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Patterns of healthy business: Cash flow

Taking analogy between business and living organism further, cash flow is like breathing. An organization with problems in cash flow inwards and outwards indicates a very dangerous situation. Breathing also part of being in active relation with the ecosystem with continuous exchange.

Money is the oxygen for any business. Hardly anything can be done without exchange of money within and outside. Short supply of money can be fatal and impact is immediate. This situation is result of poor performance in sales or lacunae in management of finance, or both. Impact of failure in sales is immediate, resulting in a cash crunch. Also, resources may quickly be drained out with poor financial management, leaving the organization gasping. This demands quick action with both departments working in tandem.

Note that quick does not mean adoption of desperate, ad hoc measures. Desperate measures could be too visible from the market, revealing the rot within. This makes business even more vulnerable and such measures could set the business on a tailspin especially under weak health.

What is required, at this stage, is intensive care with quick remedial action and close monitoring.

Elementary, right? Are you surprised why I am discussing this here? Can a business man, an enterpreuneur, or a professional manager make such mistakes? Fact is, there are surprisingly many business which fiddle around in these areas. There are tell-tales signs visible to trained eyes.

Watch out before decide …. to invest or work with

October 9, 2009 Posted by | Business, Management, Patterns, Uncategorized | Leave a comment

Patterns of healthy business: High trust, process oriented work environment

Going ahead with my experiences of healthy business is importance of high trust, process oriented work environment. Does the title ‘High trust, process oriented work environment’ sound like oxymoron? Fact is, it is sometimes interpreted and implemented so but it does not need to be so.

Start up companies are generally driven by entrepreneurial drive, high team cohesion and intense passion about work and business. Work gets done in the best possible ways with extreme focus on execution and success in every sphere of activities taken up. Team is characterized by i) mutual respect and trust, ii) quick and clear communication and iii) continuous feedback and correction

Balancing trust and process

Balancing trust and process

Healthy business culture retains best of both worlds. In the attempt to move to a healthy business culture, companies of entrepreneurial business culture slips down to bureaucratic business culture as they grow bigger. This happens when process is introduced to “control” rather than to “enable”. This situation may be manageable where work is mechanical and mundane but drags down heavily when applied in the areas demanding creative and intellectual contribution. In an environment of mutual respect and trust, there is a lot that process can help in, when it is introduced as an enabler.

Such environments are characterized by professionals, they work with self respect, respect the peer and expect respect in return. They work not just for money but for passion as well. They are proud of their work products. Each one of them is aware of the need for checks and balances. Adoption of process is natural when process helps them do it better.

October 8, 2009 Posted by | Business, Management, Patterns, software engineering, Uncategorized | Leave a comment