Using BALANCED SCORE CARD

Balanced Score Card is a management tool to align all the resources of an organization to its strategy. It takes four perspectives into account i.e. Internal Aspect, Financial Aspect, Customer Aspect and Learning and Growth for an organization

As far as Financial Perspective is concerned, the aim is to Improve shareholder value. The financial perspective contains productivity strategy, which aims at improving cost structure, and increase asset utilization and revenue growth strategy, which aims at customer profitability and identifying new revenue sources.

The Customer Perspective aims at differentiating value proposition. It adds value to the product/service, relationship and creating a brand image.

The Internal Perspective focuses on how to create and sustain value. It can be achieved by improving the processes that produce or deliver products and services, enhance customer value, create new products or services and improve the environment and community.

The Learning and Growth Perspective focuses on how to use the intangible assets like people, system, and culture to the benefit of the organization.

There have been various Balanced Scorecards, which have evolved like Strategy Card, Stakeholder Card and KPI Card. A typical Balanced Score Card schedule starts with defining strategic architecture, drafting balanced scorecard, developing measures and high level targets and initiatives, and developing implementation plan.

Process of INNOVATION

What’s the basic model of innovation? How can organizations ensure that innovations give them a competitive edge in the market? Innovation mean different for different organization. Product innovation for a supplier can be a process innovation for a user. We will focus on the basic process and highlight some examples to know more about Innovation. Generally, in an organization, Marketing, R&D and operation can combine to generate innovation. But, the crucial part is to understand how the vendors that supply outsourced services and technology can play a part in the innovation process. Along with that, it is essential to differentiate whether the innovation is a radical or incremental one and how the resources in these departments can be used to make the process a success. There has to be an integrator who not only integrates the three areas but also manages the portfolio of innovation. As far as the R&D is concerned, the success of innovation depends on the number of researchers and their lab/machinery endowments. As far as the Marketing department is concerned, Knowledge Management plays a key role. Interaction with users and the implicit knowledge in the marketing departments often play a crucial role for innovation. Education, learning and social rules are key determinants both in innovation and the diffusion phase. The Integrator must ensure that the process takes place smoothly and the deliverables are properly measured. Ensuring quality in the innovation process is of utmost importance.

Noone does innovation better than IBM. If we consider the IBM, the vision is to collaborate more with the clients to apply technology while delivering innovation. According to Paul Horn, Senior Vice President, IBM Research, the trends in the future decades are as follows:

1) More than ever before, innovation will become critical for businesses of the future to differentiate themselves. I/T will facilitate this innovation by allowing for new channels for the delivery of products and services, and novel business models.

2) I/T suppliers will evolve into innovation suppliers through services scenarios, with innovation coming from "open" collaborations with customers, partners and suppliers, as well as academia, government and other parties.

3) This will demand new skills, driving academia to adapt to ensure competitiveness.

IBM manages Innovation through

·Joint Programs Model where the focus is on funding mechanism, team integration and fresh approaches to projects.

·Exploratory vs Applied Research where the key areas are Nanotechnology, Autonomic Computing, Millepede and Webfountain.

·Treating clients as partners in the innovation process.

·Changing the culture of innovation by organizing research partnerships, talent plan, w3Jams

Some of the things, which IBM believes can add a value to the innovation process is to hire smart people, ensure a variety of thinking with a critical mass, set milestones, maintain flexibility, embrace risk and creating a fluid community.

Lets INNOVATE

The BRAND Behind HCL: Case in Focus

Next time if you see “Our Numbers do the talking”, do not get perplexed because you are banking on HCL. A lot of interesting ads reflect HCL’s brand image and brand value. When it comes to HCL, it just does not talk about the product HCL but also the most important aspect of HCL i.e. its employees. When it comes to the ad, the “tell-the-world” focus actually began, when HCL initiated Project Heartbeat to create a unified HCL brand. Four months into Project Heartbeat, HCL launched its "Fearless" campaign, focusing on the heritage of the company. The company has also been implementing internal changes to drive home the new brand architecture. The HCL logo has been cleaned up and streamlined; it's now a deep blue name minus the earlier sidebar. All business cards now say HCL. HCL believes in delivering its brand to its employee in a fashioned way. As HCL recruits near about 10,000 people every year, it makes it a point to tell its employees what HCL do? The highly visible 0 and 1 ad of HCL has already created a lot of positive reactions in the ad atmosphere.

As I said, behind the Brand Building exercise of HCL, employees also play a major role. HCL believes in creating employee delight rather than creating employee satisfaction. Employer branding reflects the work culture in an organization. Therefore, it is of much significance. Through right branding, the company can recruit the best talent and reinforce its positioning amongst its employees. HCL’s brand value signifies “exuberance” and they are in the making of “Force of One” campaign that signifies innovative attitude and the ability to individually make a difference.

Next time, if you think to create a BRAND, well think of HCL.

Lets DO IT

I had a meeting with my BU Head and Manager. The thing I liked about him is his “attitude to do”. Its not surprising that most of the meeting rooms and boardrooms are always filled with people and discussions takes most of the time. After an elaborated discussion followed by “high-profile” analysis, the end result comes out to be a failure means the proposal cannot be accepted and it’s not possible to implement. My BU Head was at his best when he said, “ I am tired off these meetings. I have been hearing this PPT again and again but we have not shown enough interest to go ahead with it. Issues will come and they are bound to come. Rather than standing 200 feet away from the sea and thinking about the challenges, have enough courage to get into the sea. The implementation cannot be 100% but we can surely achieve a 80% accuracy and then ponder on the ways to achieve the other 20%”. This is what I call Attitude blended with Professionalism.

Some of the documents prepared in the organization do not answer the issue. It just talks about the proposal and what exists currently in the system. The point is to illustrate everything with diagrams and flow charts how the system should behave in the future, the implications on the current application both positive and negative and the benefits that could be withdrawn. Rather than just giving a presentation and speaking volumes on it until and unless the blueprint to the solution exists on the paper. What I mean to say is document every possible requirements and solutions.

The implementation should always be carried in stages. A distinct line should clearly demarcate the implementation stages. The success or failure of one stage should not affect the next stage. That’s why I stressed on the fact to document. When you have everything infront of your eyes, there is a very little chance of failure.

Time is a major factor whenever there is a proposal implementation needs to be done. The meeting/discussion time should be cut off to 70% of what it is done now. Rather than just saying “ WE CAN DO”, it’s always better to say “HOW TO DO”.

When we talk of How to do, its always better to do a Comparative Analysis if some major tools are involved for the implementation or management practices. Comparative Analysis always helps us in better understanding of the problems, which might arise in the future.

Must Read: http://www.strategy-business.com/

Create an IDEA FACTORY coz an IDEA can change your life

Enough of Java and C++ programming, bugged up testing bugs, irritated appearing tests. hold on. There’s something new we can think of. Creating an IDEA FACTORY in an organization. In a competitive world, to sustain in the market, we need right kind of people or people with right attitude who can align their vision to the company’s objectives. The challenge is to create a pool of knowledge workers. How to create? Simple.. Go ahead with creating an IDEA FACTORY.

To start with IDEA FACTORY would be kind of a game, or an assignment open for your employees in your organization. The challenge would be to create a group of your own and select the participants of your choice. There would be one group per department and the Management would select the leader.

Now, it’s the responsibility of the leader to choose right kind of people and select the correct number. Once done, they need to come up with an idea, which can be beneficial to the organization. This plan would be first in a blueprint. The viability, implementation, timeframe needs to be decided among the members.

The important thing is to get an approval of the plan from the Management. Once done, a pool of knowledge workers and an IDEA FACTORY is created. What’s next?? Obviously, Implementation of the idea. Here, each and every member should care of few things:
1.Knowing the Business Delivery Model
2.Understanding the strategic objectives of the organization
3.The financials of the organization
4.And, understanding of management tools

These should be mandatory. The purpose behind it is to make your employees involved in the organization rather than making them think just about their regular job. The execution of the plan should take care of all the above factors. While working out the plan, it is necessary to do a Cost Benefit Analysis and its impact on the organization both positive and negative.

So, what are you waiting for?? Lets start IDEA FACTORY….

My Tryst with FAILURE

1 year of effort, 30 mins performance and your career decision is made. As usual, I again met failure yesterday. But, this time I didn’t have any fear of meeting him. I put my more than 100% to achieve something, which I dreamt 1 year back. I performed without thinking about my personal benefits, took initiatives, set a benchmark but my dreams were dashed.

I have read a lot of Robin Sharma’s books on Megaliving, Who will cry after you die etc. but wonder how practically we can put those theories in our lives. Ask a person who is struggling to get a job of his choice. In a city like Mumbai, everyday, he starts his day wasting his 2 hours in the bus, reaches office sweating. Completes his work and again waste 2 hours in the bus, reaches home to find food which is not worth eating because he cannot afford good food as his company is unable to pay him for the work he does. When do he has time to nurture his dreams? He has wasted his 4 hours seeing failures of other people. If you question his capability, I will answer that capability does not come appearing tests or scoring in exams, it comes with the determination. If Richard Branson can think of starting a magazine “STUDENT” and then go on becoming face of VIRGIN, if Narayan Murthy can dream of Infosys without having a Management Degree, why cannot we? Why our future is decided without our consent. Its easy to write books on life, give lectures on positivism, but do we have the energy at the end of the day struggling with failures to dream? Even, I have posted an article called “Working on your Mind” but what if your mind stops programming. Every time, I think of achieving success, I see the shadow of Failure behind it. But, being a consultant, I will not end this article with a negative note. The purpose of writing this article was not to make you feel negative but to give a thought process on how to be really practical with life.

I might have lost the battle,but the war is still on.One of my dearest friend said on my unsuccessful attempt to enter Mc Kinsey, that “IF YOU CANNOT ENTER Mc KINSEY, CREATE A COMPANY LIKE Mc KINSEY…” and I am determined to show people that even I can build an empire that everyone could dream of.

My sincere thanks to my friend for being a constant force of inspiration to me..

COMPETITOR Analysis

In the market, someone creates a benchmark and the other try to outperform and set a new benchmark. Every game has its own rules. In a competition, either you try to create an image of your competitor’s product in a negative way or show your product in the most positive way. To highlight a small example, Coca Cola shows Pepsi as a drink for Children because it is sweet and the their product something for people who have a courageous heart with the tagline “Taste the Thunder”. To sustain, the most important move is to study the competitor. While formulating strategy for your own firm, you need to take a keen interest in your competitor’s strategies. In doing so, Competitor Analysis can be used as a method to gather information and understand the moves and behaviour of your competitor.

The most important aspect of Competitor Analysis is to understand your right competitors. In the market, a small start up software firm cannot decide to compete with Microsoft in the initial stages. While identifying your competitors, you need to understand your organizations and the objectives, which have been set for the organization in the coming five years. For example, if the organizations want to create a base in the Indian Market, then may be the particular software firm can see a company, which is existing in the market for 10years or so as a competitor. The point of discussion is to challenge the competitors who have a similar kind of organization like yours and caters the same kind of clients. And, if you decide to diverse then rather than competing its better to understand your competitors in a better way and learn from them. Remember, competition is not the first thing for survival. The thing, which is necessary, is to create a base, which means make the foundation strong and then attack your enemies. It’s also necessary to study how the strategic decisions of your companies affect your competitor. The parameters could be whether there is a fall in the market share of your competitor, or there is an increase or decrease in the brand value or there is no influence at all. It’s true that Intelligent Information can help in taking Intelligent Decisions. The Competitor’s current moves can be understood through its annual reports, press releases, and statement by the management, interview with analysts. The competitor’s moves can be understood by mergers and acquisitions, hiring activities, promotional campaigns, investments etc. The result of the Competitor Analysis should be used as an effective tool to influence your competitor to your firm’s advantage.

i-Fetch a Rocking Application

Although the focus of this blog is not technology I've been always a fun of new apps and services which make life better.
One such killer application is i-Fetch by Ideafarms. I've been trying out this free RSS Reader and from what it appears it is quite handy. It comes loaded with powerful features like archiving of articles, filtering, OPML support etc and integrated browser support. You can use i-Fetch for reading your favorite articles, news items, blog posting and even podcasts.
Quite amazing as now there's lesser pain for my windows favorite folder and I can read my feeds on the move. Moreover, even when I am not connected to internet as it offers offline feed reading support.
Check out the cool application right now Give it a go at http://www.ideafarms.com/products/ims.htm
An easier way is to google "i-Fetch + ideafarms" (minus quotes).