What is the Doklam issue?

There is a narrow corridor [Siliguri Corridor] that connects India’s northeast with rest of India. If someone takes over this corridor that they can effectively block this region or even break this region apart from India.

A few kilometers north of this region sits the Doklam plateau near the trijunction of India, Bhutan and China. About 100 years ago an agreement was made to draw the borders and there is ambiguity in the text regarding who owns the plateau. Bhutan and India think it is owned by Bhutan. China thinks it is hers.

Recently, China started building a road in this region and that has sent alarms ringing in Bhutan and India. For Bhutan it is a mere part, while for India it is something that can strangle its Siliguri corridor. Thus, India made a far bigger noise than Bhutan and started putting its troops there.

China reacted to India’s entry and started putting its own troops and there was a risk of a war as neither side wanted to back down.

India told China that if it doesn’t stop the road work it would boycott the BRICS summit to be held on September 3 in China. If India backs out, the whole summit also involving Russia, Brazil & South Africa would have to be cancelled and that would be a big shame for Xi Jinping.

Thus, both sides met and India sent its “James Bond” Ajit Doval to broker a deal. China promised to stop the road work in the region and both countries pulled back its troops. For India it is a victory as the road work could threaten its corridor and for China it is a victory that they were able to get the Indian troops back off without firing a gun.

Disaster averted and the question of who owns the plateau is postponed to future.

Source: https://www.quora.com/profile/Balaji-Viswanathan-2

Wrong Hire — Cost of Existence

• Talent management , Employee retention are getting to be of paramount focus for organisations & rightfully so . Increasingly it will be about our ability to spot talent , attract , nurture & our ability to create Human / Talent Resonance ( best alignment between an employee’s talent with the role requirement ) , which will be our differentiator & decider for outstanding success—it is going to be less & less about Knowledge , Capital or even Technology.
  
• Image source: http://www.predictiveindex.com/blog/when-good-hires-go-wrong/

• Attrition is the opposite of retention . There are two broad categories of attrition : Desirable , Undesirable – causal factor for each is divergent . While undesirable attrition has lot to do about an organisation’s ability to positively engage the employee & retain him / her for longer ; whereas primary reason for undesirable attrition is Wrong Hire – organisation’s ability to select ( or lack of ability ) right candidature .

• Attrition of any kind ( & for whatever reason ) and its replacement COSTS ! . There have been extensive ( research based or otherwise) accounts of estimation of cost of attrition / replacement & various reporting on different components of this Cost : Recruitment , Induction , Training , Initial warm up time , Employee morale , Company image , Cost of discontinuity … etc . Not much for me to add here .

• However surprisingly , as much as is written about the costs post exit / replacement of a person – everyone seems to have missed on the cost of Existence of the exiting employee — I am obviously referring to Desirable attrition candidate . There are significant hidden costs of a desirable exit , while the employee is working . I call it as Cost of Existence or a Wrong Hire . Since none has focused on this real but ignored cost , I chose to bring it to attention here .

• Every additional day of a Wong Hire in job costs organization immensely , in myriad ways , as :
• Absorption :Since the alignment of inclination and role is low , ‘ uptake ‘ is low & slow . Hence impacts getting ‘ up to speed ‘ in time & quality of output
• Training : Since inclination is low , efficacy of training is low . Gain for training costs is questionable
• Productivity : Again due to low fit between role requirement & the employee talent / tendencies , work output is low , both in terms of quantum & quality
• Substitution : Since the work output is below desired levels , most of the time to keep on track , it calls for ‘ substitution ‘ of efforts from the supervisor . This employee unfairly draws much management resource , just to keep afloat . This is draining of management time , energy , which otherwise can be redeployed in more gainful ways
• Organisational momentum : One person operating ‘ below par ‘ does not just affect his supervisor or teammates – in a chain reaction of substitution, soon most of the organization , at all levels start operating at one level below . Beyond work output , it saps the organization of its vital vibrance , energy .
• Negativity : All negative / below par things have a ‘ gravity effect ‘ on the organization . Most draw parallel from a non performer ( going un addressed ) to lower their performance ( if he can survive at low performance , why should I stretch for more ? ) This is indirect negativity . However non performers have a far more potential to add direct negativity , by spreading their frustrations , depressions ; they can harm the organization immensely

• Unfortunately though most of us have experienced this “ Cost of Existence “ of a Wrong Hire , no one has paid much attention to this , either talking about or estimating the cost of this damage . I too have experienced it first hand & while I have no organized study to back up ; my hunch is that the Cost of Existence of a Wrong Hire is no less than the cost of its Replacement .

• The cure for this is – Right Selection . We need to realize that while Knowledge , Skills can be imparted from outside , Talent or Constitution ( how is that individual ‘ made up ‘ ) comes as intrinsic with the person we hire . Hence it is important to see that we select – not the most intelligent or most knowledgeable or most skilled , but the most right in constitution . No amount of training or hard efforts can change a wrong person into right . Remember no training can convert a Donkey into a Horse … training can at best make a Donkey , a better Donkey

                                               

https://valueenhancer.wordpress.com/2017/05/28/wrong-hire-cost-of-existence/

Brand Promise

A brand exists in the minds of consumers. That’s it. Nowhere else.

No matter how clever your brand messaging is, it can’t alter the brand. It can only raise awareness or reinforce existing perceptions. If consumers know a brand promise is empty, they’ll just scoff at the disconnect between the message and the actual customer experience.

Scary thought, right?

Not if you’re committed to following through on your brand promise, and you move heaven and earth to do it.

Some brands get it. They know success depends on listening to and understanding the customer, empowering employees to achieve excellence, making sure brand standards are met on the front line, and innovating in response to market trends.

Other brands have a more insular view. And we all know what happens when customer-facing businesses lose sight of what’s important.
To us, the brand promises below represent a wholehearted investment in serving the needs of customers—and in going further to earn their confidence, loyalty, and trust.

We’ve collected some of the greatest brand promise examples we’ve ever seen. Some of these brands you’d expect to make the list, and others may come as a surprise, but it just goes to show that a successful brand is a lot more than a logo, icon or memorable slogan.

Coca-Cola: “To inspire moments of optimism and uplift.”

Coca-Cola’s brand promise takes a bit of a different route. It does not mention the product or service, but instead aims to convey a mindset held by all of those that are a part of the company. With a brand promise like this, Coca-Cola positions themselves as a lifestyle brand that is about much more than just manufacturing popular drinks.

BMW: “The Ultimate Driving Machine”

This bold statement is the driving force behind BMW’s brand. They aim to produce only the most efficient and elegant vehicles and their brand promise states this with confidence.

Nike: “To bring inspiration and innovation to every athlete in the world.”

Similar to Coca-Cola, this brand promise doesn’t even mention Nike products, but instead tells the consumer how they think and what they aim to do on a much larger scale than sports clothing and equipment.

Harley Davidson: “We are Harley Davidson.”

Harley Davidson have had a number of different brand promises through the years, but all of which revolve around the simple fact that there is nothing like a Harley. The cultural icon needs little explanation, and so their most recent brand promise doesn’t attempt to be anything but simple and to-the-point, promising a consistent experience with their company every single time.

Apple: “Think different.”

What started as a shrug to IBM’s “Think,”, Apple’s brand promise is arguably the most famous slogan of all time and the key to Apple’s wild success in the computer industry. Apple’s brand promise is two-sided – their guarantee to create products based on seeing the world a little differently, and their promise to inspire their customers to do the same.

Starbucks: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

With a following as iconic as Apple, it’s no surprise that Starbucks provides a great brand promise example, and one they continue to deliver on. Like many company, Starbucks distinguished themselves as a lifestyle brand looking to bring much more to the world than a great cup of coffee.

Marriott: “Quiet luxury. Crafted experiences. Intuitive service.”

This brand promise example is all about a consistent experience. Whether you stay in a Marriott in New York City, California or Utah, you expect the same experience and service. If Marriott did not live up to this promise, they wouldn’t be one of the most successful companies in the hospitality industry today.

Walmart: “Save money. Live better.”

It’s no surprise that Walmart makes the list of great brand promise examples. By combining the obvious promise of low prices with emotional benefits, Walmart offers its shoppers a better quality of life with easy access to the necessities.

How to Create a Brand Promise That Sticks

A great brand promise reflects careful consideration, courage, and creativity. The bolder and clearer the better. The best brand promises go big, challenge the status quo, and connect with consumers on a deep emotional level.

Make it Measurable

With many brand promise examples, the promise becomes too many things in an attempt to be everything to everybody, and ends up being nothing to anyone. For your brand promise to be effective, it must be measurable.

What does friendly mean? How do you measure that? What does safe mean? Does safe only mean that the driver has never been in an accident? We all know people who don’t necessarily drive safely, but have not been in an accident – yet.

If you can’t define what your promise means, you can’t measure it. If you can’t measure something, you can’t manage it.

Take FedEx for example. When FedEx first started out, their brand promise was, “We will get your package to you by 10:30 am the next day.” Time is a measurement we all agree on. If the package arrives prior to 10:30 am, the brand promise is kept. Starting at 10:31 am, the promise is broken. A strong brand promise is easy to measure against.

Make it Meaningful

This is where the old cliche “actions speak louder than words” is particularly true. A brand promise is nothing if it’s not followed through with action. The one thing strong retailers do well is deliver on their brand promises consistently. You make a commitment to your customers, and if you don’t deliver, you’ll lose them. The problem is that many companies have one big barrier to consistently delivering on those promises – their employees.

Your store associates are the faces of your business. They are the ones who interact with your customers daily and they make the strongest and most lasting impression on your customers.

It’s their job to be the point of contact between your brand and your customers. But you know what’s scary? Most employees don’t even know what their company is promising. Instead of helping to improve your brand, they may be harming it.

Educating your employees about your brand message is the key to ensuring that your company keeps its promises to your customers. Training programs should include clear messages about what your brand stands for, what you are committed to delivering to your customers and why it matters.

When you give employees a deeper understanding of what you promise your customers, and how their performance fulfills that commitment, your employees are better able to consistently provide the great brand experience your customers expect.

And that’s how you deliver on a brand promise.

Source: https://stellaservice.com/the-best-brand-promise-examples-weve-seen-2/

Net Working Capital

Net working capital is a liquidity calculation that measures a company’s ability to pay off its current liabilities with current assets. This measurement is important to management, vendors, and general creditors because it shows the firm’s short-term liquidity as well as management’s ability to use its assets efficiently.

Much like the working capital ratio, the net working capital formula focuses on current liabilities like trade debts, accounts payable, and vendor notes that must be repaid in the current year. It only makes sense the vendors and creditors would like to see how much current assets, assets that are expected to be converted into cash in the current year, are available to pay for the liabilities that will become due in the coming 12 months.

If a company can’t meet its current obligations with current assets, it will be forced to use it’s long-term assets, or income producing assets, to pay off its current obligations. This can lead decreased operations, sales, and may even be an indicator of more severe organizational and financial problems.

Formula

The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like.

Net Working Capital =  Current Assets – Current Liabilities

Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments. The current liabilities section typically includes accounts payable, accrued expenses and taxes, customer deposits, and other trade debt.

Some people also choice to include the current portion of long-term debt in the liabilities section. This makes sense because although it stems from a long-term obligation, the current portion will have to be repaid in the current year. Thus, it’s appropriate to include it in with the other obligations that must be met in the next 12 months.

Example

Let’s look at Paula’s Retail store as an example. Paula owns and operates a women’s clothing and apparel store that has the following current assets and liabilities:

·         Cash: $10,000

·         Accounts Receivable: $5,000

·         Inventory: $15,000

·         Accounts Payable: $7,500

·         Accrued Expenses: $2,500

·         Other Trade Debt: $5,000

Paula would can use a net working capital calculator to compute the measurement like this:

Net Working Capital =  Current Assets – Current Liabilities

15000= 30000-15000

Since Paula’s current assets exceed her current liabilities her Working Capital is positive. This means that Paula can pay all of her current liabilities using only current assets. In other words, her store is very liquid and financially sound in the short-term. She can use this extra liquidity to grow the business or branch out into additional apparel niches.

If Paula’s liabilities exceeded her assets, her Working Capital would be negative indicating that her short-term liquidity isn’t as high as it could be.

Analysis

Obviously, a positive net Working Capital is better than a negative one. A positive calculation shows creditors and investors that the company is able to generate enough from operations to pay for its current obligations with current assets. A large positive measurement could also mean that the business has available capital to expand rapidly without taking on new, additional debt or investors. It can fund its own expansion through its current growing operations.

A negative net working capital, on the other hand, shows creditors and investors that the operations of the business aren’t producing enough to support the business’ current debts. If this negative number continues over time, the business might be required to sell some of its long-term, income producing assets to pay for current obligations like AP and payroll. Expanding without taking on new debt or investors would be out of the question and if the negative trend continues, net WC could lead to a company declaring bankruptcy.

Keep in mind that a negative number is worse than a positive one, but it doesn’t necessarily mean that the company is going to go under. It’s just a sign that the short-term liquidity of the business isn’t that good. There are many factors in what creates a healthy, sustainable business. For example, a positive Working Capital might not really mean much if the company can’t convert its inventory or receivables to cash in a short period of time. Technically, it might have more current assets than current liabilities, but it can’t pay its creditors off in inventory, so it doesn’t matter. Conversely, a negative WC might not mean the company is in poor shape if it has access to large amounts of financing to meet short-term obligations such as a line of credit.

What is a more telling indicator of a company’s short-term liquidity is an increasing or decreasing trend in their net WC. A company with a negative net WC that has continual improvement year over year could be viewed as a more stable business than one with a positive net WC and a downward trend year over year.

Change in Net Working Capital

You might ask, “How does a company change its net working capital over time?” There are three main ways the liquidity of the company can be improved year over year.

First, the company can decrease its accounts receivable collection time.

Second, it can reduce the amount of carrying inventory by sending back unmarketable goods to suppliers.

Third, the company can negotiate with vendors and suppliers for longer accounts payable payment terms. Each one of these steps will help improve the short-term liquidity of the company and positively impact the analysis of net working capital.

Source: http://www.myaccountingcourse.com/financial-ratios/net-working-capital

Businesses are built on burning ambition. But don’t burn at both ends

Build a long view of time. Rome wasn’t built in a day.

I am 28. I have just raised the first round of venture capital for my e-commerce company. It is a heady feeling. But as the high-fives are settling down, please tell us the things we should keep in mind, what must be done to take the company to the next round of funding and 20x valuation-maybe even beyond?

First things first: please focus on building value, the valuation will follow.

The reverse is a chimera and a slot-machine view of business. As entrepreneurs, we must be faithful to the organization we have set out to build. That one thought must permeate every moment of your wakeful being-focus on the fundamentals. Most start-ups will never see the 20x valuation unless they keep in mind what I am about to tell you.

Since you are an Internet company (well, who isn’t?), do not shift your eye from a fundamental reality: customers may interact with the business you are setting up in a virtual world, but they live in the real world. Thus, it is not the killer app you are building, but the living experience of fulfilment that will ensure where your company will go next.

Spend time with your customers with religious regularity, immerse yourself in their world in which they use, not just buy, your product or service.

When you immerse yourself in their world, you will soon realize who holds the key to building customer loyalty. It is the last-mile guy, happily outsourced by most. Whether it is a cab driver or a pizza delivery guy, that guy is the one the customer sees when she opens the door. That man is your brand.

Now let us look at how you run the company overall. Let us talk about the Type-A personality that all entrepreneurs are cast in, its overpowering masculinity and what that does for many of us. Beware of the stereotype.

You would do well not to emulate start-up entrepreneurs who have a macho view of leadership.

Look at the best business leaders who have been around for decades. Most of them do not build on machismo; they build on empathy. For creating empathetic relationships, humility is the foundation. Build humility. Tell yourself that you are here because of your paying customers, your employees and your investors; it isn’t the other way round.

Build a long view of time. Rome wasn’t built in a day. Amazon is 22 years old.

Shift your gaze to the last-mile guy and ask yourself, what you should be doing personally, and this very week, to train, motivate and grow him. Go meet your most recent customer at home and have tea with him. Ask the customer what will bring him back for more.

Just as I told you Amazon was built over 22 years, someone will also tell you that it made money after 21 years. That works for Amazon because Amazon has a 210-year view of business. For you and me, we would be better off to internalize that losses are not cool. Businesses are meant to make money.

These days, every newspaper, every business magazine is agog about start-ups. The start-up kid is the new glam baby. While it is a good thing, it can go to your head.

Please know that media is like alcohol. Drink responsibly.

And please, don’t get carried away by the unicorn tag. It is not without reason that such an animal doesn’t exist in the real world.

Let us now talk about something called The Burn.

Businesses are built on burning desire, burning ambition. But don’t burn at both ends.

Please don’t dump your girlfriend or boyfriend because you need to be at work every night, past midnight. One day, someday the entire world will be a let-down for you. It is an inevitable rite of passage. That day, you will need the open arms of those who care who tell you, it is okay, that it has been worth it. Money hasn’t yet bought love. It never will.

Today, you are in your 20s. You have just started a promising enterprise. You are entirely focused on building it. But please do take a moment to realize that in reality, there are two things coming into this world at the same time, being born simultaneously.

The visible one is the business.

The not-so-visible one, and in reality the bigger and more important one, is the entrepreneur. In you, an entrepreneur is being born. That person must be handled with care, nurtured like a child. That someone is not 28 years old. That individual is what I term as Me Inc.

Today, you are delivering two babies: the business and the entrepreneur. Don’t throw the entrepreneur to the indeterminate outcome of ego and randomness.

Never forget, the second baby is very precious. You are responsible for it. If you handle that one with care, that one will grow the business, actually, build many great businesses in the future. Please take care of Me Inc. Nourish its body, mind and soul.

Finally my friend, I have one counter-intuitive thought for you. Everyone glorifies start-ups as the epitome of smartness. People say, hey, this guy is smart, the business idea is smart. Yes, smart is important, cool and essential. But while start-ups are about smartness, staying on is about wisdom.

Be smart and be wise.

Source – http://www.livemint.com/Opinion/ISngAavDC0yZaTcmx5RctL/Businesses-are-built-on-burning-ambition-But-dont-burn-at.htm

6 STEPS TO DEFINING YOUR ORGANIZATIONAL VALUES

Organizational culture can be seen as a “personality" created by the organization's values, attitudes and behaviors. This “personality" attracts and keeps great talent, creates a positive public image and helps build long-lasting relationships with stakeholders, vendors and customers.

But a good organizational culture doesn't spring up out of serendipity. It requires intentional and thoughtful identification of the core values the organization is built upon. Last month, I discussed how strong personal values can direct your organization in a positive direction, but it's also important to identify values for the whole team .

Here, six steps to identifying those organizational values and building a strong company culture:

1) Assess Your Current Organizational Culture

First, take a benchmark of your current culture. To do this, you need to truly assess where your company stands—not what you think it represents or what you want it to represent, but what impression the current brand truly gives off. What do people say about your organization, both externally and internally?

To figure out your organizational identity, interview vendors, clients, employees and your leadership team—either in focus groups or via an online survey. Ask them what words they would use to describe what's important to the organization and how effective the organization is at putting those values into action.

2) Review Your Strategic Business Plan

Next, think about your company's future. Where does your organization want to be in one, three or five years?

Since your corporate culture is closely tied to your business strategy, it's important to define where you're headed early on the values process . Meet with your executive team to figure out a plan for revenue, growth, staff, productions and expansion.

3) Determine the Culture Needed to Achieve Your Plan

Now that you have a clear picture of what your organizational culture is today, and where you want your organization to be in the next one to five years, it's time to look at your organizational values in this context.

Review your strategic plan and answer this question: "In order for us to get from point A to point B, what organizational culture do we need to achieve?" Consider the variety of personalities, backgrounds, skills and education you want to have on your team.

For example, some of Starbucks' core values are diversity, customer service and quality products. When you walk into a Starbucks store, you know you can expect a diverse staff, happy clientele and delicious drinks.

4) Decide If Your Values Need to Shift

Now that you know the culture and the talent you need, you can start to finalize your new—or revised—set of values. Take a look at your initial survey or focus group results, and decide if those are the values needed to reach your strategic goals. One tool that can be tremendously helpful is a pack of Values Cards.

You can put them on a conference table, and let the executive team start picking the ones they identify with the company. Or you can pick a few values, and explain why you think they are the most relevant to your organization's mission.

5) Define What Your Chosen Values Really Mean

An organizational value is not just a word painted on the wall. It must be clear what specific behaviors and processes the employee is supposed to do at work to honor this value.

For example, if your organization values loyalty, who does this loyalty refer to? Does "loyalty" mean the client comes first? Does it mean your team comes first? What about loyalty to your boss? Members of the organization should have a clear understanding of how to put each value into action.

6) Incorporate These Values into Organizational Processes

Finally, your newly defined values will need to be integrated in all operational areas, including the talent lifecycle. During recruiting and hiring, ask candidates about their own values and reiterate values in employee contracts. Within on-boarding and employee development, align your values with performance reviews and compensation.

A solid foundation of values for your organization will not only help you hire the right people, but also build an organization culture that's engaging, genuine and most of all, impactful.

Source: https://www.cornerstoneondemand.com/rework/6-steps-defining-your-organizational-values

How to Win Friends and Influence People Summary

Part One: Fundamental Techniques in Handling People

1: If You Want to Gather Honey, Don’t Kick Over the Beehive. It is basic human nature to reject criticism and justify one’s actions. Al Ca

pone said, “I have spent the best years of my life giving people the lighter pleasures, helping them have a good time, and all I get is abuse, the existence of a hunted man.”

If even the most notorious gangster in U.S. history viewed himself in this light, it’s not likely that the average person is going to take criticism well. Take Benjamin Franklin’s advice: “I will speak ill of no man… and speak all the good I know of everybody.”

2: The Big Secret of Dealing with People. Of the basic human needs, Carnegie asserts, the desire to be important, or to be great, is the need that is most difficult to meet. “If you tell me how you get your feeling of importance, I’ll tell you what you are. That determines your character.”

If you can deliver that sense of importance to your fellow man, you will have found the key to dealing with people. As Charles Schwab said, “I consider my ability to arouse enthusiasm among the men the greatest asset I possess, and the way to develop the best that is in a man is by appreciation and encouragement.”

Our natural response is to criticize what we don’t like, and remain silent about what we do. If you find it difficult to appreciate people (or certain people), take Ralph Waldo Emerson’s advice: “Every man I meet is my superior in some way. In that, I learn of him.”

Every person on earth knows something you don’t; seek to learn that thing in every interaction, and you will make the other person feel important. This is not to suggest the practice of flattery; on the contrary, the author is advocating that you be alert for every opportunity to voice sincere appreciation when anything is done well.

3: He Who Can Do This Has the Whole World with Him. He Who Cannot Walks a Lonely Way. When you go fishing, you don’t bait the hook with the strawberries you’d like to snack on; you use what the fish prefer, worms. Yet in our interactions with people, we always barge in talking about what we want, which is a complete waste of time and effort. Instead, we should always be asking ourselves what the other person wants, and present our reasoning from their perspective. Tell them how it will get them what they want.

Henry Ford said, “If there is any one secret to success, it lies in the ability to get the other person’s point of view and see things from his angle as well as your own.” (More recently, there have been a number of great books devoted to the importance of understanding incentives, such as Steven Levitt and Stephen Dubner’s Freakonomics.)

It may sound obvious, but most people nevertheless persist in approaching each interaction with the desire to explain their own needs and desires. “So,” as the author puts it, “The rare individual who unselfishly tries to serve others has an enormous advantage. He has little competition.”

Part 2 : will be posted later.....

(Source:http://www.deconstructingexcellence.com/how-to-win-friends-and-influence-people-summary/)