Business Optimization
Is outsourcing on a back foot?
As the US economy slows down, Indian companies face diminishing workload and lowering margins. But so far there have been no withdrawal symptoms. If the rupee is appreciating, it might be time for us to make the most of it by channelizing marketing in the right direction. It’s not a time for worry, it’s a time for some strategizing.
As the US market slackens, Indian outsourcing firms fear a danger. Of suffering lesser work, lesser profits and even having work taken away from them to countries like the Philippines.
“I don’t think it’s a situation of gloom for the industry. I think it’s a situation of cautiousness for the industry,” Azim Premji, chairman of India’s third largest software services exporter said recently. It is true. We needn’t panic about the appreciating rupee but about preparing ourselves well for what is to come.
The worst has not hit us yet. And it probably won’t. If there is one thing to learn, and many have learnt it from the 2001 crisis, we need to focus a little harder on the business. Glenn Gow of the Crimson Consulting Group opines in one of his pieces, “This time will be different. Software won’t get hit as hard – but it will suffer along with the rest of the economy. Vendors that shape their marketing strategy for the downturn will emerge stronger when economic growth returns.”
That is the trick. To make the most of what marketing costs offer you in a slump. As the economy slows down, this is the time you can leverage yourself to the utmost by investing in your image. If you present your strengths at the time of a slowdown, it puts you at an edge around your client. If you show results and enthusiasm at a time when all is not well, you are bound to reap benefits in the long run.
Instead of worrying over the US economic slowdown, it is a time of cost saving for most Indian companies. That is the only way you can recover from loosening profit margins. When you concentrate on confidence building with clients at this point, you are bound to make a stronger statement that will stay with them much after the slowdown has recovered. You can focus on some image building, find newer clients during the slump, and who knows, you might win a whole new set of friends.
It is up to the Indian software industry to make the most of the situation now. If everyone’s cutting costs in the US, which is where most of India’s business comes from (it is Indian software industry's largest market with a whooping 61 per cent share), there are all the more chances that more varied work will flow into countries like India. It gives us the opportunity to explore opportunities of doing more central software development instead of cloning processes that have simply been passed on by our Western counterparts.
So far we are primarily providing back-office services. There are little chances of doing premium work like coding and engineering management. So this might be a good time for Indian techies to learn the intricacies of the technology market as it works across the globe. This again requires us to undertake serious marketing so we are able to garner more work out of currently confused companies abroad that are not sure how they want to go about manoeuvring the economic recession.
The flipside, once again to India’s advantage, is that companies don’t cut down on processes that are mandatory to day-to-day processes. They would instead cut down on more nonobligatory jobs like consulting. This gives an advantage to Indian companies that undertake tasks indispensable to routine needs of an organisation. In an interview HCL chairman Shiv Nadar said, “Our work is the core of the client's business processes.” He says the company primarily focuses on technology services, which don’t impact their business in such a slowdown.
Innovation. That is another key to successfully rise out of the slowdown. Invest smart, get business that will impact you lesser and provide unique services at a good cost to new clients and old. This will boost your business now to propel outsourced work later. Indian technology firms can also look at exploring newer markets where they have not reached so far. With low costs, extended services and newer offerings, they can lure clients.
When in peace prepare for war. And that is what we ought to do. Many tech visionaries are likening India’s IT industry and the slowdown to what happened in Japan with the Auto industry and the appreciating Yen. Technology for India is an area of excellence and it is time for us to invest and use global best practices for India’s benefit. If we provide the right services at agreeable terms and invest into the image of the industry, we are likely to benefit in the long term.
www.shirazdatta.com
Posted by Shiraz Datta on March 26, 2008 at 05:25 AM in Business Growth, Business Optimization | Permalink
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How Soon We Forget
-- by Tom Nies
Xerox is widely considered to be an excellent “Learning Organization.” Not only does this firm consistently recruit top-notch staff, but Xerox also invests heavily in education, learning and training activities. As one measure of just how thorough are their efforts, Xerox tracks the amount of education and training that has been retained 30 days from a specific learning session. According to a person who was closely involved in these testing measurements, Xerox found that 82% of everything taught had apparently been forgotten after 30 days.
“How can this be?” you might ask. According to experts, such conditions develop for many reasons.
First, it is the nature of our conscious mind to seek to focus its interest as narrowly as possible. To do so, we must “off-load” other areas of interest which would distract from the specificity demanded for top attention.
Second, our human nature, as well as our conscious and subconscious, is organized hierarchically. Since our conscious mind constantly receives so much information, it could not function if all objects were kept at equally high priority. In order for us to optimally focus, our conscious mind constantly organizes and prioritizes the information received. Some information remains in our conscious mind, while other information is stored in the subconscious, retrieved when needed by “triggers.” This is why note-taking is such an important endeavor. Without such notes, we would have to rely on random triggers to summon up needed information from or subconscious.
Third, we tend to be creatures of habit. If we repeat something enough, we will not only remember it, it will become part of our makeup. Therefore, for any behavior to be habituated, the execution of it must be repeated over and over again. That’s why learning must be solidified by frequent drill and repetitious exercise. Failing to do so causes us to be com stale or “out of practice,” and hence subject to error or forgetfulness.
For those who may have a desire to consider these topics a bit further, I suggest the following resources:
The Act of Creation, by Alfred Koestler
Take Back Your Life, by Sally McGhee (specifically Chapter Five, “Clearing the Mind”)
Posted by TomNies on October 17, 2006 at 11:12 AM in Business Optimization | Permalink
3 Factors Driving Operational Excellence
A large medical device manufacturer lacked real-time data to support timely decisions for the logistics, manufacturing, and supply chain operations of its business.
The management team needed better insight into its business operations issues to take the right actions and improve efficiency. The company CFO accepted the challenge of running the project. He faced a big cultural hurdle: getting operations management to rely on a standardized system for the data to make decisions affecting sales, delivery, and customer service processes was a political nightmare. If he could create an environment that would break through that barrier without breaking the budget, he knew it would be a big win for the firm.
The secrets to simplifying business metrics
Three concepts drove the planning—design simplicity, content consistency, and a longitudinal, phased and evolving process —were at the center of every decision the design team made:
- Keep it simple—The team settled on creating dashboards to display operational metrics to key managers by area of responsibility. These managers could then drill into supporting reports and data to gain more insight into the contributing factors that led metric performance.
- Make it consistent—Rather than having competing versions of numbers that need constant and time-consuming reconciliation, build out a single source of truth—whether it’s physical or logical—to support operational decisions. The team felt they could cross that concern off the list when the source of data was consistent and beyond internal argument.
- Make it evolutionary—If they tried to hit every metric from the start, it would take too long—time the CFO knew they didn’t have at the start of the process. Their process had to be capable of evolving over time to incorporate changes in the business and additional information sources. To stay on track, the company chose to first address operational performance as the critical performance issues: supply chain, sales, and logistics.
In designing any system in a complex manufacturing or service environment, it would be well to follow this model. KISS -- keep it simple. Use facts to overcome opinions and build in a means to get at the facts that drive success. Look at the process from a longitudinal scope -- build in the capability to start simple and evolve with the business. Fix today what is most important today ... and then move step-by-step toward the full vision.
Posted by Dale Wolf on April 15, 2006 at 09:47 AM in Business Optimization | Permalink
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Facts Beat Down Opinions
The most difficult part of managing a global website is that so many managers have different and conflicting opinions on what the site should do and how it should be organized and what it should look like. It's not that anyone is being wrong-headed. Everyone is trying to make the project successful. But we all come from such different points of view that an enterprise-wide project of this sort becomes difficult.
The key learning is that we all have opinions and few of us have facts to support the opinions. This is true of the website, or a CRM project or a supply chain management project ... any project that crosses business units in a diverse corporation is subject to a kind of corporate schizophrenia.
So, for business managers venturing into such projects, analytics is the essential tool
And it appears that analytics is catching on ... nearly 90% of respondents plan on using more Web analytics tools in 2006. This according to Forrester's Customer Experience Peer Research Panel.
It seems that marketers are finally starting to realize there's gold in those click streams and shopping carts. There are plenty of great tools, even free ones. We use Webtrends and it gives us visibility into what our customers are reading (and not reading) ... analytics has been at the base of our last two website overhauls.
A key observation is that everytime we place what I call "early stage content" on the site, it gets good traction. Early stage content is stuff we write about customer pains and issues rather than about our products. Prospects who are in the early stage of investigating software solutions want to get a better handle on the problems. Once they are confident of their position, they move up the buying cycle and start looking at product content. So our next web improvement that we are now working on is focused on content useful to early stage prospects.
Posted by Dale Wolf on April 3, 2006 at 11:38 AM in Business Optimization | Permalink
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Overcoming Adversity
Obstacles, challenges, and tragedies are all part of life. Unavoidable. But lessons learned and shared from real-life experiences can help us in our life of business or business of life. Steve Kayser has authored a humorous essay filled with important lessons for success ... read Find Your Ode to Joy.
Posted by Dale Wolf on April 3, 2006 at 11:25 AM in Business Optimization | Permalink
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Consumer Community Site Simplifies Business
Sometimes simplicity is right under your nose. Or more likely your teenager’s nose. Photo-sharing site Flickr is used by many throughout the world and has received cult status with the online masses.
But I’ll admit, I never once thought of how to use it in business. Until I saw this posting on the Strategic Public Relations blog, one of my favorite industry blogs. (Plus, I know the guy.)
Check out how the free Flickr service can make marketing a little easier.
http://prblog.typepad.com/strategic_public_relation/2006/02/10_flickr_hacks.html
Posted by DonnaBurns on March 7, 2006 at 04:11 PM in Business Optimization | Permalink
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A Method to Our Madness
-- by Tom Nies
Daniel Bell* says that the heart of modern discovery is method. Method is to mind what levers are to muscles. We must have method and we must know how to work with method. Within this structure, thoughtful activity produces positive results.
Our search for method is not just pursuit of exactitude and a measure of our progress; it has a double purpose. The first of those purposes is to raise our general intellectual powers so we become more powerful.
Descartes once said, “An artistic ignoramus with a compass can draw a more perfect circle than the greatest artist working freehand.” And you know that’s true, since you remember your early days in grade school where you stuck in a compass and drew perfect circles. You had a tool to guide your hand. Method makes perfect.
The correct method is to the mind what that compass is to the hand. In business it makes more perfect sales cycles. I emphasize this over and over again because salesmen often resist method. They want to lift stones barehanded instead of using levers and tools. They want to do things free-form their own way, and they don’t understand why they never seem to be able to do very much. Those who understand how to use tools and to use methods will always have skills that others don’t.
* Daniel Bell is perhaps the most famous sociologist of our time. He put forth the concept of a post-industrial society or information age in his book The Coming of Post-Industrial Society (1973). Later, he re-named this concept the information society, for which he is generally considered as the creator of the term (1979).
Posted by TomNies on February 15, 2006 at 03:57 PM in Business Optimization | Permalink
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Who's Guilty of Biased Thinking at Your Place?
The Business Pundit (Rob May, Louisville) latched onto an intriguing piece of research and, as usual, the Pundit is asking the right question that makes the research relevant to all of us marketers. The research produced by LiveScience studied the decision making practices of politicians -- it turns out that they are routinely making decisions that ignore facts that don't support their party point of view.
Okay, so politicians are just humans and subject to stupidity like the rest of us mortals.
But it begs the question ... how often do you recommend a campaign or a product decision that flies in the face of facts that seem to tell you to go the other way? True confessions -- I've done it. Hopefully at this point in my career I have stopped doing it.
But I continue to witness brand marketers who -- in the face of contrary evidence --want to make a mark by producing a product or an ad campaign or one of a thousand other kinds of things that get done in the world of marketing.
Egos get tied up into the idea of the moment.
The risk of not succeeding prevents us from dumping a sunk cost.
We rationalize the facts away.
We support decisions that come our of our department and counter the decisions that come from other departments.
Maybe the existence of this LiveScience research will cause us to challenge projects before they go too far -- especially when there is some evidence to the contrary.
Posted by Dale Wolf on January 27, 2006 at 02:22 PM in Business Optimization | Permalink
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Mass Customization and the Innovation Fulcrum
My "Cool News of the Day" eNewsletter from Reveries just arrived with a very relevant insight into a major cause of complexity. As I read the analysis of an article in the December 20 Wall Street Journal (written by Mark Gottfredson and Mike Booker ), it was clear that the authors were referring to a concept that manufacturers know as "mass customization." Now this happens to be a subject Cincomers know a lot about because our manufacturing software is designed to facilitate mass customization.
However, the Cool News analysis points out how mass customization can become a critical tool in operational simplicity. I have inserted this article for your review:
The problem is that innovation, because it so often manifests itself as more choices, tends to breed complexity, which sends costs out of control and profits straight to Seat 29E. The solution, they suggest, is to master what they call the "'innovation fulcrum' -- between product variety and operating complexity." Take Starbucks, for example, where you can customize your latte "by size, type of milk, temperature and flavors -- but everything works off the same standard platform." Or HEB, the supermarket chain, where every store operates on a standard model, but also tailors its offerings to suit local tastes. Or Honda, where you can have any kind of car you want, as long as it's one of "32 build-combinations" in one of four colors.
The "innovation fulcrum" essentially picks up where Henry Ford's Model-T left off. Henry got it right by standardizing his offering, but missed his turn when he offered his autos only in black. Mark and Mike think companies could benefit from a "Model T" analysis, however: "On the operating side," they write, "companies need to think about what processes would look like with one standard offering" and then "add back those options valued by attractive segments of their customer base. The secret: Add only a single variable at a time and then trace the effect through the value chain." Henry Ford finally got it right by offering the Model A in various colors, but of course by then he was following his competitors.
These days, the most common mistake, according to Mark and Mike, is to "miss how complexity begins in the product line. The usual response -- launching a Six Sigma or other 'lean operations program -- 'falls short because standard accounting systems don't pick up complexity's full costs. Incremental approaches miss the gradual buildup of systems and mechanisms for managing complexity" and fail to "gauge actual customer desires." Their advice includes "raising the hurdle rate," by "requiring a higher rate of return on new products" which they say both "makes it more difficult to arbitrarily add variations" and "boosts innovation discipline." It's also key to "pinpoint responsibility for making innovation decisions" as well as track how the "innovation fulcrum can shift over time." They conclude: "Companies that hit the right balance between innovation and complexity create more efficient operations and more profitable customer relationships."
Many manufacturers see mass customization as imperative to meeting profit, cost and delivery goals, while helping to alleviate competitive pressures. Cincom provides industry-leading quote-to-order solutions that enable manufacturers to mobilize these mass customization initiatives. From reducing quote-to-order processes from weeks to minutes and driving down unit costs, to lowering the costs of sales, Cincom helps you increase sales effectiveness across all channels.
Mass Customization Benefits and Opportunities:
- Mobilize product rationalization efforts to support mass customization strategies.
- Increase configuration accuracy to ensure manufacturability.
- Bring engineering closer to the customer and eliminate non-value-added activities.
- Build products on-demand to customer requirements.
- Integrate your front-office and back-office strategies for rapid order fulfillment.
Posted by Dale Wolf on December 21, 2005 at 10:23 AM in Business Optimization | Permalink
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Who's on 1st?
-- by Tom Nies
Words of Encouragement to technology industry leaders
Put your customers first – and the people who are serving those customers a very close second. Seems obvious, doesn’t it?
But today, it's become very difficult for many public companies to properly balance support for all their constituencies because the pressure for market-share value is so great that they can't always find a way to properly balance all priorities for all stakeholders at one time. This is unfortunate. But it seems to make good sense to focus on your customer, their interests and desires, and on one's own people.
Shareholders should not be the exclusive focus for the company because this may cause companies to put their customers and their people in too distant a priority. Some companies have become so obsessed with shareholder value that they may neglect, or perhaps even seek to exploit unfairly, their customers - and pay too little attention to their own people. This, I believe, is a very dangerous game to play.
Cincom’s strategy is to deliver the best value one possibly can at the lowest overall cost, and provide the most creative and productive environment possible. This incidentally has been our strategy for over 36 years, as well. We believe that, in the end, shareholders will be well taken care of as a result, and not as a focus. In this way, all stakeholders can be optimally served.
Posted by TomNies on November 2, 2005 at 04:31 PM in Business Optimization | Permalink
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Blurred Vision: When to Lead, When to Manage
-- by Tom Nies
Not so long ago, I read a quite interesting book with the intriguing title of Blur. The premise of this book is that a whole new approach to management of commercial affairs and business enterprises is now urgently demanded because events, situations, technologies and opportunities in modern society are moving at such an ever-increasing rate of speed that we are no longer able to bring the many factors into a clearly intelligible focus. In other words, everything has already become "blurred," and will become even more so as the pace of change continues to accelerate.
One of the conclusions based upon the foundational premise of our "blurred" society is that we become comfortable with uncertainty, daring in doubt, and boldly go forward, even though there may be legitimate debate about the goals to be sought, the opportunities present, the resources available, and the chances for success. Never before has it been so necessary to rapidly “Move, Monitor and Modify” as we push forward.
If the author is correct, then the primary principles of management as they had been taught throughout almost all of the 20th Century must increasingly give way to new approaches to guide and develop a fast-moving, opportunistic commercial enterprise. Whereas in the past, the three foundational functions of management have been planning, organizing, and control, in the future, leadership must become evermore prevalent.
However, the principles of leadership and management could be said to be radically different.
Management: The Authority
Management is designed to direct or mobilize a unified and established organization. Just as a king governed not several different kingdoms, nor a confederation of independent states, so too a manager governs one united group that is not independent of, or free from, control by its superior manager. The authority of this manager or executive comes from the principle of jurisdiction. The principle of jurisdiction is a lawful, or official, authority over persons and matters under the domain of that jurisdiction. For example, a judge has jurisdictional power over those who are brought into, or under his court. But that judge has authority only therein.
Similarly in management. Based upon the authority provided by the jurisdiction of the manager's hierarchical office, the manager decides. The manager's judgment is influenced and guided, just as is that of the jury and the judge, by the information provided, and the context within which it is framed, along with the bias, opinion, experience and wisdom of the manager. But, these judgments and the authority to make such judgments apply only to those persons and matters under the jurisdiction of a specific manager. For example, the research and development manager can no more order or direct the sales force of its own company than the president of IBM can order or direct the actions of Ford Motor.
In summary, without jurisdiction there is no power. And without power, organizations can do very little. That's why the principle of hierarchical authority is one of the most severely and zealously guarded and maintained of all organizational principles. Within a chain of command, there can be no doubt over who is in command. To attempt to discredit or to subvert lawful authority is one of the most heinous of offenses in society, and in a business organization, since without authority and the power it provides to an organization, all members are put at risk.
Leadership: The Will
Whereas management is based upon the principles of jurisdiction, leadership draws its strength and vitality from the principle of volition. The word volition is derived from the Latin words volitio and volo, meaning the noun will. The human will is the power of conscious, deliberate action by which the free and rational human mind makes its choices of its ends, and of actions, and directs its energies in carrying out its determinations. In common parlance, we use such words as choice, purpose, decisions and directive effort or energy to describe the work of the will. It is the intellect that absorbs and processes information; but it is the will that decides and directs. Those who of their own free will join into various organizational pursuits or endeavors in support of a leader are often called "volunteers" (from Volo). So, the volition of all, leaders and followers alike, is the key to leadership.
Unlike management where the manager decides based upon jurisdictional authority, within the leadership sphere the volitional forces are in very large part a function of the free and natural choices that the followers make, which gives power to and confirms the leader. Without one's followers it is difficult to lead. Without followers, the leader may lie fallow. But, unlike those subject to or under the authority of a manager, the followers of a leader operate quite differently. This is because the word follower in no way means a subordinate, or a subject. This is because the words to follow mean to imitate. While Managers direct and control, Leaders everywhere encourage imitation, and followers voluntarily do so.
The leader then becomes "primes inter pares" (first among peers). The leader, therefore, must above all else lead by example. It is the leader who must set the precedent. But, the leader must also teach as well as lead. The leader's followers must know and understand what the leader seeks to accomplish with and through the leader's followers. But more importantly still, the followers, or imitators, must both believe in and similarly agree with the pursuits if the collaborative endeavors of the leader and the followers are to succeed. So by effectively leading, the leader teaches those who follow the leader's example, and thereby seek to imitate the leader. Example is a powerful and positive form of teaching.
Whereas managers direct through authority and subordinates respond through duty, a leader must communicate, teach and guide by example. Common belief and affectation are also essential between and among the followers and the leader. The leader, therefore, must also be a learner. And, the leader must not only learn ever more about the goals and objectives commonly sought, but must also learn from the leader's community about their wants, needs, beliefs and understandings. But besides this, the leader must also be a formal teacher. The leader must continuously think about, seek and formulate the ways and means to teach others so that they can better accomplish.
In summary, management is more authoritarian; leadership is more collegial. But, this does not mean that leadership is done through committee vote or majority rule. Since the followers are attempting to imitate the leader and to share the leader's vision, hopes and dreams, it is always the leader who must lead. The visionary leader's place is always with the team in the front ranks; the commander is usually more properly above the ranks. Moreover, within the leader's community, there are many other ancillary and facilitative leaders who must guide and shape ancillary and supportive functions that are in full and perfect harmony with the leader's vision or strategic intent. Just as there can be no subversion of a manager's authority, there can be no diversion or rebellion among a leader's ranks, or a desertion of the cause by the volunteers, if success is to be gained. While leaders must lead, followers must follow.
Leaders and Managers both seek to successfully and to effectively achieve important objectives. Where the management approach may be more appropriate for mature or established situations, the leadership style can be more suited for dynamic environments.
Posted by TomNies on October 28, 2005 at 11:45 AM in Business Optimization | Permalink
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A BPM Methdology
by Line 56: Debbie Moynihan
If you can see a business process, then you can leverage and optimize it. The increasing demand for business process models can be attributed to the growing need to integrate disparate applications, people, processes, and information. The key benefit and differentiator of business process modeling is that the models serve as guides to more closely align IT to organizational goals and objectives. Business process modeling provides a standardized means of visually depicting a set of logically related tasks. These tasks primarily involve the flow, decision points, events, and logic for executing a process. Together, the model is then used to define a specific business process that can be tested before deployment and then reused throughout the organization. While it has always been an important methodology, there has been a noticeable rise in the demand for software that enables business process modeling.
While traditional software development modeling is usually targeted at a specific software solution for the purpose of application development, business process modeling focuses on the way the business is run and includes all of the processes across organizations and applications.
Aligning Business and IT through Business Process Modeling
A business process can contain logic that can be leveraged by an application developer to either create new applications or update existing ones. Yet the business user doesn't need to know the application underpinnings in order to define, execute and reuse the processes successfully.
Businesses benefit most from modeling when it is used to ensure that internal processes are directly aligned with strategy and goals before they are implemented. Aside from the obvious benefits of modeling before deployment, there are three additional significant benefits of implementing business process modeling:
Clarity: it identifies and clearly documents a business's most strategic business processes. Through a visibly mapped approach, organizations can optimize those business processes that drive maximum ROI and competitive differentiation. Reusing these proven processes accelerates productivity because it provides a clear understanding of business processes and related costs and required resources. Further, business process modeling fosters stronger communication between the business and IT teams to collaboratively support the company's strategy.
Responsiveness: it enables increased operational effectiveness by more closely aligning IT deliverables with business requirements while allowing for modifications prior to deployment. Utilizing business process modeling, coupled with an overall business process management strategy, you can quickly modify applications to adapt business processes on demand as a result of changes in the market or competitive threats.
Business Flexibility: it allows business leaders and process analysts to modify business processes on demand. With business process modeling, the business user has a tool to modify and simulate business processes and see how a new business process will run and affect the business. New or modified business process models can reuse components and services across organizations and functional areas. A business user can then share the model with IT to deploy new applications, products and services quickly to respond to changing business needs.
Business process modeling is most successful in those organizations that embrace it as an organizational strategy and allocate the proper IT and business resources (including executive sponsorship) to ensure its success. For sustained, long-term success, an organization should seriously consider establishing an integration center of competence that is focused on business process management as well as best practices and a methodology around the business process modeling activities.
Debbie Moynihan is Program Director for IBM WebSphere Business Integration Product Management.
Posted by Dale Wolf on October 14, 2005 at 05:24 PM in Business Optimization | Permalink
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Business or Busyness?
Welcome to Busyness Club, hell-bent on a take-over of Business, Inc.
Do you get the feeling some days that email is running your life? That at the end of the day, you cannot point to accomplishments that make for success – your company’s success or yours? The days when you go home feeling like you achieved your day’s goals were done because you put in a 12-hour day?
One of the repercussions of all the corporate downsizing is that we picked up the work of those whose jobs were terminated. The work didn’t go away … we just took on more. But we didn’t do this efficiently. We just worked longer hours. The 50-hour week became a 60-hour week. And the quality of what we did went south. We’re tired and frustrated.
Shocking though it may seem Busyness Club is where we spend 90% of our time. This based on research by Heike Bruch and Sumantra Ghoshal. They revealed in Harvard Business Review that “fully 90 percent of managers squander their time in all sorts of ineffective activities instead of spending their time in a committed, purposeful and reflective manner.”
You’d be seen as Superman or Superwoman!
Imagine what you could really accomplish if you converted even half of this squandered time into more productive activities.
Bad Habits Reign
Not long ago I became fascinated why people with chronic illness lived such unhealthy lives. People with just three health conditions account for the majority of healthcare expenses. All they need to do is eat right, exercise, stop smoking and take their prescriptions as recommended by the doctor. But they don’t do it. They stay sick.
What if these chronically sick people just set a goal for themselves to enjoy every day of life more fully? What if they changed critical personal behaviors? What if they got support around them to help them through the behavioral change process until new habits formed? My guess is that they’d be happier and the Federal Government would save billions of dollars a year in Medicare payments.
What if we business people did the same thing?
That is, change the behaviors that are adding to our frustration and minimizing our productivity. What if we set out deliberately on a goal of accomplishing more while doing less?
- Change behaviors that hold back our potential for greatness.
- Clear our decks so we can seize new opportunities as they surface.
Clarify Your Values and Vision for a Successful Life
Create Immediate Separation and Balance between Work and Personal World
Your job is your job. Your life is your life. But your job is not your life. What is the personal dream and career dream you have for yourself? Begin at the end and work backwards. Values are the beginning of the end. Establish your priorities based on your values. Get focus on these and let them run what you do and who you do them with.
- What’s important and why?
- What’s the flow chart for how you will achieve the important things in life.
- Put it in writing.
The balance part comes from saying “no” more effectively. Low self esteem leads us to say “yes” when we should say “no” and you can still be a team player in achieving this balance. Do first those things only you can do rather than doing the work of others. The Do-it-Yourself mentality is self-destructive to you and the team. Protect yourself and the team from over-commitment, but do it positively. If you dump your work on others you are being an obstructionist.
Become Aware that Bad Habits Sabotage Us.
Kick them and Replace them with More Productive Habits.
It turns out that changing attitude and behavior is hard to do, even when we desperately want to do it. We’re not yet seeing the huge advantage we can gain. Habits will cause success or failure.
Begin thinking differently about priorities. What are the real values in life that make you feel good. The values and our vision of how to achieve them cause us to behave the way we do. If our focus is on accomplishment, then we will do more stuff so we feel good rather than focusing on the real issues.
Breaking this cycle is not easy.
- Identify the wasted time in your day … what’s not working?
- Replace these activities with new habits that lead more successfully to your values and vision.
- Know what is really important rather than what someone else says is important.
- Set aside your most productive time of the day to do the most important things.
Is answering the never-ending stream of emails that hit your desktop consuming the time you need to do more important tasks? You feel good about email because it gives you a sense of accomplishment, but it is not what will make you or your company successful. Break the habit and replace it with a new one. Instead of answering 50 emails, pick the one that no one else wants to handle … successful people do things everyday that other people don’t want to do.
If the 80/20 rule is at work (and it probably is), then 20% of what you do produces 80% of your value. Stay laser focused on the big things.
Follow the FAST acronym to move a team forward more productively.
Focus – do the important things right
Agree – collaboration is essential
Schedule – commit to deliverables and deadlines
Track – performance, quality, results
Start today.
Pick off the one thing you have been avoiding. Then pick off the one thing you can do better than anyone else. Keep things simple.
End the frustration and begin the celebration when you find the realization to get the motivation without hesitation to build the foundation for your salvation.
Posted by Dale Wolf on October 8, 2005 at 06:28 PM in Business Optimization | Permalink
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Hosted Apps Offer Flexibility and a Simpler Work Life
Hosted software applications are becoming all the rage, especially with smaller businesses. Sure, they’re less expensive. But businesses like them for another reason – they make their lives easier. As described in “Hosted Contact Centers Offer Flexibility,” which was originally published in Canada, host applications are easier to install, more scaleable and are less intimidating than traditional premise-based solutions. Doesn’t that simplify our working lives?
We at Cincom Systems have recognized the benefit of hosted applications ourselves. Several of our solutions are available in a hosted model, including our customer experience management system for call centers, Synchrony.
For more, check out the article at http://www.contact-center-today.com/story.xhtml?story_id=38446.
For more on Synchrony, visit www.cincom.com/synchrony.
Posted by DonnaBurns on October 6, 2005 at 09:50 AM in Business Optimization | Permalink
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In Search of Execution
By Dale Wolf

I am not so sure that creativity is any longer the magic button it once was in marketing.
Perhaps another way of stating my premise is that it’s not that creative ideas are unimportant. It’s just that without immaculate execution they become a dime a dozen. They fail to grow revenue over a sustained period of time.
A 1998 study by the
Corporate Strategy Board examined 172 of the largest companies in the Fortune 500 list. Only eight were able to sustain real growth of more than 6 percent; the others could not even keep pace with the GNP.
It’s not for a lack of creative strategies that growth is so hard to maintain. Every marketing manager alive has dozens of creative ideas tucked away waiting for the right moment to spring them on the world.
We put more value in the importance of creativity and uniqueness than it merits.
The trouble is that few of us are excellent at execution. Mediocre execution will destroy even the best creative ideas.
The fact is that a pursuit of creativity is dangerous and risky business. It diverts management from the real task of immaculate execution.
One example on the importance of execution: Our agency was retained to build a VAR channel for a marketer of data storage devices and media. We produced a comprehensive program to launch these products to the distribution channel, complete with introductory discounts to initiate trial. At the same time, a different sales group within our client’s company launched a promotion for the same products to major retailers. Can you imagine what happened to the company’s credibility when the VARs discovered they could purchase the same products from retailers cheaper than the VAR channels was selling them on an introductory discount?
A study of 1,300 publicly traded U.S. companies in fifty-five industries by Chuck Lucier, senior vice president emeritus at
Booz Allen Hamilton, found that basic ideas, copied over and over again in one sector after another, accounted for 80 percent of the breakout businesses created between 1965 and 1995.
Execute Proven Ideas - Replicating existing marketing strategies is cheaper — and easier to implement — than developing new ones. The secret is bringing to your company a great idea that some other company has tested. The big-box store, for example, is no longer an original concept. And yet this once big idea has now been replicated in consumer electronics (Circuit City), home improvement (Home Depot), and office supplies (Staples).
Focus, Simplify and Standardize – Okay, so this has been in every marketing textbook you have studied as far back as college. Why, then, do so few of us do it. Marketing is overwhelmed by complexity, and marketers’ predisposition toward creativity as kingly only complicates our job, our companies’ operations, and our own lives. If we fail to pick out our areas of competence and concentration, we will instead try to do a good job on everything and we will assure mediocrity of execution – for example, too many promotions, each poorly thought through and in the end producing only failure. We all look at marketing automation as a panacea but unless we simplify and standardize our internal processes, automation will simply create failure more efficiently. This is “bunny marketing” – lots and lots of activities hopping around everywhere with no direction.
Internal Collaboration Provides the Driving Energy – The marketing job is by nature one of influencing others both inside the company and outside it. The hard work of marketing lies not in developing a uniquely new product or the communications strategy for it, but in coordinating the efforts of R&D, manufacturing, finance, communications, sales. Do this once, and you’ve created a cross-functional “whole product team” that knows how to do it over and over again, and whose enthusiasm itself will champion repeating this process consistently. Excellence will increase over and over again.
Align Marketing and Sales – Nothing is more destructive than these two customer-facing teams acting independent of one another. The fact is that neither should own the success alone. You can hardly pick up a trade magazine without reading that sales teams ignore sales leads provided from marketing programs and that sales teams feel it necessary to produce their own sales literature because the stuff from marketing is out of touch with the real world. Technology now is available to bring these two teams together to assist customers in buying – but it won’t work unless the lances are parked at the front door and the marketing and sales swords are melted into one big scythe.
Context Counts More than Creativity. The big idea doesn’t have to be the brand-new idea. Something common and successful in another industry can be new to in the context of your organization and your targeted market.
Two years ago, we ran an advertising and promotion program using Fortune Magazine as the foundation. It generated very high levels of awareness with our target market, but it failed to produce movement into the sales pipeline. Rather than ditching the program the following year, we analyzed where execution was weak and ran the program a second year. One quarter through the second running, some things still were not going right, so we went about fixing them immediately. Along the way, our execution is getting sharper and sharper
A well-tested breakthrough idea is more than enough to excite your team, create belief, and build the world’s greatest marketing department.
Posted by Dale Wolf on October 2, 2005 at 02:28 PM in Business Optimization | Permalink
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LEADERS AND MANAGERS BOTH REQUIRED
-- by Tom Nies
Almost always, management theorists are reluctant to emphasize leadership as the key factor in determining an organization's success. Experts of the management persuasion tend to assert that factors such as a winning culture, efficient work processes, customer focus, planning, organization, structure, control and cmmunication, along with marketing, research and development, and any number of other ancillary attributes are the "sine quo non" (without which there is none) for success. Few would disagree with the very great importance of each and every one of the above factors; moreover, many more could be added.
However, those of the leadership school believe that leadership takes precedence over everything else. Those theorists support their belief with the argument that it is the leaders who understand why certain opportunities exist and decide what needs to be done to optimally capitalize on these situations, and appoint or attract those who will help the leader to bring these possibilities to fruition. Moreover, those of this school argue, it is the leaders who are the visionaries, who transmit these visions to others, who create the culture and who choose the managers.
In fact, however, it is not an either/or condition because both leadership and management must harmoniously coexist for ongoing success. Moreover, a single person, no matter how powerful a leader he or she may be, certainly can't develop or improve even a moderate size organization alone. Rather, success takes the concentrated energy, ideas, enthusiasm, dedication, skills, commitment, belief and sacrifice of many people. Still, without the leader, movements cannot get the traction needed to begin, and once underway tend to dissipate for lack of the necessary ongoing direction and momentum building.
While leaders and managers are both essential to a successful organization, they fulfill different functions. Peter Drucker teaches that an effective organization does the right things, while an efficient organization does things right. If an efficient organization is doing the wrong things, it will not succeed. Conversely, even though an organization becomes effective choosing the right things to do, if it is not efficient, it can gain neither the quality nor the economies needed to continuously succeed in highly competitive environments.
Since leaders and managers fulfill different functions, their skills, interests, desires and approaches are also different. Seldom is one found who can be at the same time both an excellent leader and an excellent manager. While leaders focus more on the vision and the goals and encourage others to follow and support these desires, managers focus more on what must be done and how to best accomplish these goals and objectives, as well as establish the all-important metrics needed to measure progress and develop the systems and procedures needed to propel the organization forward towards these goals as rapidly and efficiently as possible. Just as a healthy left and a right leg are needed for a person to run forward, so too is it necessary to have both good leaders and good managers working harmoniously together to have a healthy and professional organization.
Leaders inspire, mobilize, and encourage support; managers organize and manage those supporting the leader, and the leader's objectives. While managers of necessity must usually operate in a type of hierarchical chain of command structure through a series of subordinate managers, leaders tend to operate more informally, with ancillary teams or project groups, usually operating around (not necessarily under) leaders in a more networked, or loosely linked structure. Managers move towards stability and predictability; leaders tend to be more ad-hoc and dynamic, always pushing towards the future.
It is the desire of leaders to make the future that does not yet exist become a reality. Managers seek to make the current situations more productive and more successful, and by so doing provide support for future accomplishments. Leaders usually think in terms of quantum leaps; managers of necessity usually, but not always, process incrementally. But, both leaders and managers must operate well proactively (causing things to happen) and reactively (responding to events and opportunities).
Built to Change
Because of the hierarchical nature of the structure usually needed once an organization develops critical mass, there often develops an environment where leadership tends to dry up within the hierarchical structure. When, and if, this happens, the stabilizing nature of the hierarchical organization tends towards rigidity and ossification. And in dynamic environments and marketplaces, this can become catastrophic all too quickly. In slower moving past times, organizations could gradually and incrementally improve themselves and carefully and methodically respond to change over very long product or service life cycles. Moreover, such approaches tended to maximize product life cycles and multiply significantly the returns made on past investments. Sometimes in times past the profit yields from such long-term returns were truly fabulous and generated immense wealth. So, it was highly desirable to maintain this order of affairs as long as possible. Because of this, organizations in times past were "built to last." Organizations, once established and constructively managed, tend to stability, and not to change. But, with increasingly short product or services life cycles, and the myriad of opportunities and threats evermore present, modern organizations must now be "built to change." Effectively developing the changes necessary to improve such an organization becomes the joint responsibility of leaders and manager working collectively and constructively together in harmony and concord for the best interests of all involved.
Posted by TomNies on September 28, 2005 at 11:08 AM in Business Optimization | Permalink
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Dynamic Times Demand Dynamic Organizations
-- by Tom Nies
Like the laws governing the rate of acceleration of falling bodies, the dynamics of society and business affairs tend also to be subject to accelerating forces demanding ever more responsive and fast-changing, commercial organizations. If there is an essential theory that must pervade a modern organization, it is that success requires the ability to quickly master revolutionary change.
This demands the dramatic and dynamic challenge of what is often referred to as the creative destruction and the rapid rebuilding of an organization in order to improve it - and to be willing to do so repeatedly.
In order for organizations to consistently win over time, internal revolution (not evolution) must be driven by leaders and managers with the ideas, the heart, and the will to continuously respond to an ever-growing number of new opportunities. To stay alive, an organization must adopt life-sustaining change as its way of life. Of course, not all change is improvement, but without change an organization cannot improve itself.
Similarly, without the ability and desire to respond to new opportunities, or better still, creating products and services that create new opportunities, an organization can neither survive over time, nor thrive in its current time. There is little doubt that the revolutionary changes usually needed to properly respond to new opportunities can be painful, and risky. Nor is there little doubt that the conserving forces within an organization will tend to resist the potential pain and risk that such dramatic change demands.
Leaders Needed
In all facets of life, including business affairs, one must master change. Faced with increasingly difficult, demanding, large, and frequent mega-shifts in worldwide economies, societies, technologies, marketplaces and competitive forces, organizations need leaders and managers at every level and throughout all aspects and functions who can optimally redirect an organization's emotional and economic energies and resources.
Throughout every organization, its leaders and managers must be willing, if not eager, to repeatedly let go of the tried and true established ideas and ways of doing things and quickly adopt newer and better ones. And, its leaders and managers must be able to encourage, to guide and to help each and every member of the organization to generate the very high levels of positive energy and commitment needed to do the same. As the monkey swinging through the trees of the forest must let go of the trailing but then still supporting branch as it grasps the next branch forward, so too must all members of a modern organization be eagerly grasping upon the next great opportunity as it moves rapidly forward, and willingly letting go of the old as it progresses.
For us, today's economic life is one of constant change. And these changes, while individually often seem to happen little by little, collectively they occur at such a great rate of speed that, in very short time, very great shifts in the organization have occurred.
Sometimes before we have realized what is happening, it has already happened. If, at every level, people are not constantly noting and thinking about the possibilities latent within seemingly small changes, by the time the cumulative effect of these is realized by those at the top of an organization, it is usually too late. No organization can rely solely on leadership from the top.
Leaders and managers at every level must realize that an organization will survive and thrive only through change. No matter what its situation, an organization's managers and leaders, at every level, can improve the organization and its competitive performance only if individually and collectively they can do an ever better job of generating new ideas, instilling better values, creating more positive energy, making tough decisions, and having the courage of their commitments to implement both incremental improvements, and to also gain quantum leaps forward as well. In today's organizations, everyone must contribute to the collective knowledge for us to achieve.
Posted by TomNies on September 27, 2005 at 11:35 AM in Business Optimization | Permalink
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Wal-Mart Remixes its Distribution
This story from Reveries:
With its operating profits lagging its sales growth, Wal-Mart is turning to a new distribution system designed to cut costs and increase productivity, reports Kris Hudson in The Wall Street Journal. Called Remix, the new system designates "some warehouses for distributing slower-selling general merchandise while others, deemed 'high velocity' warehouses, will supply a continual flow to the stores of rapid-turnover goods such as paper towels, toilet paper, toothpaste, some foods and popular seasonal items." Remix has been tested in four Florida stores and while Wal-Mart won't disclose results, the retailer will roll it out "on a grand scale this fall and complete ... insallation in 2007."
Not only is Remix expected to ensure that Wal-Mart stores never run out of high-demand brands like Crest, Tide and Bounty, but it should also liberate its workers from the task of manually sorting the high-velocity goods from the low-velocity ones: "At some stores, employees on the receiving docks sort through truckloads of arriving merchandise to find the products most in demand." This particular inefficiency apparently was the result of Wal-Mart getting into the grocery business back in the 1990s, creating two separate distribution networks -- one for groceries and another for general merchandise.
The problem intensified "as Wal-Mart expanded into the largest U.S. grocer, with nearly all of its 3,700 U.S. stores now offering groceries on some scale. Delays in restocking store shelves resulted because hot-selling items were mixed in with regular deliveries." Comments Rollin Ford, Wal-Mart's evp of logistics: "We could have done nothing and been fine from a logistics standpoint ... But as you continue to increase your sales per square foot, you've got to do things differently to make those stores more productive." Indeed, Wal-Mart moves "an average of 600,000 cases of products a warehouse (of which it has 117) a day." Target Stores, meanwhile, also has a warehouse "express lane" for "hot sellers" but on a much smaller scale "mostly because Target doesn't handle much of its own grocery distribution."
Posted by Dale Wolf on September 26, 2005 at 09:31 AM in Business Optimization | Permalink
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The Biggest Problem in Business
Do you want to know the biggest problem in business?
Too many people have copied too many other people’s best practices. That’s a sure route to mediocrity.
If your ERP or CRM software mandates you into someone else's best practice, you are standing on a slippery slope.
Posted by Dale Wolf on September 19, 2005 at 05:27 PM in Business Optimization | Permalink
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Expert Access Articles: September 7, 2005
A Real Work of Art … The Art of Work
Go for the flow
by Ann Marsh - Fast Company Magazine
Eight Bold Leadership Tips … Cultivate Them
Gain change and acceptance
by Alice Dragoon - CIO Magazine
Drivers and Destroyers of Customer Value
Step out from behind the see-thru mirror
David Reibstein - CMO Magazine
It's Not the Failure Stupid … It's the Failure Analysis
A black box for business?
by Amy Edmondson and Mark D. Cannon - HBS Working Knowledge
Sales 101 Final Exam
Complacency kills - Review skills
by David Stein, author of How Winners Sell
Intelligent Database Software Application Helped Track Down BTK Killer
Lawmaker seeks funding to expand technology
by Matt Sedensky – InformationWeek
Are Eight out of 10 Computers Really Infected with Spyware?
More malicious than ever
by Gregg Keizer – SecurityPipeline
Wanted! … 20,000 Mainframe Experts
Retirements and SOA create need
by W. David Gardner – InformationWeek
Put Your Best Words Forward ... Dynamic Documents
Creating streamlined and efficient customer correspondence
by Bill Koch - Expert Access
It's a Wiki Wiki World … Wiki's in the Business World
Goodbye to complicated content management systems
by Ezra Goodnoe – InternetWeek
Short Message Service (SMS) for Disasters or Emergencies
Available from most wireless providers
Posted by Dale Wolf on September 13, 2005 at 04:12 PM in Business Optimization | Permalink
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A New Organizational Model
CFO.com carries a must-read article on how big corporations must make sweeping organizational changes to get the best from their professionals.
To raise the productivity of professionals, big corporations must change their organizational structures dramatically, retaining the best of the traditional hierarchy while acknowledging the heightened value of the people who hatch ideas, innovate, and collaborate with peers to generate revenues and create value through intangible assets such as brands and networks. Companies can achieve these goals by modifying their vertical structures to let different groups of professionals focus on clearly defined tasks — line managers on earnings, for instance, and off-line teams on longer-term growth initiatives — with clear accountability. Then these companies should create new, overlaid networks and marketplaces that make it easier for professionals to interact collaboratively and to find the knowledge they need.
Companies can not only build this new kind of organization but also reduce the complexity of their interactions and improve the quality of internal collaboration by implementing four interrelated organizational-design principles:
- Streamlining and simplifying vertical and line-management structures by discarding failed matrix and ad hoc approaches and narrowing the scope of the line manager's role to the creation of current earnings
- Deploying off-line teams to discover new wealth-creating opportunities while using a dynamic management process to resolve short- and long-term trade-offs
- Developing knowledge marketplaces, talent marketplaces, and formal networks to stimulate the creation and exchange of intangibles
- Relying on measurements of performance rather than supervision to get the most from self-directed professionals
Posted by Dale Wolf on September 3, 2005 at 01:51 PM in Business Optimization | Permalink
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Get Out of the Conduit Business
By Dale Wolf
"Internal boundaries are obstacles to be overcome."