If you want
to drill down to the root cause behind what drives so much value in today’s
world, then you need to know your algorithms. An algorithm is a set of
instructions that processes inputs and provides some output. Companies that
master their algorithms unleash incredible value. Take for example Uber which
relies on algorithms to locate available drivers for customers, processes locations
and times, and then delivers online progress and statistics of the ride. When
you couple algorithms with great design, then you have a value proposition that
others will want. Therefore, getting your algorithms right has profound
implications on your business.
A collection of best practice articles to help grow companies with an emphasis on finance. The goal of the blog is to explain how these best practices work, enabling anyone to put these ideas to immediate use. Articles are written by Matt H. Evans, CPA, CMA, CFM
Wednesday, April 6, 2016
Tuesday, March 29, 2016
People Need Coaching - Part 2 of 2
Part 1 of this article laid the groundwork for transforming managers
into coaches. Part 2 of this article will focus on what every manager
can do to become a great coach. Much of this transformation from manager
to coach is rooted in the relationships a Manager has with co-workers.
In their book Stop Managing, Start Coaching, authors Jerry W. Gilley and
Nathaniel W. Boughton describe nine key components behind a
manager-employee relationship:
Friday, March 18, 2016
People Need Coaching - Part 1 of 2
There are
plenty of programs to help build and develop human resource capital within the
organization; things like personal balanced scorecards, emotional intelligence,
and the 360 Degree Evaluation. However, trying to implement these solutions is not
easy. Additionally, many of these initiatives involve considerable effort with
somewhat mixed results. What we need are very informal, straightforward
approaches to managing people for higher levels of performance. The answer may
reside in coaching. Coaching has been very evident in sports – we've all seen
how great coaches can turn a team of players into champions. And now coaching
has emerged as a rapid, easy and sure-fire way for managing people.
Monday, March 7, 2016
Lessons from the Shared Economy
The shared economy has become very real and can no longer be
ignored by all businesses. According to PriceWaterhouse Coopers, the shared
economy is likely to grow from $15 billion in 2013 to $335 billion by 2025. Part
of this growth is out of necessity. Cities are becoming very urban and this is
where everyone is migrating to; thriving in a world that increasingly is
getting very crowded. You can’t continue to add more cars, hotels, and other
infrastructure. Instead, people are adjusting and accepting the fact that a
better way is to share the infrastructure in highly concentrated environments. Businesses
will need to adjust to this new reality and recognize several lessons from the
shared economy.
Friday, February 26, 2016
The New Math for Pricing
It
represents one of the most difficult decisions you will make: What price do I
charge for my products? Many people, including myself, have always held that
pricing should be based on covering all of your costs with some allowance for
profits. However, thanks to Robert Dolan of Harvard Business School, there is a
new math for calculating price that goes beyond the financial numbers.
Monday, February 15, 2016
Welcome to a World of Structural Change
It used to
be economic change would run in cycles. We would experience periods of high
inflation followed by tight monetary policy that led to an economic slow-down.
Today, we have cheap money, no inflation and below average economic output that
is continuous. Economists and the Federal Reserve are perplexed about a key
question: Will we ever experience a full
recovery? The answer is No – we are in an age of structural change where
there are clear winners and losers. It’s like having an economic boom for some
and a depression for others.
Friday, February 5, 2016
Focus on the Process - Part 2 of 2
The words “business process reengineering” still leaves a negative impression for many in the business world. Years ago companies rushed to reengineer their processes to
improve quality and efficiency. However, the end result was less than desirable
– new processes were layered on top of existing processes resulting in more
work with fewer people. Costs were temporarily lowered benefiting investors.
However, other stakeholders in the process, such as employees, were victimized
by reengineering.
Thursday, January 28, 2016
Focus on the Process - Part 1 of 2
All
businesses require processes for the creation of products and services. A
process is a collection of activities that consumes resources and adds value to
the consumer (in the form of products / services) with some form of benefit
paid to the producer. Additionally, all processes have variation – in business
we call this risk. As H. Edward Deming, pioneer in the field of quality
management, points out – If you can better understand variation in a process,
you can plan for it and do things to prevent it.
Tuesday, January 19, 2016
Machines of Loving Grace
Machines
of Loving Grace is the title of a book written by John Markoff. Markoff is
a science writer for the New York Times who has followed technology for the
last 30 years. In the last few years, we have seen an escalation of
technologies, ranging from drones and robots to Artificial Intelligence and the
Internet of Things. This has prompted some of our best thinkers to challenge
what is happening. Stephen Hawking has remarked: “the development of full
artificial intelligence could spell the end of the human race.” Bill Gates and
Elon Musk have both voiced concerns about the birth of super intelligence or
machines that can think.
Thursday, January 7, 2016
Why Customer Retention is so Important to Growth
For many
businesses, the challenge of growth has become exceedingly difficult. Larger
companies seem to grow through acquisition since internal growth above 10% is
not possible. One of the keys to good internal growth is through retention.
Granted, it’s not easy, but if you can somehow retain your customers and get
them to come back, you have created a platform for growth that is much easier
to manage then a growth strategy predicated on acquiring other companies. Acquiring
and integrating other companies is very challenging and requires expertise that
most companies lack, not to mention the very low success rate even if you do
have outside help. Therefore, a growth strategy rooted in retention can be more
viable and sustainable over the long run.
Subscribe to:
Posts (Atom)