Basic Business Knowledge to Master

IMPORTANT KNOWLEDGE (MINI MBA)

COMPONENTS OF BEING FAITHFUL

S—Start small

B—Be on time

D—Do the hardest job first

O—Organized your life

W—Welcome Responsibilities

A—Accept Correction

P—Practice self-denial

HOW TO WIN FRIENDS AND INFLUENCE PEOPLE

These are the only rules you will remember in good human relations, friendship, leadership and salesmanship.  These will help you boost your effectiveness and output as a person

1. Smile  (Image:  Smiley)

2.  Show honest and sincere appreciation

3. The sweetest sound to any person in the world is his first name (image:  nameplate

4. Listen  (Image:   stethoscope)

5. Interest  (Be genuinely interested in people)  (Image:   interest sign)

6. Don’t complain, Condemn. Criticize and chismis  (Image:  4 Cs with x over it)

PERSONAL MASTERY

· “Master yourself before you master others.”

· “Conquer your fear and you conquer death.” - Alexander the Great

· “Knowing yourself, knowing your enemies, 100 battles,  100 victories”  - Sun Tzu

THE FIFTH DISCIPLINE—PETER SENGE

1. Mental Model

2. Personal Mastery

3. Systemic Thinking

4. Shared Vision

5. Shared Learning

CULTURE OF EXECUTION—LARRY BOSSIDY

K—Know your people and your business

I—Insist on Realism

S—Set clear goals and priorities

F—Follow through

R—Reward the doers

E—Expand people’s capabilities

K—Know yourself

PERSONAL MASTERIES

1. To Think

2. To Intuit

3. To Feel

4. To Do

5. To Communicate

6. To Lead

7. To Be

1. LEARNING TO THINK

· Use of the five (5) senses

· OLO—Observe, Learn, Observe

· Use of the memory

· Categorizing, classifying

· Sequencing

· Cause and effect and other Logic

· Syllogism, Inductive and deductive reasoning

· Critical Thinking (Converging, reducing a thing to its essence)

· Creative Thinking (Expansive, Diverging, Finding multiple options)

· Systemic Thinking

· Integrative Thinking, Policy—making

· Associative Thinking (Use of mind maps)

2.  LEARNING TO THINK

· Is about endless questioning

· Socratic or Harvardian System of thinking

· No stone is left unturned

· Everything is questioned

· Its like being a child with endless questions

QUESTIONS THAT ARE OFTEN ASKED

·  What is the hypothesis?

·  What are the relevant facts?

·  Are the data accurate?

·  Is the logic correct?

·  Are the assumptions and conclusions correct?

REGARDING THE DATA

·    Magnitude—What is the direction of the data (going north, going south, going sideways?)

·    Importance—Which data is more important than the others? Data is not equal to information

·     Urgency—Which step must come before the other? What is the critical path? What must        you do before you go to the next step?

·    Relevance—What data is related to the objective or the hypothesis?

·    Doability—Is the solution feasible? Is it practical? Will the cost of the solution exceed the       benefits? Will the solution benefit everyone concern? Will the solution create       more problems than that was originally solved? PPA (Possible Problem Areas)

3. LEARNING TO INTUIT

·   From the intuire to see from within

·   It is the “sixth sense” or the gut feel

·   Topics: Dreams, Clairvoyance, Vision—the Third Eye

·   Meditation

4. LEARNING TO FEEL

· “Emotional Intelligence” by Daniel Goleman

· Emotional Awareness

· Mastering adverse emotion (adversity quotient—Rage, shame, fear, grief, despair)

· Empathy / Sympathy

· Emotional Maturity (Secrets of Performers, Source of Energy)

5. LEARNING TO DO

·   LEARNING BEFORE DOING

    1.  Creating a Business Plan ( Marketing Plan, Operating Plan, Manpower Plan, VOMKRAPI,       SPATRES

· LEARNING WHILE DOING

     1.  Problem Solving

     2.  Pareto Principle

     3.  PERT CPM

     4.  GANT Chart

     5.  Decision Tree

· LEARNING AFTER DOING

     1.  Audit

     2.  Performance Evaluation

     3.  PMRSS—Post Mortem Review and Standard Setting

6. LEARNING TO COMMUNICATE

·        Effective Communication

7. LEARNING TO LEAD

· Taking responsibility for self and for others

· Born or made? (Inspirational Leaders, Transformative & Adaptive)

8. LEARNING TO BE

· Wonderment—live curious; be a child again

· World view—”to a worm in a horse radish, the world is the horseradish”

· Wisdom—the purpose of education is to replace an empty mind with an open one

· Will to live—”Live  as if it were the last day of your life”

5’S

1. Seiri – sorting out   

2. Seiton – systematic  arrangement

3. Seiso – spic and span

4. Seiketsu – Standardizing

5. Shitsuke – Self discipline 

QUALITY

Conformance to standard as defined by customer’s wants and needs and as modified by competition.

INDICATORS OF QUALITY

1. Absence of reworks and rejects

2. Long life of the product

3. Trouble free operation

4. Nice and clean appearance

5. Promptness in delivery

6. Product safety

7. Excellent after sales services

MANIFESTATION OF NON-QUALITY

1. Late deliveries

2. Incorrect invoice

3. Reworks

4. Cancellation of contracts

5. Engineering design changes

HOW TO HAVE QUALITY REVOLUTION  (SIRVIC)

1. Start and finish everything on time

2. Deliberately reduce inventory

3. Avoid reworks, rejects and recycling operations

4. There must be a visible sign of quality

5. Meet competitive international standards

6. Let your customers meet your workers

IMPORTANCE OF QUALITY

1. Quality is the source of work pride and satisfaction

2. Quality products lead to more sales, more sales more profits and ultimately more benefits to employee.

3. Quality build both the image of both the individuals and the company

3 TYPES OF PEOPLE

1. Those who make things happen

2. Those watch things happen

3. Those who do not know what happen

PROBLEM SOLVING TECHNIQUES

1. Pareto Principle or 80:20 rules -

  Ø Significant many/ Vital few

  Ø 80% of the problem is caused by 20% of the given factor

  Ø 20% of the problem is caused by 80% of the given factor

2. Ishikawa Diagram or Cause and Effect or Fishbone diagram

3.  Kepner Tregoe (KT analysis)

 Ø A systematic and rationale approach to problem solving and decision making.

 Ø Define problem as any deviation from standard

 Ø Situation analysis

 Ø Problem analysis

 Ø Decision making analysis

 Ø Potential problem analysis

4. Benjamin Franklin Analysis

 Ø Use of T-account

 Ø Use of positive (Driving Force)

 Ø Use of negative (Restraining Force)

3 TYPES OF PERSON ACCORDING TO DR. WAYNE DYER

1. Neurotic

2. Normal

3. No limit person

HOW TO BE A NO LIMIT PERSON

1. Anybody can do it

2. You become your expectations

3. Allow yourself to be a child again

4. Achieving super physical health

5. Achieving super emotional health

6. Going after a sense of purpose

7. Be angry at times

8. Have confidence in your self

9. Discover the unknown

10. Avoid complaining, be busy loving and doing

ENTREPRENEURSHIP

      We need our staff to think they are entrepreneurs.  Their job is their enterprise
      

(Walt Disney)

To do and make things which will give pleasure and satisfaction in new and amazing ways. It is magic;

(Timmons)
            It is doing something rather than talking.

           It is creating something from practically nothing
           It is creating something with resources that one does not have control of 

(George Guilder)

It is creating surprises. It is taking aggressive action and making the world forever new;

(Joseph Schumpeter)

It is destroying old economic order and creating new ones. 

WISDOM OF ENTREPRENEURS

a. STEPHEN SY:

1.  Be determined – successes to Japanese/Chinese businessman are not results of talent, but   more from focus, determination/single – mindedness. Stephen thinks he is determined at Stanford Graduate School by studying till morning, the Japanese slept at 4 am.

2. Be passionate in what you are doing. Business cannot be considered just a job/passing fancy, part time or sideline. It should be your life.

3. Hire the best people and when you get them, retain them. They give only one job offer to 300 applicants. But honesty and integrity cannot be compromised.

4. Invest heavily in brand build-up. Up to 5%- 7% sales (its 10% in NESTLE for new brand launch) which includes promo, ads and below the line (Special events). But be frugal elsewhere.

5. Invest in your own tools for business like computers, data base etc., but be matipid/Kuripot elsewhere.

6. Don’t mix personal finance and business finance. Practice common sense which is not so common.

7. Expect that employees understand and internalize the mission, beliefs and principles of the company in 5 months time.

GEORGE SY

Working 8 hours a day is only for survival. Working beyond 8 hours is for success.

1. To start knowing how to be a good businessman, you have avenues:

a. Build up your reputation

b. Work long and hard for someone who is a good businessman. Not for the money but for the experience.

c. If he trusts you, you will learn what works, what does not work, who buys, who doesn’t, the customers, the supplier, the cost structure.

d. If he is tired/ lazy, you will learn responsibility and leadership. You will develop a lot of business sense.

Success of a business depends on statistics. You can strike out a business idea based on your statistics. But nothing beats experience – i.e. deep, experiential knowledge of business.

2. Always hire only people you can trust. Not the intelligent, not the best but those who you can trust. There are many professionals who cannot be trusted (whether global or local). Give responsibility to people you can trust.

3. Invest in brands so that your products don’t become a generic commodity. You can have more sales/GP. They advertised JAG and LEE. They can price premium. They have multi billion sales. They are ahead in foreign advertisement. They are ahead of the game.

4. A slight advantage can spell success for a business enterprise. Not a good, better. Best strategy in pusoy games.

5. To be a good businessman/entrepreneur/employee for a business. You have to be a role model for success/failure.

PLAY OF WORDS

GIVE TO LIVE. Quid pro quo. Something in exchange for something. If they do not receive, they will not give. Work for wages only. Very selfish.

LIVE TO GIVE. They are men and women for others. They give without expecting something in return. They are propelled by passion, love of others – love of humanity.

POWER OF DREAMS

There was study among Yale students. They were surveyed on a number of things. On the question “do you have goals in life:, 10% answered yes.

When it came to the question, “did you write it down?”, only 4% replied yes.

After 20 years, the same students were surveyed again, to find out how did they do financially (it can be measured).

It was found out that the 4% who wrote down their goals were successful in their careers - financially. They worth was equivalent of the 96% combined Imagine, they just wrote down the goals made that difference.

If you still do not have goals, stopped having goals, or did not write them down take time out to reflect on your goals/dream. Write them down.

It might spell the difference between leading others as 4% being lead as the 96%

ATTITUDE IS EVERYTHING

Jeff Keller

A.  Success begins in the mind

      Your attitude is your window to the world

      You are a human magnet

      Picture your way to success

      Make a commitment and you’ll move mountains

      Turn your problems into opportunities

B.  Watch your words

     Your words blaze a trail

     How are you?

     Stop complaining

C. Heaven helps those who act

     Associate with positive people

     Confront your fears and grow

     Get out there and fail

     Networking that gets result

SAY YES TO OUR POTENTIAL

Skip Ross and Carole Carlson

1. Principle of Giving – Give and you receive

2. Principle of Exclusion – Your guard the door

3. Principle of Creation – Turn your problems into opportunities

4. Principle of Visualization – The artist is within us

5. Principle of Command – Speak with existence

6. Principle of Action – The great energy release

7. Principle of Faith – Believe  it before you see it

8. Principle of Enthusiasm – Some verve

9. Principle of Self- discipline – Do it anyhow

10. Principle of Persistence – Do it until

16 TEACHING OF FAN LI

Fan Li- Successful merchant during the 5th century (Wu Wang century) (contemporary of Sun Tzu)

1. In business, there must be hard work and sense of urgency

2. Economics expenditures (Sales-Cost=Gross Profit)

3. Be affable in dealing with people

4. Buying and selling must follow the times

5. Negotiated prices must be clearly stated and agreed upon

6. Give credit only to people you know

7. Accounts must be inspected and audited

8. Good and bad must be clearly distinguished

9. Goods must be arranged orderly

10. Use upright people

11. Be careful in receipts and payments

12. Goods must be examined

13. Payments for installments must be fixed by agreement

14. Money and property must be accurate

15. Manage with responsibility

16. Be calm in making decision

7 PRINCIPLES OF BREAKTHROUGH THINKING by Dr Hibino

1. Uniqueness principle- each problem is unique. No solutions are alike.

2. Purpose principle- knowing clearly what to work on.

3. Solution after principle- develops alternative solutions that take into consideration future needs

4. System principle

a. Purpose

b. Inputs

c. output

d. Sequence

e. Environment

f. Human agent

g. Physical catalyst

h. Information aid

5. Limited information collection principle- find out only what you need

6. People design principle- maximize the individuals participation to the solutions

7. Betterment timeline principle- there is an infinite number of ways of doing things better (Kaizen)

GREATEST SALESMAN IN THE WORLD

By: Og Mandino

1.  Today, I Begin A New Life...

2.  I will greet this day with love in my heart

3.  I will persist until I succeed

4.  I am nature’s greatest miracle

5.  I will live my life as if it my last

6.  Today, I will be the master of my emotions

7.  I will laugh at the world

8.  I will multiply my value a hundred folds

9.  I will act now

10. Salesman’s Prayer 

A Salesman’s Prayer
Og Mandino

I will pray for guidance, and I will pray as a salesman, in this manner—-

Oh creator of all things, help me. For this day I go out into the world naked and alone, and without your hand to guide me I will wander far from the path which leads me to success and happiness.

I ask not for gold or garments or even opportunities equal to my ability; instead, guide me so that I may acquire ability equal to my opportunities.

You have taught the lion and the eagle how to hunt and prosper with teeth and claw. Teach me how to hunt with words and prosper with love so that I may be a lion among men and an eagle in the market place.

Help me to remain humble through obstacles and failures; yet hide not from mine eyes the prize that will come with victory.

Assign me task to which others have failed; yet guide me to pluck the seeds of success from their failures. Confront me with fears that will temper my spirit; yet endow me with courage to laugh at my misgivings.

Spare me sufficient days to reach my goals; yet help me live this day as if it were my last.

Bathe me in good habits that the bad ones may drown; yet grant me compassion for the weaknesses in others. Suffer me to know that all things shall pass; yet help me to count my blessings of today.

Expose me to hate so it be not a stranger; yet fill my cup with love to turn strangers into friends.

But all these things be only if thy will. I am a small and lonely grape clutching the vine yet thou hast made me different from all others.

Verily, there must be a special place for me. Guide me. Help me. Show me the way Lord.

Let me become all you planned for me when my seed was planted and selected by you to sprout in the vineyard of the world.

Help this humble salesman…..Guide me, God.

SEIZE THE DAY

Danny Cox and John Hoover

1. Your moment of truth: selecting the desired rewards

2. Developing strengths

3. Planning performance

4. Launching the plan

5. Problem Solving: Expected

6. Keeping morale high

7. Your personal plan for growth

PARABLE OF THE PENCIL

1. You will be able to do many great things only if you allow yourself to be held in Someone’s hand.

2. You will experience painful sharpening from time to time but it is required of you to become a better pencil

3. you have the ability to correct any mistakes your might make

4. The most important part of you will always be what’s inside

5. No matter what the condition is you must to continue to write. You must leave a clear and legible mark no matter no difficult the situation.

MANAGING THE DELL WAY

1. To be direct

2. Leave the ego at the door

3. No excuses

4. No easy targets

5. No victory lapse

6. Worry about saving money

FAILING FORWARD

1. Realize that there is one major difference between average people and achieving people

2. Learn a new definition of failure

3. Remove the “U” from failure

4. Take action and reduce your fear

5. Change your response to failure by accepting your responsibility

6. Don’t let failure from outside gets inside of you

7. Say goodbye to yesterday

8. change yourself and your world changes

9. Get over yourself, everyone else has

10. Find the benefit in ever bad experience

11. If at first you do succeed, try something harder

12. Learn from bad experience and make it a good experience

13. Work on the weakness that weakens you

14. Understand that there’s not much difference

15. Get up, get over it, and get going.

HOW TO MOVE FORWARD

1. Acknowledge the pain

2. Grieve the loss

3. Forgive the person

4. Forgive yourself

5. Determine release the event and move on

GOALS SETTINGS PRINCIPLE

1. Determine what area what to excel

a. What subject captures your attention

b. What do you really enjoy doing

2.  Acres of Diamonds

c. Determine what you can, with what you have. Right where you are

d. These are talents lying beneath your feet

e. These are opportunities dressed in work clothes, disguised as hard work

3.  Balance Principle

Goal setting have a balance in:

a. Personal and Family relationship

b. Business and Career relationship

c. Open to Self improvement

4. Principle of Challenge

a. Do your goals have 50/50 chance of success

5. Fundamentals of goals setting

a. Something you can have ”Self-Actualize”

b. Something you can do

c. Something you really want

d. Something you are in control

e. Something specific and measurable

f. Positive affirmation in the present tense

12 STEPS IN GOAL SETTING

1. Develop intense desire

2. Develop the belief that I can do it

3. Develop the habit to write it down

4. List the benefits or WIIFM

5. Analyze where you are now

6. Set a realistic time frame and limit

7. List the obstacle

8. Identify additional knowledge you will need

9. List all the people whose help you will need

10. Make a specific detailed plan

11. Set your mind to it

12. Decide you’ll never quit

IMPORTANT GUIDELINES TO BE A WE PERSON IN AN ORGANIZATION (VS ME MINDSET)

1.  Think in terms of the salary.  A salary must be received on time, its computation must be accurate, no mistakes; no errors.  That is how our job deliverables must be:  on time and complete:  OTAC. Think in terms of what you receive as a salary:  PESOS.  It is very specific;  it is not words or promises.  Everything must be clear. So answers, job delivery, must follow the same specificity

2. Think like the customer.  We have internal and external customers.  Do your best to deliver what  is asked of you.  Avoid arguments or debate objecting to what is asked of you.  A customer deserves to be deserved in terms of needs and wants.   Follow this, you and your career, and the business where you work will succeed.

3. Finding what the customer wants and delivering it consistently better than competitors is the key to success in business and selling, according to Zig Ziglar.  Do you?   A business can not exist without the customers. Add one today.  Satisfy a customer today.  To be a success


FROM GOOD TO GREAT BY JIM COLLINS
   
Your company can be great:  if you have:
DISCIPLINED PEOPLE, with
DISCIPLINED THOUGHTS, and 
DISCIPLINED EXECUTION.

      Business, personal, professional and entrepreneurial success comes from the intersection (sweet spot) of:
Where you are good at   -  Kaya ba?
Economic Engine   -  Kikita Ba
Passion  - Katugma ba?



SUPERPOWER MEMORY

1. LINK METHOD OF MEMORY – Used in associating ridiculous mental images with items you want to remember.

Rules

a. Picture items out of proportion

b. Picture items in action

c. Exaggerate the amount of items

d. Substitute your items

2. PEG METHOD OF MEMORY- Will shows you how to count with objects (which can be pictured instead of numbers). Help you associate and remember number.

1 = T 6 = J

2 = N 7 = K

3 = M 8 = F

4 = R 9 = D

5 = L 10 = Z, O

TEACHING OF JACK WELCH

1. Be focused

2. Be number 1 or number 2 in your products

3. Control your destiny or someone else will (be proactive rather than reactive)

4. Be can did and forthcoming

5. Never Compromise

6. No excuses

HIGH OUTPUT MANAGEMENT BY ANDREW GROVE

1. Managers must manage using  activities - with high impact (Nudging, Visiting Customer,  Meeting/ one on one)

2. Set up - a single set up producers many products

3. Limiting steps - schedule resolve around limited steps or critical paths

4. Batching - do similar task at the same time together

5. Only the paranoid survives

6. Duals plains reporting – matrix management and is done for check and balance.

LEADERSHIP PRINCIPLES OF KONOSUKE MATSUSHITA

1. An objective sense of self

2. When it rains , open an umbrella – a natural response to natural phenomena

3. Treasure complaints

4. In honest hand – truth has the power of its own

5. Delegate responsibility

a. Tell them how to do it

b. Show them how to do it

c. Let them do it

d. Criticize or correct them

6. Complacency deters progress – we should be open for changes and new ideas

7. Trust your employees – it promotes confidence and unity in the community

8. Trail trails the head – Set as a good example, Listen to the tail side

9. Advertising is evangelizing – Ads must be real and not a magic

10. The million $ knack – Making so much money is not so difficult.

LEADERSHIP PRINCIPLE OF ATTILA THE HUN

Attila – A leader who is never satisfied.  It is better  to take initiative and acts rather than do nothing.  

The Huns are known to be cruel but just

Qualities of a good Hun leader

1. Loyalty 

2. Courage 

3. Desire 

4. Emotional Stamina 

5. Physical Stamina 

6. Empathy 16. Stewardship

7. Decisiveness

8. Anticipation

9. Timing

10. Dependability
11, Self Confidence
12/  Accountability
13.  Responsibility
14.  Credibility
15.   Tenacity

PRODUCTIVITY

It can not be measured in number of activities. It is measured on the end result. Doing more than the same, doing more for less. 10x of the salary must be produced.

Value Added
 Capacitate
 Cost reduction

How to increase productivity

1. Increase output (sales and value added)

2. Input (Effective recruits, training and cost reduction)

Output

 Input 
Net Income

Operating expense + Marketing Expense

(Objective of PD = To active the production target of 1.25 through effective hiring and training.

TIME MANAGEMENT

Time is a unique and valuable source. It is something that all people have although the specific amount available to any one person is unknown. When people are young, they tend to view the amount of available to them as inexhaustible. When people are old, they recognize that their supply of time is running out. Time is precious because the amount available to any one person relatively fixed. Few people lived beyond 100 years. For the majority of people, life ends in the seventies.

Most people, supervisors included, waste time almost continually. The waste or mismanagement of time is a primary underlying cause of many management problems both on and off the job. Until relatively recently, few books, training programs or seminars dealt with the subject of time management.

If a person were to make a comparative study of the lives of successful and unsuccessful people, one different would be that successful people get more accomplished in less time than other people: they use their time effectively. Time management is the application of management to use of time. Effective managers of time have learned how to make time count rather than counting time- how to effectively plan, organize, use and control their own time and the time of others. In effect, time management is activity management.

Time management is important not only on the job but in every aspect of living. The first step in learning is how to be better manage time is to analyze how it is used. In a world where people are to varying degrees dependent upon one another, how other manage their time can greatly affect how we manage hours. Whether waiting for a slow clerk at a checkout counter for someone to complete a task before one can start, other’s wasting those affect our use of it.

When analyzing something in an attempt to judge whether it is good or bad, reference points or standards are necessary. Without standards or reference points, it is important to ask these questions:

Am I doing it in way that I think is the best?

Am I using the time to get what I think are the best result?

Should I change?

If yes how should I change?

Should someone do it?

Should it be done at another time, or in another place?

To facilitate analysis of the time use of time, It is suggested that a lag of daily activities, nothing time spent doing them, be maintained. A time and activity log is essential because it can be reviewed and evaluated in relation to objectives, standards and priorities. It is important to identify the activities and events that caused, the waste of time.

TIME MANAGEMENT

 Importance of knowledge of good time management

1.     Quality and customer service

a.    The first visible sign of quality is starting and                finishing all activities on time.

b.   An important component of quality and customer services involves time:

i. Delivery of orders on time

ii. Response to customer complaint/ request on time.

iii. Introduction of product/ service to the  market on time.

2. Being punctual and prompt is the first step in developing strength of personality.

a. The power of positive thinking is the ability to accomplish things you conceive to become, from a habit of being punctual.

b. You accomplish compliance with your promises on time establishes your credibility early (or whether you are an achiever or not)

c. Being punctual in your appointment is the highest sign of respect a man can bestow on his fellow.

d. If you value time, it gives your superior an idea how you value others matters in life.

“STRONG MINDS COME FROM STRONG HEARTS”

1. Time is gold

2. The trouble with future is that is arrives before we are ready for it.

3. The trouble with being punctual is that no body there to appreciate it.

4. Don’t just spend time: invest it.

5. A man who knows how to make most of his time makes the most of himself.

6. Take time to work: it is the price of success.

7. Do not squander time for that is the stuff life is made of.

8. Waste of time is the most extravagant expense of all.

HAROLD GENEEN

1. Manager must manage – you must get results.

2. Theory G – you cannot run a business or anything else base on a theory.

3. Take the experience first before cash – in the business world, everyone is paid in two coins, cash and experience. Take the experience first, the cash will come later.

4. Number will set you free – the sooner you see the numbers, the sooner you‘ll take action, if needed.

5. Egoism not alcoholism – worst disease that will afflict business executives in their work is not as popular knows as alcoholism but egoism.

PETER DRUCKER

 1. Effective executive must do first thing first (80:20 rule)

2. An executive must focus on his contribution (goal oriented)

3. An executive must focus on strength (optimism)

2 TYPES OF LEARNING

1. Learning from school, lecturers and seminars

2. What you have experienced, adapt or acquired

a. We should have 1 new things learned a day

b. Capacitate

MANAGEMENT BY EXECUTIVE

1. Meeting required output

2. Exceeding

3. Knowledge

4. Competitive advantage

5. Best in execution in organizational plans

5 PRINCIPLES OF EFFECTIVE EXECUTIVE

An executive must know:

1. Where his time goes

2. Build up strength

3. Contribution to the results

4. Prioritization

5. Make effective decision

                                                      ON STRATEGY

 1.  Strategy execution and planning are integrated.  Good strategies fail during execution.  All strategies melt in the heat of battle.
     
2.  Strategy is a choice a collection of Key Resources and Key Activities to achieve a goal

 3.   Strategy answers the 3 questions:
              1.  Where am I now (or where did I come from?)
              2.  Where am I going?
          3.  How do I get there (that is the creative part of strategy, the heart of the strategy)

      4.  Good strategy, like entrepreneurship, must be creative, unique, differentiated, not done before.  Disruptive.  That is why sometimes benchmarking (which is good for operations) is not the best bet;  it is copying what others have done before.  Copying sucks, and you end up in the industry where everything does the same thing
    
5.  The more important part of strategy is getting the people committed to the goals and vision of the organization.  Thus Peter Senges Fifth Discipline is very relevant.   Changing the mindset, getting people on self mastery route, shared learning, shared vision, and systemic thinking
   
 6.  Henry Mintzberg  -  The Soul of Strategy .  Getting people on it;  getting commitment from the entire organization.

SAYINGS

a. Frederick Hegel – Nothing in the world has been accomplished without passion

b. Thomas Alba Edison – Don’t call it a mistake call it an education

c. Abraham Lincoln – To remain as I am is impossible, I must die or be better

d. Dr. Mahatir Mohammad – Some people may wonder why other go and climb mountains when it safer to sleep at home

e. We do not need more men, we do not need more money, we do not more materials what we do need is something to give men a new spirit.

f. John Maxwell – Success is choosing to enter the arena of action, determined to give your self to the cause that will better humanity and will last for eternity.

g. Competence is something that we owned, something that will make you competitive, and something that will give you advantage or unfair competitive advantage.

h.  Change your self and you can change the world.

i.  Nothing beats the power of persistence  -  Calvin Coolidge

j.  How deep is your love  ( for your work by Bee Gees)

k.  Make a dent in the Universe  -  Steve Jobs

l.  Love what you do and do what you love -  Steve Jobs

m.  "Stay hungry, stay foolish"  (for learning and new ideas) by Steve Jobs

n.   John F. Kennedy  -  "Ask not what your country can do for you, ask what you can do for your country"

o.   The power of words  -  "It is only words, and words is all I have to take your  heart away."  Master the power of written and oral communication to lead, get things done and sell (persuasive communications)

p.   "Be careful of your thoughts, they become your words, words become action, action become habits, habits become character, character becomes your destiny"

BUSINESS ETHICS

By: Ralph Larsen of J & J

This was the end of speech of Larsen at Sear Business Ethics Lectureship last February 7, 2002.

“If this all sounds interesting to you as pursue your career. I would urge you to join a company rich in values. There are no perfect people and there are no perfect companies. We have all our weaknesses and wants.

 But make sure the company you join has a set of core values you are comfortable with, that you are proud of, and which will bring out the very best in you.

HANAPBUHAY

As a livelihood – ang trabaho ay ikinabubuhay ng sarili at pamilya.

As search for meaning – It is a place where we search for meaning of life. “HANAP sa kahulugan ng buhay” even happiness in life, we find joy. In serving others, in giving jobs thru our efforts, I t is a vocation.

ACRONYMS AND MEANINGS

Starting a Quality Revolution by Dr. Rene Domingo
S—Start everything on time

I—Deliberately Reduced Inventories

R—Avoid Reworks, Rejects and Recycling operations

V—Visible Signs of Quality

I—Meet  International Standard

C—Let your workers Confront the Customers

Secrets of Success by Schultz of Starbucks (4S)

M—Make in your own

E— Everything matters

S— Surprise and Delight

E— Embrace Resistance

L— Leave your mark / legacy

Waste in Process Operations/Lean System

T— Transportation

I— Inventories

M—Motion

W—Waiting/Waste

O—Over production

O—Over processing

D—Delays/Defects

Framework for All Memos/Proposals/Plan of Action
G  -       Goals  Objectives
R   -      Reality  (Background, What has happenned, what is the problem - not conformance to standards and objectives)'
O     -    Options (Alternatives)
W     -    What to do next (the plan of Action)

Four Levels of Mindset in the Members of the Organization  (4C)  (by Philip Cosby, Quality is Free)
Compliance  -  obedience, do as told for fear of CCD;  nothing more, nothing else;  lives in Paco
Conviction     -  is convinced that what is being told is right and for the good of all
Commitment -   he is for it, the belief system goes into the hand, at least for the time being
Conversion -  he is part of the mainstream, he is part of the culture, he is part of me

What to look for in a hiree/officer:  (PIC)

Passion  - What he loves to do, his motivation for appying, for working;  hard to find)
Integrity -  Does he do what he say, say what he mean?  Is he honest, or his like the 60% other people in the world, a liar?
Competence -  Does he have both skills (ability to accomplish tasks with hands on experience and doing) and knowledge - the academic knowledge and book based knowledge.  He must have both.  can he still remember the things he took in college, or did he study for the exams.?

What are expected outputs of business education/higher education? By Dr. Ed Morato

      In general, to uplift the mindset, and the living conditions of the employee and the other stakeholders:  the community at large.

The 5Ps that are expected to grow and improve:

Professionalism
Process
Productivity
Profit
Personal Mastery

Some important thoughts from Brian Tracy, the greatest inspirational  motivational speaker of our times:

1. How to improve productivity  -

         1.  Know what you want;   goal setting, WIFM  (what is it for me)
         2.  Write it down  (commit in writing)
         3.  Have a plan of action
         4.  Recognize the money value of time

2. Discipline.  -  He has harped so many times that a salesman, a leader, a manager must do what he must do, at a time and place needed even if he does like doing this.  A successful person is one who does what others fail or do not like to do.

SMART – Specific, Measurable, Attainable, Realistic, Time-based

MBWA – Management by walking around

MBO – Management by objectives

JIT - Just in time

KISS – Keep it short and simple

PDCA – Plan, do check and act

TRAF – Trash, refer, file and act

ECA – Plan, execute, control and act

CS – Customer satisfaction

OTAC – On time and complete

EI – Emotional intelligence

TPM – Total productive Maintenance

TRM – Task Related maturity

TQM – Total quality Management

SQC – Statistical quality control

PFS – Project feasibility study

BP – Business plan

RGP – Realized gross profit

ROE – Return on equity

ROI – Return on investment

CFA – Cash flow analysis

COS – Cost of sales

COBS – Cleanliness, orderliness, beauty and serenity

AIDA – Attention, interest, desire action

KT – Kepner tregoe

CPM Critical path method

CTRP – Comprehensive tax reform program

SFAS – Statement of financial accounting standard

SWOT – Strength, Weaknesses, Opportunities, threat

MIS Management, information system

Gemba – Workplace

Sunnao – Open mind

Kaizen – Constant improvement

SAN – Solution after next

Muda – Waste

QFD – Quality function deployment

WIIFM – What is it for me

SDCA – Standardize, do, check and act

GENERAL MANAGEMENT CONCEPTS

BUSINESS MANAGEMENT ORGANIZATION

1. Good management is good management anywhere.

2. There is no one single underlying principle of good management – “Learn what people want and respond accordingly.”

3. Good management is acting the most quick and natural way to situation, e.g. when it rains, we open umbrella. But due to size, complexity, inertia and selfish ways of some managers, the business can not and does not react accordingly to change in situations.

4. Good management is good management of people.

5. A better management and better system is a better solution than mechanization or robotization.

6. A good business:

1. A good business starts with the little capital

2. A business that starts with big capital will not probably make money.

3. To be competitive:

a. Must reduce labor component of CGS continuously.

b. Large investment is needed in manufacturing technology and equipment.

4. Advantage has shifted from control and cultivation of natural resources to human resource.

7. A good business can continue to be a good business if:

1. It focuses on opportunity; looks for new products and market;

2. It courageous to shed off losers and even yesteryears’ winners;

3. It removes resources from solution of debilitating problems;

8. A good business strives to be a leader even in a narrow market (niching) whether it achieves sufficient volume and margins to be profitable.

9. A good business invests in the improvement of the existing operating business or interrelated business. Speculating, profiting from shuffling of monetary instrument is not good business.

10. The ways by which a business can improve is endless. The evolution of management theory and practice goes on daily. Through experience on constant practice of management we learn these new methods.

11. A well-run business that keeps costs down, serves customer well, pays its employees and stockholders well is as admirable as a symphony orchestra or work.

12. The success of business does not depend on money capital alone but more on the human capital – the guts, the drive of determinations and the drive of the owner/ leader to make business a success. A mountain of money alone poured in to the business does not guarantee success.

13. The highest criteria of negotiation. Decision is the answer to the question “Is it for the good of all?” A self serving or a decision will be bad for the organization and will therefore be unacceptable.

14. It is during a recession, a slump that we find time to retain ad re-educate workers.

15. Strong, solid management is the answer to superstition, luck and no other traditions that dominate the beliefs of old businessman.

16. An organization that adheres strongly to its mission and objective is like flowing water small droplets gather small streams, rivulets and a river. A flood in a river is unstoppable it removes in everything in its path – boulders, houses, bridges. Such is the force exerted by a man or organization with an objective.

17. A business observes always some form of contingency measures – “dam management” whether it be in finance, man power or sales.

18. Divisionalization is the application of divide and conquers strategy. Training, R & D facilities, common finance can be shared; marketing and production suited to markets needs can be very flexible.  Divisionalization assures tan division of an assured internal market, and greater profit from external customer.

19. The whole profit and loss statement can be allocated various responsibility centers, for added productivity.

20. Putting up an industrial group pay off: a sure market, cooperation and smooth achievement of common goal. An industrial group builds up and creates wealth faster.

21. The main reason why nepotism is bad is the perception that advancement of ordinary professional is doomed; but for oriental companies, nepotism works because many businesses are family – owned or controlled; For such family owned business professional growth of people should be given attention.

22.   In small developing economies/ communities – economies of scale does not work economies of scope, (jack of all trades – buying and selling of all goods and services at the same time), even with very thin margins, work. That is how Chinese traders gained the prosperity they are enjoying now.

23. In order to success in a business/ mission, you must have the following:

a. Mission Statement

b. Strategy

c. Systems of 3R’s

REWARDS

REINFORCEMENT

RECOGNITION

d. # of men

e. Quality of Men

f. Compliance to procedures

g. Environment that is favorable

h. Quality/ Ability of Leaders

24. In planning, we have been always plagued by macro economic figure as GNP/GDP growth as limiting factor in our own corporate growth. The only important inputs that will determine the growth of our business is the interplay of:

CUSTOMER

COMPETITION

CORPORATE STRENGTH

25. The small emerging business created the entrepreneurial spirit has been a good factor in:

a. Job creation

b. Improvement of economy

26. Productivity is not equal to production.

Productivity is achieved by optimization of input with the output vis-à-vis the market.

If the market is expanding, the number of units produced can be increased to much the demand of the market.

If the market is not growing, pursuing increase in inventory will not be a good ides as this will destroy the supply and demand relationship, cause excess inventory,  discounting to dispose off the same. Better reduce inputs: machinery and labor to produce the same quantity resulting in even greater productivity.

27. In the pursuit in the research in the development for new products and services a businessman need not reinvent the wheel. He could adapt an existing product or idea, license it and then just make minor modifications to suit customer needs and then drive down the production cost.

The businessman can therefore re-deploy the inordinately high cost and long times involved in “original” R and D and use the same for early product launch and better products.