Metrics of FINANCIAL Performance

1.Primary Reserve Ratio= Expendable Net Assets/Total Expenses

The Primary ReserveRatio measures the financial strength of the institution by indicating how long the institution could function using its expendable reserves to cover operations should additional net assets not be available.

2.Return on Net Assets Ratio= Change in Net Assets/Total Beginning Net Assets

The Return on Net AssetsRatio measures total economic return and indicates whether the institution is financially better off than in previous years. A decline may be appropriate if it represents an institutional strategy to fulfill its mission. An improving trend indicates increasing net assets and additional reserves which provides financial flexibility.

3.Net Operating Revenues Ratio= Income before Other Items/Adjusted Net Operating Revenues

The Net Operating RevenuesRatio indicates whether the institution’s operating activities resulted in a net deficit or surplus for the year. The ratio measures whether available resources are sufficient to fund operating activities.

4.Viability Ratio= Expendable Net Assets/Total Debt

The ViabilityRatio measures the ability of the institution to cover its debt as of the balance sheet date, should the institution need to settle its obligations.

5.Debt Burden Ratio= Debt Service/Total Expenses

The Debt BurdenRatio measures the financial strength of the institution by indicating how long the institution could function using its expendable reserves to cover operations should additional net assets not be available.

6.Bond Ratings:The Bond Ratings indicate the institution's debt is considered high-grade, high-credit quality.

Managing RISK while Consulting

Consulting has always been a difficult task when the problem of the Client is huge and complicated.Its obvious that the greater the problem,the more the Client ready to pay for it.If a Consultant wish to undertake higher value-added engagements, he is likely to expose itself to greater risk.The bigger the organization,bigger are the issues,more time required to understand the organization,lot of analysis.In the above scenarios,Risk Management is a real necessity.

The key to good risk management is an early assessment of where the risks may occur.The best way is to categorize risks to Clients,Engagement,Methodologies,People and Fees/Contract.The power structure of the Client needs to be understood.The pre-conceived notions of the Clients can create a clash.Its always necessary to understand your client especially in big organizations.Especially, in a big organization,nature of engagement is important.It could be that a solution in a big organization is being sought for an immensely difficult issue.The likelihood of finding such a solution must be assessed.Methodologies that are well proven reduce risk.Its always necesaary to match the skills of the Consultants with that of the staff in the Organization.It helps in understaning the problem better and co-operation among both the parties increases.Finally,there should be a clear cut understanding of the payment procedure,clauses,liability terms n conditions.

A good risk management leads to a better Consulting!!

The BEST Companies to work for!!!

Its time for the Companies to conduct Surveys and Research.Its time again for the companies to see themselves as the Best Company to Work.Its time again for the Companies to be in the RAT Race and put all their efforts to be the BEST Company to work.But,my concern is whether the companies effort really helping the employees and the organization.Suddenly,everything is changed during the survey.The senior management closely take a look at the employees of the organization to MOTIVATE and provide GYAAN to vote their organization.Whether the Survey just consider the "SMILING FACES" or also consider the "DEJECTED MINDS".Are the efforts of the organization have just turned as a TINSEL WORK like "Koffee with GM", conducting Fashion SHOWS and Tournaments for the Employees, providing global opportunites just to stop the employees from leaving their organization.Everyone talks about hiring the Best Talent,training and organizing them,but whether the Best Talent hired are used effectively or the best talents takes a pleasure in spending most of the time in Cafeteria,chit-chatting near the Vendor Machines.

Whether the "BEST COMPANY" really exists or is just a misnomer which takes its shape during the Surveys and suddenly there is a fullstop after that.A thing to ponder for sure....!!!!

Achieve IT OPERATIONAL Excellence

IT Operational processes includes:
1)Business Continuity and Disaster Recovery.
2)Change, Configuration, Inventory, Asset, and Service Request Management.
3)Infrastructure and Application Management.
4)Production Acceptance, Production Control, Quality Assurance and Release Management.
5)Workload Management and Job Scheduling.
6)Systems and Network Monitoring, Capacity Planning and Performance Measurement.

The Processes that support Operational Excellence includes:
1)Database Management and Administration.
2)Business Relationship Management and Service Level Agreement.
3)Cost Recovery and Budget Management.
4)Hardware and Software Support.
5)Web Services Management.
6)Vendor, Negotiation and Contract Management.
7)Problem and Knowledge Management.

Steps for moving towards Operational Excellence:
1)Document Process Flow:It is easier to change processes when they are documented and understood by staff.
2)Identify Skills required for staff:Continued institutional commitment is necessary to keep knowledgeable staff in operations area.
3)Automate routine aspects of the Job:Since consistent process execution and maximization of resources is very important, automation becomes crucial.Automation resolve more complex issues.
4)Improve Processes:Operational Processes whould be reviewed against actual performance.Eliminating human failure,frequent handoffs, and bottlenecks needs to be a stated goal and addresses on a consistent basis.
5)Define best Practices:This is the ultimate goal of service delivery

COURTESY:EDUCAUSE(ECAR)