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  • Eureka Forbes Ltd.: Managing the Selling Effort (A) (Photonovel Version)

    The CEO of EFL (India), a direct sales organization, must decide which changes to the sales compensation systems would better motivate his sales reps and improve their sales performance.
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  • Digital Opportunity Trust's Business Model for Social Enterprise Work

    A social enterprise organization, whose mission is to battle poverty and gender discrimination through providing access to technology, is faced with the prospect of losing some or all of its government funding in a time of global recession. Under the legal structure of a non-governmental organization, Digital Opportunity Trust has partnered with large corporations and other organizations and established a local presence in disadvantaged areas. It has worked in a partnership setting to mobilize the information technology knowledge of young people and train them to become leaders of change in their local communities, which in turn will give them the relevant skills and experience to support their own career paths. The organization's striking success has been driven by its innovativeness and, more particularly, its noticeable efforts to reconcile the corporate and non-profit aspects of doing business, along with the challenges that come with it, without compromising the quality of the social enterprise brand that it is bringing forward.
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  • East Solutions: Transforming a BPO Provider in India

    East Solutions was a successful business process outsourcing (BPO) provider based in Bangalore, India. Although salaries for Indian IT professionals were about half of those of their counterparts in the United States, the board of directors at East Solutions recognized a worrying trend: if salaries in India continued to grow at a fast rate, they would soon erode the cost advantage of sending work to India and potentially threaten the entire Indian BPO industry. As a solution, East Solutions repositioned itself by leveraging technical, industry and process expertise to form a partnership with clients based on value added in addition to cost savings. This plan required East Solutions to refocus on fewer geographic and sector groups. It also required transforming the role of the company's IT managers, who needed extensive training, additional resources and a new compensation strategy. On an average year, the new compensation plan increased the IT managers' incomes by 4 per cent, so it was expected to be popular, but IT managers rejected the new compensation plan and it was abandoned after 18 months. The chief executive officer (CEO) in charge of the new plan for East Solutions was unsure why it had failed.
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  • Work from Home: Curse or Boon?

    KSOIL has a project that bills customers on units of documents delivered. The productivity of employees is evaluated on the same basis. The output of the home-based team has increased two to three times compared to its previous office-based performance. As a result, the rewards and compensation for the home-based team have doubled compared to office-based employees. The head of HR is convinced home-based workers are using unfair means to achieve such high output. She is against the decision of the project manager to increase the size of the home-based team. She believes this will only increase the unrest among office-based workers. The general manager needs to make a decision soon, while keeping in mind the profitability, employee welfare and ethics of the firm.
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  • Garry Halper Menswear Limited: A Loan Request for an Export Order

    Garry Halper Menswear Limited (GHM) is a medium-sized manufacturer of superior-quality men's suits and jackets that up to now have largely been distributed in Canada. The firm has landed a very large order for men's suits with Sutton's in the United States. To meet the order, the firm has decided to import partly completed suits from China. The treasurer of GHM must assess the financing needs and related risks that result from this large increase in sales. At the same time, he believes that the company's present bank is timid in its response to the firm's needs, and he would like to consider another banking relationship.
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  • Getit

    Sidharth Gupta, CEO of Getit Infomediary Ltd, had just received a term sheet from Helion Venture Partners (Helion), one of India's independent venture capital firms, offering to invest Rs 200 million in return for an equity stake in the company. His dream of transforming Getit from a regional print company into a digital company with broad geographical reach was within grasp. However, Gupta had to act fast; Helion's term sheet would expire in a fortnight if unexecuted. Bank finance and trade credit had tided Getit through tough times in the past, and Getit still had a Rs 250 million bank line to draw on. Should he take the venture capital investment? And if so, implications would this have for his family business and for him personally?
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  • Coaching High Performance: Lessons from Veterans in Two Arenas

    High-performers, whether they be star CEOs, world-class salespeople, great product developers or professional services rainmakers, exist at the tail end of the distribution in terms of ability and impact. They have high aptitude, sought-after skills and the ability to ply their trade almost anywhere around the globe. How can leaders engage these brilliant, talented individuals and bring out their very best, sustained performance? Two veteran leaders - Roger Martin in business and Bob Brett in the realm of championship tennis - provide their expertise in this interview.
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  • Unlocking Growth in the Middle: How to Capture the Critical Middle Class in Emerging Markets

    Over the next two decades, one of the fiercest battles in business will be for the billions of people joining the middle class in emerging markets-a group that will make up 30 per cent of the global population by 2020. Yet even many multinational companies who are already active in emerging markets are not prepared to tap into this new stream of revenue growth because, the authors argue, their business models were not designed to reach the new middle. They describe four steps to business model innovation that can help a company capture this critical emerging market.
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  • Secret Recipes: The Power of Culture in an Experience Economy

    Why did United Airline's TED and Delta's Song fail while Southwest's similar model for low-cost air travel thrived? According to the author, it all comes down to company culture. Culture is one of those fuzzy terms that makes business analysts roll their eyes, he says, but its true power lies in the fact that, unlike other competitive advantages, it is nearly impossible to copy. He defines culture as 'the things that people in an organization do without thinking, often because of a precedent set by management'. As he shows, the roots of culture go very deep, and they lead companies like Southwest, Costco and IBM to the top of their industries.
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  • NeuroLeadership 101: An Interview with David Rock

    David Rock, founder of the NeuroLeadership Institute, believes that the secrets to high performance lie in our ability to master humankind's greatest asset: the brain. In this interview, he argues that the brain requires three things to function optimally: moderate stress, positive affect (i.e. emotion) and a good night's sleep. He also shows that workplace engagement and productivity are closely related to the brain's primal 'threat and reward' function, which has repercussions for manaaqgers.
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  • The Waiting Game: The Psychology of Time and its Effects on Service Design

    Waiting in line is a ubiquitous consumer experience, but it doesn't have to be a negative one. The author argues that service providers can foster positive experiences in several ways, by paying attention to the psychology involved in waiting. The 'psychology of time' includes three key factors: the important of progress; social comparisons; and the desire for social justice. When a service is designed with these in mind, the waiting doesn't have to be the hardest part.
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  • To Tweet or Not to Tweet: What Business Can Learn from Social Movements

    Social media has created widespread confusion in many organizations. Some all but beg people to 'like' them on Facebook, while others badger consumers to follow them on Twitter. The fact is, hundreds of millions of dollars are spent each year on social media marketing strategies, and most of it achieves very little in the way of creating a sustained following. Successful social movements, by contrast, have long managed to capture and sustain followers over long periods of time-for a tiny fraction of what private companies spend on marketing. The authors describe five lessons business can we learn from social movements and their organizers.
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  • Skunk works: How Breaking Away Fuels Breakthroughs

    At the world's most innovative companies, 'Skunk Works' has become the standard approach for running top secret projects with elite special teams. The hallmarks of a Skunk Works project include high-quality designs in a short time frame with limited resources. The author describes how it all started, at Lockheed Martin in the 1940s, and how the approach has evolved to inspire Apple and other modern innovators.
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  • The Ingenuity Imperative: What Big Data Means for Big Business

    Big data' is hailed as the next mega-problem for business, and rightly so, says the author. He argues that business has to solve two different sets of problems here: prediction problems (what will happen if we do this?) and optimization problems (what is the best way to get this to happen?) Intelligence is not enough to tackle these issues, he says: big data requires ingenuity. He defines 'the ingenuity effect' and shows that it entails three key skills: modeling, coding and sensing.
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  • Demography and Destiny: Embracing Population Aging to Create Value

    From Asia to the Americas, populations are getting older, and so far, business and policy leaders have done little to prepare for it. The authors -- from Accenture's Institute for High Performance -- describe some of the key myths that are standing in the way of leaders' understanding of this demographic certainty. For example, one myth is that 'Older consumers are an unattractive demographic for marketers.' The authors debunk this and six other myths and show how to embrace this burgeoning market.
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  • Thought Leader Interview: Alice Waters

    The 'founding mother' of the organic, locally-grown and slow-food movements describes the roots of her vision and the importance of teaching young children how to eat. She describes how she created a new model for fine dining that took the best elements from intimidating French restaurants and relaxed, 'cheap and cheerful' restaurants to create a welcoming environment with top-calibre service. She also describes how her food philosophy evolved, beginning with the teachings of Maria Montessori and the importance of educating all five of the senses.
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  • Marriott's Executive Chairman on Choosing the First Nonfamily CEO

    At the age of 32, Bill Marriott became the head of the company his father had built up from its beginnings as a root beer stand in 1927. Until 2012 it had had only two CEOs, and Marriott had always thought that one of his four children would succeed him in that role. Two of his sons have worked for the company for many years, and of them, John, seemed destined to succeed his father. But as time went on, Bill Marriott realized that it wasn't the right fit--either for John or for the company. He writes here about meeting Arne Sorenson, hiring him, and grooming him to become the current CEO. (An edited interview with Sorenson accompanies the article.) But that doesn't rule out another Marriott as the fourth chief executive, he says.
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  • The Performance Frontier: Innovating for a Sustainable Strategy

    Too often, companies launch sustainability programs with the hope that they'll be financially rewarded for doing good, even when those programs aren't relevant to their strategy and operations. They fail to understand the trade-offs between financial performance and performance on environmental, social, and governance (ESG) issues. Improving one typically comes at a cost to the other. But it doesn't have to be this way. It's possible to simultaneously boost both financial and ESG performance--if you focus strategically on issues that are the most "material" to shareholder value, and you develop major innovations in products, processes, and business models that prioritize those concerns. Maps being developed by the Sustainability Accounting Standards Board, which rank the materiality of 43 issues for 88 industries, can provide valuable guidance. And broad initiatives undertaken by three companies--Natura, Dow Chemical, and CLP Group--demonstrate the kind of innovations that will push performance into new territory. Communicating the benefits to stakeholders is also critical, which is why integrated reports, which combine financial and ESG reporting, are now gaining in popularity.
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  • Why the Lean Start-Up Changes Everything

    In the past few years, a new methodology for launching companies, called "the lean start-up," has begun to replace the old regimen. Traditionally, a venture's founders would write a business plan, complete with a five-year forecast, use it to raise money, and then go into "stealth mode" to develop their offerings, all without getting much feedback from the people they intended to sell to. Lean start-ups, in contrast, begin by searching for a business model. They test, revise, and discard hypotheses, continually gathering customer feedback and rapidly iterating on and reengineering their products. This strategy greatly reduces the chances that start-ups will spend a lot of time and money launching products that no one actually will pay for. Blank, a consulting associate professor at Stanford, is one of the architects of the lean start-up movement and has seen this approach help businesses get off the ground quickly and successfully. He believes that if it's widely adopted, it would reduce the incidence of start-up failure. In combination with other trends, such as open source software and the democratization of venture financing, it could ignite a new, more entrepreneurial economy. There are numerous indicators that the approach is catching on: Business schools and universities are incorporating lean start-up principles into their curricula. Even more interesting, large companies like GE are applying them to internal innovation initiatives.
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  • What Entrepreneurs Get Wrong

    Salesmanship is central to a start-up's success, but many entrepreneurs ignore this simple fact. They may believe that their idea will sell itself or that there's no point visiting a prospective customer without a finished product in hand. Those who search for sales advice find mostly tools and techniques for established companies. In a study of 120 entrepreneurs in six countries, more than half fully developed their products before getting feedback from potential buyers. Looking back, most said that was a mistake. Those who did start selling early did not spend enough time listening to prospects' reactions. Other mistakes included offering discounts to close initial deals, making early sales to family and friends, and failing to choose first customers strategically. When they did go on sales calls, the entrepreneurs fielded tough questions about the efficacy of their products, their credibility and experience, the size of their companies, their prices, and the cost of switching to an unproven offering. A sales model geared to entrepreneurs accounts for the fact that information gleaned during the sales process can be crucial in designing (or redesigning) the product itself. The model calls for meeting with prospects as soon as an idea is conceived to learn if it has broad appeal. The answer to that question determines whether the entrepreneurs jettison the idea, return to the drawing board, or proceed to prototype development and further testing with potential customers.
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