The more strategies we follow, the more we can spread our risk and increase overall profit. But when manually killer deal placing bets, there is a physical limit to how much time we have to place the bets. Now, with automated placing of bets, you can focus your time on the management side of your strategy portfolio. More time for researching, creating, reviewing, managing and selecting strategies. The practical barrier of manually placing a large number of strategy bets is now removed through automation. Make life easier by using a profit and loss template to monitor your company’s income and expenses.
Another program, Motorola’s Management Foundation program, helps train managers in areas such as communication and problem solving. Finally, Motorola offers a high-tech MBA program in partnership with Arizona State University and Tsinghua University so that top employees can earn an MBA in-house (Lane & Pollner, 2008). Such programs are tailor-made to the low-skilled but highly motivated Chinese employees. Previously considered a support function, HR is now becoming a strategic partner in helping a company achieve its goals. A strategic approach to HR means going beyond the administrative tasks like payroll processing.
We started by introducing the social network theory concepts of reciprocity, exchange, and similarity. We then discussed using social networks as a vehicle for advancing your own career. In the third step, support and govern, the leadership structure for the network is decided on, along with any protocols for meeting, sharing ideas, and decision making. With these process guidelines in place, the network members can then make sure that they have identified the resources necessary to conduct their work. This includes gaining sponsorship and buy-in from other parts of the organization, including upper management.
As the organization and its competitive environment change over time, the system will also need to develop to reflect changes to employee competencies, ranking systems, and rewards linked to the plan. See how goals and objectives are part of an effective employee performance evaluation process. The main challenge with fact-based objectives is that many firms find future opportunities in markets where there is not an existing set of customers today. For instance, before Apple released the iPhone, how big would you expect that market to be?
Many change efforts fail because people are insufficiently prepared for change. When employees are not prepared, they are more likely to resist the change effort and less likely to function effectively under the new system. What can organizations do before change to prepare employees?
But such a system can’t exist in the real world because it means having an unlimited money supply and an unlimited amount of time. Standard Martingale will always recover in exactly one stop distance, regardless of how far the market has moved against the position. With deep enough pockets, it can work when your trade picking skills are no better than chance.
Simplification refers both to the use of fewer, not more, metrics, objectives and goals, and the idea that multiple measures should be distilled down into single measures like an index or a simple catch-all question. For instance, GE’s use of the single question about referring customers is a powerful but effective leading metric and a metric that it can reinforce with its rewards system. When metrics involve multiple dimensions, in areas where the organization wants to gauge customer satisfaction, for example, a survey can have 10 or more questions. Think about the many customer satisfaction surveys you are asked to complete after making an online purchase.
Butterflies are a great way to hedge under pressure iron condors as I will show you. You can see we are risking $18,100 for a profit potential of $1,900 for a return of +10.50%. Some people like the rules based approach of the bearish butterfly, but it’s not for everyone. Start with 20 contracts for the short strikes and scale to 60 contracts if fully scaled into. Of course you can reduce these numbers if you have a smaller account size.
Overall cost leadership is not without potential problems. Two or more firms competing for cost leadership may engage in price wars that drive profits to very low levels. Ideally, a firm using a cost-leader strategy will develop an advantage that others cannot easily copy.
The best managers are those who can gather together a group of individuals and mold them into an effective team. Group leaders can finally move into coaching roles and help members grow in skill and leadership. These leadership shifts are essential for managers enacting the Leadership function to keep in mind. In fact, a manager who leads multiple teams may find it necessary to shift leadership styles not only over time but between teams at different stages. A group is a collection of individuals who interact with each other such that one person’s actions have an impact on the others.