( every manager, budding manager and MBA must read)

Which is Better for Your Business: Debt or Equity?

Is debt or equity better for your business? The answer depends on several criteria, although the stage of the business and the use of the funds are usually the best determining factors.  to read further …

go to this link: http://www.openforum.com/idea-hub/topics/money/article/which-is-better-for-your-business-debt-or-equity-ken-kaufman

The Language of Innovation

When I’m out on the road speaking to audiences about innovation, it is reinforced again and again that innovation has become a buzzword, and much in the same way that people struggle to define love

Link: http://www.openforum.com/idea-hub/topics/innovation/article/the-language-of-innovation-braden-kelley

Bosses Behaving Badly

Are you a good boss? Or are you a bad boss? If a twister dropped a house on you in the middle of Munchkinland, would the Munchkins weep—or rejoice?

Link :  http://www.openforum.com/idea-hub/topics/managing/article/bosses-behaving-badly-ann-handley-1

What Type of Change Do You Want in Your Organization?

Are you aware that there are three different types of change that are necessary for your organization’s success?

Link : http://www.openforum.com/idea-hub/topics/lifestyle/article/what-type-of-change-do-you-want-in-your-organization-morty-lefkoe

Top 10 Etiquette Blunders

Recently, a colleague was lamenting the lack of etiquette he deals with on a daily basis.

Link : http://www.openforum.com/idea-hub/topics/lifestyle/article/top-10-etiquette-blunders-steve-strauss

9 Ways to Make a Great First Impression

Back in college I had a pal who had an interesting work philosophy. “Whenever I start a new job,” he told me, “I always work extra hard the first month. That way they view me as a hard worker, even later on when I slack off a bit.”

Link: http://www.openforum.com/idea-hub/topics/managing/article/9-ways-to-make-a-great-first-impression-steve-strauss

Do you include shipping and taxes in your fixed assets schedule?

If those taxes are not recoverable, you should include everything needed to gain control / ownership of the asset. So yes, shipping and taxes would be included in the fixed assets schedule.

You need add to the equipment or machinery you bought by paying the shipping and taxes – then the total value of that equipment ( FA) is inclusive of these taxes and shipping. In fact you need to take the invoice gross value that is before you deduct any advance payments made by you.

How do you calculate net operating income after taxes if net operating income is negative?

The typical formula is net operating income after taxes = (1-tax rate)(NOI). What do you do if NOI < 0

Roll your negative Net Income into an operating loss carry forward (assuming you’re modeling a C-corp).  This is called an NOL Carry forward (net operating loss carryforward).  There are certain rules and restrictions, but generally you can offset future taxable gains with your NOLs.  (These NOLs become pretty valuable once companies start generating real cash flow.)
Within Excel, this will require a few extra rows or nested If/Then statements. Just hide or group them in your spreadsheet and show Taxes = 0 until your NOLs are exhausted.  Most investors will know what you’re doing without any further explanation required.

If you are asking this question as an investor or to show numbers to investors, be careful about the answers you’re getting about NOLs. It’s rare to see a company acquired for the purpose of NOLs today (at least through a direct acquisition). This is because of 382 limitations on the usability of NOLs in the case of a change in control of a company’s equity rendering your NOLs almost worthless on a present value basis.

NOLs are currently limited to 3.98% of the value of the company during a change of control. This number is determined by the IRS monthly and (along with the value of the company for 382 purposes) will be fixed at the time of the change of control.

Based on your business and applicable tax laws, you may also have to distinguish between cash taxes and accounting taxes. The actual formula for NOI after taxes is simply: NOI – taxes. This is equivalent to (1-taxes) * NOI if your taxes are positive, but should be just NOI since your taxes are zero if your NOI is negative.

What’s the difference between margin and markup?

Margin and mark-up are both terms used to describe the same ‘thing’, but just from different angles. The ‘thing’ they describe is often called Gross Profit which is the difference between the selling price and the cost price. Both terms are commonly used in the retail/wholesale trade and sometimes wrongly used interchangeability.

As Junjun explains, if you purchased a product for $100 and wanted a 100% mark-up, you would double the price to $200. (i.e. $100 + ($100 x 100%). If you now asked me, “What margin are we making on the $200 sale?”, I would say 50% not 100% (i.e. $100 of the $200 sale is our gross profit $ margin). This can be represented by the formula … $100 gross profit $ / $200 selling price = 50% gross profit % which means that a $200 selling price x 50% gross profit % margin = $100 gross profit $ margin.

So, mark-up is initially used to set a selling price (on-cost) that secures the desired gross profit $ while margin is typically used to calculate and identify the gross profit made on sales (off-sell).

In the specific content of revenues and expenses: Margin means the revenue you retain after accounting for direct costs (ie, variable costs like COGS) to collect the revenue ; whereas markup is a percentage calculated on base costs to theoretically cover overhead (fixed costs)

Purchased at 100, Sold at 200. Markup is 100% while margin in 50%

What is the difference between gross and net?

Gross and net is like total and the part you are interested in. Like gross weight versus net weight or gross volume versus net volume.

For finance it’s a little more complicated than that:

Gross revenue is the total amount earned from sales

Net revenue = gross revenue – returns and other sources of negative revenue

Net income = gross profit – total operating expenses

Gross profit = gross revenue – cost of goods sold

Net profit = gross profit – overheads – interest payable +/- one off items

Net Income is also known as the “bottom line”

How do you read the balance sheet of a company ?

Answer by:  Peter Baskerville,

A Balance Sheet is one of the financial reports that is provided to the stakeholders of a business to help them quantify the financial strength of a company. Note: The Balance Sheet is a snap-shot of the financial status of a company at a particular point in time. Here is what a typical Balance Sheet looks like:

At its most basic level, the Balance Sheet describes the things of value that the Company owns/controls (Assets) while identifying the people who have claims over those assets. i.e. the external funding entities (Liabilities) and the internal investors (Owners equity). The Balance Sheet gets its name from the fact that the the total value of the Liabilities and the Owners Equity will always equal (be in balance with) the total value of the Assets. i.e. using the example above … Assets 1,275,000 = Liabilities 850,000 + Owners Equity 425,000. This formula is known as the accounting equation. Assets and liabilities are further subdivided as current and non-current to help stakeholders understand their expected time frames. i.e. Debts due within the next 12 months are current liabilities just a assets that can be readily converted into cash are current assets. All else is classified as non-current.

The total amount of the Owners Equity (also known as the Net Worth of the company) is the amount of money that would be left over if all the Assets were sold and the external funders (Liabilities) were paid out. This is the first and obvious read of a Balance Sheet in relation to the company’s financial strength. i.e. it quantifies how much the business is worth from an accounting point of view. Note: an accounting point of view does not take into account future profit potential and values assets at the time of purchase not what they might be worth today. Owners Equity is typically made up of the shareholders/owners initial and subsequent investments (Capital), the past profits that have not yet been distributed to the shareholders/owners (Retained Earnings) and the profits from the current trading period (Current Earnings).

Reading a Balance Sheet using Financial Ratios
Reading about the financial strength of a business from a balance sheet generally requires a certain amount of analysis and comparison, as well as access to the other financial report, the Income Statement.

This analysis is called the Financial Ratio and Trend analysis. By comparing this period’s calculated ratios with prior periods and industry benchmarks, allows you to identify healthy/unhealthy trends in the financial strength of the company in relation to its past and the industry in general i.e. whether the returns from the business are competitive with other investment options, whether the company is becoming more or less profitable, more or less dependent on external funders, better or less able to meet its financial obligations when they become due or more or less efficient at managing the assets of the company.There are many different types of financial ratios but they are generally grouped into:

• Leverage Ratios – which calculate the extent to which the company uses external debt in its capital structure rather than equity funders. Over reliance on external debt makes a company’s profitability vulnerable to interest rate raises and is more vulnerable to liquidation actions by creditors during a downturn. The most common leverage ratio is the debt to equity ratio. Using the example above it would be … Total Debt 850,000 / Total Owners Equity 425,000 = 2.0 i.e. for every $1 that the owners have invested, external funders have committed $2. This company would be considered highly geared (leveraged)
• Liquidity/Solvency Ratios – which calculate the company’s ability to pay its debts as they become due. Some companies might be profitable but yet unable to pay critical payments like staff, loan repayments or rent because their money is tied up in debtors (money owned to the company by customers) or inventory. The most common Liquidity/Solvency Ratio is the Quick ratio. Using the example above it would be … (Current assets 355,000 – Inventory $250,000) / Current Liabilities 150,000 = 0.70 i.e. for every $1 due for payment in the next month or so, the company has $0.70 in liquid (cash or soon to be cash) assets. Generally a Quick ratio of 1.00 is considered a safe operating ratio.
• Operational Ratios - which calculate the efficiency of company’s management in its operations and use of assets. Typical efficiencies deal with stock turn and debtor days which measures respectively, the amount of stock required to achieve sales targets and how many days it takes to get paid by customers. Generally you would not want to over stock and you would want your debtors to pay in the shortest possible time.
• Profitability Ratios - which calculate the return on sales and capital employed. These ratios are usually expressed as a % and monitored over time periods to identify healthy/unhealthy trends. Typical % are Gross Profit as a % of sales, Net Profit as a % of sales, Net Profit as a % of Assets, Net Profit as a % of Owners Equity. Using the example above, Net Profit as a % of Assets would be … Current earnings $75,000 / Total Assets 1,275,000 = 5.9% and Net Profit as a % of Owners Equity would be … Current earnings $75,000 / Total Owners Equity 425,000 = 17.6%. i.e. if competing investment opportunities provide a lower return than these, then the investment in this business remains worthwhile.

In summary, by comparing these ratios with prior periods, commonly agreed safe operating levels and industry benchmarks helps you read about the changing financial strength/health of a company from the Balance Sheet report.

What is the difference between fiscal and monetary policy?

How does fiscal and monetary policy affect national and global markets and what are the changes that take place on a macro and microeconomic level?

BY: Namrata Patel,

In an effort to respond to the sub-questions posed and understand the “knock-on effects”, it is probably helpful to take a closer look at the levers of fiscal and monetary policy.

Expansionary or “Loose” Fiscal Policy occurs when the government increases spending or decreases taxes.  In isolation, either of these actions should increase disposable income and stimulate consumption and spending in the economy.  However, there are two significant implications:

Crowding Out: When a government pursues a stimulus program (as in the Obama stimulus program or during FDR’s New Deal), it typically finances its spending by issuing government bonds (or borrowing).  This reduces national savings (which is equal to government savings + private savings), and consequently reduces the total amount of money available in the economy for investment.  As a result, the cost of investment, better known as the interest rate, increases.  This phenomenon whereby higher interest rates prevent businesses from investing is called “crowding out.”

• Impact on Exports: In turn the higher interest rate and promise of a higher return induces foreign investors to buy dollars in order to invest in US securities.  Consequently, classical economic theory predicts that the exchange rate will also appreciate, causing a decline in exports.

Expansionary or “Loose” Monetary Policy occurs when the Central Bank:
Reduces the discount rate (the interest rate at which commercial banks can borrow from the Central Bank)

• Reduces the reserve requirement (the % of the deposits that the commercial bank is required to hold by the Central Bank so that the commercial bank can meet obligations when depositors decide to withdraw money)
• Purchases financial securities in open market operations in exchange for cash

The success of the first lever depends on commercial banks passing on lower interest rates to corporate or individual borrowers. The latter two options allow the Federal Reserve to increase the money supply, which in turn should cause the interest rate (aka the cost of borrowing) to fall and stimulate lending and investment

“Essentially the leader or manager or CEO is to handle failures and success, in fact more responsibility towards handling the failures. There is no such thing like a Leader – who manages only success. Even if you read between the lines, how can a leader manage the success? It is by his capability to handle the failures”

Do managers promote conflicts in organizations knowingly? What would be the need for such a practice and What are the expected consequences?

“If managers are monks and if directors are not detractors – you will not find a failure in any organization. The managers (whether manager or senior manager or GM or AGM or vice president or ceo or director) they learned or copied the art of acting as politician. They build a small kingdom around them with their cronies. It can be for two major reasons: 1. mostly to safeguard themselves 2. loot the company. In some organizations these managers went further and tried to handle the internal and external auditors and no one was able to face them. Take you as an example, and if some one started informing you ( whether he is a messenger or assistant or manager or GM) about some other person – would not you lend your ear? If some one is sitting in the office with or without work till you leave the office – don’t you like him? If some one takes care of your child in the school don’t you feel nice about him? When the office boy went out, and you want a glass of water and you ring the bell.., your accountant will open the door and ask you about what you want? What you will say! So, the sycophancy is like a cancer – we do not know we are getting it, we are not aware that we are victim of that.. Only when we are totally submitted to them… we may or may not realize. I would blame the CEOs and Owners of the organizations for this. Because, these people without a right system – they depend on the hearsay. YOU will and can only arrest them when some body is behaving extra ordinary to serve you while his performance in lower than expected. These managers next agenda is to remove the opponents, that is who are working who depend upon their performance. I repeatedly said that be faithful to organization instead of individuals. The consequences are many… The control will be passed on them, system will not work, unions may crop up if you try to nip these elements and then there will be roomers etc., so with fear about the future of the company the CEOs tries to build bridges and that will make them more powerful.”

If the boss is mediocre while you are competent, your work and worth goes unnoticed because the boss doesn’t have the capability to appreciate. Is this boss specific or organization specific phenomena?

“If he is mediocre and still he recruited you to handle the things… it’s an opportunity to educate him through your performance. If you look at the other way – he wants you to perform and he may have his own ways of noticing your performance. Did you come to know about his incompetence before joining? Or after few months of joining? Or some one informed you that he is incompetent. That is most important. You asked about whether it is boss specific or organization specific. If the boss is manning the organization it is both organization and boss specific. There is no such thing like organization specific. It all depends on the management of the organization. I would like to add here that we need to verify about this incompetence / mediocre is one employee specific or for only performers specific or effected to the entire set up.”

Difference between a successful and not so successful professional is one knows his/her worth and knows what others think of that. While the other does not ! ?

“What Mr David said is absolutely correct and views are surprisingly pleasant. The tag “professional” may not give all the good qualities in a platter. Secondly what I perceive is correct and right to me – may not be acceptable to a group of others. In fact I do not know my worth unless it is recognized by my qualitative performance on the job ( by others) There is no such situation where two equally high performing, qualified, taking challenging assignments and initiative to handle the crisis situations – stationed at similarly equal positions. If that situation is there – there will be certain chaos. Success is relative – it has to be decided by others. An accountant went and told the MD that he has completed the finalization of accounts successfully. The MD told him that he is being paid for that, because he did the mistakes and then took time to correct them. Its not an achievement, it is his duty. Where as a sales man sold more units or brought new distributor will be rewarded – its an achievement.( I am not a professional)”

When you face challenges (personal or professional), what helps you (or your company) get through them? What skills, abilities, talents do you (and/or you company) possess that helps with the “getting through”?

“Challenges faced by the organizations will be tossed over to the department’s heads to deal with and that becomes professional problems of individuals. Challenges faced at the organization at personal level – job related – are to be dealt by the individuals only. Challenges – financial and family related are different which requires different skills. I found that a reputed financial expert of an organization was not in a position to handle the home budget properly. The saint who speaks volumes about philosophy to his disciples is a bachelor. Looking at the issue or problem in a different way is the best alternative to find a solution. The problem is always presented to you is right from oven. So the immediate thing is not to trolley it to emergency, instead put it freezer for few seconds and wait for earth quake or tsunami and watch the weather forecast in TV. If nothing has happened, it is not a problem; it’s an issue to be resolved between two parties. First – ask the courier of the problem – to calm down and explain it. If no accident is involved, only dispute is the issue… decisions are not be declared out rightly. If the courier himself is the party to the problem, bring the other party and listen to him first. Never give milk to the party who weeps first, because he is a talented person so he knows when to cry foul.

Managers problems need not be solved by his deputes, only manager has to deal with that. The right thing is to toss back the issue to him, because he gets the credit not YOU. Most important is that each problem contains several problems within that trying to come out. So your solution should not create more issues. Band aid solutions are to be discouraged. I used to take the issue, keep it in a different box, and continue to work and after 7 PM when every one has gone home and I open the box and read it again and again, then I try to contact the person who is the epicentre of the issue and ask for details without giving any solution, present status, alternatives, suggestions – just listen to him. The chances are (1) He will start talking endlessly OR (2) he will try to make you to speak or comment on it. Keep calm and listen to him.

In once issue, the other side was suddenly got annoyed about a mail I sent to her. I came to know about it when I called her. I waited few seconds – as she was very important consultant for the organization and I was only interacting with her on behalf of our CEO. So waited for 2 hours and then sent a mail expressing my apologies explaining how it has happened and marked a copy to CEO. That ends the major faceoff with both the parties.”

Can behaviours in the workplace be changed? or is it more about changing people’s thinking?

“Without considering it as a HR issue, (in fact it is not an HR issue, it is the issue connected to the people’s attitude and change management) any one can say that it is too difficult to change one’s behaviour. The behaviour, attitude and the thinking are the traits which come to him by birth. Some times the people act / fake as if they have changed, modified – but its only a temporary adjustment. Through thinking their behaviour will change, the thinking come from the mind set. The mind set is created and evolved from the DNA and also upbringing. As Mr. Vasudev said, work place behaviours are different and behaviours in other situations and in interactions, meetings, discussions etc are different. Contrary to what Mr. Vasudev said, behaviours need not be driven by beliefs and values and can not be solved by applying the HR alone. In fact HR is not concerned or connected to individual’s beliefs or values in any sector, though they speak much jargon on this aspect. The lack of values and disbeliefs and some times the shocks the belief receives, the apathy of the other party, indifference – are triggers of behaviours.

The workplace is a place where you have chosen to enter into it, by creating a good and amicable outlook and favourable appearance and using a good copy to write a resume, and all these things by conveniently whitewashing all your black spots. On the other hand, the company (however it may be big or number one) tried to create as much hurdles as they can to stop you, made number of interviews, discussed various matters and verified all the relevant papers – and then produced a 5 page contract document which is the perfect legal document drafted by costly expert / consultant and then recruited you… supported by HR with authority and audacity not to reveal any kind of negative information about the company to you. So it’s like a contest between two con men, and now the promise from HR that they can change the behaviour or the employees. Human Resources activities need to experienced rather than read about them. Its adjustment – there is no such place called perfect place. There is no such position which can be termed as perfect position. There is no such company which gives you perfect satisfaction. You always think you deserve the best, the company is also having humans like you to steer it and manage it.”

Which is the most aggravating type of resistant employee?

“Employee resistance is ( I found ) not an individual resistance, but usually supported by some one in the high position. Without and in absence of this support resistance is not a sustained one. Any resistance appears on two situations 1. When employee feels, assumes and perceive that his position is in danger 2. When the whole setup is reorganized and reconstructed so it may hit some powerful managers or upset their calculations, so they influence the executives to resist the change. It is difficult handle the resistance which has got support from higher ups It is easy to handle the original resistance. The resistance if continued will develop like a cancer. I don’t think that any resistance that makes so difficult to bypass. Go to the root cause, discuss, insist for the reasons for resistance, and explain that it is for their improvement. Where and when I failed to break the resistance was when a member of the top management was behind this resistance and I directly faced him and asked for the reason.

Explain various approaches in over coming resistance to change in administrative organizations?

“It is administrative setup or it should be administrative office. Reasons / triggers for resistance:

1. bringing new systems

2. Introduction of new formats for reporting

3. Cchange in authority and responsibility

4. Downgrading few managers’

5. Bringing new talent

6. Change in seating arrangements

Other than this petty issues like who is authorising the payments, who deals with banking operations who goes out who sits in the office and who reports to CEO. Keep in mind that who ever speaks and lectures all along and shouts for a change is the main person who invariably opposes the change!!

1. Take him aside and ask him the reasons for opposition

2. Inform him that he has become redundant so these changes will give him some scope to stay in the organization.

3. Without a change one can not get right promotion / increment

4. Change is inevitable so you people need to welcome it.

Introduction of sudden changes always brings resistance. In fact the “resistance” is another word for politics. So, it has to be analysed whether any top cadre in management is behind this resistance. It must be with his blessings only the resistance movement will be initiated. So, first of all make a detailed analysis about what are the administrative issues may crop up, if and when the changes are put in place and look for the permanent solutions for these issues. Who recomeneded the changes, who supported them and who is behind these changes – WHETHER HE IS POWER FUL ENOUGH TO SUPPORT YOU. is main issue. Usually they may say ( including me) that management consultants has got no idea about the company and its culture to bring changes. So while evolving the changes – better take the sick people into confidence and discuss and deliberate the proposed changes and then try to make him a leader of the changes – even though you go with your plan as usual. Whenever I join a new organization, first I will change my seating arrangement like move the PC, turn the seat and remove the filing tray etc., this will prompt others to ask me why you make changes – “to work for results” I used to reply. Then after a month other changes will be made. I discuss openly and straight away and ask for his opinion and give him how he will be more visible, more authority and when I am taking away the authority – I used to say that he has to look for management position, not signing the vouchers.

When I asked a HR manager to sit out side of his cabin, she was angry about it. I said, by sitting outside in the morning and evening hours – employees will come early and will not leave early. And the CEO will appreciate your actions. She did that and when CEO observed and appreciated her concern. I even asked our CEO not to sanction any leave or advance directly – other wise every on will stand in line before your cabin. He asked me to issue a circular and he was relieved and said that he can reject the request without looking at the person. Discussions will take the issue further – while discussions are in progress the changes can creep in.”

CAREER & RESUME

What productive things can job seekers be doing in addition to the daily grind of sending out resumes?

“Best advise 1. Look for other positions / avenues instead of only one job, expand your availability to other similar positions: like if you are accountant, try for stores manager, purchase manager or administration manager and vice versa. And don’t forget to create different resumes for each of this position. A marketing personnel can become a PR personal or Executive Assistant or can look for marketing positions in other trades. 2. Expand skills – not necessarily the certification, but capable of answering the questions and learn the jargon. Like reading from internet – an accountant can become a audit assistant or investment assistant if he can understand the things. Once on the job, you have got one month time to make yourself totally suitable to the job. 3. It is your self restrictions or borders you created for YOU is your defect. Particularly do not just read the heading of the position – read the requirements two times and you will feel YOU have some thing to give. There is no one in the world who meets 100% to the advertised position’s specifications. If they want 30 years old when you are 35 to 38, YOU too can apply…”

How to reinvent and reshape the career graph for our team members and thus also to innovate the career graph for our whole Organization?

“It may be difficult in India conditions – but then a kind of beginning has to be made. What I mention here is not scientific, not from any management books but from my experience. 1. Weed out (slowly) the bullies 2. Weed out actors 3. Weed out people who came on recommendation 4. Weed out buttering people After a month or two – these actions will start circulating in the office, slowly will become a unwritten rule. Then every one will be the right person for the right job and there will be no one who would like to climb the ladder by short-cut. Number 2. Do not carry the weight around. When a team member wanted to talk to you, allow him… never discourage or postpone it. Do not ask them to finish and then you don’t go home. If working after hours, come out from your cabin and stay with them. And do not engage any wholesale mentoring services. First prepare a comprehensive questioner and get each one of the strengths, weakness, certain emotional qualities or difficulties, certain wants or certain dislikes, certain allergies and certain interests etc., and study them and accordingly get few experienced working professionals to give lectures – with Q&A sessions. If you are a team leader – you must have a manager. Your agenda is that Manager has to learn from YOU about how to handle the team”

How do you deal with people who talk down to you and attempt to make you feel inferior to others?

“If he is superior – just listen to him calmly and come out. If he is equal, just ignore and laugh at him and if he is a junior to you – ask him about how to improve and if he is not in a position to explain, then tell him to mind his own business. When a senior most person called me and discussed the things and then started talking differently, I informed him that I can reply, if he can just get up from the seat and stay aside. He looked at me. I said, “by talking to me like that, you have brought me to your level or you came down to my level. I respect your chair, if you vacate it few seconds, I will be able to reply, as we are equal” – Then he complained to the board, he insisted for a session to reprimand me. Three directors and me – just a manager – accounts. The VP asked him to open the subject, he was about to start. I got up and asked for permission to go out. What for? Asked the VP, 3 top members are discussing, I may be the subject, and still I feel I am not supposed to be here till you three complete the discussions and then call me and ask me. Meeting was called off.”

BRANDING

I’m pondering the concept of Personal Brand this morning – how do you describe your value to others?

“it depends upon your height and weight… If suppose when you are getting married, you try to look different from any other day. When you go for an interview you never think about the looks you got at the time of marriage. In contrast when you visit a hospital you are different and when you go to a funeral your looks are different. In all these different and variety of occasions one single attitude is present without any change. Some time according to the occasion that single thread may be enlarged, suppressed or left alone to mend itself. Make an analysis of this single attitude which have… Is it good, whether people are attracted to it, other may be looking at you as a egoist or they wanted to talk to you OR may be they are leaving you alone. Accordingly fine tune that. That is your brand. Your capability to smile, your way of walking, your dress code, your aloofness, your techniques of attracting people, your knowledge on any subject. Your hair style, your carrying yourself … some is unique FOR YOU only.”

Why do people need to safe guard their positions?

Because they are well aware that there are more people outside who can do with more clarity and without much sound.

When I am performing, why they need some one else?

Because, they don’t know when your efficiency levels will drop and at what stage

Why MY efficiency levels need to drop?

You should know the Parkinson’s Law – according that Law, every manager has got a certain limit of handling the performance and above that level, the efficiency graph will start falling down

So what is to be done to safe guard our position when the levels are going down.

You need not wait for the meter to show the drop in levels

Do you mean to say, that we need to be prepared to handle the drop in levels

Yes, well in advance.

Like – you mean that we need to get extra qualifications / expertise?

If you have good savings that can be done, but then you may try to move over to another organization – if and when you had additional qualifications

No, I wanted to be here – then

You need to prepare to build a kingdom of your own!

Kingdom!  How is that possible?

Do you ever heard about war lords or drug lords or mafia groups?

Yes – I heard about them

You have to build your own people around

How they will help me?

They fight for you, they work as your intelligence machinery and also work like CIA, counter intelligence operations

You mean … I have to recruit them?

Not necessary

Then

You have find people from all levels and select them right from Junior level onwards – like driver of a CEO, personal secretary of Executive Director, Junior Executive in HR, Regional Sales Manager’s data entry operator and Cashier of the accounts department.

What they will do to me and how they help me??

The CEO driver is most important who will give tweet about the conversation inside the car with any one where your name was mentioned.

So? What I gain out of it?

You will know whether your stock is climbing or going down..

What other people can help me

The Secretary of ED can inform you the decisions taken at directors meeting which may affect you, HR Junior executive will tweet on any proposal to recruit a senior above you. The cashiers in accounts will advice about the current cash flow.

That’s all!

Now it is your imagination once you bring all these people as your most important contacts, but make no mistake that one contact should not know the name of other contact, by which you will have bonus of getting information on your contacts itself.

Well.. I understand that.

There is some thing more to it.

What more?

You will have to use the counter intelligence

What is it like?

If some one is trying to talk bad about you or reported on you.

Then?

You will have to see his exit as fast as possible

If you can perform this counter intelligence in two or three cases – you have achieved your objective.

How come?

Entire office is well aware of your powers and mechanism and they will be worried about their positions and as you call Buzz Marketing – there will be a buzz about you and every new comer will be informed about you and he will not be interested to get sacked in the next month so he will fall in the line.

Managing the kinds of War Lord Syndrome requires an unusually broad and finely honed set of skills,

Political Skills

Without politics there can be no organization. Where there are people there is bound to be a movement in progress either from constructive leadership or from destructive leadership. Lose sight of this fact will bring you a major disappointment at a alter date. Once you are on the back foot, the wolves will pounce on you and have no one to rescue. Your performance is secondary while your political acumen is most important. You should realise that everyone has got the stamina to perform in a given environment with excellent perks and comfortable work environment backed by the brand of the company. If you watch the Discovery channel or Animal World channel – try to observe particularly the videos of Wolves and Foxes and their life in the forest and try to learn few tricks. Be forewarned that the first person who consoled you is the man who was leading the coup on you. Politics are not fought for higher stakes alone. Politics are fought so intensively even for a change in the duty timings of a watchman. Because, you need a sustainable development!

Analytical Skills

More than the urgent documents which need to be sent to the Regional Manager or more than the newly appointed product development engineer’s immediate task of meeting the client, it is important to start fire under him to make an analysis of his capability to handle it. Analytical skills needed to understand a person who is supposed to be a strong opponent, who is an excellent performer and who is result oriented. Discovering of this virus and planning the process of elimination is what is called analytical skills.

People Skills

People; we have to deal with them all.

The skills most needed in this area are collaborating communication and inter dependent skills. To be effective – one should shed the ego to a large extent, as you may to discuss with the driver of CEO or cook of the canteen or may be smoke with the junior assistant. One must be able to listen while making them speak about their managers while interrogating. You need to plant roomers effectively and motivate them to circulate as facts. to draw out the speaker, to lead or channel a discussion, to plant ideas, and to develop them A well-paid roomer can escalate  and develop as a real fact and give sleepless nights to the real performer.

In fact there are few more essential requirements and I suggest one should read this article and get back to me to know more about it.

Are innocent, neutral, precise,

standing for this, describing that,

meaning the other…

so if you look after them

you can build bridges across

incomprehension

and chaos.

I don’t think writers are scared,

But words are.

They deserve respect.

If you get the right ones in

the right order they can

nudge the world a little…

(I read it somewhere in the Internet, I do not remember the link…. )

TRANSFORMATION

They call it Change Management.

There is a story in famous ancient Sanskrit story book called “Panchantantra”

There was a king whose name was (for convenience sake) we call him as Vedamarka

He was having a trusted intelligent and knowledgeable Prime Minister called Mahopadyaya. Mahopadyaya used to serve the King and advice him in all issues and the King found that his prime minister’s advices were prompt and creative. They were very close and the state was having good governance.

On the other hand, the king had a personal barber named Sulochana, whose main duty was to massage the King before he goes to sleep and also shave his beard cleanly and take care of the curves of the moustache of the King. So, in a way barber Sulochana was very close to the King, particularly when King was resting, free from all administrative issues.

This was going on like this. After some time, Prime Minister fixed his son’s marriage function and he wanted to invite the King for the marriage. So, after a week, the Prime Minister Mahopadyaya and his wife went to the King when he was resting with his wife and invited the King, his wife and others to the marriage, and while coming out, he saw the barber Sulochana and he also invited him.

After a week, at the time of marriage the barber and his wife entered the marriage hall and went straight to the area where the King, his family and other ministers and head of the army and their wives were supposed to be seated, and sat in the middle of row along with his wife. The Prime Minister observed this and thought that as soon as the King arrives, he will vacate the seat and take the proper seat.  Whereas he was still sitting there, even when all the ministers and King and their families started arriving, few of them observing the Barber, were actually looking around to find a right place.

Prime Minister observed this, and went to the Barber and informed that these seats were meant for the higher personalities and that he has reserved a seat for him in the third row and requested him to vacate it and occupy that one.

But the Barber was not interested and then the King and his family arrived and most of the ministers were standing and watching the situation. Observing this Prime Minister called his servants and forced the barber to vacate the first row. Then the barber vacated but instead of attending the function he went home plotting for vengeance.

Marriage was over and prime minister was busy for a week in his house, and meanwhile the due date for next shave and trimming of moustache has arrived and barber reached the king and was shaving. While shaving he just mumbled as if he was in still out-of-his-senses

“How come Mahopadhyaya can have an affair with respectable queen – I don’t believe it” – he uttered

This loose-talk reached the king and abruptly got up and called other servants and asked them to get the facts from this barber and report him back, having said that he went into his room. The barber pleaded with the head of the personal servants that he was having extra bottle of liquor in the last night and he was not aware what he was talking. But the damage was done. The king ordered that the Prime Minister as unwanted person with immediate effect.

Next day when the prime minister reached the king’s palace, he was told that he was not allowed inside and orders were issued by the King himself. The Prime Minister was worried and was unable comprehend the reason behind this sudden turn of events. He returned to his house and thought about the incidents on the day of the marriage and then realised that this barber must be the king pin of this misunderstandings. Having arrived at that, he immediately went to the house of the barber and invited him for a special ceremony and then requested him to bring his wife and expressed his apologies for behaving like, at  marriage. The barber arrived at his house and the prime minister gifted him many cloths and fruits and also a gold chain and send him off. Nothing was discussed.

After a week again the barber has to attend the king, and king ordered the barber not to talk nonsense and warned that he has to do his duty. For that, the barber suddenly fell on the floor and kissed the feet of the king and expressed that, he was only talking in his dream / unconsciously as he has attended a liquor party in his relatives house and what he talked is not be taken seriously and he was ready to receive any kind of action for this lunatic talking and begged the King to replace the Mahopadhayaha in his right place.

Then the King asked several times about the incident and verified and then immediately asked his chief servant to go and bring Mahopadhyaya immediately with all due respects.

This was written about some 600 years ago!