Thursday, May 14, 2015

Portrait of a Happy Company - Stakeholders Section

A happy company has a highly efficient stakeholders’ relationships management (SRM) system. So efficient, in fact, that it can be rightfully called a shareholders focused organization.

To maximize its performance and financial value, a happy company satisfies all aggregate needs – financial, functional and emotional [and spiritual] – of its stakeholders. To the fullest possible extent – and definitely better than any of its competitors.

In other words, it creates the maximum amount of aggregate value - financial, functional and emotional – for its stakeholders. Which means that it can be rightfully called an aggregate value focused organization.

However, this aggregate value thing goes both ways. Which means that the stakeholders of a happy company create the maximum amount of aggregate value for this company as well. Which ensures the external corporate harmony. In other words, a happy company gets the most out of its stakeholders.

Therefore, a happy company (a) assembles the optimal portfolio of corporate stakeholders; (b) identifies all needs and desires of these stakeholders; (c) satisfy the aggregate needs of its stakeholders to the highest possible extent – and definitely better than its competition and (d) makes sure that its stakeholders satisfy its aggregate needs.

And – as perception is the only reality – it makes sure that it properly communicates superior value of its unique aggregate value to its stakeholders.


A very important SRM component is careful expectations management. Which means that a happy company (a) creates high aggregate value expectations in its stakeholders; and (b) always slightly (or not so slightly) exceeds these expectations. 

Wednesday, May 13, 2015

Portrait of a Happy Company - Human Capital Section

Human capital component of a happy company is based on a rock solid human capital management strategy, tightly integrated with all other corporate strategies. Obviously, this strategy in a happy company perfectly matches its KEF, its DCI, and its corporate vision and mission statements.

A happy company assembles and keeps a lean, competent, experienced, efficient and highly motivated workforce; both necessary and sufficient for maximizing the aggregate value of a business entity.

Workforce, where knowledge and experience of every manager and professional perfectly matches their corporate responsibilities. Workforce, expertly supported by highly efficient employee training, coaching and overall development programs.

A happy company builds and maintains optimal corporate culture and code of conduct focused on maximizing financial and aggregate value of the company; satisfying aggregate needs – financial, functional and emotional – of all corporate stakeholders; mutual respect, trust, cooperation and collaboration – vertical and horizontal, external and internal; intrapreneurship (in broad terms);  kaizen – continuous maximization of individual, workgroup and corporate productivity; and overall corporate happiness.

A happy company develops and implements a perfectly personalized and customized employee motivation system (including both financial and non-financial components). This system stimulates employees to maximize their individual value-generating performance and the efficiency of their collaboration in groups and in the whole company.

A happy company develops and implements a highly efficient (in terms of financial value generation) intrapreneurship support system. Including motivation; idea generation, description and structuring; evaluation and execution.

All of this is made possible by a highly efficient human capital management system. The system that includes highly efficient methodologies and processes for locating, hiring, adapting, utilizing, evaluating, training and terminating corporate employees. The system that maintains a perfect balance between full-time, part-time and contract employees.

Tuesday, May 12, 2015

Portrait of a Happy Company - Knowledge Management Section

Knowledge management component of a happy company is based on a rock solid corporate information & knowledge management strategy, tightly integrated with all other corporate strategies. Obviously, this strategy in a happy company perfectly matches its KEF, its DCI, and its corporate vision and mission statements.

A happy company designs, builds and maintains a truly comprehensive (but lean!) corporate knowledge base. Comprehensive in a sense that it contains all data and information that can be transformed into all knowledge that company managers and professionals need to make the best decisions and execute them in a most efficient way (and thus to maximize the corporate performance and aggregate value).

Corporate cockpit in a happy company provides a uniform and easy-to-use interface into the CKB and knowledge mining tools that make it possible to access this knowledge – either via links to documents or using queries.

A crucial component of the CKB in a happy company is the database of best management practices (BMP) supported by the proper methodology and procedure of identification, dissemination and adoption (through training, coaching, self-education, etc.) of these practices by corporate managers and specialists.

A happy company deploys an optimal, well-integrated and high-synergy system of software products. This system creates the maximum amount of financial and aggregate value by efficiently automating key business processes and knowledge management activities.

A happy company utilizes highly efficient software deployment, training and coaching system to ensure that corporate managers and specialists (a) use all valuable software features and (b) use them in the most efficient way, thus getting the most out of every software product in terms of aggregate value.

A happy company deploys an optimal, tightly integrated and high-synergy system of computer hardware items (‘hardware platform’) that provides highly efficient support for comprehensive corporate knowledge base and the corporate software system.


A happy company deploys an optimal, tightly integrated and high-synergy Intranet system that maximizes the efficiency of (a) horizontal and vertical collaboration in the company on generating financial and aggregate value; and (b) overall utilization of its human capital (ROI into its human capital).

Monday, May 11, 2015

Portrait of a Happy Company - Operations Section

Each operational component of a happy company is based on a rock solid operational strategy, tightly integrated with all other corporate strategies. Obviously, the operational strategy in a happy company perfectly matches its KEF, its DCI, and its corporate vision and mission statements.

A happy company builds and maintains an optimal portfolio of corporate projects using the optimal project initiation, evaluation, acceptance and execution methodology and procedure. Which ensure that each project and the whole portfolio generate the maximum amount of financial and aggregate value for the company.

A happy company designs and implements an optimal system of corporate processes using the optimal business process modeling (visualization), engineering and management methodology. Which ensures that this system generates the maximum amount of financial and aggregate value for the company.

A happy company builds and maintains an optimal portfolio of corporate tools (assets) using the optimal methodology and procedure for tool identification, selection, acquisition, deployment, integration (into the whole business system), operation and liquidation. Which ensure that this portfolio generates the maximum amount of financial and aggregate value for the company.


A happy company designs, implements and maintains an optimal risk management system based on a rock-solid corporate risk management methodology. This methodology ensures the optimal level of corporate risks and financial losses that maximizes the amount of generated financial and aggregate value. 

Portrait of a Happy Company - Marketing Section

The marketing management system in a happy company is based on a rock solid and emotionally inspiring marketing strategy, tightly integrated with all other corporate strategies. Obviously, the marketing strategy in a happy company perfectly match its KEF, its DCI, and its corporate vision and mission statements.

A happy company develops and implements an optimal portfolio of its target markets and maximizes free cash flow from these markets. Which means that it develops and maintains – at all times – a comprehensive knowledge base on these target markets. Target markets of a happy company exhibit a perfect synergy between themselves and a perfect match with corporate KEF, corporate vision, corporate strategies, strategic objectives and strategic plans.

A happy company is always better than its competitors – both direct and indirect. Which means that is (a) develops and maintains – at all times – a comprehensive knowledge base on its competitors and (b) makes sure that it is better than each of its competitors in the eyes of its clients/customers/consumers in each target market

‘To be better than its competitors’ means that a happy company offers each of its corporate stakeholders (clients, suppliers, partners, etc.) a unique value proposition (UVP) which is more valuable than those of its competition. More valuable in terms of aggregate value – financial, functional and emotional (and – where applicable - spiritual).

To be superior to its competition, UVP in a happy company satisfies the aggregate needs of its stakeholders – financial, functional and emotional – better than its competition. Naturally, UVP in a happy company matches its KEF, DCI, corporate vision, corporate strategies, strategic objectives and strategic plans.

To satisfy the aggregate needs of your stakeholders, a happy company possesses, develops or acquires a comprehensive set of core competencies. These competencies exhibit the maximum synergy between themselves and a perfect match to key success factors in target markets, its KEF, DCI, corporate vision, corporate strategies, strategic objectives, strategic plans and UVP.

To be better than its competitors, a happy company possesses, develops or acquires a comprehensive set of competitive advantages. These competencies exhibit the highest possible synergy between themselves and a perfect match to key success factors in target markets, corporate KEF, DCI, corporate vision, corporate strategies, strategic objectives, strategic plans, key competencies and UVP.

Revenues, profits, free cash flows and stakeholders’ value in a business entity are all ultimately created by clients purchasing its products and services. Therefore, a happy company maximizes financial value of each product, service and of the whole portfolio of its products and services.

Naturally, every product in a happy company exhibits the highest possible synergy with other products and a perfect match to key success factors in target markets, corporate KEF, DCI, corporate vision, corporate strategies, strategic objectives, strategic plans, key competencies, competitive advantages, UVP and corporate brands.

In our highly imperfect world where ‘image is everything’, more and more revenues, profits, free cash flows and stakeholders’ value in a business entity are generated by corporate brands. In some cases, more than 90% of financial value of a company is represented by aggregate financial value of its brand portfolio.


Therefore, a happy company maximizes the financial value of each of its corporate brands (bringing it of the level of ‘corporate religion’) and of its whole brand portfolio. Naturally, brands in a happy company exhibit the highest possible synergy between themselves, and a perfect match to key success factors in target markets, corporate KEF, DCI, corporate vision, corporate strategies, strategic objectives, strategic plans, key competencies, competitive advantages and UVP.

Sunday, May 10, 2015

Portrait of a Happy Company - Financial Section

Financial management system in a happy company is based on a rock-solid financial strategy, tightly integrated with all other corporate strategies. Financial strategy in a happy company, obviously perfectly matches its KEF, DCI, your corporate vision and mission statements.

In a happy company, a strategic financial plan is a financial valuation model for the entire business entity. It is based on a rock-solid financial valuation methodology (DCF) and shows in financial terms how the company will achieve its strategic financial objectives. First and foremost, generate the maximum amount of financial value.

In a happy company, every corporate object (brand, product, target market, corporate tool, etc.), process and project has its very own financial valuation model. It is based on a rock-solid financial valuation methodology (Discounted Cash Flows - DCF) and shows in financial terms how the object in question generates the maximum amount of financial value.

In a happy company, corporate budgeting system is based on financial valuation models for the whole company, corporate objects and processes. And thus presents a complementary view of how exactly financial value is generated in a business entity.

A happy company achieves optimal values of its key financial performance indicators (KPI) – on balance sheet, income statement, statement of retained earnings, and statement of cash flows – as well as financial ratios. These values are optimized in such a way that the financial value of a happy company is maximized.

A happy company develops and deploys a highly efficient financial accounting system based on the chosen accounting standards – GAAP or IFRS. However, the financial accounting system in a happy company makes the necessary adjustments to make sure that its corporate accounting generates totally accurate and reliable financial data, eliminating the ‘BAAP effect’ (‘barely acceptable accounting principles’).

A happy company develops and deploys a highly efficient cost accounting system based on appropriate methodologies. This system ensures that corporate costs are allocated to corporate objects and processes in a correct and natural way.

A happy company develops and deploys a highly efficient tax accounting system that ensures that the company minimizes its tax burden (and, therefore, maximizes its financial value) at the same time staying out of legal trouble with tax authorities. 

Saturday, May 9, 2015

Portrait of a Happy Company - Strategic Section

A happy company has an optimal structure of its business system – both comprehensive and lean. Which means that (a) all of its objects – documents, brands, products, etc. - are both necessary and sufficient for your company operations; (b) each object operates at the highest possible performance and (c) all objects are in a perfect synergy with each other.

A happy company has an optimal structure of its KPI system – also both comprehensive and lean and accessible to all of its managers and professionals on a ‘need-to-know’ basis. This KPI system allows to see the comprehensive corporate performance picture at all times.

A happy company develops a comprehensive list of all relevant key external factors (economic, political, legal, technology, etc.) and makes sure that (1) these factors are properly and efficiently monitored for value-generation opportunities; and (2) these opportunities are vigorously pursued and generate the maximum amount of aggregate value (financial, functional and emotional).

A happy company has a comprehensive, well-structured, accurate and up-to-date description of its corporate history which is well-integrated into its corporate management system. And ensures the perfect harmony between corporate past, present and future. 

A happy company has the optimal and highly efficient corporate governance system as well as the optimal and highly efficient corporate decision-making procedures. Which ensure that corporate managers make the best possible decisions that are executed in the most efficient way possible.

A happy company has the comprehensive (but lean!), logically sound and emotionally inspiring declaration of corporate identity (DCI). Which becomes a rock-solid foundation for the whole business system, its mission and vision statements and for the corporate culture.

A happy company develops and implements a comprehensive (but lean!), challenging, logically sound and emotionally inspiring mission and vision statements that match the corporate key external factors (KEF), corporate history and its DCI. 

A happy company develops and implements a comprehensive set of corporate strategies (general, marketing, financial, IT, etc.) for implementing its corporate vision. These strategies have a perfect synergy between themselves and perfectly match the corporate KEF, corporate history and the DCI.

A happy company develops a comprehensive set of strategic corporate objectives – financial (revenues, profits, free cash flow, financial value) and non-financial (market share, customer satisfaction, etc.). These strategies have an optimal “stretch”; a perfect synergy between themselves and a perfect match with the corporate KEF, vision and corporate strategies (as well as with corporate DCI and corporate mission statement).


To achieve its strategic objectives, a happy company develops and implements strategic corporate plans – financial and operational – with detailed comments and explanations (typically referred to as a business plan). These plans also have an optimal “stretch”; a perfect synergy between themselves and a perfect match with KEF, DCI, corporate vision and mission statements and corporate strategies of a happy company. 

Friday, May 8, 2015

How to Make Your Stakeholders Happy & Get the Most Out of Them

How to Make Your Stakeholders Happy

To make your stakeholders happy, you will need to first identify all your key stakeholders. Then, you must make sure that you have a comprehensive but lean portfolio of your stakeholders. In other words, that there are no missing relationships (which you should have but do not) and no redundant relationships that you should not have, but do. All identified missing relationships must be established and all redundant must be terminated.

Then you must identify aggregate (FFES) needs and wants of each stakeholder (develop comprehensive stakeholder profiles). As well as individual ‘buttons’ that need to be pushed to make each stakeholder do what you want him or her to do (you will need it in the next section).

Then you must (1) create high expectations of your company – using the proper corporate communication tools; (2) satisfy the needs and desires of your stakeholders, making sure that you exceed their expectations; and (3) make sure that their expectations match the reality.

How to Get the Most Out of Your Stakeholders

To get the most out of your stakeholders (you must do it to ensure corporate harmony), you must (1) identify the aggregate (FFES) needs of your company; (2) identify stakeholders’ decisions and actions (‘services’) needed to satisfy these needs; and (3) make your stakeholders make the decisions and perform actions that will satisfy these needs (you will need their ‘buttons’ for that).

To make it happen, you will need your stakeholders' map (see the diagram).



Thursday, May 7, 2015

How to Maximize Your Corporate Performance

To maximize your aggregate corporate performance, you must maximize the performance of both your corporate objects and your corporate processes. Both are measured by the corresponding key performance indicators (KPI). There is a major difference in performance maximization, however, between corporate objects and corporate processes.

To maximize the performance of a corporate process, you usually have to perform a reengineering of the corporate process in question (which usually automatically yields the optimal values of process-related KPI). You seldom have to reengineer a corporate object (with the exception of composite objects). Therefore, to maximize its performance, you will have to analyze historic values of object-related KPI (benchmark, planned and actual) and develop and execute plans for optimizing KPI values and thus maximizing the performance of the object in question.

To reengineer a business process, you must first visualize it (‘develop a visual model’). To do that, you will need the right methodology (usually IDEF0), tools and technologies. Here's an example of an IDEF0 visual diagram for a corporate process.  


Wednesday, May 6, 2015

How to Optimize Your Corporate Structure

Four Steps to a Lean Corporate Structure
Your corporate structure is all about corporate objects. Products, brands, assets, functional units (departments), SBU, regional branches, employees, etc. A lean organization must have no redundant objects (‘no fat’) and no missing objects (all ‘limbs’ must be in place).

Therefore, you will optimize your corporate structure and make it lean in four steps:

-     Identify and visualize all your corporate objects (it is a comprehensive analysis)

-     Identify & eliminate redundant objects (‘cut fat’)

-     Identify & add missing objects (‘add limbs’)

-     Integrate your objects in the most efficient & natural way
       
Corporate Objects Maps
In order to identify missing and redundant objects, you will need some kind of a yardstick, a benchmark, a template, a blueprint, a ‘map’ to compare your corporate structure to. You must always remember that in order to build a truly lean organization, you must develop, analyze and optimize the truly comprehensive corporate structure that includes all corporate objects in your company – and not just functional units and personnel that the ‘classic’ organization chart does.

Fortunately, such map exists. It is called a Comprehensive Corporate Objects Map. It visualizes and integrates in a natural, easy-to-understand and easy-to-use way all you key corporate objects – both simple objects (e.g. corporate financial plan), composite objects (e.g. SBU or regional branches) and object portfolios (e.g. brands or products). No wonder it is also called the ‘Key Business Management Diagram’ (KBMD). To analyze in detail a composite object or an object portfolio, you will need a corresponding decomposition diagram.



Using KBMD and its decomposition diagrams as a reference, you must develop the comprehensive corporate objects map for your company. Which will immediately visualize (1) the missing objects that you must add to your corporate structure; (2) redundant objects that you must remove and (3) the right way to structure your business entity. 

Download my white paper “How to Transform Your Business into a Happy Organization”. For a comprehensive corporate happiness solution, check out my seminar under the same title and my consulting services.

Tuesday, May 5, 2015

Three Steps to Corporate Happiness

To transform your company into a happy organization and to keep it happy, you will have to (1)  conduct a comprehensive business analysis - CBA; (2) perform a strategic corporate reengineering – SCR; and (3) develop and deploy a continuous improvement system - ‘kaizen’.

Obviously, you must begin your project with a thorough and diligent assessment of your current (‘AS IS’) situation with your corporate structure, your corporate performance and the happiness of your stakeholders. This is what comprehensive business analysis is all about. It generates a detailed description of your company (‘business system’) and the ‘ACRC’ – analysis, conclusions recommendations and comments on the best way to make a quantum leap in four key areas.

To make a successful quantum leap, you must have a very good understanding where you are jumping to. In other words, you must develop a detailed vision (‘TO BE’) of the company that you want to build. Then you will need to figure out how to get there. In other words, to develop financial and operational plans for this quantum leap. And, finally, to execute these plans, making an actual quantum leap. These three activities constitute the second stage of your quantum leap project – a strategic corporate reengineering.    

To make sure that your company stays happy at all times – maintains a lean corporate structure, operates at its maximum performance and keeps all its stakeholders happy – you will have to develop and deploy a continuous improvement system often referred to as ‘kaizen’. This system must not only make the necessary marginal improvements, but trigger another quantum leap project when changes in your corporate environment make it necessary. 

Download my white paper “How to Transform Your Business into a Happy Organization”. For a comprehensive corporate happiness solution, check out my seminar under the same title and my consulting services.

Monday, May 4, 2015

Why You Want, Can, Must and Will Build a Happy Organization

Why would you want to transform your company into a happy organization? I have already mentioned one compelling reason – to make a lot of money from this investment project. However, there are several other – and no less – compelling reasons for you to undertake this project.

First, happiness is a fundamental and a very powerful human need and desire (and a fundamental right according to the U.S. Constitution). All individuals need and want to be happy at home, at work and in all relationships with other individuals and organizations. All decision-makers in all organizations want to be happy themselves and to own, lead and manage happy organizations. And you are no exception.

Second, according to Maslow’s hierarchy of human needs, every human being wants and needs self-actualization. For an entrepreneur, CEO and other corporate top-managers, it means both being the best one can be and making one’s business the best it can be. Which means a happy lean organization operating at its maximum performance and making all its stakeholders happy.

I have already explained why you can make this quantum leap. Because there is an ample room for it – in corporate structure optimization, corporate performance optimization and in your potential for stakeholder happiness. A lot of room for a genuine quantum leap. 

Now why you must make this quantum leap. To put it simply, because of competition. Increasingly global and increasingly intense competition. For customers’ wallets and checkbooks and for human resources as well. And how businesses compete nowadays? On their structure, performance and their ability to make their stakeholders happy. And on getting the most out of the latter, of course.

Therefore, businesses (and your company is no exception) are under a tremendous external pressure to optimize their corporate structures, maximize their performance, make their stakeholders happy and get the most of the latter. In other words, to make a quantum leap in all these four areas. Make it happen – or go out of business. Cut and dry, plain and simple.

Therefore, I am confident that you will make this quantum leap. As soon as you obtain the right tools and technologies. Which – until very recently – simply were not available. Now they have finally arrived.


And because these tools have finally arrived, corporate happiness revolution is inevitable and imminent. The revolution that will affect everyone. Every single business (and every organization) in every country. Everyone will either become happy or stay unhappy, will be either a winner or a loser, either an insider or an outsider; either the leader or the outcast. The choice is yours. 

Download my white paper “How to Transform Your Business into a Happy Organization”. For a comprehensive corporate happiness solution, check out my seminar under the same title and my consulting services.