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. 

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.

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).

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.

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. 

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.