Think Strategy

Think Robotics - Competency-Based Learning

We have kicked off the project with Phase 1 scheduled for 21 - 30 November 2005. Project scoping and objectives were set, and the logistics have been secured. Collaborators ( mentors ) were briefed and requested to select a theme for the project. Additionally, we did a financial plan for the project to stress test the assumptions and the eficacy of our model.

2 issues were raised i.e. demand and capabilities. We have decided to conduct a pilot program under Phases 2 and 3 targeted at the 9-14 to test our assumptions. We drew on our experience as practioneers, and in particular to address real world needs by empowering new hires with the requisite skills critical for competing in a knowledge-intensive environment. We have identified the essential competencies and they include mastery of domain knowledge, technology and networking (DTN). This competency-based learning approach allows us to take an outside-inside approach ( customer-centric ) and to better understanding and identify unmet needs in the marketplace. We reckon that part of the skills would include the ability to perform experiments in a controlled environment, and this demands competency in datalogging through programming. Additionally we will develop 1. statement(s) of learning standard 2. description of the learning tasks 3. assessment metric ( using our ACE methodology ). Next: Evaluation of Phases 2 and 3 Implementation

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Building Blocks for Innovation

Back to our pet subject on competitive strategy, we believe that key successful factors can be narrowed down to domain knowledge, technology and networking. From these building blocks, we can start to generate a deal flow of value innovative propositions.

With this in mind, we observe that successful projects will invariably involve some form of automation. It is in the nature of (hu)man to control and command. The fact that we have hierarchy in our society is no coincidence. However, as there is a social cost attached to this structure, we struggle to find alternatives. From time immemorial to now, we have achieved much in term of automating tasks that we dim as too burdensome ( backbreaking ) for us. From beast of burden we have transited to slick F1 racer packed with enormous horsepower, in our quest to master our environment to take care of our needs ranging from food and shelter, to self-fulfillment and -actualisation. We want to enjoy the fruit without the labour.

One solution is automation. The practical side to it is that we cannot afford to rest on our laurel. With high disposal income we become accustomed to a high standard of living and will be loath to give it up unless forced to. The competition in the future will be won by those who have the temerity to handle huge amount of data, crunch them and be able to turn them into valuable information. You have to devote resources on one hand, and on the other to produce the results to justify the allocation of those resources in the first instance. You have to make a decent return on your investment. We have identified two areas namely, programming and robotics, to help prepare the next generation for the challenge. Progamming is obvious as it will help to speed up our work. Why robotics? Because it can help us to translate our vision into actions. The key feature of robotics that we would like to focus on is the programming element. This helps us to handle repetitive tasks with ease and accuracy. In addition, we can incorporate decision-making into the system, and task the robot to execute varying actions depending on the outcomes. All these are ingredients that will allow us maintain our competitive advantage by moving up the value-added ladder and to lessen the adverse effect arising from more cost-effective human resources from emerging economies.

Unmet Needs

Last week has been very interesting, as I took the time to interact with my friends. We have made it a point to go down to the golf course to do a 9-hole round, at least twice a week. We reckon we would have clocked in about 10,000 steps for each session, so it is not too bad. If I were to do a brisk walk for say, 15 minutes, I would have clocked in 4,000 steps. All by myself, it is pretty boring, and not sustainable, at least for me.

Additionally, after completing our round, we proceeded to the gym to do some workout for 15 minutes. All in all, this is pretty good. Also we have our BMI ( Body Mass Index ) to focus on and we hope that will sustain our interest.

The icing on the cake? We can take the time to chat on some interesting topics. By that I meant taking the time to focus on challenging issues. For instance, do we think that General Motors has bottomed out ( as a business model, not its equity value ), or has SONY lost its focus?

Has the wealth management industry been providing value-added services to the customers? How does one understand the esoteric features of some of these investment products?

All in all, it has been a fulfilling morning. We felt completely relaxed and energised. My friend was very pleased with the outcome, so am I.

So some unmet needs have been fulfilled, and we took the opportunity to articulate ( A) and communicate ( C ) it. Well, we happened also to execute ( E ) it.

One thing is for sure, the marketplace is dynamic, constantly evolving and changing. And we need to be on top of the situation in order to ACE it.

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Chief Financial Officer What Constitutes Competency? ( IV )

He must be able to articulate, communicate and execute major initiatives required to implement strategies which shall include developing value creating optimal capital structure and dividend policy, managing relationship with investors and all the financial community, negotiating and executing all major financial transactions including borrowings, shares issuances and repurchases, coordinating preparations of short-term operating budgets, developing key performance measures for each business unit, ensuring that business units have adequate management controls in place, assessing business unit performance in conjunction with senior management. There is also the typical financial function he must assume. For instance: ensuring that all external reporting and compliance obligations are fulfilled, establishing controls to safeguards assets, ensuring the integrity and efficiency of working capital management, filing and paying all tax obligations, pursing opportunities to reduce tax burden, maintaining close relationships with banks, and managing risk management programs.

The CFO must possess the relevant knowledge and skills and these will include seasoned business judgment and superior analytical capabilities particularly in strategic business and financial analysis, ability to form an indepdendent view and challenge the ideas of the CEO and operating managers while maintaining their respect and confidence, has the presence to deal with the financial community, taking the initiatives to lead negotiations in major transactions, and strong administrative and people management skills.

If this sound daunting, have no fear. We understand the intricacies of value drivers and possess know-hows and tools to fine-tune them to achieve compelling value propositions. Let our team of experts lead you through the Value Based Management process.

Are you ready to be an ACE CFO? Where you can articulate, communicate and execute the corporate strategy..

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Customer Centric Wealth Management Competency

This week I caught up with some old friends for lunch and we had some interesting discussions.

One of them mentioned that he has been approached by financial service providers offering wealth management products and services. After having gone through their proposals, he remained yet to be convinced of the value proposition of these service providers i.e. financial planners and or private bankers.
His view was that he could obtain a risk-free return of say 3-4%per annum in a fixed-income product, and the best these service providers could do is to offer a return of non-guaranteed return of 8% per annum. He felt that the services offered were of limited value, and this essentially would be in the form of providing a listing of funds with details on their respective performances. He felt that he would be better off constructing his own portfolio.

Without dwelling into the details, here are my observations.

First, we have a valuable insight from a prospective consumer and he felt that the choices available were not up to his expectations. Second, the service providers appear unable to articulate and communicate their execution capabilities to convince my friend of the whys and hows of wealth management. Obviously, wealth management is an art as well as science, and for the uninitiated, the literature can be and is overwhelming. However, one should not underestimate the intelligence and instinct of the consumers.

The present state of offering these services certainly can be improved through education and or competency-based learning.

Competing on the same paradigm, and with supply outstripping demand, growth for the wealth management industry is likely to be curbed unless service providers can provide value innovation in their services. The underlying discomfort is about fees levied by the service providers for services that are perceived to be of limited value.

The challenge is for the wealth management industry to come up with a set of competency -based learning program that is customer-centric in orientation. The likely winning proposition could be one where the service providers and or the industry can offer tools that empower the individuals to measure and manage their wealth. It is hope that uncontested space can be created and rendering the competition irrelevant. After all we are talking about world class talent and the world is our stage. So would be our competition.

Well the opportunities are…….mavens ( typically consumers ) , training providers, value based management, human resource , learning development consultants as well as service proivders can come together to draw up a strategy roadmap to make Singapore the wealth management mecca.