NY Times, 27 Apr 09
Delta Air Lines CEO Richard Anderson in an in-depth interview to Adam Bryant, on the unquantifiable aspects of human capital says that, the higher someone rises in an organization, the more important their intangible qualities become.
According to him, patience and the ability to control temper are the most important leadership lessons he has learnt since people look up to the leader and take their cues from him. Expressing gratitude is also important.
He learnt early on that it’s important to be a problem-solver, not a problem-creator.
Patience, communication skills and effective time management don't show up on a resume, but Anderson argues that these values and quirks of character usually dictate a person's success with an organization.
When hiring he enquires in depth about the person’s life, family, what they liked, where they liked to go on vacation, what their kids were like as it gives a really good perspective about who they were as people. He looks for a really strong set of values, good work ethic, good communication skills.
There should be the adaptability to change, the ability to get along well with people and be a part of a team and motivate people.
As regards time management he gives 4 suggestions:
Only touch paper once.
always have your homework done
Return your calls very promptly.
Stick to your schedule.
When running meetings,
Get the materials out ahead of time and make sure they are succinct and to the point.
Start the meeting on time.
Try to ask more questions than make statements.
It’s in appropriate to use a Blackberry in meetings.
He would like to see the ability to communicate and communicate effectively become a core capability in a business school curriculum.
”We measure, study, quantify, analyze every single piece of our business. Business schools in the United States have done a phenomenal job of creating that capability. But then you’ve got to be able to take all that data and information and transform it into change in the organization and improvement in the organization and the formulation of the business strategy.
You’ve got to execute, and that human factor part is important. I know it’s intangible and it’s not like finance where 2 plus 2 is 4. I don’t know whether it can be taught, but it can certainly be studied”.
Saturday, October 31, 2009
Wednesday, October 28, 2009
Measuring Your Way to Market Insight
Measuring Your Way to Market Insight
Strategy+Business, Mar 09
Leslie H. Moeller and Edward C. Landry
Unable to evaluate the effectiveness of spending on promotional events since the sheer number of events was daunting, and each brand ran its promotions in its own way it wasn’t long before the need for a more rigorous analysis of the return on investment in the campaign were felt. A global distributor of wines and spirits finally imposed this rigor by creating a database of event cost information and requiring a simple breakeven analysis for any proposed event.The results turned out to be an eye-opener.
This enabled the marketers to understand how much volume each event would have to deliver to make financial sense, a basic business case analysis allowed them to gauge their spending.
With the explosion of media and more complete data it is possible to accurately quantify the return on marketing spend (also known as marketing ROI). All that’s lacking is the sophistication needed to gain insight from analytics, and the will to use that insight — not just in the marketing function, but in the company as a whole.
An ongoing study by Booz & Company and the Association of National Advertisers (ANA) reveals that ROI analytics and consumer insights (many of which are derived from analytics) are the two capabilities that marketers identify as the most important to develop.
However, relatively few marketers have mastered them in spite of their interest in analytics. Our own conversations with senior marketing executives suggest that perhaps one in 20 has fully developed analytical prowess. In order to build this capability, the starting point has to be data. Marketers must first learn how to identify and collect the data they need. There are two broad categories: financial data and customer response data.
• Financial data comes in two varieties. The first is data pertaining to the cost of the event and the second is financial data, profitability data which includes much of the information that companies use to calculate their margins, such as the selling price, variable cost of goods sold, and other variable costs such as shipping.
• Customer response data is also of 2 types. The first is self-reported data, information that customers provide about themselves and the second is behavioral data which can be observed or recorded and is most often based on transactions, collected at the point of purchase from scanners at cash registers; from retailers, dealers, and distributors; and from a variety of other sources.
Very often, marketers are unaware of the data that is available to them.
There is no single approach that is always the best choice to meet the various constraints that marketers face in the real and often chaotic world of business but if used properly, all of them can produce viable answers for marketers. However, first step for marketers is to develop analytical prowess to learn how to identify and collect the data needed to establish ROI, the second step is to understand the analytical options and how to choose among them.
=======================================================
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
This summary is taken from Business Leaders Digest monthlyThe purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues more effective. Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only and US$50 overseas. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com
Strategy+Business, Mar 09
Leslie H. Moeller and Edward C. Landry
Unable to evaluate the effectiveness of spending on promotional events since the sheer number of events was daunting, and each brand ran its promotions in its own way it wasn’t long before the need for a more rigorous analysis of the return on investment in the campaign were felt. A global distributor of wines and spirits finally imposed this rigor by creating a database of event cost information and requiring a simple breakeven analysis for any proposed event.The results turned out to be an eye-opener.
This enabled the marketers to understand how much volume each event would have to deliver to make financial sense, a basic business case analysis allowed them to gauge their spending.
With the explosion of media and more complete data it is possible to accurately quantify the return on marketing spend (also known as marketing ROI). All that’s lacking is the sophistication needed to gain insight from analytics, and the will to use that insight — not just in the marketing function, but in the company as a whole.
An ongoing study by Booz & Company and the Association of National Advertisers (ANA) reveals that ROI analytics and consumer insights (many of which are derived from analytics) are the two capabilities that marketers identify as the most important to develop.
However, relatively few marketers have mastered them in spite of their interest in analytics. Our own conversations with senior marketing executives suggest that perhaps one in 20 has fully developed analytical prowess. In order to build this capability, the starting point has to be data. Marketers must first learn how to identify and collect the data they need. There are two broad categories: financial data and customer response data.
• Financial data comes in two varieties. The first is data pertaining to the cost of the event and the second is financial data, profitability data which includes much of the information that companies use to calculate their margins, such as the selling price, variable cost of goods sold, and other variable costs such as shipping.
• Customer response data is also of 2 types. The first is self-reported data, information that customers provide about themselves and the second is behavioral data which can be observed or recorded and is most often based on transactions, collected at the point of purchase from scanners at cash registers; from retailers, dealers, and distributors; and from a variety of other sources.
Very often, marketers are unaware of the data that is available to them.
There is no single approach that is always the best choice to meet the various constraints that marketers face in the real and often chaotic world of business but if used properly, all of them can produce viable answers for marketers. However, first step for marketers is to develop analytical prowess to learn how to identify and collect the data needed to establish ROI, the second step is to understand the analytical options and how to choose among them.
=======================================================
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
This summary is taken from Business Leaders Digest monthlyThe purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues more effective. Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only and US$50 overseas. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com
Sunday, October 25, 2009
Human Potential Untangled
Human Potential Untangled
Training & Development, ASTD, Apr 09
By Kevin J. Sensenig
There are three generations of management theory which have defined how organizations develop human potential.
1. Under the functional management approach, development was aimed at getting people to follow the standard processes established for each function.
2. Founded on the hierarchical model of organizations, developing potential was viewed as taking people up through the ranks.
3. Emphasis on organizational systems.
Though each has its own merits, the 2 common disadvantages are that development around a process, system, or advancement to the next level keeps employees too narrowly focused on their individual jobs. Also by focusing on function and process, these approaches to development neglect engaging the person as a learner.
Peter Senge’s had a completely opposite vision of a “learning organization,” in which people are continually enhancing their capabilities to create the results they truly desire. However, this model was considered to be too soft or perhaps utopian.
According to the author the middle ground is the best approach to unleashing human potential .It combines methodical key steps people can follow to advance in their careers, with learning organization concepts that respect individual differences.
One of the first steps in developing each person’s full potential knows why people don’t perform and what to do about it.
He enumerates and discusses the 5 obstacles in this step and gives their solutions.
He feels that if the source of nonperformance is not correctly identified, good employees may be passed over for promotions, be fired, or leave on their own, while less desired employees, who will never buy in or simply cannot do the job effectively, are retained.
He discusses a system for bringing out the best in people, since the traditional forms of motivation which are compensation and benefits, being tangible rewards, are short-term motivators.
According to him, the more intangible forms of motivation are better as they raise engagement levels by helping people feel connected.
The new model for developing human potential:
“The only sustainable competitive advantage is found in engaged individuals, but traditional methods have not always succeeded in developing people to their fullest potential. Some approaches have been too lockstep, and others, too soft. The value model of development combines the best of traditional approaches to bring out the best in people so that they can drive the organization toward its goal.”
Training & Development, ASTD, Apr 09
By Kevin J. Sensenig
There are three generations of management theory which have defined how organizations develop human potential.
1. Under the functional management approach, development was aimed at getting people to follow the standard processes established for each function.
2. Founded on the hierarchical model of organizations, developing potential was viewed as taking people up through the ranks.
3. Emphasis on organizational systems.
Though each has its own merits, the 2 common disadvantages are that development around a process, system, or advancement to the next level keeps employees too narrowly focused on their individual jobs. Also by focusing on function and process, these approaches to development neglect engaging the person as a learner.
Peter Senge’s had a completely opposite vision of a “learning organization,” in which people are continually enhancing their capabilities to create the results they truly desire. However, this model was considered to be too soft or perhaps utopian.
According to the author the middle ground is the best approach to unleashing human potential .It combines methodical key steps people can follow to advance in their careers, with learning organization concepts that respect individual differences.
One of the first steps in developing each person’s full potential knows why people don’t perform and what to do about it.
He enumerates and discusses the 5 obstacles in this step and gives their solutions.
He feels that if the source of nonperformance is not correctly identified, good employees may be passed over for promotions, be fired, or leave on their own, while less desired employees, who will never buy in or simply cannot do the job effectively, are retained.
He discusses a system for bringing out the best in people, since the traditional forms of motivation which are compensation and benefits, being tangible rewards, are short-term motivators.
According to him, the more intangible forms of motivation are better as they raise engagement levels by helping people feel connected.
The new model for developing human potential:
“The only sustainable competitive advantage is found in engaged individuals, but traditional methods have not always succeeded in developing people to their fullest potential. Some approaches have been too lockstep, and others, too soft. The value model of development combines the best of traditional approaches to bring out the best in people so that they can drive the organization toward its goal.”
Saturday, October 24, 2009
The Business Case for Social Learning: Dealing with the "Capability Recession" at Lower Cost
The Business Case for Social Learning: Dealing with the "Capability Recession" at Lower Cost
Accenture Outlook, Aug 09
In this economic climate it is difficult for most companies to increase their training budget but it is possible for them to create a more collaborative and effective learning environment that combines formal training, knowledge sharing and informal learning.
During an economic downturn many organizations are forced to downsize, they are able to spend less on training and development. This leads to a company becoming less capable of serving customers. This is called a capability recession.
It is important for a company to generate better performance from their existing workforce. Since they cannot spend more on training and development they have to change their technique of training. Companies should include a more learning based training programme with knowledge sharing and formal training. By improving the social learning environment a company can reduce training costs by using employees to provide personal content. The return on learning is improved because the time to competence in a business critical workforce is reduced. The company is also able to create a workforce that can respond to changes in the market place and customer.
Most of a typical learning budget is spent on interventions that have the least impact on employee knowledge, performance and productivity. According to several studies, only about 10% of what people know on the job was acquired from formal classroom learning experiences, where knowledge retention and transfer rates are never better than 40%.
Employees today prefer informal or on-the-job learning to classroom training, some employees are demanding it. A large percentage of a company's workforce has numerous (and critical) performance needs that are not being met by formal learning events.
BT and Accenture have taken a new approach called "Dare2Share." It does not replace the company's existing learning programs so much as augment them with informal learning opportunities and with social, collaborative capabilities. Dare2Share leverages Microsoft Sharepoint to enable employees to create, find and view learning segments (podcasts, documents and links), and also discuss and debate the content being created. The attitude and learning culture is more important than the platform. People have to be encouraged to experiment, collaborate and communicate. This knowledge sharing has a positive impact on how other employees serve customers, find information or solve problems.
Companies have to cope with a lot of different stress factors in the current business environment. In this climate it is more important to have a competent workforce. Social learning is the best way for a company to train its workforce while not overspending. Employees will be able to offer practical training which is relevant to that company since they have the experience.
===================================================================
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
This summary is taken from Business Leaders Digest monthly
The purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues more effective.
Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com
Accenture Outlook, Aug 09
In this economic climate it is difficult for most companies to increase their training budget but it is possible for them to create a more collaborative and effective learning environment that combines formal training, knowledge sharing and informal learning.
During an economic downturn many organizations are forced to downsize, they are able to spend less on training and development. This leads to a company becoming less capable of serving customers. This is called a capability recession.
It is important for a company to generate better performance from their existing workforce. Since they cannot spend more on training and development they have to change their technique of training. Companies should include a more learning based training programme with knowledge sharing and formal training. By improving the social learning environment a company can reduce training costs by using employees to provide personal content. The return on learning is improved because the time to competence in a business critical workforce is reduced. The company is also able to create a workforce that can respond to changes in the market place and customer.
Most of a typical learning budget is spent on interventions that have the least impact on employee knowledge, performance and productivity. According to several studies, only about 10% of what people know on the job was acquired from formal classroom learning experiences, where knowledge retention and transfer rates are never better than 40%.
Employees today prefer informal or on-the-job learning to classroom training, some employees are demanding it. A large percentage of a company's workforce has numerous (and critical) performance needs that are not being met by formal learning events.
BT and Accenture have taken a new approach called "Dare2Share." It does not replace the company's existing learning programs so much as augment them with informal learning opportunities and with social, collaborative capabilities. Dare2Share leverages Microsoft Sharepoint to enable employees to create, find and view learning segments (podcasts, documents and links), and also discuss and debate the content being created. The attitude and learning culture is more important than the platform. People have to be encouraged to experiment, collaborate and communicate. This knowledge sharing has a positive impact on how other employees serve customers, find information or solve problems.
Companies have to cope with a lot of different stress factors in the current business environment. In this climate it is more important to have a competent workforce. Social learning is the best way for a company to train its workforce while not overspending. Employees will be able to offer practical training which is relevant to that company since they have the experience.
===================================================================
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
This summary is taken from Business Leaders Digest monthly
The purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues more effective.
Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com
10 signa of an incompetent manager
10 signs of an incompetent manager
Margaret Heffernan
FastCompany, Jul 08
1. Bias against action: There are always plenty of reasons not to take a decisionBut real leaders display a consistent bias for action..
2. Secrecy: Very few matters in business must remain confidential and good managers can identify those easily. Secrets make companies political, anxious and full of distrust.
3. Over-sensitivity: Can your manager see a problem, address it headlong and move on? If not, problems won’t get resolved, they’ll grow.
4. Love of procedure: Love of procedure often masks a fatal inability to prioritize — a tendency to polish the silver while the house is burning.
5. Preference for weak candidates: Fee threatened by the super-competent manager and hadn’t the confidence to know that you must always hire people smarter than yourself.
6. Focus on small tasks
7. Inability to hire former employees: Every good manager has alumni, eager to join the team again; if they don’t, smell a rat.
8. Allergy to deadlines: A deadline is a commitment. The manager who cannot set, and stick to deadlines, cannot honor commitments.
9. Addiction to consultants: A common — but expensive — way to put off making decisions is to hire consultants who can recommend several alternatives.
10. Long hours: Bad managers work very long hours. They think this is a brand of heroism but it is probably the single biggest hallmark of incompetence.
==============================================================
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
The purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues more effective.
Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com
Margaret Heffernan
FastCompany, Jul 08
1. Bias against action: There are always plenty of reasons not to take a decisionBut real leaders display a consistent bias for action..
2. Secrecy: Very few matters in business must remain confidential and good managers can identify those easily. Secrets make companies political, anxious and full of distrust.
3. Over-sensitivity: Can your manager see a problem, address it headlong and move on? If not, problems won’t get resolved, they’ll grow.
4. Love of procedure: Love of procedure often masks a fatal inability to prioritize — a tendency to polish the silver while the house is burning.
5. Preference for weak candidates: Fee threatened by the super-competent manager and hadn’t the confidence to know that you must always hire people smarter than yourself.
6. Focus on small tasks
7. Inability to hire former employees: Every good manager has alumni, eager to join the team again; if they don’t, smell a rat.
8. Allergy to deadlines: A deadline is a commitment. The manager who cannot set, and stick to deadlines, cannot honor commitments.
9. Addiction to consultants: A common — but expensive — way to put off making decisions is to hire consultants who can recommend several alternatives.
10. Long hours: Bad managers work very long hours. They think this is a brand of heroism but it is probably the single biggest hallmark of incompetence.
==============================================================
Business Leaders Digest
Information You Can Use. Knowledge You Can Trust
The purpose of BLD is to offer strategic insights, how-to articles, thought leadership pieces and other information to help you and your colleagues more effective.
Summaries from global top 100 business & management magazines, newspapers, websites & reports are published monthly in Business Leaders Digest which can be subscribed at a modest annual subscription of Indian Rs.900 only. To subscribe or receive a sample issue, email at busleadersdigest@gmail.com
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