 |
Archive for the ‘strategy’ Category
Tuesday, April 13th, 2010
Business acumen is such an important part of business and our everyday lives. I believe that many of us do not fully appreciate how much financial literacy impacts our daily business activities, as well as the activities in our personal lives. However, those who are fluent in the language of finance, accounting, economics, and strategy, regardless of whether or not these subject were part of their formal education, find themselves with an open seat at the decision making table in their organizations and are able to make smart financial decisions for themselves and their families.
Thomas Cooley, professor of economics and former dean of the NYU Stern School of Business, articulates the importance of having strong financial knowledge:
Many of the most important decisions consumers make in their lifetimes involve financial products: a mortgage to purchase a home, a loan to purchase an automobile, credit to make a large durable purchase, investments for retirement and insurance to keep one’s family secure. All of these financial products have become increasingly complex over time and there is a much wider range of product options offered by different providers, making decision-making more complicated. Consumers need to be financially literate in order to make well-informed choices about such complex products. A growing body of evidence suggests that many consumers lack the knowledge they need to evaluate and make decisions about financial instruments.
Fixing our financial illiteracy and understanding the fundamentals of business acumen (finance, economics, accounting, and strategy) will not only aid you in your personal, consumer-based life, as Professor Cooley mentioned above, but will open doors for you at work, allowing you to sit at the conference table and make decisions that ensure viability – the life blood of organizations, the ability to stay competitive, profitable, and relevant.
Tags: Business Acumin, finance, strategy
Posted in business acumen, finance, leadership, strategy | No Comments »
Thursday, March 4th, 2010
What does trick-or-treating and a Masters in Business Administration (MBA) have in common? Think about it for a moment – maximizing your gains, equations for efficiency, and opportunity costs. Are you seeing the connection yet?
Maximizing Your Profitability
I was watching a report on CNN last week about the strategies of maximizing their acquisition of treats on Halloween. Instead of just taking a “dash and grab” approach, some people take a more economic approach to their quest for sweets. The people at Zillow.com have done some research on five major cities to identify the “best” neighborhoods for trick-or-treating. While there is a common belief that wealthy neighborhoods are the prime place for harvesting the most Halloween treats, it is only a part of the equation for efficiency. To provide a more holistic approach to Halloween trick-or-treating, the Zillow Trick-or-Treat Housing Index was calculated using four equally weighted data variables: Zillow Home Value Index, population density, WalkScore (point to point distances), and local crime data. Based on those variables, this Index represents neighborhoods that will provide the most candy, with the least amount of walking and safety risks.
Jackpot
Some may find Zillow’s index to be an unnecessary approach to the trick-or-treating adventure, but for others it is just the kind of thing that makes the holiday even more enjoyable. After seeing the report on CNN, I saw this holiday as a great time to teach my kids about economics, finance, and getting the highest revenue with the least amount of input (revenue = candy). What makes this even more of an economical and financial teaching opportunity is that a local dentist is offering $1.00 for every pound of candy brought to their office during the week after Halloween. What made this offer even more interesting was that CNN also reported a statistic that the average child gathers 17.1 pounds of candy on Halloween. So, if my kids want to use Halloween as a chance to have fun and make money, there are strategies to do so.
If you ask parents today if they want their children to go through the higher education system, the answer is predominantly, “yes.” I believe preparing young people to be ready to receive a college education is as important as actually obtaining one. The same is true for anyone. There are opportunities for education and skill development all around us, just like this “trick-or-treating” example.
Education To Make A Difference
For those of us who are college age or older, but still have a desire for gaining more education, there are diverse opportunities available. There are accelerated masters programs, online degrees, and Mini-MBA Workshop. The Mini-MBA Workshop is a great way to learn the fundamental concepts taught in a traditional MBA program, but at much less costs and in a much shorter time frame. I attended this fantastic course offered by CMOE, developed and Columbia University, and taught by David L. Buckner. It helped me to understand the key concepts of economics, finance, and accounting, helping me to be more affluent in the language of business. Knowing more business acumen key terms and concepts has had a great impact on my contribution to our organization. While I didn’t earn a Masters degree, I have the ability to apply valuable concepts to my everyday efforts and decisions. As the writer and scientist, Carl Sagan wrote, “Knowing a great deal is not the same as being smart; intelligence is not information alone but also judgment, the manner in which information is collected and used.”
Tags: accounting, business acumin training, leadership, Mini-MBA, strategy
Posted in Mini-MBA, accounting, business acumen, economics, finance, leadership, strategy | No Comments »
Wednesday, November 18th, 2009
Probably one of the most talked about cultural phenomena happening in the technical world is the growing and insatiable need for instant fixes. We have instant messaging, instant information off the internet, and instant news flashes. We watch crimes solved in less than an hour on television and relationships grow from dislike to love in an hour and half at the nearest theater. We purchase instant meals at fast food restaurants and from the nearest supermarket’s frozen and dry box sections. Commercials tell us we absolutely need that new car, new house, or new dishwasher – not tomorrow but today. Don’t worry, you have instant credit.
What’s the outcome? Credit card debt is at an all time high. Lending institutions needing immediate government help in covering sub-prime loans. Societies demand instant fixes to the political, economic, environment issues, and health care. Well, it ain’t gonna happen.
 The real issue isn’t so much wanting instant fixes, but assuming that it is “normal.” It took years to get the economy where it is and will take years to get back on track. Our immediate question shouldn’t be when but which track?
For many diverse nations, a unified consensus in society cannot be achieved quickly. In fact, it may take years of difficulty and negotiation. However, organizations don’t have years. They need team accord and alignment quickly or they go out of business. Yet, even alignment can’t happen overnight. It takes time to define the where they want to be.
Aristotle is credited for stating something such as, “The way to achieve success is first to have a definite, clear, practical ideal–a goal, an objective. Second, have the necessary means to achieve your ends–wisdom, money, materials, and methods. Third, “adjust all your means to that end.”
In other words, if you want to success you better know where you are going. You may not have months to evaluate an organizational goal but take time to get it clear, write it down, and asses it as thoroughly as you can. When you are clear about your goal, you will know what you need, how to get it, and how to convey it. When people in the organization understand the goal, it will be easier for the participants to become invested in the goal and will naturally adjust their means to achieve the goal.
Too often, instant fixes are not thought out. They leave people confused about the intentions of the fix. If people of an organization are unclear about their ultimate goal, they flounder, looking for purpose. Without direction they create goals that are not in alignment, ultimately creating chaos.
Tags: demand instant fixes, organizational realignment, realigning strategy, team accord and quick alignment
Posted in strategy | 1 Comment »
Monday, October 26th, 2009
In July, the Chilean port city of Iquique received 100th of an inch of rain with 10 mph winds.  For most of us, we wouldn’t even notice the event let alone it deter our everyday life. But for this city the conditions resulted in roof damage on over 4,000 homes and wide spread power outages. You see, Iquique is at the heart of the Atacama Desert and the average rain fall per year is only 0.02 inches. The Chilean people of Iquique don’t think about or plan for much rain. Homes are covered with wood, plaster, or cardboard and many do not have a slope. The roofs are designed to protect inhabitants from the sun rather than rain.
This story really caught my attention, in the context of strategic thinking and planning, because here was an example of strategy being very situational. While, it seems that they could have strategically prepared for this type of scenario, the normal situation indicated that the optimal strategy for building homes is to keep out the sun and not necessarily the rain. I am certain, for the many who were caught in these difficult circumstances, it could be argued that they applied the right strategies for the environment and any other actions would have been over strategizing, even extravagant.
It is difficult to find the optimal strategic zone where you don’t get caught in wasteful over-strategizing or risky under-strategizing. What I have learned is that you have to apply your best information and knowledge to each situation and commit to the strategy that seems to have the right balance. And if conditions change, well you just respond accordingly and know you did your best.
Tags: commiting ot the strategy with balance, dangers of under strategizing, optimal strategic zone, Situational strategy, under-strategizing
Posted in strategy | No Comments »
Wednesday, July 15th, 2009
Impressions of The 4-Hour Workweek by Timothy Ferriss.
While the title of this book intrigued me (only four hours of work a week), I just didn’t get around to reading the best seller until a couple of weeks ago. It’s a fast read and well articulated. I really liked Mr. Ferriss’ first concept that “Time is Money.” For me this view is right on. Too often, we are so busy trying to make a better income, we forget just how much it really costs us. Three main elements in the book caught my attention. I feel they are well worth considering if not incorporating into your life: Elimination, Selective Ignorance, and Outsourcing.
Elimination
As we age, we naturally reach a point where we begin an elimination process in our lives. We not only cut back on material possessions, we also begin to eliminate unfulfilling activities. Mr. Ferris is simply moving this process from the autumn years to the spring years of life.
Selective Ignorance
 One person cannot know everything about everything, and yet we all know people who will not, maybe cannot, say, “I don’t know.” Selective Ignorance, according to Ferriss, is the process of deliberately ignoring topics that may not be relevant or will take too much time to explore. I agree that it is important to limit our focus to what we can handle realistically, but it may not always be to our best interest in doing only those things we enjoy. Think about the first time you were on a bicycle; can you honestly say you enjoyed falling off that two wheeled contraption? Yet, today you may be an avid bicyclist.
Outsourcing
Asking others to do jobs that are outside our expertise is a no-brainer. However, I have two main concerns about giving our tasks we consider time wasters, to others. First, outsourcing will not guarantee that what you get will be what you wanted or needed. Simply put, no one sees the world like you do. Second, by giving your time wasters to someone else, are you adding more hours to their work week. You must ask yourself, “What’s the cost? Is your time more valuable than theirs?” Rather than outsourcing time wasters, let’s go back to the concept of Elimination. Get rid of them and make everyone more efficient.
Summary
What concerns me most about Mr. Ferriss’ book is the impression he gives that you should simply stretch the rules of the game to fit your needs so that you can win the prize. Example, early in the book he talks about using loop holes in rules to win an international sports competition. He drastically reduced his water weight to weigh in at a lower weight so later he would outweigh his opponent. And because he didn’t have the skills, he used another loop hole in the rules to win by pushing his opponents off the mat. So, okay, he won the prize. Strategy and tactics aside, what about ethics! What about to the personal satisfaction in acquiring the skill to compete? While winning is important, the pride in developing the skill is often more satisfying.
Tags: 4 Hour Workweek, efficiency strategies, leadership skills, saving time at work, Strategic Thinking, time is money, Timothy Ferriss
Posted in achievement, continuous improvement, performance, planning, strategy, time management | 1 Comment »
Wednesday, May 20th, 2009
Recently I received a call from my husband. The conversation began with him saying, “Don’t get mad…” If you have ever heard those words from a loved one, you know what kind of dread sets in as you anxiously await the bad news. This particular call was no different. He had been in a slight fender bender – his second automobile wreck in a mere 18 months. I was furious, but tried to remain calm as he is fairly new to driving in the U.S. I asked if he had used the process outlined for him in the event he was in another accident, no matter how minor. He proceeded to tell me that he had not done anything and I was the first person he called.
 I recalled his first car accident (from 18 months ago) and how afterwards, we had created a step by step process to help him in the future. In addition to creating a process and with the hopes of being as strategic as possible, we discussed plausible outcomes that follow an accident and how he could handle each one. For me, I had thought this was an excellent opportunity to think ahead and plan for the future, as the odds of a car accident repeating itself in his lifetime were not in our favor. I made sure my husband had updated insurance cards in the car, an “accident packet” with phone numbers and our written process for what to do. In my mind, my husband had all he needed to manage such a situation effectively.
Following his second accident I took away three lessons for what now lies ahead:
- You can never be too prepared. The path to become an effective strategic thinker does not end when the clock strikes 5 and you go home from work. For example, I could have talked to my husband a bit more about car insurance when we renewed the policy.
- Think and re-think possible and plausible scenarios. Time, attitude, and experience changes and thinking strategically by anticipating this ever changing world allows us to be more prepared.
- Plan. Execute. Adapt. Repeat. Thinking strategically means having a plan in place and executing the plan as needed. Change is inevitable and you must be proactive to the change, adapting, not reacting to it. Repeating the process is how we grow as strategic thinkers as there will always be a next time.
It was clear to me that day that thinking strategically is not a 9-5 job. Strategic Thinking is an ongoing responsibility that extends beyond work and into your day to day life. As you implement these few points you will be better prepared for the next time you hear the words, “Don’t be mad…” Wrecks happen. Deadlines happen. Obstacles happen. When we learn to think strategically, it makes us better prepared to control the situation, rather than the situation controlling us.
Tags: Applied Strategic Thinking, planning ahead, Strategic People, Strategic Planning, Strategic Thinking
Posted in strategy | No Comments »
Monday, May 18th, 2009
Upon meeting new people, one of the first questions I am asked is often, “Where do you work?” or “What do you do?” This was the case a few nights ago, after being introduced to a colleague of a friend. When I explained that I work for CMOE, which provide leadership and employee development training, he asked me to tell him more about it. I gave a brief list of our services and explained that one of our most popular workshops is on strategic thinking. He said he took a class on strategic management, but it didn’t apply to him because he wasn’t an executive. I explained to him that strategic thinking is not the same as strategic management.
Strategic Management
Let’s look at Strategic Management in general terms. Wikipedia explains, “Strategy is the art, science and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization’s mission, vision and objectives, developing policies and plans. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives.”
Applied Strategic Thinking
Applied Strategic Thinking is a way of scanning your environment, finding ways to perform more efficiently, being more innovative, and reacting to outside challenges and opportunities with more confidence because you have already considered variables.
 The Difference
Notice that the main difference between these definitions is the timing. Where strategic management is a long-term plan for the future, Applied Strategic Thinking considers the future from the next few seconds to however long the concept will be relevant. In other words, you can consider the best route around an accident or plan for your retirement and everything in between including your influence on the future of your organization.
The second difference is in the number of members. Strategic management usually takes a team to determine the direction of an organization. Strategic thinking is something everyone, as individuals, can do. So a strategic thinking janitor may discover that changing a product will be less expensive, more effective, or perhaps more environment friendly than the current product being purchased. Strategic thinking means an individual looks at his/her environment, evaluates it, and then asks, “What would happen if . . .?”
Tags: Applied Strategic Thinking, Strategic Management, strategic management experiences, Strategic People, Strategic Thinking
Posted in individual strategy, strategy | No Comments »
Wednesday, April 15th, 2009
Several years ago I was invited to participate on an industry association panel, discussing “offshoring,” (which means outsourcing globally). Having been a senior leader in a global company for many years, I asked the first very obvious question — Which shore? I proceeded to have some fun in addressing the subject by noting that virtually all developed countries (and of late some not so developed countries) are having similar discussions.
While many educated people can discuss the economic and social impacts on countries of the movement of goods and services around the globe, I would like to address some principles of building and operating a company that spans multiple continents.
 Let’s begin by getting some of our vocabulary aligned. There is a difference between being an International” company versus a “Global” company. A lot of companies have out-of-country activities that may include sales and procurement – this is an international company, even if it includes a few regional offices. A global company truly operates in various countries providing goods/services both in the native country as well as moving goods/services between countries. A fully functioning global company has a culture and perspective that transcends the locale where it is registered or where its stock is listed.
For those companies desiring to be truly global, the development of an appropriate company culture cannot be left to chance – building the desired culture is a full-time job. A global company is not just a series of regional companies strung together under common ownership. Quickly one can see the need for tailored products/services and the delivery of these to satisfy the local or regional market expectations. But here is the bigger question: How do you build a team of people who recognize the need to serve the local market and effectively operate their assigned area while also being part of the bigger team where they can exchange ideas, get inspiration, and contribute to the advancement of the entire company?
Commitment
Building an effective global culture is not inexpensive, nor is it a one-shot deal. It is a concept to which all senior leadership must commit and make a part of their daily actions. Human Resources can help with well planned global talent assessments, succession planning, and leadership skills development, including expatriate assignments. Cultural sensitivity training and facilitated mixed culture forums can start the process.
Vision
There has to be a Global Vision/Mission statement that is an anchor point for your leaders, irrespective of their home country. It must have longevity, addressing the business purpose and corporate values.
Acceptance
Perhaps the most powerful force in building a global company is the basic human trait to accept and bond with those we have come to know on a more personal basis. Audio/video conferencing is a nice tool once a relationship is established, but it is ineffective for establishing the relationship. To establish the bonds between people and break down inherent nationalistic, cultural and personal biases, people need to travel and partake in the cultures of their colleagues.
Share
Forming a global team to implement a global or regional project (contrasted to a local team doing a global project) brings the best ideas forward and builds strong bonds that benefit the company well beyond the specific project. Functional leadership forums and best-practice sharing sessions break down barriers and drive the best ideas forward. Promoting those individuals that best demonstrate the desired culture will send powerful messages throughout the organization.
Diversity
There is a large WATCH OUT. In the drive for a corporate global culture it is easy to inadvertently paint a picture that the “desired culture” is, for example, American or German or Chinese. To be most effective, a company’s global corporate culture must reflect a mix of the best qualities its participants have to offer.
One way to measure your success in building an effective global company culture is to monitor your recruitment results. Are you able to equally attract and retain talented people from all the countries you serve?
Tags: global company, global market, offshore services, offshoring, offshoring companies
Posted in achievement, corporate strategy, organizational change, organizational development, planning, strategy, talent | 1 Comment »
Monday, December 1st, 2008
 Often times, the words “plan” and “strategy” are used interchangeably. The meanings of the words are quiet similar; a method for achieving an end. However, there are strong differences between these words as well. A plan is an arrangement, a pattern, a program, or a scheme for a definite purpose. A plan is very concrete in nature and doesn’t allow for deviation. If “Plan A” doesn’t work, you don’t alter “Plan A” and try again. Rather, you move to “Plan B;” something totally different.
A strategy, on the other hand, is a blueprint, layout, design, or idea used to accomplish a specific goal. A strategy is very flexible and open for adaptation and change when needed.
I recently heard a great example of the difference between a plan and a strategy, using sports. This example serves to illustrate the difference between a soccer team’s plan or strategy to score a goal.
A soccer team with a plan to score a goal might begin with a throw-in to another specific player. The ball would then be passed to a designated offensive player who would then be responsible for shooting the ball into the goal. The succession of moves would be deliberate and would not be adjusted when risks or obstacles to the plan were presented.
A soccer team with a strategy to score a goal might also begin a play with a throw-in one of a few different teammates. The main idea would then be to move the ball forward and pass to open offensive players who would then shoot the ball at the goal. The succession of moves would be open for adaptation and change if the ball were intercepted or if other players were open for receiving the ball.
When planning for the future, which is undeniably unknown, it helps to strategize and consider the various scenarios you might be faced with and be prepared to modify your strategy so you can keep moving forward, rather than starting over at the beginning.
Tags: goal setting and planning, layout planning, planning ahead, planning for the future, Strategic Planning, using strategy
Posted in planning, strategy | No Comments »
Monday, November 10th, 2008
If you were to take all of the tools you currently posses, your skills, your education, your experience, your laptop, your blackberry, and all other technology, and focus only on tasks, you would probably find yourself to be the most “productive” person on the planet. You could get much more done in much less time compared to everyone else. You could check off items from your daily “to-do” list at exponential rates, creating space for you to do more and more and more.
But wait just a minute, is success and productivity only measured by doing more and more and more? In our world today, this often seems to be the case. We have so many tools to help us get more done in a shorter time frame and it feels good to check things off the proverbial “to-do” list. However, just getting things done quickly isn’t always better. In fact, it is quite possible that we get so caught up in getting things done, that we might be spending our time on things that really don’t deserve our time and attention! When this happens, it means we are getting caught in the activity trap. Our focus is on checking off the “to-do” items, but we become nearsighted to the long-term horizon. Now you must ask yourself the question, “If I lose sight of the horizon, then what am I really doing today?” “If I can’t see the future, then are the things that I am checking off on my daily “to-do” list helping? Or are they hurting future opportunities?”
Question: Why do people get caught up in the magnetic pull of completing tasks?
Answer: Because it feels like forward movement which gives you a sense of accomplishment and can create pride and self-worth. While this is good, I want to suggest that we make sure our daily contributions are going toward the ultimate focus, the big picture in our lives. So when we finally reach that pinnacle and defining moment, we know we were on the right track. Then we truly reap the fruit of our labors. Imagine working thirty, forty, maybe even fifty years down a path that when it comes to an end, it does not align with your ultimate end objective. Wouldn’t that be frustrating and disappointing?
 In order to make sure we have our daily contributions on track, it is important to do a little strategic thinking. That’s right. Just do a little more creative and critical thinking about what to do each day and how it will impact tomorrow. As an added benefit of forward thinking, you’ll be surprised at what items can fall off your daily “to-do” list. I don’t think any of us need more to do, our days are full enough as it is. What we need to do is make sure that what is on our plate belongs on our plate! Gaining control of our daily efforts creates a greater sense of accomplishment in the short and long term, as well as provides a sense of freedom. Freedom to do more with your time and freedom to spend your time focused on the right things. Everyday strategy is a concept that I believe can bring an added-value to you individually and to your organization.
Tags: Free Thinking, Strategic Planning, Strategic Thinking
Posted in strategy, time management | No Comments »
|
 |
