Management and Strategy

A first step in positioning is to clarify the “value proposition”

“For (target customers)

Who (are dissatisfied with current options, or have the following problem)

Our product is a (describe the product, service or solution)

That provides (the key problem-solving capability).

Unlike (the alternatives or competition),

Our product (describe the key points of competitive differentiation).”

What is carbon trading?

• Under Kyoto protocol, developed countries agreed that if their industries can’t reduce carbon emissions in their own countries, they will pay others like India (a signatory to the Protocol) to do it for them and help them meet their promised reduction quotas in the interest of worldwide reduction of greenhouse gases.

• The “currency” for this trade is called Carbon Emission Reduction (CER). One unit of CER is one tonne equivalent of carbon dioxide emission.

• UN Framework Convention on Climate Change registers the project, allowing the company to offer CERs produced by the project to a prospective buyer.

Pasted from <http://www.indianexpress.com/story/15354.html>

Global Sustainability is ability to meet the needs of the present without compromising the ability of future generations to meet their needs. Similarly sustainable development is a process o achieving human development in an inclusive, connected, equitable, prudent, and secure manner.

Sustainable Enterprise is one that contributes to sustainable development by delivering simultaneously economic, social, and environmental benefits the so called triple bottom line.

    

Here is the model to manage communication in crisis.

Source: UNC study on communication in crisis.

Green buildings have less negative impact on environment than standard buildings.

In 2000, U.S Green Building Council (USGBC) started LEED (Leadership in Energy and Environmental Design).

 Following are 10 rules for Green development

Rule 1: Focus on the big picture

Integrating green principles into building’s planning and design from the start, appointing the right people.

Rule 2:Choose a sustainable site

Cannot be constructed on prime farm land, parkland, historic site or endangered habitat of a species. Ideal location would be vacant lots, redevelopment sites like rail yards etc.

Rule 3:Do the Math

Apply a cost /benefit analysis before allocating funding.

Rule 4:Make the site plan work for you

Reduce the amount of roads, parking lots, reduce grading and earthwork, limit erosion. Easy access to public transportation. 

Rule 5:Landscape for Savings

Minimizing heat islands, green roof, drought tolerant plants.

Rule 6:Design for greater green

Maximize of day lighting, Operable windows and skylights enable natural ventilation.

Rule 7:Take advantage of Technology

Help conserve and even generate energy. Install motion sensitive lighting sensors and individual climate controls in offices, workstations. Highly efficient HVAC systems that do not use chloro floro carbons. Though it will take long time before we get back the investment cost, in part through lower operating costs, increased productivity, longer employee retention and less sick time. 

Rule 8: Save and manage water

Water conserving irrigation systems, waterless urinals, recycled water for landscape.

Rule 9: Use alternative materials

Low emission paints, strawboard made out of wheat.

Rule 10:Construct green

Construction process control, recycle waste, recycle at least 50% of its waste

 
 

Source: Building the Green Way – Charles Lockwood (HBR:R0606J)

It is difficult to innovate something new. It is more difficult to identify which innovations to fund and most difficult is to make money out of new innovation. I have been writing some posts related to innovation. Following is summary of all the posts related to Innovation.

Identifying and Making Money from Innovation

• Disruptive vs. Sustaining Technology
• The Discipline of Innovation
• Making Money from Innovation. Complementary Assets
• Increasing returns – New world of business

Planning and Managing Innovation

• Discovery driven planning
• Implicit Assumptions in Planning
• Aggregate Project Plan
• Time Pacing
• ACE Matrix
• Entrepreneurial Equilibrium

Corporations can grow new businesses by performing three kinds of balancing acts:

• Balancing trial and error strategy formulation with rigor and discipline
  • Narrow the range of choices before diving deep
  • Closely observe small groups of consumers to identify their needs
  • Use prototypes to test assumptions about products, services and business models
  • Use nonfinancial milestones to measure progress
  • Know when and on what basis to pull the plug on infant businesses
• Balance operational experience with invention
  • Appoint “mature turks” as leaders of emerging businesses
  • Win veterans over by asking them to serve on new businesses oversight bodies
  • Consider acquiring select capabilities instead of developing everything from scratch
  • Force old and new businesses to share operational responsibilities
• Balance new business identity with integration
  • Assign both corporate executives and managers from divisions as sponsors of new ventures
  • Stipulate criteria for handling new businesses over to existing businesses
  • Mix formal oversight with informal support of creatively combining dotted and solid line reporting relationships

Source: Meeting the challenge of corporate Entrepreneurship by David A Garvin and Lynne C. Levesque (HBR:R0610G)

A Simple matrix helps you identify the attributes that will make your goods and services most competitive. The matrix here is ACE(Attribute Categorization and Evaluation). The matrix shows what action a company must take in response to each attribute. There is a three step process to identify and then act on ACE.

1. Uncover the salient attributes of product. This can be done by
   1. identifying parallel needs,
   2. Identifying purchasing patterns,
   3. observing customer and
   4. identifying customer’s perception of risk
2. Map the Attributes to the matrix
3. Validate, Validate, Validate

 

Source: Discovering you products hidden potential by Ian C. MacMillan and Rita Gunther McGrath (HBR: 96305)

I have worked around 4+ years in implementation consulting every time I had to meet a customer first time; I was not sure what information to gather before the first meeting. I acquired my information from customer’s website. I normally knew everything about their products and locations etc. Here is an exhaustive list I got from my professor of consulting who has worked for more than 20years in strategy consulting. This is more relevant to strategy consulting but a great list for everyone.

• Industry
  
  • Legislation
  • Profitability/drivers and trends
  • Cross Industry Issues
  • Key Terms
  • Effects of wider issues
    • Demographic shifts
• Key Competitor comparison
  
  • Profitability
  • Growth
  • Geographic Reach
  • Product Range
  • Terms of Competition
• Company
  
  • Industry Rank
  • Profitability /Trends
  • Recent Events(Acquisitions, Product Changes, Organization Changes, ETC)
  • Vision and Aspirations
  • Chairman’s Priorities
  • Terminology particular to the company
• The Executive
  
  • Work History
  • Education/Family/Hobbies
  • Business Priorities
  • Current Responsibilities
  • Organization chart if available
• Implications
  
  • What does the client want
  • How do the researched issues affect that request
  • What are the executives “Hot Buttons”
• Style Points
  
  • Diversity of sources(Internet, Industry publications, News papers, Company Documents)
  • Graphics of Exhibits synthesizing information
  • Article outlining(Highlighting)

Most profitable strategies are based on differentiation. If we look at Customers entire experience with a product or service what is called a consumption chain, it may uncover unforeseen opportunities. Following are steps that can be followed…

1. Mapping the consumption chain.
   1. How do people become aware of their need for your product or service?
   2. How do consumers find your offering?
   3. How do consumers make their final selections?
   4. How do customers order and purchase your product or service?
   5. How is your product or service delivered?
   6. How is your product installed?
   7. How is your product or service paid for?
   8. How is your product stored?
   9. How is your product moved around?
   10. What is the customer really using your product for?
   11. What do customers need help with when they use your product?
   12. What about returns and exchanges?
   13. How is your product repaired or serviced?
   14. What happens when you product is disposed of or no longer used?
2. Analyzing your customer’s Experience
   1. What are customers doing at each point in consumption chain?
   2. Where are customers when they are at this point in consumption chain?
   3. Who else is with the customer at that point?
   4. When (day, date, time) is customer at that point in consumption chain?
   5. How are Customer’s needs being addresses?

Just answer these questions and you will have clear idea of where the company should be focusing on for future product improvements.

Source: Discovering New Points of Differentiation (HBR: 97408)