MANAGEMENT is efficiency in climbing the ladder of success; LEADERSHIP determines whether the ladder is leaning against the right wall - Stephen Covey

Thursday, August 31, 2006

In Search of Apple?!

It’s indeed a BIG news (dunno whether it’s a signal of sorts!) for the corporate world (atleast the tech-world) to know Dr.Eric Schimdt’s appointment to the Board of Directors of Apple Computers Inc. Steve Jobs was quoted saying “Eric is obviously doing a terrific job as CEO of Google, and we look forward to his contributions as a member of Apple’s board of directors.”

It’s definitely true to learn that Dr. Eric Schmidt has definitely played a pivotal role in re-defining (re-positioning!) GOOGLE from where it was a few years ago to where it is now. It’s truly by any measure a landmark achievement for “Team Google” in the past few years though the challenge remains whether they are able to consistently achieve this (growth, innovation, idea-generation, revenue streams, lucrative business-models, cutting-edge technology, rich talent-scouting et al) in the years to come.

Am sure Schmidt’s appointment to the APPLE board is a blessing in disguise for APPLE Inc and knowing very well that he would immensely contribute (in terms of providing innovative solutions, strategic advice & insights, engaging in thought provoking conversations etc…) to the Board of Apple am a little bit skeptical about the things he would like to bring back (take-aways!) home. Well, only time can tell. Till then, GOOD LUCK to Mr. Schmidt & “Stay Hungry, Stay Foolish” for Steve!

Wednesday, August 30, 2006

Attn: Credit Card Holders!

Abe and Esther are flying to Australia for a two-week vacation to celebrate their 40th anniversary. Suddenly, over the public address system, the Captain announces, "Ladies and Gentlemen, I am afraid I have some very bad news. Our engines have ceased functioning and we will attempt an emergency landing. Luckily, I see an uncharted island below us and we should be able to land on the beach. However, the odds are that we may never be rescued and will have to live on the island for the rest of our lives!"
Thanks to the skill of the flight crew, the plane lands safely on the island.

An hour later Abe turns to his wife and asks, "Esther, did we pay our $5,000 DBS pledge check yet?" "No, sweetheart," she responds.

Abe, still shaken from the crash landing, then asks, "Esther, did we pay our American Express card yet?" "Oh, no! I'm sorry. I forgot to send the check," she says. "

One last thing, Esther. Did you remember to send checks for the Visa and MasterCard this month?" he asks. "Oh, forgive me, Abie," begged Esther. "I didn't send that one, either."

Abe grabs her, hugs her and gives her the biggest kiss in 40 years. Esther pulls away and asks him, "So, why did you kiss me?" Abe answers, "They'll find us!"

Monday, August 21, 2006

Outsourcing at its best!

This is a very nice joke that I recd this a.m. and thought I’d share this with everyone… Happy laughin’!

The Bad News
***Ferrari's F1 Team has fired its entire pit crew***

The announcement reads:

Ferrari has decided to take advantage of India’s high unemployment rate, and hire unemployed Indian youths from Dharavi (a Mumbai suburb slum). The decision to hire them was brought on by a recent documentary on how they were able to remove a set of wheels from a car parked in the street in less than 6 seconds without proper equipment. Ferrari's erstwhile crew took more than 8 seconds with the right equipment.

This was thought to be an excellent yet bold move by the Ferrari management, and, as most races are won & lost in the pits, Ferrari would have an advantage over every other team.

The Good News

However, Ferrari's expectations were exceeded, as during the crew's first practice session; not only were 'da boyz' from Bombay able to change the tyres in under 6 seconds, but within 12 seconds had re-sprayed the car, filed off the chassis number and sold the vehicle over to the Renault Team!!!

Sunday, August 20, 2006

Two-tier Boards?

Companies in most countries like the US, Great Britain & Japan have ‘unitary boards’, in other words, just one board of directors accountable to the shareholders and the CEO often holding the position of the Chairman of the Board. If you may observe, the origins of unitary board lie in the 17th century and early British Joint Stock companies such as the East India Company (the corporate outfit established in India for trading in various commodities worldwide). The need for a unitary board was never under-estimated (and never would be!) but with so many scandals that have recently proliferated in the near past, we begin to question the very purpose for having / incorporating a unitary board model in the present corporate setting.

Another approach to better corporate governance is to have a ‘two-tier’ board structure. Of course, this is not new to a few countries like France, Germany, Finland, Netherlands et al which already boasts of companies with two-tier boards (a supervisory board and a management board), the Management Board being responsible for oversight of management issues and is therefore led by the CEO and the Supervisory Board being responsible for general oversight of the company and of the Management Board.

Indeed, for a two-tier structure to be effective, there has to be a functional relationship between the management & supervisory boards, where the Chairman of the supervisory board plays a pivotal role in the overall governance and administration (effective functioning!) of the corporation and is responsible for ensuring that the two boards work well collectively and in the best interests of the shareholders for ensuring effective & ethical governance.

On a personal note, I wish more companies (and their shareholders’) should opt for a two-tier board structure as an effective governance mechanism as against the customary & conventional unitary board structure for the simple reason that the CEO is always held responsible & accountable to the supervisory board. Well, again…its just a wish!

Saturday, August 12, 2006

Boards & Risk Management

For a while now, people have been talking about Risk Management and the need for having an effective Risk Management System (RMS) in place within the organization that enables a corporate to mitigate (sometimes even predict / prevent!) various business risks. Risk Management Professionals (RMPs) presently are walking through a jagged path in identification of risk, evaluating risk, managing risks and controlling, reviewing & reporting on critical (risky!) issues that are of concern to the business entity. While all this is being done in organizations quite simply, do the Boards realize that they have a huge role to play in the process of Risk Management?

The Turnbull Report provides guidelines to directors on the review of risks and internal controls. An important point to remember is that although the report refers to internal controls & internal control systems, it does not restrict the meaning of controls to financial controls. The report calls for implementation of a risk management system that encompasses business risks, operational risks, financial risks, strategic risks and procedural risks. It would be informative to note that during a survey conducted by LSE & an international law firm on regulatory risk about who managed regulatory risks in their organization, one-third of the respondents said that Board of Directors, about one-third said Managing Director (MD) & the balance of about a third said Risk Management Dept, Internal Audit Dept etc. Personally, I feel the MD cannot singularly do much without the assistance or guidance of the Board of Directors, Risk Management Committee / Internal Audit / Compliance Dept.

Therefore, Boards need to assume responsibility for not just their activities but also for any inactivity in the nature of corporate governance, risk management & compliance (or the lack of it!).

Tuesday, August 08, 2006

Corporate Humor?!

New Job interview

Reaching the end of a job interview, the Human Resources Person asked the young Engineer fresh out of MIT, "And what starting salary were you looking for?"
The Engineer said, "In the neighborhood of $75,000 a year, depending on the benefit's package."
The HR Person said, "Well, what would you say to a package of 5-weeks vacation, 14 paid holidays, full medical and dental, company matching retirement fund to 50% of salary, and a company car leased every 2 years, say, a red Corvette?"
The Engineer sat up straight and said, "Wow!!! Are you kidding?"
And the HR Person said, "Certainly, ...but you started it."

Communication catastrophe

Spotted in a toilet of an office: TOILET OUT OF ORDER. PLEASE USE FLOOR BELOW

In an office: WOULD THE PERSON WHO TOOK THE STEP LADDER YESTERDAY PLEASE BRING IT BACK OR FURTHER STEPS WILL BE TAKEN

In an office: AFTER TEA BREAK STAFF SHOULD EMPTY THE TEAPOT AND STAND UPSIDE DOWN ON THE DRAINING BOARD

Seen at a notice board: FOR ANYONE WHO HAS CHILDREN AND DOESN'T KNOW IT, THERE IS A DAY CARE CENTRE ON THE FIRST FLOOR

On a repair shop door: WE CAN REPAIR ANYTHING. (PLEASE KNOCK HARD ON THE DOOR - THE BELL DOESN'T WORK)

Outside a shop selling secondhand items: WE EXCHANGE ANYTHING - BICYCLES, WASHING MACHINES, ETC. WHY NOT BRING YOUR WIFE ALONG AND GET A WONDERFUL BARGAIN?

Monday, August 07, 2006

CFOs get back to strategy?

I recently read a survey of FTSE500 companies commissioned by Cartesis (a business performance software specialist) which mentioned that nearly 45% of CFOs see strategic planning as their top-priority now, while approx 52% believe that it will become their main concern in the next 3 years or so. I was shocked to note that a mere 10% (even lesser) said that complying with relevant regulations was a top-priority! Holy smokes! Are CFOs turning complacent or too tired of box-ticking??? Anyway, from the survey, I can understand that there is a clear shift in priorities for today’s CFO when compared to previous years (when compliance was cool!)…looks like not any longer. It was also interesting to note that ‘part of the strategic focus is being directed at the efficient operation of the finance function’ – in Allen Blewitt’s (ACCA CEO) own words.

Well, to me, I feel that todays' CFOs would need to have a much more broader and deeper understanding of business environment encompassing a wide range of issues and concerns prevalant in todays’ hyper-competitive corporate scenario. A mere bean-counting approach to problem-solving wouldn’t suffice.

Wednesday, August 02, 2006

Kotler in Chennai!

Did u know that marketing maharishi Prof. Philip Kotler of Kellogg Graduate School of Management – Northwestern University recently visited Chennai – Courtsey Great Lakes Institute of Management, Chennai the brainchild of Prof. Bala V.Balachandran.

I did not attend the speaking event but am told (from close quarters & various press reports) that the lecture was one-of-a-kind (a unique experience) in a lifetime (for chennaites!) and focused on marketing in the 21st century wherein Dr. Kotler lectured on new ideas, tools, techniques & practices that companies would need to successfully operate in this hyper-competitive & dynamic business environment. Gr8 show! Chennai Rocks!!!

 
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