Blog Archives

Disseminating financial knowledge to develop engaged organizations

Financial awareness of key drivers are becoming the paramount leading indicators for organizational success. For most, the finance department is a corner office service that offers ad hoc analysis on strategic and operational initiatives to a company, and provides an ex-post assessment of the financial condition of the company among a select few. There are some key financial metrics that one wants to measure across all companies and all industries without exception, but then there are unique metrics that reflect the key underlying drivers for organizational success. Organizations align their forays into new markets, new strategies and new ventures around a narrative that culminates in a financial metric or a proxy that illustrates opportunities lost or gained.

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Having been cast in operational finance roles for a good length of my career, I have often encountered a high level of interest to learn financial concepts in areas such as engineering, product management, operations, sales, etc. I have to admit that I have been humbled by the fairly wide common-sense understanding of basic financial concepts that these folks have. However, in most cases, the understanding is less than skin deep with misunderstandings that are meaningful. The good news is that I have also noticed a promising trend, namely … the questions are more thoroughly weighed by the “non-finance” participants, and there seems to be an elevated understanding of key financial drivers that translate to commercial success. This knowledge continues to accelerate … largely, because of convergence of areas around data science, analytics, assessment of personal ownership stakes, etc. But the passing of such information across these channels to the hungry recipients are not formalized. In other words, I posit that having a formal channel of inculcating financial education across the various functional areas would pay rich dividends for the company in the long run. Finance is a vast enough field that partaking general knowledge in these concepts which are more than merely skin-deep would also enable the finance group to engage in meaningful conversations with other functional experts, thus allowing the narrative around the numbers to be more wholesome. Thus, imparting the financial knowledge would be beneficial to the finance department as well.

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To be effective in creating a formal channel of disseminating information of the key areas in finance that matter to the organization, it is important to understand the operational drivers. When I say operational drivers, I am expanding that to encompass drivers that may uniquely affect other functional areas. For example, sales may be concerned with revenue, margins whereas production may be concerned with server capacity, work-in-process and throughput, etc. At the end, the financial metrics are derivatives. They are cross products of single or multiple drivers and these are the elements that need to be fleshed out to effect a spirited conversation. That would then enable the production of a financial barometer that everyone in the organization can rally behind and understand, and more importantly … be able to assess how their individual contribution has and will advance organization goals.

Introduce Culture into Product Development

All products go through a life-cycle. However, the genius of an organization lies in how to manage the life-cycle of the product and extend it as necessary to serve the customers. Thus, it is not merely the wizardry in technology and manufacturing that determine the ultimate longevity of the product in the market and the mind share of the customer. The product has to respond to the diversity of demands determined by disposable income, demographics, geography, etc. In business school speak, we say that this is part of market segmentation coupled with the appropriate marketing message. However, there is not an explicit strategy formulated around identifying

  1. Corporate Culture
  2. Extended Culture

To achieve success, firms increasingly must develop products by leveraging ad coordinating broad creative capabilities and resources, which often are diffused across geographical and cultural boundaries. But what we have to explore is a lot more than that from the incipient stages that a product has imagined: How do we instill unique corporate DNA into the product that immediately marks the product with a corporate signature? In addition, how do we built out a product that is tenable across the farthest reaches of geography and cultural diversity?



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Thus, an innovative approach is called for in product development … particularly, in a global context. The approach entails getting cross-disciplinary teams in liberal arts, science, business, etc. to work together to gather deeper insights into the cultural strains that drive decisions in various markets. To reiterate, there is no one particular function that is paramount: all of them have to work and improvise together while ensuring that there are channels that gather feedback. The cross disciplinary team and the institutionalization of a feedback mechanism that can be quickly acted upon are the key parameters to ensure that the right product is in the market and that it will be extended accordingly to the chatter of the crowds.

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Having said that, this is hardly news! A lot of companies are well on their way to instill these factors into product design and development. Companies have created organizational architectures in the corporate structure in a manner that culturally appropriate products are developed and maintained in dispersed local markets. However, in most instances, we have also seen that the way they view this is to have local managers run the show, with the presumption that these “culturally appropriate” products will make good in those markets. But along the way, the piece that dissembles over time on account of creating the local flavor is that the product may not mirror the culture that the corporate group wants to instill. If these two are not aptly managed and balanced, islands of conflict will be created. Thus, my contention is that a top-down value mandate ought to set the appropriate parameters inside which the hotbed of collaborative activity would take place for product design and development in various markets.

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Thus the necessary top down value systems that would bring culture into products would be:

  1. Open areas for employees to express their thoughts and ideas
  2. Diversity of people with different skill sets in product teams will contribute to product development
  3. Encouraging internal and external speakers to expound upon the product touch points in the community.
  4. Empowerment and recognition systems.
  5. Proper formulation of monetary incentives to inspire and maintain focus.

 

LinkedIn Endorsements: A Failure or a Brilliant Strategy?

LinkedIn endorsements have no value. So says many pundits! Here are some interesting articles that speaks of the uselessness of this product feature in LinkedIn.

http://www.businessinsider.com/linkedin-drops-endorsements-by-year-end-2013-3

http://mashable.com/2013/01/03/linkedins-endorsements-meaningless/

I have some opinions on this matter. I started a company last year that allows people within and outside of the company to recommend professionals based on projects. We have been ushered into a world where our jobs, for the most part, constitute a series of projects that are undertaken over the course of a person’s career. The recognition system around this granular element is lacking; we have recommendations and recognition systems that have been popularized by LinkedIn, Kudos, Rypple, etc. But we have not seen much development in tools that address recognition around projects in the public domain. I foresee the possibility of LinkedIn getting into this space soon. Why? It is simple. The answer is in their “useless” Endorsement feature that has been on since late last year. As of March 13, one billion endorsements have been given to 56 million LinkedIn members, an average of about 4 per person.  What does this mean? It means that LinkedIn has just validated a potential feature which will add more flavor to the endorsements – Why have you granted these endorsements in the first place?

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Thus, it stands to reason the natural step is to reach out to these endorsers by providing them appropriate templates to add more flavor to the endorsements. Doing so will force a small community of the 56 million participants to add some flavor. Even if that constitutes 10%, that is almost 5.6M members who are contributing to this feature. Now how many products do you know that release one feature and very quickly gather close to six million active participants to use it? In addition, this would only gain force since more and more people would use this feature and all of a sudden … the endorsements become a beachhead into a very strategic product.

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The other area that LinkedIn will probably step into is to catch the users young. Today it happens to be professionals; I will not be surprised if they start moving into the university/college space and what is a more effective way to bridge than to position a product that recognizes individuals against projects the individuals have collaborated on.

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LinkedIn and Facebook are two of the great companies of our time and they are peopled with incredibly smart people. So what may seemingly appear as a great failure in fact will become the enabler of a successful product that will significantly increase the revenue streams of LinkedIn in the long run!

Darkness at Noon in Facebook!

Facebook began with a simple thesis: Connect Friends. That was the sine qua non of its existence. From a simple thesis to an effective UI design, Facebook has grown over the years to become the third largest community in the world. But as of the last few years they have had to resort to generating revenue to meet shareholder expectations. Today it is noon at Facebook but there is the long shadow of darkness that I posit have fallen upon perhaps one of the most influential companies in history.

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The fact is that leaping from connecting friends to managing the conversations allows Facebook to create this petri dish to understand social interactions at large scale eased by their fine technology platform. To that end, they are moving into alternative distribution channels to create broader reach into global audience and to gather deeper insights into the interaction templates of the participants. The possibilities are immense: in that, this platform can be a collaborative beachhead into discoveries, exploration, learning, education, social and environmental awareness and ultimately contribute to elevated human conscience.  But it has faltered, perhaps the shareholders and the analysts are much to blame, on account of  the fangled existence of market demands and it has become one global billboard for advertisers to promote their brands. Darkness at noon is the most appropriate metaphor to reflect Facebook as it is now.

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Let us take a small turn to briefly look at some of other very influential companies that have not been as much derailed as has Facebook. The companies are Twitter, Google and LinkedIn. Each of them are the leaders in their category, and all of them have moved toward monetization schemes from their specific user base. Each of them has weighed in significantly in their respective categories to create movements that have or will affect the course of the future. We all know how Twitter has contributed to super-fast news feeds globally that have spontaneously generated mass coalescence around issues that make a difference; Google has been an effective tool to allow an average person to access information; and LinkedIn has created professional and collaborative environment in the professional space. Thus, all three of these companies, despite supplementing fully their appetite for revenue through advertising, have not compromised their quintessence for being. Now all of these companies can definitely move their artillery to encompass the trajectory of FB but that would be a steep hill to climb. Furthermore, these companies have an aura associated within their categories: attempts to move out of their category have been feeble at best, and in some instances, not successful. Facebook has a phenomenal chance of putting together what they have to create a communion of knowledge and wisdom. And no company exists in the market better suited to do that at this point.

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One could counter that Facebook sticks to its original vision and that what we have today is indeed what Facebook had planned for all along since the beginning. I don’t disagree. My point of contention in this matter is that though is that Facebook has created this informal and awesome platform for conversations and communities among friends, it has glossed over the immense positive fallout that could occur as a result of these interactions. And that is the development and enhancement of knowledge, collaboration, cultural play, encourage a diversity of thought, philanthropy, crowd sourcing scientific and artistic breakthroughs, etc. In other words, the objective has been met for the most part. Thank you Mark! Now Facebook needs to usher in a renaissance in the courtyard. Facebook needs to find a way out of the advertising morass that has shed darkness over all the product extensions and launches that have taken place over the last 2 years: Facebook can force a point of inflection to quadruple its impact on the course of history and knowledge. And the revenue will follow!

Why Jugglestars? How will this benefit you?

Consider this. Your professional career is a series of projects. Employers look for accountability and performance, and they measure you by how you fare on your projects. Everything else, for the most part, is white noise. The projects you work on establish your skill set and before long – your career trajectory.  However, all the great stuff that you have done at work is for the most part hidden from other people in your company or your professional colleagues. You may get a recommendation on LinkedIn, which is fairly high-level, or you may receive endorsements for your skills, which is awesome. But the Endorsements on LinkedIn seem a little random, don’t they?  Wouldn’t it be just awesome to recognize, or be recognized by, your colleagues for projects that you have worked on. We are sure that there are projects that you have worked on that involves third-party vendors, consultants, service providers, clients, etc. – well, now you have a forum to send and receive recognition, in a beautiful form factor, that you can choose to display across your networks.

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Imagine an employee review. You must have spent some time thinking through all the great stuff that you have done that you want to attach to your review form. And you may have, in your haste, forgotten some of the great stuff that you have done and been recognized for informally. So how cool would it be to print or email all the projects that you’ve worked on and the recognition you’ve received to your manager? How cool would it be to send all the people that you have recognized for their phenomenal work? For in the act of participating in the recognition ecosystem that our application provides you – you are an engaged and prized employee that any company would want to retain, nurture and develop.

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Now imagine you are looking for a job. You have a resume. That is nice. And then the potential employer or recruiter is redirected to your professional networks and they have a glimpse of your recommendations and skill sets. That is nice too! But seriously…wouldn’t it be better for the hiring manager or recruiter to have a deeper insight into some of the projects that you have done and the recognition that you have received? Wouldn’t it be nice for them to see how active you are in recognizing great work of your other colleagues and project co-workers?  Now they would have a more comprehensive idea of who you are and what makes you tick.

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We help you build your professional brand and convey your accomplishments. That translates into greater internal development opportunities in your company, promotion, increase in pay, and it also makes you more marketable.  We help you connect to high-achievers and forever manage your digital portfolio of achievements that can, at your request, exist in an open environment.  JuggleStars.com is a great career management tool.

Check out www.jugglestars.com

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JuggleStars launched! Great Application for Employee Recognition.

About JuggleStars  www.jugglestars.com

Please support Jugglestars. This is an Alpha Release. Use the application in your organization. The Jugglestars team will be adding in more features over the next few months. Give them your feedback. They are an awesome team with great ideas.  Please click on www.jugglestars.com and you can open an account, go to Account Settings and setup your profile and then you are pretty much ready to go to recognize your team and your colleagues at a project level.

Founded in 2012, JuggleStars provides professionals the ability to share and recognize success and broadcast recognition at varying levels of granularity across a wide array of social platforms. We enable the professionals to manage their brand and maintain and grow their digital portfolio of achievements. Our vision is to make all of the active professionals in our network become lighthouses in the global talent marketplace.
To that end, we believe that there are four tightly intertwined components in play to make this possible.
1.    Rich User Experience: It is important for us to create a rich user experience to encourage users to use our application and reward their bosses, subordinates, peers and third-party vendors – all of the folk who make the life of the professional just a little easier and better. To that end, we have adopted some of the common social networking principles, user experience and general interactivity to allow quicker adoption and integration of users into the JuggleStars community. We will continue to hone and sharpen our focus, while being more inclined toward minimalism that advances the core value proposition to the user.
2.   Tools: We will provide tools integrated into the rich user experience. Being bootstrapped has afforded us very little headroom to give you all that we think you would really find helpful, but our goal is to do our best to give you the tools to be able to manage your brand better. With your support and generosity, we can certainly accelerate what we can provide to you, and we hope that we can demonstrate the power of the web together to create a meaningful and impactful solution via a set of tools that will endure and stand the test of time.
3.    Fun: We are a team that wants to introduce fun in the application. We have as a team worked together to integrate HR, Gaming, Recognition, Open Platform in a manner such that we introduce a healthy spirit of competition and fun while you use our application. Trust us! We are also trying to figure out ways in which you may not have to use our application. We have left you wondering now, haven’t we? Well, stay tuned.
4.    Social Good: Great people do great things. They are the lighthouses for talent. They are the anchors in an organization. They fuel positivity and engagement and al’esprit de corps. They set the standards of excellence. They are the power brokers. They are the gateways that have achieved thresholds of excellence. They are the switch hitters; You can count on them to be the last ones standing. They face adversity with a smile. And most importantly, they are humble and they do not forget that they belong to a much larger community and they want to give back …if not for themselves, for the future generations. They are the lighthouses that look beyond the ocean and we are committed to provide tools to help them advance their aspirational and ideal motives that make a difference. We are with you all the way.
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Importance of Heroes and Narratives in Organizations

“My own heroes are the dreamers, those men and women who tried to make the world a better place than when they found it, whether in small ways or great ones. Some succeeded, some failed, most had mixed results… but it is the effort that’s heroic, as I see it. Win or lose, I admire those who fight the good fight.” – George Martin

 

Stories, like people and butterflies and songbirds’ eggs and human hearts and dreams, are also fragile things, made up of nothing stronger or more lasting than twenty-six letters and a handful of punctuation marks. Or they are words on the air, composed of sounds and ideas-abstract, invisible, gone once they’ve been spoken-and what could be more frail than that? But some stories, small, simple ones about setting out on adventures or people doing wonders, tales of miracles and monsters, have outlasted all the people who told them, and some of them have outlasted the lands in which they were created.” – Neil Gaiman

Heroes are not born. Circumstance and happenstance create heroes. In some cases, heroes are individuals who walk into a minefield of uncertainty that threatens their natural inclination for self-preservation in the interest of value systems and people that are alien to the individual. Thus, a private in an army is a hero already in the fact that he/she is walking into possible harm’s way and serving a cause to serve and protect people not necessarily related to him/her. One has heard the adage – one man’s freedom fighter is another person’s terrorist.  Thus, someone whom we call a terrorist may be perceived a hero by someone else. Thus, in this case …it all becomes a matter of a point of view, but the fundamental point remains – a hero is considered a person who abnegates and abjures their rights to self-preservation for some greater perceived good.

Sustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts of many actors to facilitate (1) the recombination of ideas to generate novelty, (2) real-time problem solving, and (3) linkages between present innovation efforts with past experiences and future aspirations. Innovation narratives are cultural mechanisms that address these coordination requirements by enabling translation. Specifically, innovation narratives are powerful mechanisms for translating ideas across the organization so that they are comprehensible and appear legitimate to others. Narratives also enable people to translate emergent situations that are ambiguous or equivocal so as to promote real-time problem solving. With their accumulation, innovation narratives provide a generative memory for organizations that enable people to translate ideas accumulated from particular instances of past innovation to inform current and future efforts.

The concept of collective identity has gained prominence within organizational theory as researchers have studied how it consequentially shapes organizational behavior. However, much less attention has been paid to the question of how nascent collective identities become legitimated. Although it is conventionally argued that membership expansion leads to collective identity legitimacy, one draws on the notion of cultural entrepreneurship to argue that the relationship is more complex and is culturally mediated by the stories told by group members. Legitimacy is more likely to be achieved when members articulate a clear defining collective identity story that identifies the group’s orienting purpose and core practices. Although membership expansion can undermine legitimation by introducing discrepant actors and practices to a collective identity, this potential downside is mitigated by compelling narratives, which help to coordinate expansion. And that is where the heroes can be interwoven into organizational theory and behavior. It is important to create environments that by happenstance and circumstance create heroes. The architecture of great organizations imputes heroes and narratives in their tapestry.

Heroes and narratives are instrumental in organizations that forge a pathway to long-term sustenance and growth. Hence, we are quick to idolize figures – Iacocca, Welch, Jobs, Ellison, Gates, Benioff, Gerstner, Branson, Bezos, Zuckerberg, Brin and Page, etc.  We learn narratives through case studies, news print, scholarly books on successful companies; and we emulate and steal and copy and parody and so much more … not necessarily because we want to be them but we want to create our identity in our own lair in ecosystems that move with or against the strongest currents.

So it is essential to celebrate the heroes and the narratives of great companies as an additional instrument to ignite engagement and foray into uncharted territories and conquer the unknown. Hence, personally I have also found solace in reading biographies of people who have made a difference, and a great pleasure in vicariously living through the ebbs and troughs of great companies