Friday, August 16, 2013

REPOST: Look After The Suits - They Drive Competitive Advantage More Than Strategy Or Innovators

Sebastian Bailey shares in his article that every individual has a unique contribution to a business' success or failure.


CUPERTINO, CA - OCTOBER 04:  Apple CEO Tim Coo...
Image Source: forbes.com
What makes the biggest difference to revenue, brilliantly creative people, a ground breaking strategy, lean processes or strong middle management?

In 2008, MIT School of Management researcher Ethan Mollick set about to discover what has a greater impact on performance within the computer game industry: people or process. Armed with data about the revenue and ratings of 1,536 games across 602 firms, he looked at what proportion of performance could be accounted for by individual contributors – the game designers and managers – and organizational factors. Controlling for team size, the year the game was released, the genre, publisher and whether the game was a sequel or included licensed content, he discovered that individual contributors accounted for 25% of the difference in revenue generated and 19% of the difference in ratings. This was at least equal to the variance accounted for by organizational factors. What’s more, individuals in managerial roles had a greater impact on performance than the creative designers. When the blockbusters and flops were removed – the top and bottom 10% according to revenue – designers accounted for just 7% of the variance, compared to 27% accounted for by managers.

Far from being interchangeable, individuals uniquely contribute to firms’ success or failure. And even in an industry which rewards creativity, managers had a greater influence on performance than the innovators. For all the hoopla surrounding the innovation process and the attention and rewards lavished on innovative individuals, managers are the ones who facilitate communication, encourage organizational commitment and, ultimately, translate that innovation into reality. Perhaps it is no surprise that Tim Cook went from COO to CEO – for all its emphasis on the shiny and new, Apple knows that what really drives success is good quality operations.

Of course, a single entrepreneur can influence an entire market; some say that top computer programmers produce the same amount of work as 10 – 20 average programmers and, according to some estimates, 6% of publishing scientists account for 50% of published articles. Clearly, individuals do matter. But few industries pay as much attention to individuals at the lower level, like middle managers, who are often largely responsible for making the strategic vision happen.

The lesson for business leaders from Mollick’s research? Middle managers matter more than you think – so it pays to invest in them

Follow this Bertrand Management Twitter page for more updates on the management consultancy industry.  

Friday, July 19, 2013

REPOST: Be your own boss: How to set up a franchise



This Economic Times article gives tips on how to be a successful entrepreneur through franchising.

Frustrated with your job? Feel like strangling your colleagues? Want to push your boss from the top of a cliff? Cry buckets of tears when you get your pay cheque? Want to start your own business?

If you have answered in affirmative to any of these questions, here's fast and safe way to be an instant and successful entrepreneur. No, we aren't spinning the spiel of a swindler. As thousands of Indians have discovered, there is a less risky way to start a business than setting up your own venture: franchise. The franchise industry has opened a wide window for many would-be entrepreneurs, who have the zeal and the zest, but not enough business expertise. Buying a franchise lets you be your own boss in any field that you are passionate about without the added worries that is a given with your own ventureĆ¢€”ideation, brand building, infrastructure, legal problems.

The best part? You get help to start a business anywhere, at any age and with any budget. Bangalore-based Lourdu Mary retired as a primary school teacher five years ago. "However, I got bored within a few years, but finding another job at my age was impossible. When I came to know that I could open my own pre-school with just Rs 3.5 lakh, I jumped at the opportunity," says the 65-year-old. The company, My Apple School, provides the curriculum, support and training to her staff.

The supporting appeal of the franchise industry has been the reason for the surge in its popularity in the past decade. Currently worth Rs 82,500 crore, it is estimated to grow to about Rs 2.91 lakh crore by 2017, according to the Indian Franchise Report 2012. The main reason is that both domestic and international companies want to expand their footprints, but don't consider it a viable proposition to do it on their own due to operational and financial pressures.

They prefer to look for partners who can invest to run a branch of their business. From international brands like Domino's and Dunkin' Donuts, to domestic ones like NIIT and Naturals, a lot of companies are opting for the franchising model. It's estimated that the franchise industry is growing at a rapid pace of 40% a year. One of the biggest gainers of this warp-speed growth is Ravi Jaipuria, chairman of the privately held RJ Corp. He is India's newest billionaire, with a fortune estimated at Rs 8,250 crore, and has built his fortune as a franchisee for brands like Pepsi, Pizza Hut, KFC and Costa Coffee. So, do you want to get on this super-fast bandwagon to business bonanza?

Where should you start?

The first thing you need to decide is whether you are fit to be a franchisee. Don't be blinded by dreams of instant riches or assume that because you have a ready-made business plan, you can relax in a hammock and soak the sun. Running a franchise will require as much hard work and effort as running your own venture. Says Gaurav Marya, president of Franchise India: "A franchisee needs to understand that while he has bought a brand name, and with it the potential clientele, the onus is on him to grow the business. It's not an 'invest and forget' option."

The business also comes with stringent conditions about how the workplace will look, the products that will be used, the programme menu that will be implemented, the royalty that will have to be paid, and so on. Individual innovation is rarely possible and thinking out of the box could be frowned upon. So, carefully study the pros and cons before you sign a franchise deal.

Once you've made up your mind to buy a franchise, you'll have to decide what exactly to do. With almost 3,700 companies in about 15 diverse sectors, from food and footwear to furniture and furnishing, the choices can befuddle you. Go through the story, 'Which franchise is best for you?' to figure out where you should dip your toes. On deciding where you want to start from, you can narrow down your choices. Marya advises that if you're a newbie, it may be better to start a business in the field of your professional expertise. "When you understand the intricacies of an industry, you are well-equipped to handle the daily business and any crises that may crop up," he says. Also, you will be in tune with the realities of the sector, which could help you identify the right company to partner.

Angad Singh followed this tenet when he moved back to India after working for a couple of years at a hotel in Melbourne, Australia. His father, Ravinder Singh, had taken VRS from a bank, but wanted to continue working. The father-son duo invested their savings to buy a franchise of New York Pizza and Fried Chicken in Chandigarh. "Both my father and I are passionate about food, but neither of us had the expertise to set up and run a business. Taking a franchise was the logical answer," says the 26-year-old.


Image Source: articles.economictimes.indiatimes.com

Bertrand Management Group assists businesses in their operations, manpower, and management strategies. Know more information about the industry by visiting this Facebook page.

Wednesday, June 5, 2013

REPOST: "Seven Rules for Managing Creative-But-Difficult People"



In many cases, managers find that some of their most creative people are difficult to manage, and as a result they resort to different tactics just to get them to comply.  But the iron fist isn't the answer to handling creative people, and this Harvard Business Review article provides some insightful tips on how to make the best out of these employees:





Image credit: Harvard Business Review
Moody, erratic, eccentric, and arrogant? Perhaps — but you can't just get rid of them. In fact, unless you learn to get the best out of your creative employees, you will sooner or later end up filing for bankruptcy. Conversely, if you just hire and promote people who are friendly and easy to manage, your firm will be mediocre at best. Suppressed creativity is a malign organizational tumour. Although every organization claims to care about innovation, very few are willing to do what it takes to keep their creative people happy, or at least, productive. So what are the keys to engaging and retaining creative employees?

1. Spoil them and let them fail: Like parents who celebrate their children's mess: show your creatives unconditional support and encourage them to do the absurd and fail. Innovation comes from uncertainty, risk, and experimentation — if you know it will work, it isn't creative. Creative people are the natural experimenters, so let them try and test and play. Of course, there are costs associated with experimentation — but these are lower than the cost of NOT innovating.

2. Surround them by semi-boring people:
The worst thing you can do to a creative employee is to force them to work with someone like them — they would compete for ideas, brainstorm eternally, or simply ignore each other. That said, you cannot surround creatives with really boring or conventional people — they would not understand them, and fall out. In line with this, recent research indicates that teams made up of diverse members who are open to taking each others' perspective perform most creatively.

The solution, then, is to support your creatives with colleagues who are too conventional to challenge their ideas, but unconventional enough to collaborate with them. These colleagues will need to pay attention to details, mundane executional processes, and do the dirty work: Messi needs Busquets and Puyol; Ronaldo needs Alonso and Ramos.

3. Only involve them in meaningful work: Natural innovators tend to have more vision, research I've done indicates. They see the bigger picture and are able to understand why things matter (even if they cannot explain it). The downside to this is that they simply won't engage in meaningless work. This all-or-nothing approach to work mirrors the bipolar temperament of creative artists, who perform well only when inspired — and inspiration is fueled by meaning. This rule can also be applied to other employees: everyone is more creative when driven by their genuine interests and a hungry mind.

As novelist John Irving said, "the reason I can work so hard at my writing is that it's not work for me". At the same time, in any organization there will be employees who are less interested in, well, doing interesting work; they are satisfied with simply clocking in and out, and are incentivized by external rewards. Companies should ensure that trivial or meaningless work is assigned to these employees.

4. Don't pressure them: Creativity is usually enhanced by giving people more freedom and flexibility at work. If you like structure, order and predictability, you are probably not creative. However, we are all more likely to perform more creatively in spontaneous, unpredictable circumstances — because we cannot rely on our habits. Don't constrain your creative employees; don't force them to follow processes or structures. Let them work remotely and outside normal hours; don't ask where they are, what they are doing or how they do it. This is the secret to managing Don Draper, and why he never went to work for a bigger competitor. This is also why so many top athletes fail to make the transition from a small to a big team, and why business founders are usually unhappy to remain in charge of their ventures once they are acquired by a bigger company.

5. Don't overpay them: There is a longstanding debate about the relationship between intrinsic and extrinsic motivation. Over the past two decades, psychologists have provided compelling evidence for the so-called "over-justification" effect, namely the process whereby higher external rewards impair performance by depressing a person's genuine or intrinsic interest. Most notably, two large-scale meta-analyses reported that, when tasks are inherently meaningful (and creative tasks are certainly in this condition), external rewards diminish engagement. This is true in both adults and children, especially when people are rewarded merely for performing a task. However, providing positive feedback (praises) does not harm intrinsic motivation, so long as the feedback is perceived as genuine. [Editor's note: This is clearly a controversial point; Dr. Chamorro-Premuzic has expanded on it in his new article, "Does Money Really Affect Motivation? A Review of the Research." In line with his comments in the thread below, we've also updated the header on this section to be more accurate.]

The moral of the story? The more you pay people to do what they love, the less they will love it. In the words of Czikszentmihalyi, "the most important quality, the one that is most consistently present in all creative individuals, is the ability to enjoy the process of creation for its own sake." More importantly, people with a talent for innovation are not driven by money. Data from our research archive, which includes over 50,000 managers from 20 different countries, indicates quite clearly that the more imaginative and inquisitive people are, the more they are driven by recognition and sheer scientific curiosity rather than commercial needs.

6. Surprise them: Few things are as aggravating to creatives as boredom. Indeed, creative people are prewired to seek constant change, even when it's counterproductive. They take a different route to work every day, even if it gets them lost, and never repeat an order at a restaurant, even if they really liked it. Creativity is linked to higher tolerance of ambiguity. Creatives love complexity and enjoy making simple things complex rather than vice-versa. Instead of looking for the answer to a problem, they prefer to find a million answers or a million problems. It is therefore essential that you keep surprising your creative employees; failing that, you should at least let them create enough chaos to make their own lives less predictable.

7. Make them feel important: As T.S. Eliot noted, "most of the trouble in this world is caused by people wanting to be important". And the reason is that others fail to recognize them. Fairness is not treating everyone the same, but like they deserve. Every organization has high and low potential employees, but only competent managers can identify them. If you fail to recognize your employees' creative potential, they will go somewhere where they feel more valued.

A final caveat: even when you are able to manage your creative employees, it does not mean that you should let them manage others. In fact, natural innovators are rarely gifted with leadership skills. There is a profile for good leaders, and a profile for creative people — and they are rather different. Steve Jobs had better relationships with gadgets than people, and most Google engineers are utterly disinterested in management. One of the reasons for the rapid plateau of start-ups is that their founders tend to remain in charge. They should learn from Mark Zuckerberg who brought in Sheryl Sandberg to make up for his own leadership deficits. Research confirms the stereotypical view that corporate innovators — intrapreneurs — exhibit many of the psychopathic characteristics that prevent them from being effective leaders: they are rebellious, anti-social, self-centered and often too low in empathy to care about the welfare of others. But manage them well, and their inventions will delight us all.

Read more updates on structure development, strategic planning, and operational improvement by visiting this Bertrand Management Group Facebook page.

Tuesday, May 14, 2013

On staying small: Why growing your business might not be worth it

Image Source: blog.cloudhq.net


If you’re a business owner, you may have dreamt of turning your fledgling business into something more—a consumer electronics giant, like Apple, or a leader in Internet services and products, like Google. However, building a business from scratch and growing it into a multibillion-dollar corporation may not be worth it.

NationalJournal.com mentions that out of all the small business owners surveyed across the United States, only 24 percent said that they want to grow their businesses to become “as large as possible” even though President Obama has been pushing for a bill that could potentially cut taxes on smaller businesses to encourage growth and increased hiring of workers, which in turn could revitalize the US job market.



Image Source: smallbusiness.chron.com


Why? Investopedia.com lists a few possible reasons why many small business owners do not want to expand their business:

They’ll incur less stress.

The risks of hurting the business remain little.

They won’t have an increase in workload.

They won’t have to deal with problems regarding hiring people.

They’ll have time for things that really matter (i.e., spending time with family and friends).

The bottom line is that although expanding your business might be a good idea, business growth does not just depend on having a dream and setting some goals. It requires sacrifices that you must be willing to make for results that may or may not be worth the effort.



Image Source: blog.michiganadvantage.org


Bertrand Management Group is a California-based consulting firm that specializes in the development of business coaching skills and business strategies. Visit this Facebook page for more information on expanding a business.

Wednesday, April 10, 2013

REPOST: Full stack business development

What are the qualities of a full stack business developer? Learn more from this Forbes.com article.


Image Source: forbes.com
In the language of technology, a “Full Stack Developer” is someone who understands how to code every level of a computer: from the fundamentals of server processes to backend programming to database architecture and front-end design. They’re among the most valued members of an organization, able to translate between the layers of a system. A Full Stack Developer can be your best resource whether you’re planning for top-notch performance, diagnosing a tricky situation that’s eluded your best specialists, or are just quickly hacking your way to an MVP.

Allow me to introduce the idea of a similar unicorn: the “Full Stack Business Development” person. A Full Stack BD understands the complexities and interactions between every layer of long-term value:

The Customer Layer: a Full Stack BD knows that customer development is just as important as partnership development. They understand what motivates, what upsets, what delights your current and prospective customers.

The Product Layer: a Full Stack BD knows how to identify and solve the needs unearthed in the Customer Layer. They inform the products and services that create value for customers and help advance their own organization’s pursuit of long-term value.

The Strategy Layer: a Full Stack BD knows how look before they leap, to evaluate the best paths to long-term value. They are comfortable directing attention back towards internal resources like product development or marketing, but can also lead the charge in selling the idea of partnership when the best path leads outside the company walls.

The Human Layer: a Full Stack BD knows how to reach and connect with people, to communicate the value of an idea to an individual and to an organization. They know how to establish a bond based and build relationships that provide back in equal proportion to everyone involved.

The Relationship Layer: a Full Stack BD knows how to keep the balance between what’s given and what’s received, when to tow the company line and when to advocate on behalf of another. They know how keep value flowing, so that it’s sustainable and worth the effort.

The path to becoming good at Business Development can be start from a background sales, or marketing, or finance, or partnerships, or accounting, or liberal arts, or law. But becoming great at it requires the full stack.

Bertrand Management Group offers a variety of services that fit the every need of its clients. Follow this Twitter page or visit this site to get more links on business development.

Thursday, March 7, 2013

Why America's businesses need faster broadband networks

Julius Genachowski, chairman of the Federal Communications Commission, argues for the improvement of America’s broadband infrastructure on Forbes.com. At the heart of his argument is that America needs this upgrade sooner, rather than later, in order to keep its competitiveness rating high.


Image Source: mashable.com


Indeed, if the spread and increase of popularity of modern mobile devices serve as indicators of what public demand will be like in the future, then it points to the need for constant connectivity. And to attend to this demand, there is the need for speeds that go beyond megabits.

Genachowski points out that the upgrade of the information infrastructure goes well beyond consumer convenience, which is already an important element that businesses must always strive to attain. It is necessary to further push for economic growth and job creation in the industries.


Image Source: marketingpilgrim.com


There are some broadband providers who believe otherwise. Currently available broadband speeds have kept up with what mobile devices can handle, and there has been little demand for faster alternatives.

However, if innovation remains among the nation’s greatest concerns, then the information infrastructure necessary to support new findings, even if it seems too advanced for its time, must already be put in place. America’s businesses need all the advantages they can get in order to encourage the country’s innovators to create cutting-edge technologies, and to attract more of the world’s greatest entrepreneurs.


Image Source: cable.co.uk


Follow this Facebook page for Bertrand Management Group to get more links to pertinent news on the needs of America’s business community.

Monday, February 11, 2013

Last man standing: Old-fashioned techniques companies use to hire employees

Image Source: FemInspire.com

Many young applicants are left jobless not because there are no job opportunities, but because most companies employ old-fashioned techniques in hiring, making it hard for the applicants to ace an interview or negotiate an acceptable job offer.

Management consulting firms, from McKinsey & Company to Bertrand Management Group, are seeking ways to help other companies innovate their recruitment processes. In this day and age, outdated processes are becoming less effective, and companies must adapt to the changing times. Below are some old-fashioned techniques in hiring that some companies still employ to this day:

Image Sourcee: GlassDoor.com

1. Physiological stereotypes

There are studies that found that attractive people are more likely to get employed and earn more than their less attractive counterparts.

Image Source: Funtoosh.com

2. Job offers that discourage applicants

Most applicants, even the young and inexperienced, can tell whether a company is good or not based on the job offer. Companies must be more willing to negotiate with their young applicants a reasonable job offer, as fresh minds are needed to bring in new and more compelling ideas into the company.

Image Source: MedicalSalesCollege.com

3. Long application process

While it is understandable that the recruitment process takes time, it does not mean that most people are willing to wait. Most of the time, companies are left to hire the most complacent applicants who have waited the longest time to get hired. While patience is an admirable trait in an employee, some companies end up losing the best ones. In addition, a long recruitment process is actually a waste of time and resources for both the employee and employer. Time wasted for recruitment could have been used to train the employee at work.

Bertrand Management Group is a management consulting company dedicated to providing companies with efficient and effective solutions in helping their businesses grow. This Facebook page offers more resources on recruitment, coaching skills management, leadership, operational changes, and many more.