Global Best Practices - Best Practices in Action

Timely distribution, better healthcare

Thu, 20 Jan 2011 00:00:00 EST

Doing business in an emerging market sometimes requires a disruptive business model--what works in one market does not necessarily work in another due to factors such as ineffective distribution networks and lack of crucial resources. To build a competitive, sustainable business model in these markets, leading companies apply disruptive thinking.

Raising sustainability performance through stakeholder engagement

Wed, 19 Jan 2011 00:00:00 EST

Addressing concerns and opposing views of stakeholder groups has become increasingly important to corporate sustainability, integrity, and accountability. Best practice companies build an understanding of stakeholder expectations and authenticate sustainable business practices across the organization. A commitment to socially responsible, pro-environmental concerns helps companies meet demands for greater transparency, strengthen external relationships, earn public recognition, reduce the risk of costly litigation, and improve internal assurance processes.

Global is the new local

Tue, 18 Jan 2011 00:00:00 EST

Moving into emerging markets requires changes in how businesses carry out some of their tried and true processes, notably in the areas of innovation and determining customer needs and wants. It is not like emerging markets have all become middle class overnight and are just awaiting an onslaught of long-desired products and services--the market strata are complex, varied, and spread across the socio-cultural spectrum.

Spend more to save more

Mon, 17 Jan 2011 00:00:00 EST

Although a primary driver of purchasing decisions, the price of a piece of equipment is only one aspect of its true cost and value. Companies that invest the time and resources to assess the life cycle costs of a fixed asset know that its true cost is measured in productivity, maintenance and operating expenses over the life of the asset. But companies can also leverage this type of cost analysis to determine the most effective price of their own goods and services.

For warehouse facilities, less can be more

Fri, 14 Jan 2011 00:00:00 EST

Swimming against the tide of consolidation trends in other business areas, companies are moving away from decentralized storage operations. Many had spent years breaking up their warehousing into multiple facilities spread around a region or country. Their goal was to position storage closer to suppliers or customers in order to save on transportation costs and facilitate faster delivery and better customer service. But the distributed footprint did not always pay off as expected, and given today's trend toward sustainable cost reduction, leading companies are consolidating warehousing operations to achieve economies of scale. Running fewer facilities lowers the overall cost of storage operations, so much so that it more than offsets the additional transportation expense. And by maintaining less safety stock at fewer locations, companies can reduce total inventories and take better advantage of economies of scale in order processing, equipment and labor utilization, and transportation.

Group effort cuts out workplace hazards

Thu, 13 Jan 2011 00:00:00 EST

Workplace injuries can fuel enormous additional expenses, including worker's compensation payments, attorney's fees, hazardous cleanup costs, and increases in insurance premiums. Treating workplace safety as the bottom-line issue that it is, helps companies avoid or at least reduce these unnecessary expenses.

Know how to pick them

Wed, 12 Jan 2011 00:00:00 EST

Some industries historically have high turnover rates--for example, hourly employees or individuals holding unskilled, low-wage positions. Still for many of these companies, their continued success hinges upon retaining these key individuals, so to keep turnover rates low, they sustain business success with superior hiring practices. Taking the time to ensure that a potential new hire is a good fit with the company's culture can lower turnover rates and result in lower hiring costs, higher productivity levels, and higher levels of employee engagement.

Become a serial acquirer

Tue, 11 Jan 2011 00:00:00 EST

When it comes to M&A, the most successful acquirers are usually those that acquire frequently and systematically, aligning each purchase with their strategic objectives. These best practice companies determine the strategic intent of the deal by analyzing their own market position, determining specifically what purpose an acquisition might serve, such as growing a new business model or increasing market share and making acquisitions integral to achieving strategic objectives. They become, in effect, serial acquirers.

Turning data into a crystal ball

Mon, 10 Jan 2011 00:00:00 EST

Companies commonly mine and analyze enterprise data to measure the outcome of prior decisions on business performance and to make adjustments for improving results in the future. But companies that apply best practices drive efficiency, innovation, and competitive advantage with fact-based decisions that enable them to predict the probable results of decisions before they make and implement them.

Mounting a social media defense

Fri, 7 Jan 2011 00:00:00 EST

In today's 24-hour, rapid-fire media environment, corporate reputations are highly vulnerable to attack for unethical or negligent behavior, both real and perceived. Even when a company acts responsibly, critics can cause significant reputational damage through the speed and multiplier effect of the Internet and social media. Companies that apply best practices act quickly to respond and manage stakeholders' impressions at the earliest possible stage.

Expense processing made less expensive

Thu, 6 Jan 2011 00:00:00 EST

On average, travel and entertainment (T&E) expenses account for 10 percent of a company's budget and are the second-largest discretionary expense item after salaries. Therefore, process efficiencies and operational improvements in this area remain a priority at most companies. Simplifying the travel expense accounting process is an important step.

Better hiring through in-depth interviewing

Wed, 5 Jan 2011 00:00:00 EST

With many companies deluged with resumes from job seekers, organizations have the opportunity to choose from an unusually large pool of applicants. Human resources professionals nevertheless are still tasked with the challenge of hiring the right candidates for the right jobs. The best-fitting employees can help an organization achieve its goals, while unwise selections can bring the opposite result. The most effective method for ensuring that the best applicants are hired requires companies to invest significant time and energy in the process and effectively use interviewing to assess applicants' strengths and weaknesses. Companies that apply best practices evaluate potential employees critically before making a job offer.

Faster M&A data integration

Tue, 4 Jan 2011 00:00:00 EST

Astute business leaders know the longer it takes to collect and analyze data, the less valuable that data becomes. Leading companies simplify access to information and knowledge for better, faster decision making, greater employee productivity, and better and more plentiful business insights. Making data access easier means companies can spend more time extracting value from information and less time searching for it.

Successful deals begin with strategic direction

Mon, 3 Jan 2011 00:00:00 EST

For companies with strong merger and acquisition practices, the most successful deals begin long before a potential target is even identified. Leading companies first determine the strategic intent of any deal by making M&A strategy an integral part of their overall corporate strategy. Guided by the knowledge of what opportunities to look for and what they expect to achieve, they back up the strategy with rigorous due diligence, strict valuation discipline, and thorough integration processes.

Disciplined divestitures key to healthy performance

Sun, 2 Jan 2011 00:00:00 EST

Knowing when to let go of under-performing or nonstrategic investments is an essential, yet often neglected element of sound capital management. Human nature causes many corporate decision makers to delay divestitures, which drains resources from more profitable operations and projects.

Analyzing metrics to improve inventory management

Sat, 1 Jan 2011 00:00:00 EST

Maximizing inventory management is critical in industries where profit margins are fiercely earned, such as manufacturing and retail. It is a complex challenge that involves incorporating employee training, warehouse logistics, cross-functional work streams, and information flow.

Managing climate change strategically

Fri, 31 Dec 2010 00:00:00 EST

With heightened public awareness changing consumer behavior, Wal-Mart, IBM, and a growing number of global companies are adding carbon criteria to supplier evaluations. Lenders and institutional investors increasingly factor climate change disclosure into decision-making processes. As a result, companies that apply best practices recognize that their approach to climate change can affect brand value, access to capital, and competitive standing--regardless of industry or local regulations.

Ongoing preparation drives on-time departures

Thu, 30 Dec 2010 00:00:00 EST

The best-laid business continuity plans may sound feasible on paper, but organizations cannot accurately anticipate crisis-response outcomes without routine testing under realistic conditions. Forward-thinking companies take ongoing business continuity testing a step further by involving frontline personnel in crisis simulations.

Slash global cash flow costs by centralizing

Wed, 29 Dec 2010 00:00:00 EST

The fees for cross-border transactions and the risks from exposure to foreign currencies make global cash flow management complex and costly. Best practice companies address those challenges by creating a centralized cash management structure that serves global needs. As a result, they are able to reduce exposure to foreign exchange, lower transaction costs, and achieve better transaction-related information flow.

Tax technology leads to tax savings

Tue, 28 Dec 2010 00:00:00 EST

Regulatory changes combined with an increasingly complex global business environment have placed unprecedented pressure on corporate tax departments. In response, leading companies are driving tax function efficiency through integrated technology to achieve significant time and cost savings while freeing time for tax teams to pursue more strategic projects that actively create value.

Opening the books opens up possibilities for success

Mon, 27 Dec 2010 00:00:00 EST

While sharing profits and financial information with upper-level management is typical in most companies, it is relatively rare when organizations share this information with lower-level employees. However, in an effort to boost productivity, lower costs, and realize performance improvement, some leading companies share financial information with their employees. In this approach, called open-book management (OBM), management shares the company's complete financial information with all employees, no matter their rank or job title.

Stewards of the environment turn water into profit

Sun, 26 Dec 2010 00:00:00 EST

Studies estimate that the earth's water supply will soon meet only about 60 percent of global demand. This poses a dire threat to industries like utilities, manufacturing, and farming that depend heavily on a ready water supply. And companies that are perceived as unsustainable environmentally can suffer reputational damage and lost revenue as a result of regulatory fines or customer defection.

Employee creativity yields dividends

Sat, 25 Dec 2010 00:00:00 EST

When companies harness employee creativity to drive continuous improvement, they can stimulate innovative thinking and generate greater numbers of innovative ideas. By tapping into the free thinking ideas of their employees, companies can also gain market share and improve return on investment.

Destination lean logistics

Fri, 24 Dec 2010 00:00:00 EST

Applying lean practices to streamline operations with the aim of cutting costs and improving quality and performance is by no means a new concept. But as the global recession continues to plague the bottom line in all sectors and facets of business, companies are continuing to dig deeper to meet and exceed demand and gain on the competition without compromising quality and service excellence.

Employees have the recipes for improvements

Thu, 23 Dec 2010 00:00:00 EST

Forward-thinking companies understand the importance of harnessing employee creativity to drive continuous improvement. These organizations realize that the workers in the trenches are among the most qualified to suggest how to improve operations and product quality, cut costs, and eliminate waste. To encourage employees to submit suggestions, companies create a work environment that fosters open communication through various channels, including in the daily interaction between management and employees.

Technology-powered savings

Wed, 22 Dec 2010 00:00:00 EST

Companies with a reputation for innovation squeeze more value out of their IT department by harnessing IT's potential to fuel innovation. These leading companies use technology to accelerate the product development cycle, enhance operational agility, gain a more unified view of the customer, and distance themselves from the competition.

Watching the customer at work

Tue, 21 Dec 2010 00:00:00 EST

With customers having so much power--increasingly quick access to information, lots of choices--the customer relationship management process takes on greater importance. This is especially true for companies that rely on close contact with key customers to drive innovation and stay one step ahead of competitors.

On the job training in IA

Mon, 20 Dec 2010 00:00:00 EST

Innovative companies leverage the companywide reach and risk awareness of internal audit (IA) to ensure that managers are well-versed in the company's risk and control environment. Best practice companies can achieve this with rotational IA staffing programs, which entail recruiting and training managerial talent to work within IA for a preagreed period before rotating back into the business as a manager.

'Green' IT strategies a growing priority

Fri, 17 Dec 2010 00:00:00 EST

Heightened societal interest in environmental sustainability is prompting more companies to look for new ways of using technology to become more environmentally responsible. As regulators, business partners, investors, and customers apply more pressure, companies that apply best practices harness the power of IT in part by promoting greater enterprise sustainability with environmentally responsible IT strategies.

Accounts receivable received faster

Wed, 15 Dec 2010 00:00:00 EST

For many companies, there is a constant challenge balancing accounts receivable and accounts payable. And during difficult economic times, the resulting cash flow implications can play a large role in determining a company's success or demise. Leading companies tip the balance in their favor through electronic automation of their invoicing process, which not only allows them to speed up the process but also allows them to avoid the sometimes profit-squeezing cost of generating paper-based invoices.

Government incentives help storage company go solar

Tue, 14 Dec 2010 00:00:00 EST

Eager to preserve their countries' natural resources and position themselves as leaders in the new economy, governments worldwide are offering hundreds of billions of dollars to companies that want to move toward greener, cleaner operations but cannot afford the startup costs. Such funding helps companies transition to sustainable practices that align with business goals, create value in the form of long-term growth, and build competitive advantage.

Data-driven employee wellness programs lead to healthier ROI

Mon, 13 Dec 2010 00:00:00 EST

As rising health care costs and chronic illness take an increasing toll on corporate budgets and productivity, employee wellness programs are evolving from a "nice-to-have" perk to a strategic imperative.

Snack maker taps all-electric trucks to get chips to market

Fri, 10 Dec 2010 00:00:00 EST

The triad of rising energy costs, ever-tightening environmental regulations, and the availability of attractive government incentives for reducing fuel use is pushing many companies to find ways to reduce fuel consumption and emissions without spending themselves out of a competitive position. Companies that proactively pursue climate change strategies by reducing energy use and greenhouse gas (GHG) emissions can get ahead of those converging trends and position themselves as environmental leaders.

Payroll efficiency: It's in the cards

Thu, 9 Dec 2010 00:00:00 EST

Because an estimated 8 percent of U.S. employees do not have a bank account--and most U.S. states prohibit companies from using direct deposit as the sole method of compensating employees--companies that want to reduce payroll costs and processing time by eliminating paper payroll options seek alternative electronic payroll compensation methods. Many leading companies are turning to payroll debit cards--also known as paycards--as a cost-effective and efficient way to deliver wages.

Taking a bite out of finance costs

Wed, 8 Dec 2010 00:00:00 EST

Managing the finance function as a value creating entity requires the vision and investment to transform the function from a back office scorekeeper to a strategic advisor. By examining the function's existing capabilities and assessing them against long-term strategy and goals, companies can effectively structure the finance function to support company needs. And by improving efficiencies through organizational redesign, lean processes, and technology upgrades, companies are better able to reduce the cost and time to process transactions, which frees finance staff to focus on business advisory and analysis.

A treasury of streamlined financial processes

Tue, 7 Dec 2010 00:00:00 EST

Cash and working capital management historically has been a process riddled with inefficiencies at many companies. The time-consuming integration of disparate information from many locations presented in different formats, such as faxes or e-mailed spreadsheets, and the manual compilation of the data into a functional format for accounting and reporting purposes engenders a high risk of inaccuracy.

Channeling success through disciplined distribution

Mon, 6 Dec 2010 00:00:00 EST

Uncertain market conditions, rapidly changing customer behavior, and constantly evolving competitors can require companies to frequently alter the number and variety of modes of distribution. Companies applying best practices are agile and experimental in their channel configurations. They take measured risks least likely to disrupt the effectiveness of current channels but do not pursue experimentation for its own sake.

Engagement springs from satisfaction surveys

Fri, 3 Dec 2010 00:00:00 EST

Gathering metrics to gain insights on employee engagement and turnover rates allows companies to focus on the cause-and-effect relationships between employee engagement level indicators and how these levels can affect business outcomes. Leading companies typically survey their employees to obtain outputs that are practical and actionable. Surveys can reveal, for example, why there are high turnover levels or help pinpoint trust or communication problems between management and the workforce. From the metrics gained, companies can take action to rectify problems and use the data as an opportunity to increase overall employee engagement.

Thinking outside the M&A financing box

Thu, 2 Dec 2010 00:00:00 EST

Although financing remains tight, many companies are moving forward with their mergers and acquisition deals by applying lessons learned to perfect valuation, negotiating, pricing, and deal structuring. This includes finding innovative ways to obtain the financing they need.

Buck M&A's dismal post-deal performance history by putting people first

Wed, 1 Dec 2010 00:00:00 EST

The recession caused companies' cash reserves to go up and acquisition prices to come down, resulting in favorable conditions for increased merger and acquisition activity as business conditions improve. Yet if history serves, the majority of those deals will fall short of expectations. One reason is a poor, protracted, or non-existent human due diligence and integration process. Leading companies accelerate integration by addressing people issues early on, such as differences in culture, managerial styles, governance, technology, business processes, and compensation. As a result, these companies create greater unification around common goals, move workers through the change curve more quickly, and accelerate adoption of the anticipated synergies, which helps them hit post-deal performance targets.

Wringing maximum value from data and information

Mon, 29 Nov 2010 00:00:00 EST

Information, the raw fuel of business performance management, is one of the most strategic sources of both short- and long-term value creation. Yet recognizing its value is one thing--wringing maximum business value from it, another.

Bidding for more sustainable recycling

Fri, 26 Nov 2010 00:00:00 EST

By positioning sustainability as a key innovation driver, leading companies are tapping a passion that helps creativity flourish and engages more people across corporate boundaries and beyond. Online auctioneer eBay Inc., for example, recently launched a program to help customers get rid of their old gadgets responsibly and make money in the process. After its first week, the site generated more than 25,000 requests for instant price quotes for customers' used cell phones, laptops, digital cameras, and other gear.

Tagging along with the customer yields profitable insights

Wed, 24 Nov 2010 00:00:00 EST

As target markets and demographics constantly splinter and send often contradictory messages about their wants and needs, companies find it necessary to detect their preferences in increasingly innovative--and highly personalized--ways. Traditional research methods like surveys and focus groups may not fully uncover consumers' behavior patterns or their need for product or service improvements. That is largely because such methods do not capture consumers in their "natural habitats": shopping in a retail store or using a product or service at home.

Targeted talent tactics

Mon, 22 Nov 2010 00:00:00 EST

Voluntary employee attrition climbs with economic recovery, as do recruiting efforts by best practice companies seeking to lure talent dissatisfied over pay freezes, benefit cuts, and increased workloads enacted during the downturn. These companies develop recruiting methods that attract desirable employees by developing comprehensive training programs, building strong relationships with company alumni, colleges and universities, and offering highly competitive benefits programs.

An antidote for employee fraud

Fri, 19 Nov 2010 00:00:00 EST

In contrast with the general economy, one area of business has been booming: fraud. During a recession, financially-strapped employees can have a stronger motivation to commit fraud, and fraud opportunities can increase as overworked managers may miss control lapses or fraud indicators.

Benefitting from a deeper knowledge of economics

Thu, 18 Nov 2010 00:00:00 EST

With economic forecasting so important in a dynamic system of global financial exchange, many companies have responded by devising ways to raise the economic quotient of their organizations. This can apply to employees in certain areas of the business that have not traditionally been expected or required to assess, measure, or factor hard economic data into their operations.

One good partnership leads to another

Wed, 17 Nov 2010 00:00:00 EST

Companies experienced at forming alliances understand that these relationships can help put them in position to quickly seize emerging opportunities, so they become adept at watching for them. For many, this means working with existing external partners that have deep knowledge of one another's markets and customers, as well as each company's unique strengths and business networks.

Reading between the (green) lines

Tue, 16 Nov 2010 00:00:00 EST

Green marketing is growing in tandem with consumer demand--and willingness to pay more--for environmentally responsible products, but studies indicate most green marketing claims are overstated, irrelevant, or false--a practice known as greenwashing.

Technology tools help recruiting function's agility

Mon, 15 Nov 2010 00:00:00 EST

By leveraging technology to improve the recruiting and hiring processes, recruiters at companies that apply best practices can quickly and easily identify candidates who are the most qualified for open--and often critical--positions.

Minimizing environmental impact of goods and services

Fri, 12 Nov 2010 00:00:00 EST

Companies looking for ways to improve their environmental responsibility will look upstream to their suppliers for environmentally responsible products made in environmentally responsible ways, and downstream at the post-production environmental effects of their products. But many manufacturers clean their own houses first, minimizing the environmental impacts of goods and services by making sure that their production process consumes a minimum amount of non-renewable energy, leaves no contaminated water, and produces little or no net waste or pollution.

The who, what, and where in warehouse management

Thu, 11 Nov 2010 00:00:00 EST

Unlike some other types of information systems, a warehouse management system (WMS) does more than simple data collection and reporting--although it does those things, too. As deployed in many companies, a WMS actually directs workers around the warehouse, telling them where to go, what to pick or pack, and where to go next. Best practice companies find that using a warehouse management system (WMS) to best allocate warehouse resources not only allocates labor resources efficiently and improves productivity, but also enables the WMS to enable the high degree of inventory visibility increasingly demanded by suppliers and customers.

Embedding lessons from credit crisis

Wed, 10 Nov 2010 00:00:00 EST

The credit crisis forced many companies to focus intensely on cash forecasting and working capital to maintain liquidity and continue operating. While no longer in crisis mode, leading companies are embedding the new discipline and tools developed under pressure into a more vigilant approach to capital management.

Reaping the rewards of good quality data

Tue, 9 Nov 2010 00:00:00 EST

Even modest investments in improving data quality and usability can drive dramatic increases in financial performance, a new study finds. Effective enterprise data management contributes to greater employee productivity and to increased returns on equity, invested capital, and assets, the University of Texas study of more than 150 Fortune 1000 companies concludes. The study was conducted in conjunction with the Indian School of Business and sponsored by Sybase, Inc.

The right recipe for finance

Mon, 8 Nov 2010 00:00:00 EST

During the recent recession, organizations that had relied on cheap, easy credit for day-to-day operations suddenly found themselves without the liquidity to run the business. They also risked default because they were without the funds to service debt payments. While conditions have eased, the "new normal" of corporate finance requires companies to keep close watch on their credit facilities, debt maturity dates, and cash flow to make sure they possess the liquidity to meet current obligations while obtaining the long-term funding to spur growth.

Emissions-free trains get automobiles to market

Fri, 5 Nov 2010 00:00:00 EST

Delivery excellence satisfies customer demands for products to be delivered on time and in the right condition and quantity, and then moves beyond those expectations to additional services and still higher performance levels. Best practice companies find that by creating a delivery excellence strategy they can build competitive advantage through high levels of customer satisfaction, brand enhancement, and opportunities to command higher prices in exchange for premium services.

Empowered workers build better boats

Thu, 4 Nov 2010 00:00:00 EST

In manufacturing environments especially, it is tempting to think of quality improvement as a challenge to be met by systems and technology. But while better machines and less error-prone procedures make a difference, best practice companies find that quality initiatives start with mobilizing the quality mission through empowerment, autonomy, and leadership.

Moving more products with less labor

Tue, 2 Nov 2010 00:00:00 EST

A warehouse's physical organization--where the slots and docks are, which conveyor goes where, how shelves are arranged, and so on--determines its efficiency. The layout determines how many steps, or how long a forklift ride, a worker takes to pick products and fill an order, which in turn determines productivity and throughput. By reengineering warehouse operations to move, not store, inventory, companies can reduce inventory, and reclaim some of the capital from it, minimize labor costs, and meet or exceed customer expectations for fast delivery.

Post-merger roadmap enables smooth integration

Mon, 1 Nov 2010 00:00:00 EST

Post-merger management is one of the key determinants of merger and acquisition (M&A) success. Generally considered the most complex phase of the merger process, integration typically breeds chaos, even at the highest levels of management. Many mergers fail because organizations are not prepared to deal with massive realignment under high stress in a short time period.

A lesson in leadership

Fri, 29 Oct 2010 00:00:00 EST

A U.S. president once famously said: "The buck stops here." Effective business leaders often adopt the same attitude. It is one example of the process by which companies position leaders as the standard bearers of their organization's values. By setting, through their actions, the behavioral tone for the entire organization, these leaders send a more meaningful, exemplary message to employees than merely telling them to read the company's handbook on ethics and values. The result is fewer ethics violations, lower employee turnover, and higher productivity.

Send in the stakeholders

Thu, 28 Oct 2010 00:00:00 EST

Companies that invest stakeholders in reaping competitive advantages strike a balance between investing in people, processes, equipment, and facilities to drive strategic endeavors that achieve results faster and are easier to implement.

Formalizing innovation

Wed, 27 Oct 2010 00:00:00 EST

Companies committed to innovation tend to have a long-range and broad view, positioning it as strategy element which can be bolstered by the input of employees from all area of the business, including product development and relationship-building with external partners.

Getting prepared to profit from intellectual property

Mon, 25 Oct 2010 00:00:00 EST

Top organizations recognize that intellectual property (IP) can be a key value driver while in the midst of an economic downturn, especially when it stems from ongoing business activities such as research and development. However, maximizing the lifetime shareholder value of intellectual property requires proactive management and analysis capabilities, such as interpreting the underlying business and financial issues, integrating IP into the business plan, creating consistent patent policies, and identifying hidden risks.

Making the most of customer knowledge

Fri, 22 Oct 2010 00:00:00 EST

Know your customer. It is a universal business axiom. But the real challenge lies in determining how to best act on that knowledge. Best practice companies convert customer knowledge into product and service solutions that build strong, lasting customer relationships. These companies identify what problems customers are seeking to solve when making purchases, assess how well the company answers those problems, and refine and update what they know about their customers to improve the quality of their shopping experience.

Thinking through sourcing options

Thu, 21 Oct 2010 00:00:00 EST

Offshoring work exposes companies to new risks. Such hazards as unknown geopolitical situations and inconsistently enforced intellectual property laws can cause gains to be less than anticipated. As part of managing the risk of global outsourcing, many companies are ratcheting up their efforts to more deeply review their sourcing options, realistically assessing alternatives within the context of their particular companies and industries. Oftentimes, the decision between providers depends not only on providers themselves, but also on where they conduct business and the types of business practices common to the region. In some cases, the best option is to use providers who minimize the company's exposure to risk.

Break out of a limited forecasting model mold

Wed, 20 Oct 2010 00:00:00 EST

More and more companies are concluding that their usual approach to forecasting is limited, does not adequately account for the complexities of a global business environment, and relies too much on past economic behavior and performance. To address this, many companies are seeking ways to exploit multiple forecasting methods to increase accuracy and reduce bias, better synchronize supply with demand, and gain greater confidence in production plans.

Looking outside to protect the information inside

Tue, 19 Oct 2010 00:00:00 EST

More than half of companies surveyed consider outsourcing important to accomplishing their security objectives and nearly a third say outsourcing some or all security functions is a top priority for the coming year. According to the Global State of Information Security Survey, conducted by PricewaterhouseCoopers and CIO and CFO magazines, 52 percent of companies worldwide consider outsourcing important or very important. Another 19 percent say outsourcers, also known as managed security service providers (MSSPs), play some role in their security strategies.

Growing new leaders from loyal workers

Mon, 18 Oct 2010 00:00:00 EST

Increasingly, companies are open to the potential for growing their own new leaders internally by continually identifying and readying high-potential employees for leadership through a development track. Nurturing leadership potential in existing employees so that they can readily step up to vacant leadership roles retains valuable direct experience inside the company while rewarding loyalty and hard work and giving all employees an incentive to bring their leadership potential to the forefront.

Reaching customers with employee-personalized advertising

Fri, 15 Oct 2010 00:00:00 EST

Marketing communications experts use myriad channels--including print media, broadcasting outlets, online, email, and mobile applications--to reach the customers most likely to respond and drive a greater return on sales and marketing investments. Companies applying best practices deliver clear and consistent, emotionally appealing messages in order to break through the media clutter with a powerful brand experience.

Training finance for the future

Thu, 14 Oct 2010 00:00:00 EST

Value adding finance functions require a stable, knowledgeable staff that understands both the technical aspects of accounting and finance, as well as the nature of the business. Adding to this challenge is the aging of the workforce. Companies can anticipate a growing knowledge gap as baby boomers reach retirement age. Companies that apply best practices are taking action now to make sure they have the talent and accumulated knowledge to effectively address the future needs of the business.

For superior profitability, think adaptive quality

Wed, 13 Oct 2010 00:00:00 EST

One of the keys to achieving superior profitability comes from delivering the kind of quality that can consistently adjust to customers' changing desires. Best practice companies view quality through the eyes of the customers, revising their quality standards to match customers' preferences and expectations over time, which enables these companies to boost long-term customer loyalty and profit margins while reducing product complaints.

Take a cultured approach to employee motivation.

Tue, 12 Oct 2010 00:00:00 EST

A January 2010 Gallup study found companies with employee engagement scores in the top 10 percent outperformed their peers by 72 percent in earnings per share. Best practice companies foster a culture where managers motivate employees toward excellence by developing strategies for engaging employees, ensuring employees get the opportunities to develop, and recognizing their accomplishments.

Achieving sales advantage with value-based pricing

Mon, 11 Oct 2010 00:00:00 EST

As customers continue exerting downward pressure on prices, leading companies employ pricing strategies that will maximize profit regardless of economic climate. Value-based pricing, for example, helps bring discipline and structure to the uncertain realm of pricing by increasing focus on customer perception of value, competitive standing of the product or service, and profit goals. Proponents of value-based pricing choose a price that reflects the value perceived by customers, as well as the value compared to competitors' offerings.

Interacting with customers through sustainability

Fri, 8 Oct 2010 00:00:00 EST

By integrating sustainability with marketing and brand strategies, leading companies are achieving customer engagement and loyalty levels that are beyond the reach of traditional, product-centric marketing.

Driving brand conversations to create higher return on advertising

Thu, 7 Oct 2010 00:00:00 EST

Best-in-class companies continue to blend alternatives to traditional and more expensive print and television advertising with what often result in more cost-effective online forums. As these companies become increasingly sophisticated at Internet marketing and social networking, others are focusing on additional options to make every advertising dollar count toward the bottom line.

Linking product strategy to market outlook

Wed, 6 Oct 2010 00:00:00 EST

Developing innovative products focused on customer needs requires not only providing an adequate or improved product, but a richer experience, too. Products most likely to become commercially successful are those that are functional, for sure, but that will also have an emotional appeal to customers, all the while meeting or exceeding a current lifestyle need.

Trading in the house

Mon, 4 Oct 2010 00:00:00 EST

Companies that master investment management understand the benefits and risks of handling investment trades internally or outsourcing them to professional trading houses. Companies that retain trading activities within their own treasury retain closer control over their trading activities and can gain greater visibility into the status of their investments. However, the resources needed to create and operate an effective investment program can outweigh the savings of outsourcing the process.

Managing reputational damage is no game

Fri, 1 Oct 2010 00:00:00 EST

While offshoring can provide many advantages, it also brings significant hazards. Among these is reputational damage. In many emerging markets, use of banned substances, unsafe and unsanitary working conditions, and child labor are still prevalent practices. And even though outsourcing mostly takes place in a different company, home market customers of the outsourcer can take a negative view that can lead to boycotts, adverse publicity, or legal action.

Social networking helps fill the talent pipeline

Thu, 30 Sep 2010 00:00:00 EST

By leveraging technology to improve the recruiting and hiring processes companies can attract and hire talented individuals and more effectively target and hire job candidates with specific skills and abilities.

Show the inventory

Wed, 29 Sep 2010 00:00:00 EST

Accurate inventory information enables companies to make strategic decisions about how to allocate and redirect inventory to meet customer demand. This is especially important at a time when supply chains are long and customers expect near-instant availability of a wide range of products. In addition, companies are required to verify the value of their inventory in their financial statements.

Using the cloud to free financial resources for business pursuits

Tue, 28 Sep 2010 00:00:00 EST

High-performing companies strategically source technology solutions to deliver value to the business, continually exploring options that promise better services, better prices--or both--for applications, infrastructure, data centers, and other IT services.

Synthesizing market intelligence

Mon, 27 Sep 2010 00:00:00 EST

One way that companies outpace competitors is by seeing what is possible in their markets when others do not. They exploit trends and find new product niches. Such success requires a forward-thinking business model that operates optimally on an ongoing basis while simultaneously envisioning what markets and customers may demand over the longer term. No one can predict how long a competitive advantage will last, so companies must evolve their vision based on changing demands, turning the marketplace into their own research and development lab.

Integrated technology drives tax efficiency

Fri, 24 Sep 2010 00:00:00 EST

Despite the high cost of taxes and related risks, corporate tax departments often get short-changed when it comes to upgrading technology. Research indicates that many tax departments still spend significant time collecting and managing data manually, with many relying on error-prone spreadsheets.

Giving employees scheduling control improves flexibility

Thu, 23 Sep 2010 00:00:00 EST

By offering accommodating work-life options to help employees balance life's demands, companies can frequently increase job satisfaction among employees, reduce stress levels, and lower absenteeism. Particularly for companies in industries where employees with specific job skills are in short supply or where turnover levels are particularly high, accommodating work-life options can help companies retain valuable employees.

To improve the brand, listen to the customer

Wed, 22 Sep 2010 00:00:00 EST

As customers' knowledge has grown, so has their skepticism of marketing claims. That reality makes building and maintaining a successful brand more challenging than ever. Companies that follow best practices build big brands that speak to their customers with actions that consistently prove the veracity of their claims, engender customer trust over time, and elevate perceptions of who they are and what they sell.

Make the connection between better training and a better bottom line

Tue, 21 Sep 2010 00:00:00 EST

These days, boosting the quality of employee training and development may seem cost prohibitive, but skimping on human capital investments can be even more expensive down the line. Best practice companies strengthen employee loyalty through robust training and development opportunities, which helps reduce turnover and overall training costs since there are fewer new employees to train. And by increasing their training return-on-investment, leading companies boost employee productivity and the bottom line.

Using new-school tactics to sell books to kids

Mon, 20 Sep 2010 00:00:00 EST

For any given industry, the same old strategies for reaching people with advertising and promotions, although tried and true and demonstrably effective over years or even decades, can eventually cease to be useful for generating revenue. The culprits: industry trends, market shifts, changing tastes, and ever-evolving communications technologies. Companies applying best practices understand that engaging customers and potential customers in dynamic conversations--often using digital technologies--can result in more sales than simply employing traditional one-way communications.

Bidding on new opportunities

Fri, 17 Sep 2010 00:00:00 EST

As growth in home markets slows, particularly in advanced economies, many companies will naturally look to increase revenues on a more global scale as they seek to expand strategic options through emerging opportunities.

Unlocking the GAIT

Thu, 16 Sep 2010 00:00:00 EST

Best practice internal audit (IA) functions operate efficiently and effectively by targeting the most critical risks and business issues. But information technology (IT) risk is problematic as the complexity of IT systems makes it difficult to discern if a control failure will lead to a material financial statement error. While companies can opt for a more inclusive approach, testing low risk controls diverts resources from critical, value destroying risks.

Flexible people strategies benefit employee and employer alike

Wed, 15 Sep 2010 00:00:00 EST

By offering accommodating work-life options to help employees balance life's demands companies that apply best practices frequently can lower absenteeism rates, increase retention, and boost morale and commitment. Flexible, accommodating staffing programs can help companies attract and retain individuals who want to work, but not necessarily a full-time schedule.

Making the leap from popular cafes to the corner store

Tue, 14 Sep 2010 00:00:00 EST

Even when a company experiences success selling and marketing its products and services through a single popular channel of distribution, there can be additional gains to be made from rethinking distribution strategies. The wants, needs, and purchasing behaviors of customers are subject to change over time, and organizations strategizing to continue maximizing profits strive to understand the product life cycle while also responding to regular evolvement of the market life cycle. Companies applying best practices manage channels dynamically to bolster marketing and sales strategies.

Base security technology choices on in-depth needs assessments

Mon, 13 Sep 2010 00:00:00 EST

As hackers become more sophisticated in their attempts to access sensitive company data, companies' safeguards for blocking such criminal activity must evolve as well. Many companies are developing best practice approaches to protect information with technology and controls that tighten user access privileges, enable faster responses to security issues, improve regulatory compliance, and keep unwanted intruders at bay.

Peer-to-peer networks drive rapid improvement

Fri, 10 Sep 2010 00:00:00 EST

Formality plays an important role in every successful organization. But market pressures do not always afford companies time to implement conventional programs?like formal training and development initiatives--to respond to every business challenge. So, nimble organizations take advantage of informal peer networks to help individuals adapt rapidly to changing market dynamics.

Managing more data with less power

Thu, 9 Sep 2010 00:00:00 EST

Striving to balance competing pressures to accommodate rapidly proliferating enterprise data while containing costs and promoting sustainability, leading companies are rethinking their information technology (IT) strategies.

Spending money to make money

Wed, 8 Sep 2010 00:00:00 EST

The top 1,000 companies worldwide are estimated to be sitting on about $2 trillion worth of cash and many investors are directing CEOs to either use large cash reserves to pay out dividends to stockholders or creatively reinvest it in the business to generate revenue. Many companies are spending that cash on acquiring other companies.

Letting customers drive the branding

Tue, 7 Sep 2010 00:00:00 EST

Branding is a highly complex art and science, built on rules that can sometimes seem to be in flux. The strategies that work for one product or service may not be transferable to others, and branding tactics that once were effective may no longer achieve the desired results. The end goal, however, remains the same: companies applying best practices use all the means at their disposal--including multiple communication elements, whether traditional or digital--to ensure that their brands clearly and consistently hold a distinctive place in the minds of consumers. In order to distinguish themselves from competitors, these companies leverage the power of emotion and market provocatively to create distinctive brand positions.

Treat leadership development seriously, and formally

Mon, 6 Sep 2010 00:00:00 EST

The number of retiring baby boomers grows inexorably, creating a leadership gap and testing companies' abilities to find candidates able to fill the key positions those boomers vacate. Best practice companies fill the gap by readying high-potential employees for leadership through a development track that begins early and earnestly in their careers. Doing so ensures these companies will have an ample supply of qualified leaders prepared to step up when a retiring senior executive steps down.

In emerging markets, the price needs to be right

Fri, 3 Sep 2010 00:00:00 EST

Many companies have overestimated their potential for success in emerging markets by overlooking the importance that price plays in buyer decisions. They sometimes are may tempted to develop plans based on the presumption that many customers would trade up to the more expensive items as the economy grew. Instead, the trend has moved in the opposite direction, even beyond the effects of the global slowdown. Consumers became more value conscious, using the price standards of local brands to evaluate international products.

Creating more business value with training

Thu, 2 Sep 2010 00:00:00 EST

Even as many training budgets are shrinking, the need for strong employee development programs is greater than ever as companies face a growing shortage of high-quality talent. Organizations that apply best practices take on these converging challenges by closely aligning training and development with the company's long-term goals and increasing training effectiveness to meet those objectives.

Ford finds the money

Wed, 1 Sep 2010 00:00:00 EST

While Ford Motor Company's rebound continues to dominate automotive news, its astute treasury operations are winning kudos from the business press. Anticipating that tough times would get tougher, Ford preemptively issued $23.5 billion in debt in 2006, which it has used to fund its turnaround plan. The move was prescient in light of the credit crisis, which saw demand for cars dry up while access to capital disappeared overnight. The debt, however, saddled Ford with a higher cost of capital due to burgeoning interest obligations and lower debt capacity, triggering the loss of its investment grade credit rating.

Exploiting strategic investments in technology

Tue, 31 Aug 2010 00:00:00 EST

Companies that apply best practices will often deploy information technology (IT) as an elixir for enhancing enterprise health and performance. They understand the critical role IT plays in furthering business strategies and they carefully assess IT needs within the context of those strategies.