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Evaluate Your Customer
When a customer walks into your office, don’t sell them the first product that comes to mind. Sit them down and evaluate their needs, than sell them the products that meet their needs.I once worked with a guy in the banking industry, who was one of the best at explaining the benefits and features of our products, the only problem was, he was spending so much of his time explaining, but never selling anything.He never sold anything because he never took the time to get to know what his customer’s needs were, therefore he was attempting to sell them things that they didn’t really need.Nobody will buy things that they don’t need.This is why it is so very important to evaluate your customer.Start off by making your customer as comfortable as you possibly can, talk about non-business topics such as the weather, sports, or a current event.Once you and your customer have built a good enough report, start to ask some questions so that you may evaluate your customer’s needs.You can begin by finding out why your customer came into see you in the first place. Find out what products they already have. Find out if they already deal with one of your competitors. If so, find out all you can about the products and services they have

valuation methodology which necessitates using driver-based models to create projections and also looking at past NPVs and ROIs to consider strategy and other qualitative aspects that drive investment 'value'.

* Portfolio allocation - This requires determining investment areas/themes and the associated allocations. Basically, what are my strategic priorities for investment and how much will go to each area? For example, 25% in customer acquisition, 20% in IT, 55% in customer retention. The allocation should also consider the risk profile of investments, e.g., 60% in low risk, 30% in medium risk and 10% in high risk.

* Portfolio optimization - This requires selecting the best investments to support the portfolio allocation and periodically rebalancing the portfolio to ensure consistency with desired portfolio allocations. The aim is to maximize strategic and financial return per unit of risk.

Competencies for HR Professionals in Knowledge-based Industry with Reference to IT, ITES-BPO's
Introduction“High performing HR function affects bottom line nearly 10%”- A surveyCompetencies have become integral part of HR field. In the last 25+ years, the competency approach has emerged from being a specialized and narrow application to being a leading method for diagnosing, framing and improving most aspects of Human Resource Management. Changes to business practice have forced HR professionals to adjust their role and the contributions they make as well as to obtain new skills and competencies to meet these demands.In a survey conducted in USA the following were the observations: (Source Internet)1) HR professionals from high-performing companies are shifting their focus from internal to external customers.2) HR professionals are taking greater responsibility for disseminating cultural underpinning throughout their organizations.3) HR professionals are emerging as strategic partners who identify problems, provide alternative insights and raise the standards “Intellectual rigor”, for business decision makingUnderstanding CompetenciesCompetencies are those behaviors or sets of behaviors that describe excellence in performance within a particular work context. They can be useful in clarifying work standar

Much has been written about how finance organizations can become strategic partners with the businesses they support. While purported experts point to a variety of frameworks, scorecards and key performance indicators, etc. as the keys to bridging the gap between finance and business, these trite 'solutions' have done little to make finance the strategic business partner it seeks to be. Worse yet, pursuing these ideas has put finance organizations on a treadmill where they expend energy and resources (e.g., money and time) ultimately to get nowhere while the issue persists. So if you are still looking for a silver bullet or quick fix to this seemingly incurable problem, stop reading now.

Given the time, money and effort spent, you may be a bit demoralized and even speculating that the finance-business chasm cannot be crossed. Paradoxically, the link between finance and the business has been under finance's proverbial nose for some time - resource allocation. A serious concerted effort to optimize an organization's resource allocation ultimately enables finance to develop the bridge between finance and strategy. This discipline known as corporate portfolio management works to actively manage the company's resource allocation as a portfolio of discretionary investments. All companies allocate their resources - very few optimize their resource allocation. Finance is uniquely positioned to enable this because they sit at the nexus of information and data required to undertake a corporate portfolio management effort. (Note: Corporate portfolio management is often referred to by different terms so as a point of reference, terms such as IT portfolio management, enterprise portfolio management, product portfolio management, project portfolio management, resource allocation and investment optimization are similar. In fact, these all are slices or subsets of corporate portfolio management.)

From Resource Allocation to Strategy

First, it is worth understanding the tie between resource allocation and strategy - they are the same. Where you allocate your resources is your strategy. PowerPoint presentations, speeches by senior leadership, strategy bullets nicely framed on a wall, etc. are all interesting and potentially useful, but they are not your organization's strategy. For instance, if your stated corporate strategy is to have the most engaged and loyal customers (this sounds good, right?), but you allocate all your investment dollars to acquiring new customers, your strategy is actually around customer acquisition. This is a very simple example but clearly demonstrates the dichotomy that can and often exists between a stated and real strategy.

A great article entitled "How Managers' Everyday Decisions Create - or Destroy - Your Company's Strategy" that recently appeared in the Harvard Business Review (February 2007) nicely articulated the connection between resource allocation and strategy and also pointed to the need for a corporate portfolio management discipline. "How business really gets done has little connection to the strategy developed at corporate headquarters. Rather, strategy is crafted, step by step, as managers at all levels of a company - be it a small firm or a large multinational - commit resources to policies, programs, people and facilities. Because this is true, senior management might consider focusing less attention on thinking through the company's formal strategy and more attention on the processes by which the company allocates resources."

The upshot of this is that if finance can enable the process to enable better resource allocation (which is strategy), they will have succeeded in becoming a de facto strategic partner to the business.

The Two Levers of Corporate Portfolio Management

So now the question turns to how to build a corporate portfolio management discipline and ensure its success. A successful corporate portfolio management effort is predicated on two dimensions.

1. Modern Portfolio Theory (aka the process) - This is what people generally think of when they think of corporate portfolio management. It is comprised of:

* Investment valuation - This includes defining what an investment is. It is worthwhile to take an expansive definition of what comprises an investment because this is not just capital expenditures (capex), but also should include operating expenses (opex). In general, 25-40% of an organization's expenses are discretionary and hence are investments. Investment valuation also requires consistency of valuation methodology which necessitates using driver-based models to create projections and also looking at past NPVs and ROIs to consider strategy and other qualitative aspects that drive investment 'value'.

Keeping Clients Happy Keeps them Coming Back
Whether you are a seasoned small business professional, or you have just opened your doors to new clients, your marketing strategy should not only involve bringing in new business, it should also include keeping your current clients, your most important asset, happy and coming back for more or referring your services.Top-notch customer service is the most important contributing factor in the success of your business. Unfortunately, there are some business professionals who don’t live by that sentiment. I’m not sure if they don’t understand the advantages of making clients feel like number one, but let’s see if we can’t keep ourselves from forgetting those that have helped our businesses get where they are today.Providing exceptional customer service centers around ensuring your customers are happy. They need to feel that you improve your business to help improve their business. There are several processes that will prove your dedication to exceptional customer service and are a must for all business professionals.Provide the best service and provide it on time. Keeping customers happy means you give them your very best and you make sure to deliver when you say you will. If for any reason you have to delay delivery, be honest with

own as corporate portfolio management works to actively manage the company's resource allocation as a portfolio of discretionary investments. All companies allocate their resources - very few optimize their resource allocation. Finance is uniquely positioned to enable this because they sit at the nexus of information and data required to undertake a corporate portfolio management effort. (Note: Corporate portfolio management is often referred to by different terms so as a point of reference, terms such as IT portfolio management, enterprise portfolio management, product portfolio management, project portfolio management, resource allocation and investment optimization are similar. In fact, these all are slices or subsets of corporate portfolio management.)

From Resource Allocation to Strategy

The Two Levers of Corporate Portfolio Management

So now the question turns to how to build a corporate portfolio management discipline and ensure its success. A successful corporate portfolio management effort is predicated on two dimensions.

1. Modern Portfolio Theory (aka the process) - This is what people generally think of when they think of corporate portfolio management. It is comprised of:

Change Management Checklist – Give Your Change Program a Quick Health Check
Approach to ChangeHow is your change initiative going? Are managers and employees singing from the same hymn sheet or are you seeing constant bickering and recriminations? Are positive results emerging for all to see or is your organization’s performance going backwards? Is your program meeting targets and deadlines or is money and time being continually sucked into a black hole?Whether you are implementing a new local accounting system in your department or your organization is embarking on a comprehensive culture change program, it makes sense to take a breath and review how you are traveling. Here is a quick eighteen-point checklist that you can use on your current change project. You can either answer the questions on your own, or better still, get your team in to discuss the answers as a group.The following questions are based on the CHANGE Approach © to managing change in organizations. This approach recognizes that a disciplined process is required for leading and managing change, from the initial good idea to eventual institutionalization of the new way of working. These six phases of the change process are: Create tension Articulate why change needs to happen and why

your organization's strategy. For instance, if your stated corporate strategy is to have the most engaged and loyal customers (this sounds good, right?), but you allocate all your investment dollars to acquiring new customers, your strategy is actually around customer acquisition. This is a very simple example but clearly demonstrates the dichotomy that can and often exists between a stated and real strategy.

The Two Levers of Corporate Portfolio Management

So now the question turns to how to build a corporate portfolio management discipline and ensure its success. A successful corporate portfolio management effort is predicated on two dimensions.

1. Modern Portfolio Theory (aka the process) - This is what people generally think of when they think of corporate portfolio management. It is comprised of:

Colors and Resolution
Have you thought about your logo colors and what they stand for? If you're like most people, the answer is no. Many people simply choose colors that they like, or colors that feel good. One CEO I know likes his designers to use the colors of his alma mater in the designs he was given. But colors have meaning and choosing the right colors for your logo can better convey your brand. For example, many banks, insurance companies and investment firms use blue and gray as their corporate colors because these colors represent stability, trustworthiness, and conservative ideas. While health clubs, spas, and specialty resorts often use green because it represents health, growth, and tranquility. When choosing your logo, take the time to think through what colors represent what your company stands for - then use them.Resolution is an important component of design. Why would anyone spend so much time and energy, and maybe even money, on a logo or other graphic design only to have it show up poorly when it is displayed? Resolution means how clearly your logo will appear in different applications. The higher the resolution, the better the clarity, and there are different file formats provide different levels of definition.A .gif file is for the internet

pany's formal strategy and more attention on the processes by which the company allocates resources."

The Two Levers of Corporate Portfolio Management

So now the question turns to how to build a corporate portfolio management discipline and ensure its success. A successful corporate portfolio management effort is predicated on two dimensions.

1. Modern Portfolio Theory (aka the process) - This is what people generally think of when they think of corporate portfolio management. It is comprised of:

How to Communicate Effectively in Troubled Times
In troubled times – be it war, a shaky economy, or political uncertainty – it's harder than ever to engage your audiences. There's just so much on everyone's mind.So how do you keep communication going, as it must, during this time?Communications experts tell us that nonprofits (and other organizations) should expand their communication efforts during war and economic downturn, with an increased focus on fact-driven messages. A recent article in PR Week reports results of a survey of journalists nationwide who almost unanimously urge organizations to "communicate factually, frequently, and consistently." "Use this time wisely," say the journalists, "to position yourself."Offhand, I agree with survey findings. It is important to continue to reach your audiences during this time, especially to reassure them that your organization is still here and still working hard to address the issues on which you focus. Remember, people don't stop volunteering, advocating, or giving during tough times. They simply are likely to deliberate more carefully, and more slowly, on where to direct their resources.I suggest the following:• As always, make sure that your organization has a compelling missio

* Performance measurement - A key element of successful corporate portfolio management is capturing actual investment results to enable promise vs. performance. Doing this ultimately lets an organization improve ongoing investment valuation based on actual results and allows it to rebalance the portfolio based on performance achieved.

Most people with a finance background will recognize the above tenets of portfolio theory. The problem with most of the discussion of corporate portfolio management is that it assumes that people behave according to a theoretical/rational construct. While various experts like to offer platitudes saying things like, "Just manage your company's investments like you manage your own investments," they fail to realize that many individuals may not even manage their own personal portfolios as they should. They may know what they should do but emotions, intuition, and other external influences take them off this rational path. What often leads us astray in our personal portfolio is what leads us astray in an organizational setting - behavior. The challenge in an organization is magnified by the fact that it is hundreds or thousands of people whose behavior that needs to be considered. And so this is the second fundamental lever of corporate portfolio management - organizational behavior.

2. Organizational Behavior - In order to optimize one's corporate portfolio, the behavioral elements must be understood with:

o A data-driven mindset - Organizations often make decibel- or intuition-led decisions and corporate portfolio management, like 6-Sigma, requires data and analytical decision making.

o Silos removed - Corporate portfolio management success requires people thinking about what is best for the organization and not just what is best for "my world" - silos and organizational dynasties need to be broken down.

o Incentive alignment - People should be motivated by similar short- and long-term incentives.

o Accountability & transparency - There should be a willingness to share information and effectively create a marketplace for investments.

Moving organizational behavior is the larger challenge and this takes time to change. At American Express, we have actively worked on changing organizational behavior and have made significant inroads over time, but it has not happened overnight. We have conducted cross unit investment reviews, sponsored an internal corporate portfolio management conference and even created a resource allocation simulation to visibly demonstrate the benefit of corporate portfolio management.

Bringing Corporate Portfolio Management to Your Organization If you think corporate portfolio management can be implemented in one month or one quarter, it is not for you. Corporate portfolio management is not a sprint and requires the will and heart of a marathoner. You will see benefits along the way, but it takes time to realize the full potential of a well developed corporate portfolio. But once defined and running, an actively managed corporate portfolio management discipline will pay immeasurable dividends. For American Express, we can point to stock price out-performance over our benchmark indices as well as our competition since adopting corporate portfolio management. Our resource allocation effectiveness also helps to drive our PE multiple (price to earnings multiple), which is significantly larger than our competitive peers.

Very tactically, the corporate portfolio management discipline has helped us understand what businesses we should exit and where we might want to invest more. It has enabled us to reallocate money across business segments for the first time which can be very challenging in large organizations. Most importantly, corporate portfolio management has become part of the DNA of the organization with finance and the business talking about their investments on an ongoing basis. Finance leads the corporate portfolio management effort but with significant and very direct input and interaction with the business. The chasm between finance and the business has been bridged by utilizing corporate portfolio management, and the benefits to the organization in terms of financial and strategic performance as well as employee engagement have been significant.

If you are serious about making finance a strategic partner with the business, and if you finally want to make some forward progress after being on the treadmill for so long, corporate portfolio management offers you a solution to this intractable problem. It requires effort and patience, but, as evidenced by American Express, it can close the finance and business gulf and ultimately generate outstanding performance.

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There's nothing more important when you are about to plunge into a new business than to be prepared. Obtaining information about mystery shopping before you actually become a mystery shopper is crucial for building realistic expectations and maximizing your income as a mystery shopper.

In a past life, a former colleague of mine taught our company the concept of the Complaint-O-Meter for handling guest complaints.

You've spoken with your prospect's assistant several times, you've left messages for your prospect with their assistant and you've also left multiple messages on your prospect's voicemail without reaching them. Then one day you dial your prospect and they finally answer the phone! In a way it’s a bit awkward, no? What I mean here is the fact that you know that your prospect is busy and your prospect knows that you know that he or she is busy, so how should you handle this interaction?

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