Oleg Cheremnykh (Lions)
«A Practical Guide to Building a Happy Company»
cheremnykho@stream.ru
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
Part I. 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
1.1
Vital importance of correct selection of the fundamental business management objective
1.2
Key requirements for the fundamental business management objective
1.3
Option A: Net ‘accounting’ profit/income
1.4
Option B: Dividends
1.5
Option C: Market price for the corporate stock
1.6
Option D: Financial value maximization
1.7
Option E: ‘Corporate happiness’
1.8
Key advantages of corporate happiness as the fundamental business management objective
1.9
Key comprehensive business audit questions – Chapter 1
2. Measuring and managing corporate happiness
2.1
Making happy all key corporate stakeholders
2.2
Satisfying key needs of all key corporate stakeholders
2.3
Maximizing aggregate value of the company to all key corporate stakeholders
2.4
Maximizing aggregate value of each key corporate stakeholder to the company
2.5
Key comprehensive business audit questions – Chapter 2
3. Measuring and managing aggregate value
3.1
Key importance of optimal corporate models
3.2
Key strategic business management diagram
3.3
Key stakeholders relationships management diagram
3.4
Engineering and reengineering of a business entity
3.5
Key aggregate performance indicators
3.6
Key business objects
3.7
Key importance of corporate synergy
3.8
Financial valuation models
3.9
Aggregate value scorecards
3.10 Stakeholder relationship scorecards
3.11 Corporate value scorebook
3.12 Key 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)
4.1
Vital importance of strong corporate identity for corporate happiness
4.2
Business owners – “first among the equals”
4.3
Importance of DCI & SO for strategic planning in a “happy company”
4.4
Key components of DCI & SO
4.5
Key steps in developing DCI & SO
4.6
Key performance indicators - DCI & SO
4.7
Key comprehensive business audit questions – Chapter 4
4.8
Aggregate value scorecard – DCI & SO
5. Corporate culture and corporate code of conduct
5.1 Definition of corporate culture and corporate code of conduct
5.2 Structure of corporate culture and corporate code of conduct
5.3 Importance of the right corporate culture and corporate code of conduct for a happy company
5.4 Key distinctive features of a corporate culture of a happy company
5.5 Key distinctive features of a corporate code of conduct of a happy company
5.6 KPI of the corporate culture and corporate code of conduct
5.7 Key comprehensive business audit questions – Chapter 5
5.8 Auditing existing corporate culture and corporate code of conduct
5.9 Developing optimal corporate culture and corporate code of conduct
5.10 Aggregate value scorecard – corporate culture and corporate code of conduct
6. Key external factors and their influence on corporate happiness
6.1
Definition of a key external factor
6.2
Categories of key external factors
6.3
How key external factors influence corporate happiness
6.4
Vital importance of “corporate optimism” principle
6.5
KPI - key external factor monitoring & management
6.6
Key comprehensive business audit questions – Chapter 6
6.7
Auditing the system of key external factors monitoring & management
6.8
Developing and implementing the optimal system of key external factors monitoring & management
6.9
Aggregate value scorecard – key external factor monitoring & management
7. Key corporate statements: mission, vision and strategies
7.1
Role and specifics of mission, vision and strategies in a happy company
7.2
General and functional corporate strategies
7.3
Happiness-focused organization vs. mission-, vision- or strategy-focused
2
7.4
Aggregate value - focused organization
7.5
KPI for corporate mission, vision and strategies
7.6
Key comprehensive business audit questions – Chapter 7
7.7
Auditing existing corporate mission, vision and strategies
7.8
Optimizing mission, vision and corporate strategies
7.9
Aggregate value scorecards for corporate mission, vision and strategies
8. Unique aggregate value proposition (UAVP)
8.1
Definition of UAVP
8.2
Importance of UAVP for “corporate happiness”
8.3
Need for a system of UAVP – one for each category of corporate stakeholders
8.4
Key components of UAVP
8.5
General markets (industries) and specific (‘target’) markets
8.6
“Dynamic market niches” and their importance for corporate competitiveness
8.7
Corporate core competencies and key market success factors
8.8
Corporate competitive advantages and key market success factors
8.9
Measuring and managing corporate competitive positions
8.10 “Coopetition” and its importance for corporate happiness
8.11 Key performance indicators:

Unique aggregate value propositions

Industries (‘general markets’)

Target (‘specific’) markets

Core competencies

Competitive advantages

Coopetition

Corporate competitive positions
8.12 Key comprehensive business audit questions – Chapter 8
8.13 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
8.14 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
3
8.15 Aggregate 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
9.1
SRM and CRM technologies
9.2
“Incoming” and ‘outgoing’ products and services
9.3
Key SRM principles:

Aggregate value balance

‘Match’ between reality and perceptions

Balanced satisfaction of needs and wants/desires

Proper expectations management
9.4
KPI – stakeholder relationship management
9.5
Key comprehensive business audit questions – Chapter 9
9.6
Auditing relationships with key stakeholders
9.7
Optimizing relationships with key stakeholders
9.8
Stakeholder relationship scorecard
Part III. Key Business Objects and Portfolios
10. Key business objects – description and aggregate valuation
10.1 Key business objects and ‘object portfolios’
10.2 Key financial value generators – products/services and brands
10.3 Key corporate assets/capital

Financial & tangible assets/capital

Intangible assets/capital

Human capital

Information capital (data/information/knowledge)
10.4 Key corporate structures (‘integrators’)

[Strategic] business units

Regional branches

Legal entities

Functional departments and units

Workgroups
10.5 Systems of objects and actions

Plans

Projects

[Business] processes
10.6 KPI – business objects & portfolios
10.7 Key comprehensive business audit questions – Chapter 10
10.8 Auditing & evaluating business objects & portfolios
4
10.9 Optimizing business objects & portfolios
10.10
Aggregate value scorecard – business objects
10.11
Aggregate value scorecard – object portfolios
11. Product management in a ‘happy company’
11.1 Key issues of product management in a ‘happy company’
11.2 Financial valuation model for a product/service
11.3 Key performance indicators:

Individual product

Products portfolio

Product management system
11.4 Key comprehensive business audit questions – Chapter 11
11.5 Auditing individual products, product portfolio & product management system
11.6 Optimizing individual products, product portfolio & product management system
11.7 Aggregate value scorecards:

Individual product

Products portfolio

Product management system
12. Brand management in a ‘happy company’
12.1 Key issues of brand management in a ‘happy company’
12.2 Financial valuation model for a brand
12.3 Key performance indicators:

Individual brand

Brands portfolio

Brand management system
12.4 Key comprehensive business audit questions – Chapter 12
12.5 Auditing individual brands, brand portfolio & brand management system
12.6 Optimizing individual brands, brand portfolio & brand management system
12.7 Aggregate value scorecards:

Individual brand

Brands portfolio

Brand management system
13. Human capital management in a ‘happy company’
13.1 Key issues of human capital management in a ‘happy company’
13.2 Key performance indicators:

Individual employee

The whole human capital

Human capital management system
13.3 Key comprehensive business audit questions – Chapter 13
13.4 Auditing individual employees, the whole human capital & human capital management system
13.5 Optimizing individual employees, the whole human capital & human capital management system
13.6 Aggregate value scorecards:

Individual employee

The whole human capital

Human capital management system
5
14. Corporate “tools” – assets/liabilities/capital – management in a happy company
14.1 Definition of a corporate ‘tool’
14.2 Key issues of tools management in a ‘happy company’
14.3 Key performance indicators:

Individual tool

Tools portfolio

Tool management system
14.4 Key comprehensive business audit questions – Chapter 14
14.5 Auditing individual tools, tool portfolio & tool management system
14.6 Optimizing individual tools, tool portfolio & tool management system
14.7 Aggregate value scorecards:

Individual tool

Tools portfolio

Tools management system
15. Strategic business units management in a happy company
15.1 Definition of a strategic business unit (‘division’)
15.2 Key issues of SBU management in a ‘happy company’
15.3 Financial valuation model for a SBU
15.4 Key performance indicators:

Individual SBU

SBU portfolio

SBU management system
15.5 Key comprehensive business audit questions – Chapter 15
15.6 Auditing individual SBU, SBU portfolio & SBU management system
15.7 Optimizing individual SBU, SBU portfolio & SBU management system
15.8 Aggregate value scorecards:

Individual SBU

SBU portfolio

SBU management system
16. Regional branches management in a happy company
16.1 Key issues of regional branch management in a ‘happy company’
16.2 Financial valuation model for a regional branch
16.3 Key performance indicators:

Individual regional branch

Branch portfolio

Branch management system
16.4 Key comprehensive business audit questions – Chapter 16
16.5 Auditing individual branch, branch portfolio & regional branch management system
16.6 Optimizing individual branch, branch portfolio & branch management system
16.7 Aggregate value scorecards:

Individual regional branch

Branch portfolio

Branch management system
6
17. Legal entities management in a happy company
17.1 Key issues of legal entities management in a ‘happy company’
17.2 Key performance indicators:

Individual legal entity

Legal entities portfolio

Legal entity management system
17.3 Key comprehensive business audit questions – Chapter 17
17.4 Auditing individual legal entity, legal entities portfolio & legal entity management system
17.5 Optimizing individual legal entity, legal entities portfolio & legal entity management system
17.6 Aggregate value scorecards:

Individual legal entity

Legal entities portfolio

Legal entities management system
18. Functional units management in a happy company
18.1 Definitions of a functional department and a functional unit
18.2 Key issues of functional units management in a ‘happy company’
18.3 Key performance indicators:

Individual functional unit

Functional units portfolio

Functional unit management system
18.4 Key comprehensive business audit questions – Chapter 18
18.5 Auditing individual functional units, functional unit portfolio & functional unit management system
18.6 Optimizing individual functional units, functional unit portfolio & functional unit management system
18.7 Aggregate value scorecards:

Individual functional unit

Functional units portfolio

Functional units management system
19. Workgroup management in a happy company
19.1 Key issues of functional units management in a ‘happy company’
19.2 Key performance indicators:

Individual functional unit

Functional units portfolio

Functional unit management system
19.3 Key comprehensive business audit questions – Chapter 19
19.4 Auditing individual functional units, functional unit portfolio & functional unit management system
19.5 Optimizing individual functional units, functional unit portfolio & functional unit management system
19.6 Aggregate value scorecards:

Individual functional unit

Functional units portfolio

Functional units management system
20. Knowledge management in a happy company
20.1 Data, information and knowledge
20.2 Myths and realities of knowledge management
20.3 Key issues of knowledge management in a ‘happy company’
7
20.4 Key components of knowledge management system:

Knowledge proper

Knowledge repositories

Knowledge management software

Knowledge management hardware

Knowledge management personnel and processes
20.5 Key performance indicators:

Knowledge proper

Knowledge repositories

Knowledge management software

Knowledge management hardware
20.6 Key comprehensive business audit questions – Chapter 20
20.7 Auditing knowledge management system:

Knowledge proper

Knowledge repositories

Knowledge management software

Knowledge management hardware

Knowledge management personnel and processes
20.8 Optimizing knowledge management system:

Knowledge proper

Knowledge repositories

Knowledge management software

Knowledge management hardware

Knowledge management personnel and processes
20.9 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
21.1 Key issues of corporate projects management in a ‘happy company’
21.2 Financial valuation model for a corporate project
21.3 Key project description/management components:

Financial plan

Operational plan

Textual description (‘business plan’)
21.4 Key performance indicators:

Individual project

Projects management system
21.5 Key comprehensive business audit questions – Chapter 21
21.6 Auditing individual projects & project management system
21.7 Optimizing individual projects & project management system
21.8 Aggregate value scorecards:

Individual project

Projects management system
8
22. Corporate planning in a happy company
22.1 Key issues of corporate planning in a ‘happy company’
22.2 Key categories of corporate plans:

‘Regular’ plans

Reengineering plans
22.3 Financial planning & budgeting in a ‘happy company’
22.4 Operational planning in a ‘happy company’
22.5 Integration of financial and operational planning
22.6 Key performance indicators:

Individual plans

Projects management system
22.7 Key comprehensive business audit questions – Chapter 22
22.8 Auditing individual plans & corporate planning system
22.9 Optimizing individual plans & corporate planning system
22.10
Aggregate value scorecards:

Individual plans

Corporate planning system
23. [Business] processes management in a happy company
23.1 Key issues of [business] processes management in a ‘happy company’
23.2 IDEF0 – a standard business processes visualization/description language
23.3 Key IDEF0 structures/components (SICOMP)

Sub-processes

Inputs

Controls

Outputs

Tools (‘mechanisms’)

Personnel (‘actors’)
23.4 Costs accounting and management in a business process
23.5 Financial valuation model for a business process
23.6 Business processes automation system

Knowledge repositories

Processes automation software

Processes automation hardware

Processes automation personnel and activities
23.7 Key performance indicators:

Individual processes

Processes management system
23.8 Key comprehensive business audit questions – Chapter 23
23.9 Auditing individual processes & processes management system
23.10
Optimizing individual processes & processes management system
23.11
Aggregate value scorecards:

Individual processes

Processes management system
9
Part V. Integration and Reengineering
24. Aggregate valuation of the whole company (business system)
24.1 Financial valuation model - the whole business system
24.2 Key performance indicators – the whole business system
24.3 Key comprehensive business audit questions – Chapter 25
24.4 Auditing the whole business system
24.5 Optimizing the whole business system
24.6 Aggregate value scorecard – the whole company
25. Building a unified and comprehensive business management system for a happy company
25.1
Integrating financial valuation models
25.2
Integrating aggregate value scorecards
25.3
Integrating corporate financial plans/budgets
25.4
Integrating corporate operational plans
25.5
Integrating corporate projects
25.6
Integrating corporate processes
25.7
Integrating corporate knowledge management system
25.8
Key performance indicators – corporate integration
25.9
Key comprehensive business audit questions – Chapter 25
25.10
Auditing the quality of corporate integration
25.11
Optimizing the quality of corporate integration
25.12
Aggregate value scorecard – corporate integration
26. Performing strategic corporate re-engineering
26.1 Key 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
26.2 Key statements of a strategic corporate re-engineering

Need for a strategic corporate re-engineering

Vision of strategic corporate re-engineering
26.3 Key steps in a strategic corporate re-engineering
26.4 Key comprehensive business audit questions – Chapter 26
26.5 Aggregate value scorecard – strategic corporate re-engineering
10
Part VI. Spiritual Aspects of Corporate Happiness
27. Maximizing the spiritual value of a business system
27.1 Definition of a spiritual value of a business system
27.2 Importance of spiritual value maximization for ‘corporate happiness’
27.3 Key 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
27.4
Common ‘core’ of various approaches to spiritual value measurement and maximization
27.5
Managing spiritual value in a multicultural environment
27.6
“Corporate chaplains” and their importance for building a ‘happy company’
27.7
Key performance indicators – spiritual value maximization
27.8
Key comprehensive business audit questions – Chapter 28
27.9
Analyzing spiritual value of a business system
27.10
Maximizing spiritual value of a business system
27.11 Spiritual value scorecard
Glossary
Index
11