I present here: CorporateMOM decodes M&A Ego-System. Corporate uses the word ecosystem so liberally. They should. The Ecosystem refers to Nature, whereas Ego-System refers to the individuals, and how they run their companies.
In this context, I have chosen $48.1 trillion pension funds assets to set target returns and align the Corporate Ego-System of Investee companies with the Ecosystem, so as to bring sustainability of profits and growths for the funds. In the 2023 study by OECD, Pension Funds stand at $48.1 Trillion as of the end of 2022 which is 15.6% less than the 2021 figures.
What the major funds have to necessarily focus is on the investee companies at the lowest rung of the fund users. I have as an illustration taken up M&A Ego-System. Assuming $ 48.1 Trillion Funds are used by 100k investee companies the top Funding Agency has to measure, the 100k fund users. The Ego-System of every company within 100k has to be measured and brought under SOS [Subject-Object-Self] Governance monitor.
The reason is simple, Invest and make sure you get returns. Although it is the dictum for corporate as a whole, Pension Funds, Sovereign Funds, or PF Funds have a greater responsibility toward making sure the investee companies have the governance standards set and followed. The reality check is abysmal. For example, the Life Insurance Corporation of India (LIC) has 273 listed stocks in its portfolio worth INR 10tn ($133bn). LIC takes a Board position in several companies as they did with IL&FS. The reality check is indeed abysmal. So the Corporate Ego-System prevailing today is abysmal. Pension Funds must check their own premises. To quote from the 2020 OECD Report:
Q: Pension funds invested mainly in equities and bonds Pension funds were mostly invested in equities and bonds at the end of 2019. Pension funds held more than 75% of their portfolios in equities and bonds in 16 out of 36 reporting OECD countries and in 17 out of 28 other reporting jurisdictions. Pension funds invested in these instruments directly or indirectly through collective investment schemes (CIS). UQ
I am comparing the Corporate Ego-System today similar to what it was in 1616 when Galileo was imprisoned for correcting the Ego-System prevalent during that time that was pretty topsy-turvy. However, Galileo resolved the subject of the then Ego-System by means of science. Changing the mindsets of people needs scientific evidence.
CorporateMOM approaches the subject in the same manner. Aligning the Corporate Ego-System with the Ecosystem needs scientific reasoning when we argue and derive conclusions from observed data. What is lacking from the investee companies is the critical FEC [Fiscal-Ethical-Co-Responsibility] Report that CorporateMOM recommends. CorporateMOM is what Galileo would have been proud of – the science of Law of Physics, Quantum Physics, and Metaphysics are applied to Corporate Management.
Investee companies of their own are not going to adhere to value systems AFTER the funding is done. So CorporateMOM establishes a MeRIT System where it helps investee companies to create a standard Strategy Plan and by MeRIT – Measure, Record, Implement and Track the operations on a daily basis by converting CAGR to CDGR. The Creative Process of the Strategy Plan is crucial for Action Process. The six stages of Transformation by Investee companies from a Dream state to creating a Substance of Quality called an IPR or Policy Documents or Strategy Plan help investee companies to approach VCs with a robust Plan of Action. Once approved and the funds are made available Investee companies can activate the Action Plan instantly. As described in CAGR to CDGR, CARR to CDRR [Reduction Rate] a daily growth of investee companies would facilitate the investors to track the progress.
Looking at OECD stats I find the collection of data mentioned in their 2023 report as preliminary. What CorporateMOM suggests for investee companies to establish CDGR and CDRR would trigger stats on the go. Meaning governance is dynamic and OECD should look into developing stats on a daily basis.
CorporateMOM – Mission Possible – Mandatory Corporate FEC – [Fiscal-Ethical-Co-Responsibility] Report – My Services
After my post on LinkedIn CorporateMOM and Fund Management wherein I expressed my MISSION POSSIBLE to approach GoI to make FEC (Fiscal-Ethical-co-Responsibilty) Report mandatory, I got a good response and positive thumbs up. I have prepared a video talk as below. Please take a look. Here I am adding to indicate what my charges are, for services that I offer, as inquired by one of my LinkedIn connections.
Consequent to my recent posts Mr. Venkatesh Muniyellappa [ linkedin.com/in/venkateshmuniyellappa ] called me over the phone and we had a chat about what services I offer and what would be the charges.
In my CorporateMOM Mission Possible, I made clear what I offer.
1. On a Corporate Level – I shall help companies to establish:
i. As a first step change your organization structure.
ii. Prepare an FEC Report.
Venkatesh was asking what the charges for my services. My response to him was:
1. With CorporateMOM available in book form, a one-day introduction would prepare the managers for DIY. I am keen for many companies to come forward. FEC Report ultimately going to put such companies on a high pedestal of growth. For companies that decide to go in for CorporateMOM principles a monthly retainership would do.
2. For companies like Opal Advisors where Venkatesh is in the driver’s seat as I have indicated in CorporateMOM and Fund Management, the three-tier Investor-Investee relationship be strengthened with an FEC Report. I have given the Volkswagen FEC Framework Report – companies shall prepare similar Reports in their own names. Due diligence of the investee company I shall assist, in preparing the Strategy Plan 2030 by MeRIT – Measure, Record, Implement, and Track. It is the investee company’s responsibility to convince the investors as to how an FEC Report of the investee company assures performance to the investors. It is on a continuous basis.
3. I will also assist companies like OPAL Advisors to prepare an FEC Report so that companies they invest in or do consulting or obtain funds for their own expansion are duly reported. I recommend companies take two articles out of UNCAC – Article 10 Public Reporting and Article 13 – Participation of Society. Article 13 emphasizes the commitment of a company toward society and Article 10 Reporting to the public what the FEC report is looking at in terms of justifying the actions of men and women who have been handling the affairs of the company.
What are my charges? Nothing much. You can write to me if you are interested in preparing an FEC Report for your company, and I shall guide you. If we all can break the current ecosystem that would be good – don’t get stuck with big names MNCs.
4. Universities: Guide the corporate, not the other way round. You are churning out the same MBAs for over 50 years. Should the companies come for placement interviews present your graduates with their in-depth knowledge of CorporateMOM and ready to implement FEC Framework in their companies.
NOTE: IBCM Technology shall assist companies to prepare an FEC Report and establish the CREAM Rating System and would certify it. CREAM is an acronym for Corporate Governance, Risk Management, Earnings, Accounting Quality and Management Quality.
Thanks a lot for your initiative. I am indeed grateful. #AI is important and let us see how this could be well made use of. I collected some info. I have installed Bing: Chat with AI & GPT-4, so I have world library access. I have some genius around me that I can surely check on.
Automation, chatbots, adaptive intelligence, algorithm trading, and ML are all used in financial activities. Several banks already use AI-based systems or software to provide customer service and identify abnormalities and fraud. AI is significantly valuable for the banking industry when it comes to fraud detection.
3. What are the 4 types of AI?
4 main types of artificial intelligence * Reactive machines. Reactive machines are AI systems that have no memory and are task specific, meaning that an input always delivers the same output. … * Limited memory. The next type of AI in its evolution is limited memory. … * Theory of mind. … * Self-awareness. Unquote
1. Artificial Intelligence Examples
One of the missing items is Agriculture. Others can be added – Forestry, Circular Mining, Food Industry. Project FISCAL I had already published consists of FARMER- INDUSTRY – SOCIETY & CONSOLIDATE – AGRI – LEADERSHIP. This is very important for all third-world countries, What #AI can do?
To pick a few:
a. Manufacturing Robots – Product Engineering – Digital Transformation for big industrial units – Steel or Nuclear. b. Healthcare management. Huge no doubt.
2. Major emphasis: Several banks already use AI-based systems or software to provide customer service and identify abnormalities and fraud.
3. 4 main types of artificial intelligence
a. Currently we are in the 1 st stage – reactive machines. Triggered by humans.
b. Limited Memory – Most difficult stage – giving a limited memory of its own. Is a wake-up alarm type but whether it would snooze or not is of its own, is the HACCP- Hazard Analysis and Critical Control Points of AI.
c. Theory of mind. …
When an individual goes to a psychiatrist it is one-to-one. Non-disclosures of the patient happen all the time. The doctor prescribes some medicines and closes the issue. But patient issues go on forever. America, America!
We are dealing with corporate minds. A company like VW has 870k people. In the example given above, Healthcare super-specialty hospitals run on a quota basis – that is, doctors have a quota to fulfill. If one doctor finds nothing when we go for a check-up he will not certify us ok, but would find something not OK to another doctor. By the time we come out of the next who would ask us to go for a CAT Scan? His interpretation is the ultimate. Prescribed drugs rule the roost remotely controlled by Pharma companies.
Secondly “Several banks already use AI-based systems or software to provide customer service and identify abnormalities and fraud.” Identify abnormalities and fraud are going on for decades without any results. Silicon Valley Bank has gone down the drain. Credit Suisse and First Republic are closed but a window opened by UBS and JP Morgan. Recovery rates are abysmal.
The third stage is Theory of Mind.. we are looking at mass psychology not one-to-one. That’s where CorporateMOM has come into the picture. The book CorporateMOM with a case study on VW provides with a Framework for FEC – Fiscal, Ethical-cum-co-responsibility Factors, covering 870k people. How is it delivered by the 4th Stage, see next.
d. Self-awareness. CorporateMOM defines Leadership as – Self-Awareness, Self-Control, and Self-Governance. Please see page 107 of CorporateMOM.
Please see p196 FEC report on Credit Suisse.
CorporateMOM is the ultimate utilizer of AI integrating the good of everything.
If anyone is interested in an AI Research Report from my side I am willing to take it up and provide a report for decision-making. I have access to many things including some good brains on #AI. Consulting assignment can be accomplished and please let me know what I would get in terms consulting fee. I am willing.
I suggest those who are involved please buy the book: CorporateMOM
This is a review of my book CorporateMOM Sustainability of Corporate Stability. I just received my copies. Going through it I shall give a brief view of how it has come out.
I used Mac Keynote for preparing this self-published book – CorporateMOM. It’s patterned on Gurucharan Das’s one-page report concept. I used 14pt Optima with Subtitles on every page. Content has to be compressed into a few words. There are 225 pages, interspersed with images and illustrations so the readers have a smooth and quick reading, Physics, metaphysics, and quantum physics are applied to deriving a robust management operating control system. Understanding the concepts is made pretty simple with charts supplemented by QR Codes that take you to a dynamic reading. You will never be bored like text after text with Times Roman 10pt.
After my first book, Corporate Citizenship and Sustainability: Measuring Intangible, Fiscal and Ethical Assets, I have learned this lesson to make a book interesting. My first book is purely theory – Physics, metaphysics, and quantum physics. I carried on with Podcast Episodes, 35 of them – dealing with a number of very critical areas in the practice of management.- Accounting Quality Audit firms, Accounting for Climate Change; Analytics of Scope 1, Scope 2, and Scope 3 parameters; IMF Transition to Green Economy – IMF World Economic Outlook Data Analytics., Suggestions on Draft National Policy to the Ministry of MSMEs, Corporate Governance Toolkit, etc. 35 of them that have attracted nearly 300k downloads. I have given them QR Codes that readers can go to any one of them. I have given also the number of countries viewers of podcasts as well as companies who have viewed my posts. Please have a look.
2. Ecosystem on the move. For the first time in history, certain positive signs are coming for a change. One is the opening of the New Parliament by Prime Minister Modi last week. He encouraged all to comment on a silent video adding one’s own. I did. Sengol was installed in the Parliament that I said: Q: Sengol – scepter not to rule but to justify our conduct. Let the New parliament usher in how men and women conduct themselves, not only reporting Fiscal but their conduct Ethical-cum-co-responsibility factors, making it mandatory for Corporate and Government Institutions. UQ
This is what CorporateMOM teaches – SOS Governance – Subject – Object – Self Governance Framework. Corporate is yet in the shadows of East India Company. Third-world countries are realizing it all. To quote Desmond Tutu: “We closed our eyes. When we opened them we had the Bible and they had the land.” Companies that follow SOS Governance principles are going to attract more business than many MNCs. I have included a case study on Volkswagen that is important for all companies to prepare an FEC Report – Fiscal, Ethical-cum-co-repsonsibility report.
3. Universities: Universities are in education. But today a seat in a good college demands a very high price for their parents, at least in India. Investment in a Business School must reflect on the graduates coming out with knowledge. The knowledge of how men and women in corporate conduct themselves. Since many companies including IBM, Apple, EY, and Wipro Foundation have evinced interest in CorporaeMOM, Business Schools would attract big companies at the campus placement. Wipro Foundation takes care of many schools and should popularize CorporateMOM at the school level. Management science is not complicated. Bring it up from the school level.
4. Regulatory Body installed in the Parliament – Sengol: What if the New parliament enacts a mandatory report filing of conduct in Ethical-cum-co-responsibility factors? In fact, it already exists under SEBI guidelines. CorporateMOM would help companies to stabilize and report on how the qualitative elements of management are measured. Are you ready?
CERN states, (a) subatomic matter not only performs an energy dance but also is an energy dance and (b) subatomic matter does not remain static. We shall restrict subatomic matter to protons, neutrons, and electrons for this work, which primarily establishes the connection between corporate and nature.
Corporate must innovate to be vibrant all the time, as Energy is liberated matter; matter is energy, waiting to happen. Waiting to happen is static a nd leads to NPAs. This book I have prepared with dynamic study of texts and illustrations, not static ones. For example, a Corporate Atomic Structure illustration is nothing but what you see as a static picture in your book. I have provided a QR Code that leads you to a 1-minute video on how CorporateMOM works providing a conceptual understanding of the subject matter. Similarly links to Bloomberg GEI page. Readers can have further confirmation or study on the subject with QR Codes by facilitating the reading of the Book: CorporateMOM.
Pictures convey supporting the context that readers would find easy. The book is not verbose text after text. Besides I have followed our management guru Gurucharandas in his 1-page report. Managers are busy bees, so I have structured the entire book by the 1-page report principle, completing the argument within a single page. There are 222 pages but each is unique.
Hardbound book I am releasing today. The soft Cover and eBook are released later today. My publishers say Hardbound book is made available only within India. I am happy with the publishers as it is cost plus + Royalty. I don’t see ny price difference between the Hard and soft covers except for a few rupees. Here is the link.
Podcast Episode 34: Snapshot 6: Book in the process: Fiscal and Ethical Assets – the stability factor – CorporateMOM – Sustainability of Corporate Stability
I am adding a couple of pages of how I am readying for the publication of my book before the end of April 2023.
A spontaneous urge to action rather than inaction’ Volkswagen Group – Change of guard – 2022. While I am presenting what Matthias Müller set the priorities vis-à-vis what Herbert Diess has done on the paradigm shift based on Annual Report 2021, I find from Annual Report 2022 a further change. Quote: The Supervisory Board meeting on July 22, 2022, focused on the composition of the Board of Management of Volkswagen AG. We resolved at this meeting to appoint Dr. Oliver Blume as the Chair of the Board of Management of Volkswagen AG effective September 1, 2022 and agreed with Dr. Herbert Diess that he would step down from this position at the same time. Unquote.
1. Fiscal Responsibility – What You owe your company. You create the Fiscal assets for your company. Stays with the company forever. Priority #1: Customer Satisfaction, #3 Change in Organization Structure: and #5 Strategy 2025 deals with this.
2. Ethical Responsibility – What You owe yourself – You create ethical assets for your company that stay with you forever. What you create for one company you can carry to another. Priority #4 Establishing Corporate Culture would represent this.
3. Co-Responsibility – What You owe the society – an identity with ethical responsibility, that by which corporate infers and society teaches. Priority #2: “Uncover the truth and learn from it” would fit into this. Unquote
I sincerely hope Dr. Oliver Blume continues with the T4I Together for Integrity that Dr. Diess has initiated. I will do the follow-up analytics later. This book which is under preparation is critical for corporate stability. Sustainability of Stability is what we are looking at, through the prism of Women’s Empowerment.
Dr. Herbert Dies’s initiative is what every company must look to. His contribution to the corporate world is quite great, really great. I am sure Dr. Diess’ capability is used by other companies and groups. Piech and Porche will all come and stay and not leave their fiscal assets whereas Dr. types take their ethical assets wherever they move. The 21st century is on the move. Attrition of value is for Dr. Oliver Blume to take note of.
Big firms must take note of it what Keynes says: “Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature.” SOS Governance will set right the current ecosystem.
CorporateMOM turns April Fool’s Day to Goal Congruence Day
April Fool’s Day * •April Fools’ Day or All Fools’ Day is an annual custom on 1 April consisting of practical jokes and hoaxes. * •Is an important day for Corporate India and the Government of India. On this day New Fiscal Year starts, and the old one comes to a close.
Closing the books – Beating Retreat ceremony * It is a frantic day. Scope 1 parameters spoil the broth. Upstream companies could not hold their fixed costs. * It is matched with our own fixed costs that had gone awry, despite frantic efforts in the last month. * Every company on this all Fools’ Day plays the game of passing the buck.
Profits, profits, profits * The CFO team is the most important on April 1st. Drums and bugles herald the New Fiscal Year. ERP is ready. Let us look to the future, not the one that had gone away. We can’t do anything now. * Journal entries after journal entries are passed. Profits, profits, and profits do not match the expectation. Worried faces wonder what would happen in the stock market, when would the bankers start crawling back to our office. Ha foolish to be an accountant, sighs the CFO on this eventful All fools’ day.
Emergency kitchen cabinet meet * CEO, the retinue of VPs, and the CFO call for an emergency meeting of the kitchen cabinet. Adverse variances analytics make each VP jump and accusing the other responsible for the All Fools’ Day. * CEO dismisses all but one. * Can we do something? Our reputation is at stake. * CFO returns and journal after journal entries passed are reversed. CEO comes to CFO’s office. A new recipe is put forward. CEO nods ok. The cooking is complete. Reputation restored.
Reality Check Flat Organization Structure
* My book extract: * For decades, the structure has remained the same. The platform is a unidimensional organization that runs from procurement to manufacturing to sales and every other structure. It comprises the board of directors, CEO, and vice presidents. All form part of a flat organization, with all the eggs in a single basket. The results are completely anarchic. Where every individual is different, each is different in different places. In any organization, you see how each individual is governed by their own idiosyncrasies. There is no corporate goal congruence. What is comprehensible in an organization is how incomprehensible it is. Corporate must shake themselves free from the “earth is as flat as a trencher” outlook.
My experience Forestry Operations * My book extract:
Working on wood accounting while I was a forestry operations accountant of WIMCO (a subsidiary of Swedish Match Company) in Mysore, in the south of India, also served as an interesting perspective. The Mysore branch supplied wood to two WIMCO factories—one in Ambernath (near Mumbai) and another at Chennai (in Tamil Nadu).
* My book extract: The accounting year for WIMCO was January to December whereas forestry operations took place between September and April, on the basis of the monsoon. So, at the beginning of an accounting year in January, factory costing would have to take note of wood felling from one season of the current season (September previous year to April current year) and 4 months from the next season (September to December current year, as part of next season September current year to April next year), which is unpredictable. It is unpredictable, as the foresters mark the trees for felling for the next season and start their work in the following September.
* My book extract: I introduced a cost accounting method called the likely ultimate cost (LUC) for the factories to get a uniform cost throughout the year so that their monthly profitability statements would not fluctuate from month to month. LUC is the cost figure related to the end of the accounting year charges for the wood supplied but a standard cost from the beginning of the year. This LUC helped me in projecting a figure for the future and bringing it to today’s level in the form of compound annual growth rate (CAGR) and compound annual reduction rate (CARR) converted into CDGR and CDRR (D-Daily), which you see in CorporateMOM.
CorporateMOM adopts CAGR and CDGR When we discuss Scope 1 parameters to be met it extends to 2030, 2040, 2060, and 2070 targets to be met. CorporateMOM converts CAGR to CDGR or CARR [Reduction Rate] to CDRR. That’s Daily. Keeps track of every component that makes up the targets.
CorporateMOM adopts CREAM Report Playing an ODI Cricket
In my case study of HUL P&L and Balance Sheets are analyzed from 2007. In one year when they switched to the April fool’s Day Fiscal Year the number of days for the fiscal year was 457. Revenue or consumption per day was analyzed for uniform day-to-day ratios. CREAM is an acronym for Corporate Governance, Risk management, Earnings, Accounting Quality, and Management Quality. Earnings are quantitative with 12 process blocks and the rest constitute 188 Process Blocks that are qualitative. When companies adopt CDGR it is like playing an ODI cricket.
My experience Shipping Construction
* My book extract:
I took up a consulting assignment for the Shipping Credit and Investment Company of India (SCICI) on cost accounting of shipping construction. SCICI was providing funds to shipowners at a low-interest rate (a third of the prevailing bank rates). There were three parties to it: the shipowner, the shipbuilder, and SCICI. Shipowners taking the funds from SCICI would divert them to other than shipbuilding in their group companies. SCICI asked me to bring out shipping construction stages so that it could release funds according to the stages completed. This called for a detailed shipping construction manual, literally.
* My book extract: While working on this, I found Japan’s influence on the scenario in shipbuilding most interesting. After World War II, an air force veteran in Japan was entrusted with the charge of shipbuilding. He went around the globe visiting various shipyards and found they were building in the same pattern as before, from laying the keel upward.
* My book extract: Being an air force man, he could not accept this practice and introduced the block development process of shipping construction. Different blocks constructed at the same time at different places and assembled at the shipyard reduced the time of construction substantially, from 16 years to 4 years. Placing an order 3 years in advance for items like the main engine, which would arrive in time for the requisite blocks, is an example of the kind of changes he effected.
CorporateMOM adopts process blocks technology * I adopted the shipping process block technology for the preparation of a CREAM— corporate governance, risk management, earnings, accounting quality, and management quality—Report.
In an organization, there are 200 open-ended process blocks. If there are 100k people in a company a 5-member team is formed of 20k teams. Each team is assigned specific tasks accomplishment – creative as well as action. Each member is yoked together but works independently.
CorporateMOM brings in Goal Congruence * Return on Intangible is the equation CorporateMOM provides. * Intangible is the effort and for each person the same capability that is 1 as the denominator. * Numerator is action or inaction brings a binary value for each person. * Each is a gold medalist. Silver and Bronze medalists strive to get gold in an organization, enabling the accomplishment of an infinite succession of finite purposes by controlling each goal. * That goal is the same for all, optimize capability, the Goal Congruence.
My Message Matter and Energy: The three laws CorporateMOM uses for Corporate Sustainability are: Law 1: Energy is liberated matter. We show under P&L and Balance Sheet. Law 2: Matter is energy waiting to happen. Raw materials to godown to finished goods stores to NPAs. Law 3: When anti-matter collides with matter it forms pure energy. That’s to say push Law 2 to Law 1. Each process block is dealt with under these three laws of the Universe.
Podcast Episode #31 CorporateMOM Calls the Banks for Spontaneous Urge to Action – Measure Cost Consequence Now, Now, Now. A Credit Suisse case study.
CorporateMOM Calls the Banks for Spontaneous Urge to Action – Measure Cost Consequence Now, Now, Now . A Credit Suisse case study.
CorporateMOM is a derivative of my IPR – IBCM – Inactivity-Based Cost Management: Activity has a Cost Incidence, whereas Inactivity a cost consequence. Measure Cost Consequence, Now, Now, Now.
Lessons we learn from Credit Suisse? 1. Unstable corporate architecture. 2. No Accountability: 3. No Governance
Let us explore how CorporateMOM looks at it.
CorporateMOM is already published with a Case Study on #Volkswagen. I shall present here an extract of the same that is relevant to the case study we are looking at – a case study on Credit Suisse, succinctly.
2. No Accountability: CorporateMOM deals comprehensively with Return on Intangibles.
3. No Governance CorporateMOM deals comprehensively with Subject – Object – Self-governance Framework.
I present here an extract from CorporateMOM – a Volkswagen Case Study.
Quote: 1.3.5. Governance – 1. Economic – Troika of entanglement – [Subject -Object – Self-] SOS -Governance 126.96.36.199. Volkswagen Case Study – a spontaneous urge to action rather than inaction’ On 28th October 2015 Matthias Müller, Chairman of the Board of Management announced the five key steps to realign the Group. They are stated as Priority #1 to #5. The webpage no longer exists. Matthias Müller was replaced in 2018 by Herbert Diess Chairman of the Management Board, CEO, and Chairman of the Volkswagen Brand Board of Management. For the sake of the sustainability of responsible policies, I am keen to go from what Matthias Müller had planned then and assess what Volkswagen Annual Report 2021 has come out with.
Priority #1: Customer Satisfaction Priority #2: “uncover the truth and learn from it” Priority #3: Change in Organization Structure: Priority #4: Establishing Corporate Culture Priority #5: Strategy 2025
We will take the stock of the situation in VW Group based on what Matthias Müller had intended to do with this set of 5 Priorities. Unquote:
VW and Credit Suisse Case studies compared:
Priority #1: Customer Satisfaction
CorporateMOM case study on #Volkswagen 2021 is an eye-opener. VW has done well in scoring well on Priority #1.
But it has taken 6 years. Credit Suisse shall note that customer satisfaction takes time but the process must start now, now, now. Policy making, Policy Accidents, and Policy Politics need to clearly made and tracked.
That depends on focusing on Priority #2 to Priority #5.
Priority #2: “uncover the truth and learn from it”
My study on #Volkswagen reveals a big thumbs down.
Credit Suisse is in a better position because the top brass has come under a different top brass – UBS. Whereas #Volkswagen has to continue the journey with the unchanged Supervisory Board. The job undertaken by Dr. Herbert Diess who changed VW is quite remarkable, given the circumstances under which he had to function.
For Ralph Hamers Group CEO of UBS Group AG, Credit Suisse is nothing but a plug-and-play USB for UBS. Priority #2 when done well would get a thumbs-up sign from CorporateMOM.
Priority #3: Change in Organization Structure:
My Comment on #Volkswagen: Priority #3: Change in Organization Structure: – This is the crucial aspect of a company to bring abstractions into reality. Governance must be managed. When there is attrition of values how do we control the gradual decline of morality? Changes in organizational structure must reflect in the corporate value system.
For Credit Suisse: hierarchical one-man call center be scrapped. Establish Corporate Atomic Structure in the same pattern as the Universe. 1. It assists individuals to accomplish tasks in an infinite succession of finite purposes., by controlling each goal. 2. It provides you with everlasting benchmarks and metrics, aiding your strategy Planning Process. 3. Delineation of responsibilities between the troika of entanglement – The Board, The CEO Team, and the Society. 4. Matter and Energy well calibrated.
Priority #4: Establishing Corporate Culture
A culture is a function of true knowledge of awareness, an identity with ethical responsibility, that by which corporate infers and society teaches.
From Volkswagen Analytics:
188.8.131.52: Code of Collaboration and Together4Integrity
The Code of Collaboration, along with our integrity and compliance program Together4Integrity (T41), is a central pillar of the new Group strategy NEW AUTO. This Code describes how collaboration is to take place within the Group and between individuals in their day-to-day work. Its core values are encapsulated in the terms “genuine”, “straightforward”, “open-minded”, “as equals” and “united”. T41 brings together all activities relating to integrity, culture, compliance, risk management, and human resources, creating • common path toward a new corporate culture. Unquote
Good initiative by Volkswagen. Credit Suisse shall adopt similar initiatives.
Return on Intangible.
For Credit Suisse: Priority #4: Establishing Corporate Culture: Return on Intangible. : CorporteMOM provides you with Return on Intangible. Is an Equation: Numerator – Action or Inaction: Denominator – Intangible – Effort by one person. The denominator is common to all, each and every person of your workforce. That is Intangible bears a value of 1, equal capability.. The equation gets a binary value of 1 or 0 based on Action or Inaction. Performance or contribution by each person is Measured.
Priority #5: Strategy 2025
From Volkswagen Analytics:
Quote: As the new Group strategy NEW AUTO is currently being concretized and enhanced, the content of the KPIs and the correspondingly adjusted targets for 2030 in the target dimensions are still being determined. As part of this, the relevance of the KPIs will be reviewed at the Group level and their focus will be continuously monitored and adjusted as necessary. Unquote.
My comment: Strategy 2030 is the next stage. For a company like VW group Scope 1, Scope 2 and Scope 3 parameters are crucial for undertaking the fiscal responsibility to its natural growth and expansion. At this juncture, VW Group has taken it forward impeccably.
The next stage is the Action process how the efforts are greater. Efforts are of the people. This calls for a different denominator than the Return on Investment. So Return on Intangible is the solution.
For Credit Suisse: Priority #5: Strategy 2025: CorporateMOM – Strategy blueprint in 6 Stages of the strategy planning process – 0. Dream, 1. strategy idea, 2. strategy communication, 3. strategy formation, 4. strategy formulation, and then 5. the strategy plan, comprising of the creative process as to how the Strategy Plan Credit Suisse – Transformation, is created.
Then to 6. our efforts greater is the action process. Get ready for Strategy Plan 2025 on a priority basis, by CorporateMOM MeRIT – Measure, Record, Implement, and Track.
Over to [Subject -Object – Self-] SOS -Governance Framework – for UBS – Credit Suisse.
Governance – Fiscal & Ethical-cum-co-Responsibility Framework – Troika of entanglement – [Subject -Object – Self-] SOS -Governance Sustainability Report – UBS Group AG – Credit Suisse
Two groups: Fiscal and Ethical-cum-Co-responsibility Under Fiscal Responsibility:
1. Priority #2: “uncover the truth and learn from it” 2. Priority #4 Establishing Corporate Culture
We prepare a CREAM Report:
CREAM is an acronym for Corporate Governance, Risk Management, Earnings, Accounting Quality, and Management Quality.
If you look at the chart, Corporate Governance, and Risk Management comes under Fiscal Responsibility. Accounting Quality and Management Quality come under Ethical-cum-Co-responsibility. The net result of it is E which is Earnings.
When you look at the Corporate Governance aspects you are looking at several risk factors, as The OCC has defined nine categories of risk for bank supervision purposes. These risks are Credit, Interest Rate, Liquidity, Price, Foreign Exchange, Transaction, Compliance, Strategic, and Reputation.
Barring Reputation the eight would be under Fiscal Responsibility. The Reputation aspect of it would come under Ethical-cum-co-responsibility.
Looking at the chart you will notice Sustainability of Efficiency gives you profits whereas Sustainability of Value System alone gives Sustainability of Profits & Growth. It’s important.
Return on Efficiency and Return on Intangible
Return on Efficiency looks at the Object that’s Matter. Create Team Work. 4 from Fiscal Responsibility and 1 from Ethical-cum-co-responsibility.
You have Men + Women Equity created from Return on Efficiency and from Return on Intangible Ethical-cum-co-responsibility factors are accounted for.
Here I have given Ethical-cum-co-responsibility entire responsibility is given to women’s Empowerment, from where you get Women’s Equity. Women also work under Fiscal Responsibility where you get Men + Women Equity. Women’s Equity is on both sides Fiscal Responsibility and Ethical-cum-co-responsibility because Women have contributed or not participated in all these Boys only Club problems. Women hold the dual-responsibility.
If you look at Credit Suisse itself as well as you will find there is no mention of SVB and any of those banks that have gone bust, I have not seen any woman being indicated as being responsible for [the bust].
This is very important. We have about 200 Quantitative and Qualitative Elements of Management, Quantitative about 12 elements we show under Earnings. Qualitative we don’t show at all. The entire 188 Qualitative Elements warrant Women to take over Ethical-cum-co-responsibility factors.
That’s what CorporateMOM pulls in then you can easily find out in the Credit Suisse example. These are 10k teams as Credit Suisse has a 50k workforce with each team made up of 5 members. That each and every member from the janitor to the CEO and the Board knows what the work requirements are or what effort they put in to reorganize and completely change Credit Suisse to what it is today to what you would like to be as per Strategy Plan 2025 or 2030.
This you can measure by Return on Intangible, if you have 2025 CAGR put that as on today converting to CDGR – a Daily report – CREAM Report – of how things are moving further to reach the target. CAGR to CDGR of profits and growth targets.
That’s about it. I would very much appreciate Gender Equality being maintained, particularly in this Credit Suisse Framework – SOS Governance Framework.
CorporateMOM Calls the Banks for Spontaneous Urge to Action – Measure Cost Consequence Now, Now, Now A Credit Suisse case study –
Keynes’s Animal Spirits call for a spontaneous urge to action rather than inaction. The 50k workforce of Credit Suisse are the only people who can trigger their urge to act upon the 5 priorities SOS Framework has brought in. CorporateMOM downloadable files have all the building blocks necessary to construct value and deconstruct valueless of Credit Suisse.
Podcast Episode #30 CorporateMOM – Sustainability of Corporate Stability
CorporateMOM is Corporate Management Orbiter Mission. Corporate is the central pillar of the global economy but collectively the current eco-system has made it unstable. Make it stable. The mission is to make sure the Sustainability of Corporate Stability is ensured. That’s the purpose. There’s no different opinion among any as to stabilize the corporate management. The key word is sustainability, which is sustained corporate stability.
Lessons we learn from SVB?
Lessons we learn from SVB?
1. Unstable corporate architecture.
CorporateMOM deals comprehensively with Corporate Atomic Structure.
2. No Accountability:
CorporateMOM deals comprehensively with Return on Intangible.
3. No Governance
CorporateMOM deals comprehensively with Subject – Object – Self-governance Framework.
[Amazing isn’t it? Same issues as they were from Industrial Revolution – i 1.0, i2.0, i 3.0 and going on in i 4.0?]