knowledge Triangle.
Knowledge Triangle consists of three dimensions:
a.Pre-Knowledge
b.Post-Knowledge
c.Acquired Knowledge
Pre-Knowledge:
Pre-Knowledge is the knowledge, which the individual gains before joining the organization. This involves the education of the individual before he takes over the responsibilities as an employee of the organization.
Post-Knowledge:
Post-Knowledge is the knowledge, which the organization provides to the individual to perform for the role for which he has been recruited.
Acquired Knowledge:
Acquired Knowledge is the knowledge, which the individual himself gains because of his interests. The knowledge acquired could be from books, knowledge portals, blogs etc.
However, conflicts can arise if the three mentioned above are not in sync according to the individual’s interests and the same can give arise to Distorted Knowledge. If the individual does not work for something which he has acquired the education and it does not matches his interest area, then the knowledge boundary gets limited. As a result, he loses interest in the Post Knowledge, forgets Pre Knowledge and suddenly there is no progress on Acquired Knowledge due to frustration. The consequence is Distorted Knowledge, which is a mixture of the three i.e. there is a continuous effort from the individual to some how link the Pre Knowledge with Post Knowledge and gain the Acquired Knowledge which no way helps him to enhance his Post Knowledge.
The organization should keep in mind the interests of the employees so that the knowledge remains intact in the minds of the employees and he is able to contribute the maximum to the Organization. It’s an observation that the attrition rate is high in some organization due to the arise in Distorted Knowledge. There can be ways in which the organization can help the employees in maintaining a proper balance in the above-mentioned dimensions of knowledge:
a.Conduct trainings pertaining to the interests of the employees. Sometimes, the employees do not get the required training according to their interests.
b.Organization should be flexible in moving employees from one department to another if they do not find their job profile interesting. If done strategically, then there could be two benefits: reduction in attrition rate and increase in the knowledge level of the employees.
c.Feedback should be taken from the employees and employee should give feedback to the organization whether the knowledge transfer is smooth or not. It gives an opportunity for both the employees and the organization to improve.
Knowledge Triangle consists of three dimensions:
a.Pre-Knowledge
b.Post-Knowledge
c.Acquired Knowledge
Pre-Knowledge:
Pre-Knowledge is the knowledge, which the individual gains before joining the organization. This involves the education of the individual before he takes over the responsibilities as an employee of the organization.
Post-Knowledge:
Post-Knowledge is the knowledge, which the organization provides to the individual to perform for the role for which he has been recruited.
Acquired Knowledge:
Acquired Knowledge is the knowledge, which the individual himself gains because of his interests. The knowledge acquired could be from books, knowledge portals, blogs etc.
However, conflicts can arise if the three mentioned above are not in sync according to the individual’s interests and the same can give arise to Distorted Knowledge. If the individual does not work for something which he has acquired the education and it does not matches his interest area, then the knowledge boundary gets limited. As a result, he loses interest in the Post Knowledge, forgets Pre Knowledge and suddenly there is no progress on Acquired Knowledge due to frustration. The consequence is Distorted Knowledge, which is a mixture of the three i.e. there is a continuous effort from the individual to some how link the Pre Knowledge with Post Knowledge and gain the Acquired Knowledge which no way helps him to enhance his Post Knowledge.
The organization should keep in mind the interests of the employees so that the knowledge remains intact in the minds of the employees and he is able to contribute the maximum to the Organization. It’s an observation that the attrition rate is high in some organization due to the arise in Distorted Knowledge. There can be ways in which the organization can help the employees in maintaining a proper balance in the above-mentioned dimensions of knowledge:
a.Conduct trainings pertaining to the interests of the employees. Sometimes, the employees do not get the required training according to their interests.
b.Organization should be flexible in moving employees from one department to another if they do not find their job profile interesting. If done strategically, then there could be two benefits: reduction in attrition rate and increase in the knowledge level of the employees.
c.Feedback should be taken from the employees and employee should give feedback to the organization whether the knowledge transfer is smooth or not. It gives an opportunity for both the employees and the organization to improve.
What to BRAND?
Branding is not new. The things, which sell today, are branded properly; whether it is a cartoon Mickey, chip like Pentium or an elegant Mercedez Benz. To make a brand in the market is not easy especially when your customers are more informed than you. But, something, which is of utter importance, is what to brand first? Product or yourself? To create an image of a product in the minds of the customers is an art. When you sell a product, you also sell yourself. Other than selling shoes, Nike sells itself to the customer as the right choice, the logo, which is a tick mark. The customers treat the person or the company as a value addition to the product who sells the product. Just consider the case of a salesman. He needs to be properly dressed and a smile on his face before he describes the product to the customer. I believe that every one of us should make ourselves a brand and differentiate ourselves from the herd. We need to perfectly measure our strengths and weaknesses to sell ourselves. I did the same while joining my organization. People know me as a person who can speak anything and on everything. That’s the way I have branded myself. There are many who sell themselves tactically. There could be serious repercussions if branding is neglected. To brand yourself the way you want is very easy
1.Work on your strengths and keep aside your weaknesses.
2.Flaunt your strengths whenever you are around people. Like, if you are a good speaker, you can enter the discussion and make some valuable addition or if you are the one who is good in negotiation, then you can very well make the discussion in your favour
3.Never try to avoid a person who gives you a feedback. Because, that could be an opinion of 10 other people whom you have not met
4.Polish your skills and try to be among people. If you are shy and introvert, branding does not help much. It means, you have created a niche for yourself and if you think, hats your market, well and good
Enough of branding?? Not really...Brand yourself to be on the other side. I mean the brighter side.
1.Work on your strengths and keep aside your weaknesses.
2.Flaunt your strengths whenever you are around people. Like, if you are a good speaker, you can enter the discussion and make some valuable addition or if you are the one who is good in negotiation, then you can very well make the discussion in your favour
3.Never try to avoid a person who gives you a feedback. Because, that could be an opinion of 10 other people whom you have not met
4.Polish your skills and try to be among people. If you are shy and introvert, branding does not help much. It means, you have created a niche for yourself and if you think, hats your market, well and good
Enough of branding?? Not really...Brand yourself to be on the other side. I mean the brighter side.
Get Driven by YOURSELF
Analysis. This is something, which is done by everyone everyday. But, when it comes to analyse oneself, it’s very difficult. Theories like SWOT fails because its not easy to accept your faults. Doing is difficult than saying. I'm writing about the inside me in my first post as the inside "Me" is responsible for my actions and decisions and not to forget Success. How to go about knowing oneself?? SWOT, Taking other's views or getting inspired from someone else. I was puzzled when I analysed myself. Everytime, I found something bad about myself, my immediate action was to neutralize it by finding some other facts. That really did not help me in knowing myself. Then, I realized something else. Rather than poking on facts where I succeeded, failures inspired me a lot. I found so many ways not to repeat the mistakes and ignore the wrong ways. That gave me an insight to hundred reasons for success. Getting driven by one really matters a lot. Building case studies putting yourself as the main actor help you analyse a lot about situations, decisions etc. Constant effort to the way of Betterment is difficult but if the journey is taken seeing failures, then I am sure, nothing can beat us.
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