Oleg Cheremnykh (Lions)

«A Practical Guide to Building a Happy Company»

Acknowledgements

Executive Summary (Synopsis)

Preface

  • Why I decided to write this book
  • Key objectives of this book
  • Intended audience of the book
  • Structure & logic of the book

PartI. Introduction and Key Concepts

Introduction

  • Common sense: the key(and only!) business management tool
  • Reality check:the key business management activity
  • Business description language

1.Fundamental business management objective

1.1Vital importance of correct selection of the fundamental business management objective

1.2Key requirements for the fundamental business management objective

1.3Option A: Net ‘accounting’ profit/income

1.4Option B: Dividends

1.5Option C: Market price for the corporate stock

1.6Option D: Financial value maximization

1.7Option E: ‘Corporate happiness’

1.8Key advantages of corporate happiness as the fundamental business management objective

1.9Key comprehensive business audit questions– Chapter 1

2.Measuring and managing corporate happiness

2.1Making happy all key corporate stakeholders

2.2Satisfying key needs of all key corporate stakeholders

2.3Maximizing aggregate value of the company to all key corporate stakeholders

2.4Maximizing aggregate value of each key corporate stakeholder to the company

2.5Key comprehensive business audit questions – Chapter 2

3.Measuring and managing aggregate value

3.1Key importance of optimal corporate models

3.2Key strategic business management diagram

3.3Key stakeholders relationships management diagram

3.4Engineering and reengineering of a business entity

3.5Key aggregate performance indicators

3.6Key business objects

3.7Key importance of corporate synergy

3.8Financial valuation models

3.9Aggregate value scorecards

3.10Stakeholder relationship scorecards

3.11Corporate value scorebook

3.12Key comprehensive business audit questions – Chapter 3

Part II. Foundation of Corporate Happiness and Aggregate Value

4.Declaration of corporate identity and strategic objectives (DCI & SO)

4.1Vital importance of strong corporate identity for corporate happiness

4.2Business owners – “first among the equals”

4.3Importance of DCI & SO for strategic planning in a “happy company”

4.4Key components of DCI & SO

4.5Key steps in developing DCI & SO

4.6Key performance indicators - DCI & SO

4.7Key comprehensive business audit questions – Chapter 4

4.8Aggregate value scorecard – DCI & SO

5.Corporate culture and corporate code of conduct

5.1Definition of corporate culture and corporate code of conduct

5.2Structure of corporate culture and corporate code of conduct

5.3Importance of the right corporate culture and corporate code of conduct for a happy company

5.4Key distinctive features of a corporate culture of a happy company

5.5Key distinctive features of a corporate code of conduct of a happy company

5.6KPI of the corporate culture and corporate code of conduct

5.7Key comprehensive business audit questions – Chapter 5

5.8Auditing existing corporate culture and corporate code of conduct

5.9Developing optimal corporate culture and corporate code of conduct

5.10Aggregate value scorecard – corporate culture and corporate code of conduct

6.Key external factors and their influence on corporate happiness

6.1Definition of a key external factor

6.2Categories of key external factors

6.3How key external factors influence corporate happiness

6.4Vital importance of “corporate optimism” principle

6.5KPI - key external factor monitoring & management

6.6Key comprehensive business audit questions – Chapter 6

6.7Auditing the system of key external factors monitoring & management

6.8Developing and implementing the optimal system of key external factors monitoring & management

6.9Aggregate value scorecard – key external factor monitoring & management

7.Key corporate statements: mission, vision and strategies

7.1Role and specifics of mission, vision and strategies in a happy company

7.2General and functional corporate strategies

7.3Happiness-focused organization vs. mission-, vision- or strategy-focused

7.4Aggregate value - focused organization

7.5KPI for corporate mission, vision and strategies

7.6Key comprehensive business audit questions – Chapter 7

7.7Auditing existing corporate mission, vision and strategies

7.8Optimizing mission, vision and corporate strategies

7.9Aggregate value scorecards for corporate mission, vision and strategies

8.Unique aggregate value proposition (UAVP)

8.1Definition of UAVP

8.2Importance of UAVP for “corporate happiness”

8.3Need for a system of UAVP – one for each category of corporate stakeholders

8.4Key components of UAVP

8.5General markets (industries) and specific (‘target’) markets

8.6“Dynamic market niches” and their importance for corporate competitiveness

8.7Corporate core competencies and key market success factors

8.8Corporate competitive advantages and key market success factors

8.9Measuring and managing corporate competitive positions

8.10“Coopetition” and its importance for corporate happiness

8.11Key performance indicators:

  • Unique aggregate value propositions
  • Industries (‘general markets’)
  • Target (‘specific’) markets
  • Core competencies
  • Competitive advantages
  • Coopetition
  • Corporate competitive positions
  • Key comprehensive business audit questions – Chapter 8
  • Auditing/analyzing UAVP and related business system components:
  • Unique aggregate value propositions
  • Industries (‘general markets’)
  • Target (‘specific’) markets
  • Core competencies
  • Competitive advantages
  • Competitors
  • Coopetition
  • Corporate competitive positions
  • Optimizing UAVP and related business system components:
  • Unique aggregate value propositions
  • Industries (‘general markets’)
  • Target (‘specific’) markets
  • Core competencies
  • Competitive advantages
  • Competitors
  • Coopetition
  • Corporate competitive positions

8.15Aggregate value scorecards:

  • Unique aggregate value propositions
  • Industries (‘general markets’)
  • Target (‘specific’) markets
  • Core competencies
  • Competitive advantages
  • Competitor description/evaluation card
  • Coopetition
  • Corporate competitive positions

9.Stakeholders’ relationships management (SRM) technologies

9.1SRM and CRM technologies

9.2“Incoming” and ‘outgoing’ products and services

9.3Key SRM principles:

  • Aggregate value balance
  • ‘Match’ between reality and perceptions
  • Balanced satisfaction of needs and wants/desires
  • Proper expectations management
  • KPI – stakeholder relationship management
  • Key comprehensive business audit questions – Chapter 9
  • Auditing relationships with key stakeholders
  • Optimizing relationships with key stakeholders
  • Stakeholder relationship scorecard

Part III. Key Business Objects and Portfolios

10.Key business objects – description and aggregate valuation

10.1Key business objects and ‘object portfolios’

10.2Key financial value generators – products/services and brands

10.3Key corporate assets/capital

  • Financial & tangible assets/capital
  • Intangible assets/capital
  • Human capital
  • Information capital (data/information/knowledge)
  • Key corporate structures (‘integrators’)
  • [Strategic] business units
  • Regional branches
  • Legal entities
  • Functional departments and units
  • Workgroups
  • Systems of objects and actions
  • Plans
  • Projects
  • [Business] processes
  • KPI – business objects & portfolios
  • Key comprehensive business audit questions – Chapter 10
  • Auditing & evaluating business objects & portfolios
  • Optimizing business objects & portfolios
  • Aggregate value scorecard – business objects
  • Aggregate value scorecard – object portfolios

11.Product management in a ‘happy company’

11.1Key issues of product management in a ‘happy company’

11.2Financial valuation model for a product/service

11.3Key performance indicators:

  • Individual product
  • Products portfolio
  • Product management system
  • Key comprehensive business audit questions – Chapter 11
  • Auditing individual products, product portfolio & product management system
  • Optimizing individual products, product portfolio & product management system
  • Aggregate value scorecards:
  • Individual product
  • Products portfolio
  • Product management system

12.Brand management in a ‘happy company’

12.1Key issues of brand management in a ‘happy company’

12.2Financial valuation model for a brand

12.3Key performance indicators:

  • Individual brand
  • Brands portfolio
  • Brand management system
  • Key comprehensive business audit questions – Chapter 12
  • Auditing individual brands, brand portfolio & brand management system
  • Optimizing individual brands, brand portfolio & brand management system
  • Aggregate value scorecards:
  • Individual brand
  • Brands portfolio
  • Brand management system

13.Human capital management in a ‘happy company’

13.1Key issues of human capital management in a ‘happy company’

13.2Key performance indicators:

  • Individual employee
  • The whole human capital
  • Human capital management system
  • Key comprehensive business audit questions – Chapter 13
  • Auditing individual employees, the whole human capital & human capital management system
  • Optimizing individual employees, the whole human capital & human capital management system
  • Aggregate value scorecards:
  • Individual employee
  • The whole human capital
  • Human capital management system

14.Corporate “tools” – assets/liabilities/capital – management in a happy company

14.1Definition of a corporate ‘tool’

14.2Key issues of tools management in a ‘happy company’

14.3Key performance indicators:

  • Individual tool
  • Tools portfolio
  • Tool management system
  • Key comprehensive business audit questions – Chapter 14
  • Auditing individual tools, tool portfolio & tool management system
  • Optimizing individual tools, tool portfolio & tool management system
  • Aggregate value scorecards:
  • Individual tool
  • Tools portfolio
  • Tools management system

15.Strategic business units management in a happy company

15.1Definition of a strategic business unit (‘division’)

15.2Key issues of SBU management in a ‘happy company’

15.3Financial valuation model for a SBU

15.4Key performance indicators:

  • Individual SBU
  • SBU portfolio
  • SBU management system
  • Key comprehensive business audit questions – Chapter 15
  • Auditing individual SBU, SBU portfolio & SBU management system
  • Optimizing individual SBU, SBU portfolio & SBU management system
  • Aggregate value scorecards:
  • Individual SBU
  • SBU portfolio
  • SBU management system

16.Regional branches management in a happy company

16.1Key issues of regional branch management in a ‘happy company’

16.2Financial valuation model for a regional branch

16.3Key performance indicators:

  • Individual regional branch
  • Branch portfolio
  • Branch management system
  • Key comprehensive business audit questions – Chapter 16
  • Auditing individual branch, branch portfolio & regional branch management system
  • Optimizing individual branch, branch portfolio & branch management system
  • Aggregate value scorecards:
  • Individual regional branch
  • Branch portfolio
  • Branch management system

17.Legal entities management in a happy company

17.1Key issues of legal entities management in a ‘happy company’

17.2Key performance indicators:

  • Individual legal entity
  • Legal entities portfolio
  • Legal entity management system
  • Key comprehensive business audit questions – Chapter 17
  • Auditing individual legal entity, legal entities portfolio & legal entity management system
  • Optimizing individual legal entity, legal entities portfolio & legal entity management system
  • Aggregate value scorecards:
  • Individual legal entity
  • Legal entities portfolio
  • Legal entities management system

18.Functional units management in a happy company

18.1Definitions of a functional department and a functional unit

18.2Key issues of functional units management in a ‘happy company’

18.3Key performance indicators:

  • Individual functional unit
  • Functional units portfolio
  • Functional unit management system
  • Key comprehensive business audit questions – Chapter 18
  • Auditing individual functional units, functional unit portfolio & functional unit management system
  • Optimizing individual functional units, functional unit portfolio & functional unit management system
  • Aggregate value scorecards:
  • Individual functional unit
  • Functional units portfolio
  • Functional units management system

19.Workgroup management in a happy company

19.1Key issues of functional units management in a ‘happy company’

19.2Key performance indicators:

  • Individual functional unit
  • Functional units portfolio
  • Functional unit management system
  • Key comprehensive business audit questions – Chapter 19
  • Auditing individual functional units, functional unit portfolio & functional unit management system
  • Optimizing individual functional units, functional unit portfolio & functional unit management system
  • Aggregate value scorecards:
  • Individual functional unit
  • Functional units portfolio
  • Functional units management system

20.Knowledge management in a happy company

20.1Data, information and knowledge

20.2Myths and realities of knowledge management

20.3Key issues of knowledge management in a ‘happy company’

20.4Key components of knowledge management system:

  • Knowledge proper
  • Knowledge repositories
  • Knowledge management software
  • Knowledge management hardware
  • Knowledge management personnel and processes
  • Key performance indicators:
  • Knowledge proper
  • Knowledge repositories
  • Knowledge management software
  • Knowledge management hardware
  • Key comprehensive business audit questions – Chapter 20
  • Auditing knowledge management system:
  • Knowledge proper
  • Knowledge repositories
  • Knowledge management software
  • Knowledge management hardware
  • Knowledge management personnel and processes
  • Optimizing knowledge management system:
  • Knowledge proper
  • Knowledge repositories
  • Knowledge management software
  • Knowledge management hardware
  • Knowledge management personnel and processes
  • Aggregate value scorecards:
  • Knowledge proper
  • Knowledge repositories
  • Knowledge management software
  • Knowledge management hardware

Part IV. Key Business Activities

21.Corporate projects management in a happy company

21.1Key issues of corporate projectsmanagement in a ‘happy company’

21.2Financial valuation model for a corporate project

21.3Key project description/management components:

  • Financial plan
  • Operational plan
  • Textual description (‘business plan’)
  • Key performance indicators:
  • Individual project
  • Projects management system
  • Key comprehensive business audit questions – Chapter 21
  • Auditing individual projectsproject management system
  • Optimizing individual projects & project management system
  • Aggregate value scorecards:
  • Individual project
  • Projects management system

22.Corporate planning in a happy company

22.1Key issues of corporate planning in a ‘happy company’

22.2Key categories of corporate plans:

  • ‘Regular’ plans
  • Reengineering plans
  • Financial planning & budgeting in a ‘happy company’
  • Operational planning in a ‘happy company’
  • Integration of financial and operational planning
  • Key performance indicators:
  • Individual plans
  • Projects management system
  • Key comprehensive business audit questions – Chapter 22
  • Auditing individual planscorporate planning system
  • Optimizing individual plans & corporate planning system
  • Aggregate value scorecards:
  • Individual plans
  • Corporate planning system

23.[Business] processes management in a happy company

23.1Key issues of [business] processes management in a ‘happy company’

23.2IDEF0 – a standard business processes visualization/description language

23.3Key IDEF0 structures/components (SICOMP)

  • Sub-processes
  • Inputs
  • Controls
  • Outputs
  • Tools (‘mechanisms’)
  • Personnel (‘actors’)
  • Costs accounting and management in a business process
  • Financial valuation model for a business process
  • Business processes automation system
  • Knowledge repositories
  • Processes automation software
  • Processes automation hardware
  • Processes automation personnel and activities
  • Key performance indicators:
  • Individual processes
  • Processes management system
  • Key comprehensive business audit questions – Chapter 23
  • Auditing individual processesprocesses management system
  • Optimizing individual processes & processes management system
  • Aggregate value scorecards:
  • Individual processes
  • Processes management system

Part V. Integration and Reengineering

24.Aggregate valuation of the whole company (business system)

24.1Financial valuation model - the whole business system

24.2Key performance indicators – the whole business system

24.3Key comprehensive business audit questions – Chapter 25

24.4Auditing the whole business system

24.5Optimizing the whole business system

24.6Aggregate value scorecard – the whole company

25.Building a unified and comprehensive business management system for a happy company

25.1Integrating financial valuation models

25.2Integrating aggregate value scorecards

25.3Integrating corporate financial plans/budgets

25.4Integrating corporate operational plans

25.5Integrating corporate projects

25.6Integrating corporate processes

25.7Integrating corporate knowledge management system

25.8Key performance indicators – corporate integration

25.9Key comprehensive business audit questions – Chapter 25

25.10Auditing the quality of corporate integration

25.11Optimizing the quality of corporate integration

25.12Aggregate value scorecard – corporate integration

26.Performing strategic corporate re-engineering

26.1Key concepts of a strategic corporate re-engineering

  • Current (actual) state of a business system – AS IS
  • Desired state of a business system – TO BE
  • Transition plan (AS IS  TO BE): financial + operational + textual comments
  • Key statements of a strategic corporate re-engineering
  • Need for a strategic corporate re-engineering
  • Vision of strategic corporate re-engineering
  • Key steps in a strategic corporate re-engineering
  • Key comprehensive business audit questions – Chapter 26
  • Aggregate value scorecard – strategic corporate re-engineering

Part VI. Spiritual Aspects of Corporate Happiness

27.Maximizing the spiritual value of a business system

27.1Definition of a spiritual value of a business system

27.2Importance of spiritual value maximization for ‘corporate happiness’

27.3Key approaches to spiritual value measurement and maximization

  • Modern secular approach
  • Christian approach
  • Muslim approach
  • Jewish approach
  • Buddhist approach
  • Other main religions and their approaches to spiritual value measurement and maximization
  • Common ‘core’ of various approaches to spiritual value measurement and maximization
  • Managing spiritual value in a multicultural environment
  • “Corporate chaplains” and their importance for building a ‘happy company’
  • Key performance indicators – spiritual value maximization
  • Key comprehensive business audit questions – Chapter 28
  • Analyzing spiritual value of a business system
  • Maximizing spiritual value of a business system
  • Spiritual value scorecard

Glossary

Index

1