Financial Planning – A Road Map to a Secure Financial Future

August 31, 2016

Would you leave on a trip to a new destination without a map? What if your destination is a successful financial future? Without a map, would you know how to get there?Financial planning provides a road map for your financial life. It can make the journey less stressful, more fun, and more successful. And, you can start right now – even if only a few steps at a time.In today’s uncertain economy, financial planning has become increasingly important. With an overwhelming number of options for saving and investing, managing your finances can be difficult. Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a strategy and a financial plan, it’s easier to make financial decisions and stay on track to meet your goals. Working with a CFP CM professional can secure your financial wellbeing and give you peace of mind and help you reach financial planning success.Some people decide to do their own financial planning, but you may want to seek help from a Certified Financial Planner CM professional if you:Want to better manage your finances, but aren’t sure where to start.
Don’t have time to do your own financial planning.
Want a professional opinion about the plan you’ve developed.
Don’t have sufficient expertise in certain areas such as investments, insurance, taxes or retirement planning.
Have an immediate need or unexpected life event.

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Destination: Setting Goals
Financial planning starts with setting goals. After all, you need to know where you want to go before you can decide how to get there. Your goals can be short-term – for example, paying a credit card debt in six months; medium-term – such as saving for a down payment on a house in two years; or long-term – such as sending your kids to college in 15 years or your retirement. Write your goals on paper, including rupee terms and dates. Keep the list in sight so you can refer to it for motivation as you keep working toward your goals.Starting Point: Where Are You Now?
Next, get a realistic picture of where you are financially. List everything you owe (liabilities) and the value of everything you own (assets). Also, track your monthly income and expenses in a notebook or on a budget form. Even if it’s not a pretty picture now, that’s OK. You’ve faced your financial situation, and financial planning will help you improve the picture.Avoiding Potholes: Insurance, Debt, Job Loss, Taxes and Estate Planning
Financial potholes will inevitably come your way – stock market downturns, recessions, losing a job, wrecking the car, paying for an illness. You may not be able to avoid these potholes, but you can minimize their financial impact. Here are a few suggestions:• Have adequate insurance. Insurance prevents financial catastrophes, so don’t put off getting it. Insure what you cannot comfortably afford to replace. For most people, that means having the following insurance: auto, renters or homeowners, liability, health, disability and life insurance (if someone depends on you financially). Take advantage of insurance offered to you at your job and supplements it with insurance you buy on your own. Shop for the best price, but make sure you buy from a reputable, financially sound insurance company.• Control debt. Having a lot of debt puts you at financial risk. If you’re spending more than you earn, start using a budget to plug spending leaks, and make paying off your credit cards a top priority.

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• Job loss. You can’t control the economy or a company layoff, but you can control how much time you invest in keeping your skills sharp and in meeting people who may help you find a job in the future.• Taxes. Computer software can help you find deductions on your tax return. However, if your financial situation is complex, you may benefit from working with a tax or financial professional who can suggest tax strategies and make sure you are getting all of the credits and deductions due to you.• Estate planning. Every adult should have these four basic documents: will, general durable power of attorney, medical power of attorney and a living will (also called a medical directive). A financial planner can guide you and refer you to an estate planning attorney to draft these documents.There are many benefits of financial planning. If any of the above questions apply to you, it may be time to call a Certified Financial Planner CM professional to help you reach your financial goals and achieve financial success.

Franchise Agreements, Governing Law and Jurisdiction Issues

September 5, 2016

In franchising franchisors can end up spending huge monies on attorney fees and worse off find them selves simultaneously fighting legal battles in multiple jurisdictions over often frivolous lawsuits brought on by non-performing franchisees and their professional parasites.After watching other franchisors become legally embattled it became apparent to me that our company needed a hedge in this issue. Although we never had this problem I witnessed other franchise get off their game and lose focus on the market and their companies. So, I decided to add this clause to our franchise agreements;

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7. MISCELLANEOUS7.1 Governing LawThis Agreement has been accepted and made in the State of ________, United States and all rights hereunder will be governed by and interpreted under the internal laws (and not the law of conflict of laws) of the State of Arizona.7.3 WaiverA waiver of any default or breach of any provision, term, covenant, or condition of this
Franchise Agreement will not be a waiver of any subsequent breach of the same or any
other provision, term, covenant, or condition.Any waiver of any provision of this Agreement must be set forth in writing and signed by the party granting the waiver. Any waiver Franchisor grants will not prejudice any other rights Franchisor may have, and will be subject to Franchisor’s continuing review. Franchisor may revoke any waiver, in its sole discretion, at any time and for any reason, effective upon delivery to Franchisee of ten (10) days prior written notice of revocation.By written notice, Franchisor unilaterally may waive any obligation of Franchisee, their principals, or the guarantors.

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Our consent, whenever required, may be arbitrarily withheld if Franchisee are in default under this Franchise Agreement.——— ———— ———–If you are a franchisor perhaps you should run this by your attorney [professional over billing parasite-opinion] to see if such a concept would be right for you. Often these clauses are not allowed in many jurisdictions, but if you’re a dealing with International Interests or regions in country where such clauses are allowed it might be something to ask your lawyer about, who knows? Consider all this in 2006.

How To Start Making Money Online As An Affiliate Marketer

September 23, 2016

The field of affiliate marketing is probably the quickest developing way to make money online. After all, billions of ordinary people use internet every day. Affiliate marketing gives you the opportunity to target potential customers regardless of their location in the world.For this reason, it isn’t surprising that a huge number of people make a considerable amount of money through affiliate advertising and marketing. Many skilled affiliate marketers end up making more money in this field than they did in their previous job, and hence some of them even resign their normal 9-5 job and pursue affiliate marketing full-time.A Quick Overview On Affiliate Marketing
Now that we have a little idea about the capacity of affiliate marketing, Let’s dig in and discuss what it truly includes.The easiest way to describe affiliate marketing is when you help another company sell their products online, and then you get paid a commission for each sale you bring to them.If you are promoting a product priced at $200, and the company pays you 10 percentage commission of the sale, you would make $10 for each sale.However how do you refer sales? You can begin promoting your seller’s products on your website, which receives targeted site visitors in the same niche as the product you are advertising. For example, if you have a website that sells makeup you would not advertise health insurance, but instead you could promote makeup related products. Every time one of your website’s visitors clicks on your affiliate link which was supplied to you by the seller, you will be paid a commission.How To Choose A Good Affiliate Network
One of the largest errors new affiliate marketers make is becoming a member of nearly each affiliate network they encounter. This is without a doubt considered to be a totally incorrect technique. That is due to quite some reasons.Firstly, being an affiliate marketer is an undertaking which calls for a lot of awareness. So, if you try and work with many affiliate networks at the same time, chances are that none of your initiatives might go as planned and consequently, none of them might end up being very successful.Secondly, focusing on just one or a few products without a doubt will let you research them thoroughly before you start to promote them. This method also helps you refine your strategies, making the required adjustments, and thus making your marketing a whole lot more powerful. An effective approach will yield better outcomes, and reward you for your efforts and time.

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Thirdly, make sure you do some research on the affiliate network as there are some networks that will only pay you once a month which might not work for you or worse they could not pay you at all. I am not telling this to discourage you from being an affiliate marketer, but instead I want you to succeed in finding the correct network and products to market and make your commission.There are affiliate networks that resort to “shaving”, a very common exercise in affiliate marketing where the networks display a discounted number of sales than what you referred, consequently paying you drastically less in commissions.Hence, to avoid been a victim to this action I would suggest that you stick to known and trusted affiliate networks. In any case, they only way you will succeed with a network is if you are comfortable with them and the products you are promoting.How To Start Getting Sales As An Affiliate Marketer
Getting instantly to the point, some affiliate marketers use social media web sites including Facebook, Twitter, YouTube, and more, for doing associate marketing, other decide to build out their own site. Getting your own site is an exceptional approach to affiliate marketing, because it gives you control over everything.So we will focusing on affiliate marketing using your own site moving forward. First matters first, as mentioned earlier, you will want to find an affiliate network you’re comfortable with. This includes being knowledgeable about the products you are promoting, so that you don’t come to be selling products you don’t know anything about.Amazon’s Associate Program
That being said, many marketers look at Amazon’s associate marketing program as one of the best. It’s possibly the most trustworthy network, and has a large inventory of products to promote and get your commissions.This offers you a possibility to promote nearly any product in the market, or pick a niche with low competition and you could be earning commissions in less than a week.Finding A Good Keyword
That is considered to be one of the hardest parts of marketing. You simply cannot blindly choose any keyword and expect to start making sales quickly. One of the reasons why many affiliate marketers fail is due to using a wrong keyword.If you are new to the affiliate marketing, you are going to want keywords that have low competition. Start your keyword research by finding long tail keywords with a low search volume, that means much less money, but not really with the ones that have large competition.You may test the top 10 and 20 results and do a few studies to discover if you may outrank them. Review keywords being used by the competition to determine if they are using identical key phrases you are looking to target. If they are, and they have a high authority website in that niche, I would recommend that you keep away from that niche, and opt for a brand new, less competitive.Quality Content
This is significant. If you think you will make a lot of money creating items that doesn’t help the visitors in anyway, you are very wrong. Although your goal is to earn cash by means of referring visitors to the offer, you will have to offer one thing of importance to them. Merely posting your hyperlinks along with lame sales pitches like “this is a wonderful solution, purchase this product via my personal hyperlink and get a discount”, and so on, you might be only heading to disaster.If you decide to join Amazon’s associate program, you could write an informative article on your homepage and include your primary keywords and some secondary keywords throughout the article. You could have the purchasing guidebook, and write your brief opinion of each product you are marketing. Remember that the greater the cost of the product you market, the greater the commission.Backlinks
We realize it’s probably the trickiest method to accomplish, unless you are an SEO guru. Contacting site with high authority and guest posting on these sites is a really well-known means of getting great backlinks. These great backlinks, along with guest posting in related sites in your niche will get you ranked on the first page of the search engines as long as the keyword you chose has really low competition.

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However, even when your site doesn’t reach page one, as long as you have guest posted on a number of sites in your niche, you will be bringing substantial amount of targeted traffic coming from these sites. So that it is a great tactic anyway.Mistakes To Avoid
Now you are aware of the process to becoming a great affiliate marketer with your own website, I want you to also keep in mind some of the most common errors brand new affiliate marketers make.Not Providing Any Good Value
Though we’ve got covered this item, it’s certainly important to remind you if you try to be extreme with your words to pressure the visitors to click on your affiliate link, it’s likely being deemed as junk or spam by many websites.Rather, it’s suggested to help these individuals select the right solution determined by their particular wants. This method makes these individuals feel more, which in return will check out the products you are marketing based on the value in your article.Product Research
Numerous online marketers will not do proper product research to gain knowledge on the product they are promoting, instead they are only worried about the amount of commission they will earn per sale regardless whether it will provide value to their visitors. This is an oversight, and will at some point lead to your readers not relying on anything you tell them.Tracking Your Links
When you begin advertising on Amazon or even some other affiliate network, it will be beneficial to track your affiliate links. It can help you find out which website is doing more sales and then you can make your other websites have the same kind of setup.Final Thoughts
I would like to say that despite the fact that affiliate marketing can be very fulfilling, it has a steep learning curve to it. You might face disappointment on numerous occasions prior to making a nice amount of money online.That said, affiliate marketing it’s suited simply for individuals who are likely to deal with several failures, but will come back with a positive attitude and willing to learn from their mistakes.

Systems Thinking in ‘ORGAN’-Izations

October 1, 2016

What is systems thinking? Systems thinking is the process of understanding how things influence one another within a whole. That definition and many like it are found all around the internet, but do we know what it looks like in action? I found it confusing in many cases due to these same resources stating that a systems thinking approach is the opposite of breaking a larger system down into its parts to be analyzed and/or improved. It is my opinion that using a systems thinking approach in an organization is a balance of both.I’ve read a lot about tearing down these functional areas as if they are some kind of barrier standing in the way of a systems approach. I am going to disagree with this and state that we simply need to work with them differently. I strongly agree with the need for these teams, but the information within should be openly available to all other teams and the communication paths should be directly available.In every business we have a product, service, solution, etc… to provide to someone and in many it is important to have expertise organized into functional teams within the organization. These functional teams need to be in place for organizations to provide important pieces such as expertise, accountability and responsibility. Building a culture of relating these functional teams to systems that are part of a larger system and promoting collaboration between these systems is how I would describe getting your organization to a systems thinking approach.A systems approach provides many things from efficiencies and cost savings to feedback loops and product improvements. It can even have a positive influence over morale.After recent discussions on systems thinking I was looking for an example of an organization that utilizes a systems approach effectively. What I realized is that not only is the human body a great example of many things working together for a common goal, but that we study and teach on this subject recognizing each of these parts as systems working together.If you were to look up the Human Organism and write down the highlights, you are probably going to write something like skeletal system, muscular system, nervous system, etc… See the common factor?

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Now hold that thought and let’s look at the human body as we look at our own organizations. Imagine a standard org chart with organ systems breaking down into each system (nervous, muscular, digestive, etc… ), then to the organs themselves (heart, lung, liver, etc… )From atoms to molecules to organelles that form cells which form tissue which leads to organs that make up an organ system and results in an organism.If the body worked vertically it probably wouldn’t function let alone be what it is today. The body maintains our functional groups that allows for expertise, responsibility and accountability; but still has many interworking systems.Notice that when we speak of the functional teams that make up the body, we refer to them as systems. The body has 11 major organ systems, but what you cannot display in such a standard org chart representing the body is the overlapping of these systems. Nearly all of the major organs of the major systems have other organs from other systems connected to them. Notice that I said there are 11 ‘major’ systems. Choose your belief here, but whether fantastic evolution or a genius creator, the need for interworking systems was obviously not overlooked. I listed some organs that fall under their organ system, but what happens when I ask you where the hypothalamus resides? It is a gland so let’s say its functional area is the endocrine system, but it’s function is being responsible for the activities of the autonomic nervous system. This happens to us everyday right? Your software developers are not writing software to develop software.We’ve decided that with the org chart of the human body if you will, it needs a system to link the system, hence we have what is known as the neuroendocrine system. This is found again and again throughout the human body where functional areas overlap. The muscular and skeletal systems work so closely and are dependent on each other for optimization of movement and support that we have a musculoskeletal system. Genius right?The musculoskeletal system is not a whole new functional area of the business with new management, etc… Consider instead that it is a space where representatives from both systems come to collaborate on their ideas of how to reach the common goal and then returns to their own system.Aside from not addressing dependencies from multiple functional areas to optimize the outcome, silos cause other issues in the organization. Regardless what your functional area is, it is better than the others right? If you are an installation tech, you could meet your goals if development had it together and if you are in development your product is fine if only your installation guys were smart enough to implement it.We’ve got to tear down these silos and interact. Every decision made in a functional system is going to change the overall system. If your change is not matched and/or countered by other changes the result has changed. What a standard org chart (silos) doesn’t do is help us identify where a problem is or visually instill the idea that what one does has a greater consequence to the common goal. As an example, let’s assume you have hypoglycemia.Well, hypoglycemia is a condition that occurs when your blood sugar (glucose) is too low. Now you have double vision, fast heart, nervous, shaking, sweating, etc… Each system is reacting. If you take medicine to rectify the symptoms without understanding the true cause you could damage your pancreas or cause other systems to work harder to counter the new effects while not actually curing the problem.Hypoglycemia can be caused by medications or alcohol so it could be the fault of the mouth. If not the mouth maybe the overall digestive system for not breaking down the carbohydrates or back down in that functional system to the pancreas for not producing insulin. Maybe it’s the blood stream and maybe it’s that the liver and/or muscles aren’t storing glucose properly. It very well might be a digestive system problem, but unless we understand how systems overlap you might of just replaced your director of digestion when in fact the problem could of been any one of circulatory, muscular, or endocrine systems.Similarly, defects in the muscles and bones can be the result of neurological problems, metabolic or vascular disorders, nutritional imbalances, etc… If any one of the systems that make up the human body were to over/under produce or change what it does all together, it can drastically change every other system and the overall result of what they were previously working together to do.

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The body has 5 vital organs being the brain, heart, lungs, kidneys, liver, and pancreas. Scroll up if you need to, but I’ll just tell you that the blocks are red and each resides inside of a functional system. What?! The brain isn’t higher than bones? All of these systems work together and due to this the information uses the nervous, muscular, circulatory, and other systems to share information where they overlap and transport it to another system it interacts with. If you were to put your hand on a hot surface the body reacts by sending signals to other parts of the body. Your muscles contract to pull away, it notifies your brain of the incident, your blood pressure increases while you breath heavier, your pupils dilate, and you start releasing hormones like adrenaline.Many systems in the body just worked together to notify, react and rectify and it did so by communicating within interworking systems rather than all information leaving the critical areas and coming back via the same point it went it out. Good thing or you might just still have your hand on a hot surface waiting for that single point of communication to be available.Any living organism is amazing, but remove any one system or even tamper with it without proper communication to the others and if you are still alive, you’ve just caused cancer.To do this an organization needs to instill a culture of collaboration and team building so that the vital organs can work together while the functional manager acts as a servant leader to keep his experts focused, trained, and with the tools they need to do what they do.With all of the communication that the body has going on, you can provide it with the right nutrients and not only is it healthy, it becomes self healing when the unknown arises. Shouldn’t your organization be self healing?

Insurance Law – An Indian Perspective

October 25, 2016

INTRODUCTION”Insurance should be bought to protect you against a calamity that would otherwise be financially devastating.”In simple terms, insurance allows someone who suffers a loss or accident to be compensated for the effects of their misfortune. It lets you protect yourself against everyday risks to your health, home and financial situation.Insurance in India started without any regulation in the Nineteenth Century. It was a typical story of a colonial epoch: few British insurance companies dominating the market serving mostly large urban centers. After the independence, it took a theatrical turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. It was only in 1999 that the private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding.”The insurance industry is enormous and can be quite intimidating. Insurance is being sold for almost anything and everything you can imagine. Determining what’s right for you can be a very daunting task.”Concepts of insurance have been extended beyond the coverage of tangible asset. Now the risk of losses due to sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered.But if a person thoughtfully invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss as soon as the extent of damage is ascertained.The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. The collective experience of the other countries in Asia has already deregulated their markets and has allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon.
The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employer’s liability, and insurance of motor vehicles, livestock and crops.LIFE INSURANCE IN INDIA”Life insurance is the heartfelt love letter ever written.It calms down the crying of a hungry baby at night. It relieves the heart of a bereaved widow.It is the comforting whisper in the dark silent hours of the night.”Life insurance made its debut in India well over 100 years ago. Its salient features are not as widely understood in our country as they ought to be. There is no statutory definition of life insurance, but it has been defined as a contract of insurance whereby the insured agrees to pay certain sums called premiums, at specified time, and in consideration thereof the insurer agreed to pay certain sums of money on certain condition sand in specified way upon happening of a particular event contingent upon the duration of human life.Life insurance is superior to other forms of savings!”There is no death. Life Insurance exalts life and defeats death.It is the premium we pay for the freedom of living after death.”Savings through life insurance guarantee full protection against risk of death of the saver. In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.The essential features of life insurance are a) it is a contract relating to human life, which b) provides for payment of lump-sum amount, and c) the amount is paid after the expiry of certain period or on the death of the assured. The very purpose and object of the assured in taking policies from life insurance companies is to safeguard the interest of his dependents viz., wife and children as the case may be, in the even of premature death of the assured as a result of the happening in any contingency. A life insurance policy is also generally accepted as security for even a commercial loan.NON-LIFE INSURANCE”Every asset has a value and the business of general insurance is related to the protection of economic value of assets.”Non-life insurance means insurance other than life insurance such as fire, marine, accident, medical, motor vehicle and household insurance. Assets would have been created through the efforts of owner, which can be in the form of building, vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency, it is subject to many risks ranging from fire, allied perils to theft and robbery.
Few of the General Insurance policies are:Property Insurance: The home is most valued possession. The policy is designed to cover the various risks under a single policy. It provides protection for property and interest of the insured and family.Health Insurance: It provides cover, which takes care of medical expenses following hospitalization from sudden illness or accident.
Personal Accident Insurance: This insurance policy provides compensation for loss of life or injury (partial or permanent) caused by an accident. This includes reimbursement of cost of treatment and the use of hospital facilities for the treatment.Travel Insurance: The policy covers the insured against various eventualities while traveling abroad. It covers the insured against personal accident, medical expenses and repatriation, loss of checked baggage, passport etc.Liability Insurance: This policy indemnifies the Directors or Officers or other professionals against loss arising from claims made against them by reason of any wrongful Act in their Official capacity.Motor Insurance: Motor Vehicles Act states that every motor vehicle plying on the road has to be insured, with at least Liability only policy. There are two types of policy one covering the act of liability, while other covers insurers all liability and damage caused to one’s vehicles.JOURNEY FROM AN INFANT TO ADOLESCENCE!Historical PerspectiveThe history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.

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The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20′s and 30′s desecrated insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government’s chosen path of State lead planning and development.The (non-life) insurance business continued to prosper with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies – National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).The life insurance industry was nationalized under the Life Insurance Corporation (LIC) Act of India. In some ways, the LIC has become very flourishing. Regardless of being a monopoly, it has some 60-70 million policyholders. Given that the Indian middle-class is around 250-300 million, the LIC has managed to capture some 30 odd percent of it. Around 48% of the customers of the LIC are from rural and semi-urban areas. This probably would not have happened had the charter of the LIC not specifically set out the goal of serving the rural areas. A high saving rate in India is one of the exogenous factors that have helped the LIC to grow rapidly in recent years. Despite the saving rate being high in India (compared with other countries with a similar level of development), Indians display high degree of risk aversion. Thus, nearly half of the investments are in physical assets (like property and gold). Around twenty three percent are in (low yielding but safe) bank deposits. In addition, some 1.3 percent of the GDP are in life insurance related savings vehicles. This figure has doubled between 1985 and 1995.A World viewpoint – Life Insurance in IndiaIn many countries, insurance has been a form of savings. In many developed countries, a significant fraction of domestic saving is in the form of donation insurance plans. This is not surprising. The prominence of some developing countries is more surprising. For example, South Africa features at the number two spot. India is nestled between Chile and Italy. This is even more surprising given the levels of economic development in Chile and Italy. Thus, we can conclude that there is an insurance culture in India despite a low per capita income. This promises well for future growth. Specifically, when the income level improves, insurance (especially life) is likely to grow rapidly.INSURANCE SECTOR REFORM:Committee Reports: One Known, One Anonymous!Although Indian markets were privatized and opened up to foreign companies in a number of sectors in 1991, insurance remained out of bounds on both counts. The government wanted to proceed with caution. With pressure from the opposition, the government (at the time, dominated by the Congress Party) decided to set up a committee headed by Mr. R. N. Malhotra (the then Governor of the Reserve Bank of India).Malhotra CommitteeLiberalization of the Indian insurance market was suggested in a report released in 1994 by the Malhotra Committee, indicating that the market should be opened to private-sector competition, and eventually, foreign private-sector competition. It also investigated the level of satisfaction of the customers of the LIC. Inquisitively, the level of customer satisfaction seemed to be high.In 1993, Malhotra Committee – headed by former Finance Secretary and RBI Governor Mr. R. N. Malhotra – was formed to evaluate the Indian insurance industry and recommend its future course. The Malhotra committee was set up with the aim of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the needs of the economy keeping in mind the structural changes presently happening and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:o StructureGovernment bet in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.
CompetitionPrivate Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.o Regulatory BodyThe Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance – a part of the Finance Ministry- should be made Independent.o InvestmentsCompulsory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time).o Customer ServiceLIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee accentuated that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new competitors could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores.The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body – The Insurance Regulatory and Development Authority.Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has meticulously stuck to its schedule of framing regulations and registering the private sector insurance companies.Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken at the same time to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity lid for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001Mukherjee CommitteeImmediately after the publication of the Malhotra Committee Report, a new committee, Mukherjee Committee was set up to make concrete plans for the requirements of the newly formed insurance companies. Recommendations of the Mukherjee Committee were never disclosed to the public. But, from the information that filtered out it became clear that the committee recommended the inclusion of certain ratios in insurance company balance sheets to ensure transparency in accounting. But the Finance Minister objected to it and it was argued by him, probably on the advice of some of the potential competitors, that it could affect the prospects of a developing insurance company.LAW COMMISSION OF INDIA ON REVISION OF THE INSURANCE ACT 1938 – 190th Law Commission ReportThe Law Commission on 16th June 2003 released a Consultation Paper on the Revision of the Insurance Act, 1938. The previous exercise to amend the Insurance Act, 1938 was undertaken in 1999 at the time of enactment of the Insurance Regulatory Development Authority Act, 1999 (IRDA Act).The Commission undertook the present exercise in the context of the changed policy that has permitted private insurance companies both in the life and non-life sectors. A need has been felt to toughen the regulatory mechanism even while streamlining the existing legislation with a view to removing portions that have become superfluous as a consequence of the recent changes.Among the major areas of changes, the Consultation paper suggested the following:a. merging of the provisions of the IRDA Act with the Insurance Act to avoid multiplicity of legislations;b. deletion of redundant and transitory provisions in the Insurance Act, 1938;c. Amendments reflect the changed policy of permitting private insurance companies and strengthening the regulatory mechanism;d. Providing for stringent norms regarding maintenance of ‘solvency margin’ and investments by both public sector and private sector insurance companies;e. Providing for a full-fledged grievance redressal mechanism that includes:o The constitution of Grievance Redressal Authorities (GRAs) comprising one judicial and two technical members to deal with complaints/claims of policyholders against insurers (the GRAs are expected to replace the present system of insurer appointed Ombudsman);o Appointment of adjudicating officers by the IRDA to determine and levy penalties on defaulting insurers, insurance intermediaries and insurance agents;o Providing for an appeal against the decisions of the IRDA, GRAs and adjudicating officers to an Insurance Appellate Tribunal (IAT) comprising a judge (sitting or retired) of the Supreme Court/Chief Justice of a High Court as presiding officer and two other members having sufficient experience in insurance matters;o Providing for a statutory appeal to the Supreme Court against the decisions of the IAT.LIFE & NON-LIFE INSURANCE – Development and Growth!The year 2006 turned out to be a momentous year for the insurance sector as regulator the Insurance Regulatory Development Authority Act, laid the foundation for free pricing general insurance from 2007, while many companies announced plans to attack into the sector.Both domestic and foreign players robustly pursued their long-pending demand for increasing the FDI limit from 26 per cent to 49 per cent and toward the fag end of the year, the Government sent the Comprehensive Insurance Bill to Group of Ministers for consideration amid strong reservation from Left parties. The Bill is likely to be taken up in the Budget session of Parliament.The infiltration rates of health and other non-life insurances in India are well below the international level. These facts indicate immense growth potential of the insurance sector. The hike in FDI limit to 49 per cent was proposed by the Government last year. This has not been operationalized as legislative changes are required for such hike. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have tipped into the Indian market and 21 private companies have been granted licenses.

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The involvement of the private insurers in various industry segments has increased on account of both their capturing a part of the business which was earlier underwritten by the public sector insurers and also creating additional business boulevards. To this effect, the public sector insurers have been unable to draw upon their inherent strengths to capture additional premium. Of the growth in premium in 2004-05, 66.27 per cent has been captured by the private insurers despite having 20 per cent market share.The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2004-05 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 per cent), respectively. In the year 2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in a favourable growth in total premium both for LIC (18.25 per cent) and to the new insurers (147.65 per cent) in 2004-05. The higher growth for the new insurers is to be viewed in the context of a low base in 2003- 04. However, the new insurers have improved their market share from 4.68 in 2003-04 to 9.33 in 2004-05.The segment wise break up of fire, marine and miscellaneous segments in case of the public sector insurers was Rs.2411.38 crore, Rs.982.99 crore and Rs.10578.59 crore, i.e., a growth of (-)1.43 per cent, 1.81 per cent and 6.58 per cent. The public sector insurers reported growth in Motor and Health segments (9 and 24 per cent). These segments accounted for 45 and 10 per cent of the business underwritten by the public sector insurers. Fire and “Others” accounted for 17.26 and 11 per cent of the premium underwritten. Aviation, Liability, “Others” and Fire recorded negative growth of 29, 21, 3.58 and 1.43 per cent. In no other country that opened at the same time as India have foreign companies been able to grab a 22 per cent market share in the life segment and about 20 per cent in the general insurance segment. The share of foreign insurers in other competing Asian markets is not more than 5 to 10 per cent.The life insurance sector grew new premium at a rate not seen before while the general insurance sector grew at a faster rate. Two new players entered into life insurance – Shriram Life and Bharti Axa Life – taking the total number of life players to 16. There was one new entrant to the non-life sector in the form of a standalone health insurance company – Star Health and Allied Insurance, taking the non-life players to 14.A large number of companies, mostly nationalized banks (about 14) such as Bank of India and Punjab National Bank, have announced plans to enter the insurance sector and some of them have also formed joint ventures.The proposed change in FDI cap is part of the comprehensive amendments to insurance laws – The Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999. After the proposed amendments in the insurance laws LIC would be able to maintain reserves while insurance companies would be able to raise resources other than equity.About 14 banks are in queue to enter insurance sector and the year 2006 saw several joint venture announcements while others scout partners. Bank of India has teamed up with Union Bank and Japanese insurance major Dai-ichi Mutual Life while PNB tied up with Vijaya Bank and Principal for foraying into life insurance. Allahabad Bank, Karnataka Bank, Indian Overseas Bank, Dabur Investment Corporation and Sompo Japan Insurance Inc have tied up for forming a non-life insurance company while Bank of Maharashtra has tied up with Shriram Group and South Africa’s Sanlam group for non-life insurance venture.CONCLUSIONIt seems cynical that the LIC and the GIC will wither and die within the next decade or two. The IRDA has taken “at a snail’s pace” approach. It has been very cautious in granting licenses. It has set up fairly strict standards for all aspects of the insurance business (with the probable exception of the disclosure requirements). The regulators always walk a fine line. Too many regulations kill the motivation of the newcomers; too relaxed regulations may induce failure and fraud that led to nationalization in the first place. India is not unique among the developing countries where the insurance business has been opened up to foreign competitors.The insurance business is at a critical stage in India. Over the next couple of decades we are likely to witness high growth in the insurance sector for two reasons namely; financial deregulation always speeds up the development of the insurance sector and growth in per capita GDP also helps the insurance business to grow.

Lifesaving Safety Tips For Water Sports Enthusiasts

September 2, 2016

Tips to Insure a Safe Fun Time with Water Sports and Boats!Water sports are very popular amongst athletes and non-athletes alike especially in the hot days of summer. After all, any of the water sports is an excellent way to keep cool and look cool, stay active and tanned as well as get your exercise and its health benefits.However, water sports can be dangerous, too. Reports of drowning and other water-related accidents worry us and yet we still fail to adopt certain safety guidelines to avoid becoming the next victims. Well, if you want your family and friends to be safe at all times while engaging in water sports while having fun, it pays to take heed of the following safety tips.Be a Strong SwimmerIn any water sport, it is important to be a strong swimmer. At the very least, you will be able to swim to shore or to avoid moving objects on the water such as boats. Likewise, you must ensure that the other participants in the sports are also strong swimmers not only because it is a competition where the strongest have the highest chances of winning but also because lives are at stake here.

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Wear a Life VestMany drowning deaths in the open seas have been attributed to the failure to wear life vests. Even if you consider yourself a good swimmer, life vests are de rigueur in case you lose consciousness or get tired from floating on your own. And remember that not just any toy flotation device will do for the purpose.Learn CPRDo not rely on the lifeguards and other medical personnel to come on time to save the life of a family member or a friend. YOU must learn how to administer CPR at the soonest possible time because mere seconds can mean the difference between life and death.Your local college, hospital and Red Cross branch offer CPR classes so take advantage of them.Avoid Alcohol and DrugsAlcohol and drugs will never ever mix with water sports. Both substances have adverse effects on your mind and body, not least of which is slower reaction time, lesser focus and, worst, unconsciousness.If you must take alcohol, do so after the competition is over so that you are in no danger of drowning. Well, of course, you will be in danger of alcohol-related traffic accidents so you are better off staying away from it. Stay in Designated AreasOf course, one of the thrills of extreme water sports is facing death in the eyes and living to tell the tale. However, if you want another shot at that heart-pumping move, then do try to stay within the designated area of the competition.

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For individuals who are swimming in the open seas, this tip is very important especially when strong currents and waves are present.Know the Safety Rules of the SportEach sport has its own safety guidelines and equipment. It pays to become familiar with them and then take heed.

For example, if your sport says that you have wear shoes and a helmet like wake skating, then do so. Better yet, you should undergo sufficient training before hitting the competition circuit.
Indeed, water sports accidents, injuries and deaths can be significantly reduced if only we know how to engage in them as safely as possible.

Use of Drones in Aerospace/Defense

October 9, 2016

The development of unmanned aerial systems, or drones was initially for military purposes. As these aerial systems did not require an onboard pilot, they were seen as a useful weapon on the battlefield. Not only does a drone decrease the mortality rate of the soldiers, it also provides the military a chance to spy on the enemy in a discrete manner.Drones have become an important component of national defense for the following reasons.· A drone is an unmanned vehicle, that is, it does not require any one to be on it to be controlled. This is possible because it can be controlled using a remote control. Though it is mandatory that it is still controlled by a trained pilot, it does not require the pilot to go with it.

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· The US military has been using drones to search for terrorists in Afghanistan and have proved how useful they are for conducting covert military operations.· Drones can be used for various purposes such as searching for hidden terrorists, gunning the terrorists down in their own areas and searching for the hidden landmines using hyperspectral imaging sensors.· Keeping an eye on the air space of the country.· Keeping a check on the borders of the country without threatening the lives of the most precious soldiers.The use of the US Army’s Global Hawk in the combat field of Afghanistan has already made news. This has triggered a race between countries to own and develop this technology as soon as possible. Countries like UK and China and India are already way ahead in the research and development of drones for their respective defense forces.The use of drones even by the army is not only for combat and espionage purposes. This technology is largely being developed for the times when a crisis hits the nation. The military is trying to use drones in areas that have suffered fire or earthquake where the military and air force is called in to rescue people. This is the humanitarian aspect of the use of drones. Drones are sent in difficult to reach places to search for survivors. When the images from a drone shows the presence of any survivor, special teams are sent in to carry out rescue operation. This has saved many lives and is sure to save a number of lives in future too.

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The countries that are trying to be the controlling factors in the world need to have this technology soon. UK has started by bringing together all of its top engineers to develop homemade UAVs and there were news about the flight of their first UAV named Taranis.The use of UAVs cannot replace the fighter jets or the satellites, however, they can be used for surveillance missions that can’t be performed by fighter jets as they are too big and therefore can be spotted quite easily by radar. Drones are definitely one of the “must haves” for any good army in the future.

Temporary Tattoos A Permanent Solution

October 29, 2016

These days, more and more individuals are deciding to permanently leave their mark – on their own skin. If done by a qualified tattoo artist, the risks may be minimal. Unfortunately for many, however, unsanitary equipment or later appearing infections are creating big problems for tattoo enthusiasts.Not so long ago, temporary tattoos were something that was found in a bubble gum wrapper or in the toy section at the local retail store. Why? Because children loved to have their own tattoos, but only the safe kind that would wash away and cause no permanent change. Now, some adults are beginning to think that kids have the right idea. Temporary tattoos are no longer just for children and in fact are now often available as longer lasting, adult skin tattoos.

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The one thing that all temporary tattoos have in common is, you guessed it, they are temporary. There is no risk of contracting an illness or the tattoo site becoming infected, which is a very promising thought to those who are health conscious. Temporary tattoos are not only safe, but they are easy to remove with nothing more than soap and water. This is a big contrast to the permanent images, which require medical attention for removal.If an individual is almost certain that they wish to have a permanent tattoo placed on their body, they may want to try a temporary tattoo first. In order to find the right design and placement, some individuals are finding the temporary tattoos are a terrific way to experiment with various designs and areas at a very affordable price. Once a permanent tattoo is done, the only way to have it removed is through surgery. Rather than going through the process a dozen times before finding the perfect tattoo, some adults are deciding to try out a temporary tattoo and the conveniences of washing it away with a few swipes of the soap.Quality temporary tattoos, in many cases, look exactly like the real thing. These can be found online or possibly at a tattoo parlor directly. Before purchasing a permanent tattoo, the customer should be certain that the symbol is one that will be admired for life. Some individuals tattoo the name of their significant other only to find that, years later, the relationship is over. Many people are staying away from personalization for this very reason, but others still celebrate their love by putting it in writing – literally. Whether or not a tattoo is personalized, the depicted image should be one that is special and meaningful so that it will always be treasured.

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This article is to be used for informational purposes only. The information contained herein is not intended to be used in place of, or in conjunction with, professional medical advice or recommendations for tattoo placement. Before deciding on getting a tattoo or having one removed, the patient must consult a licensed medical doctor for medical advice and/or to determine the best course of action for his/her individual healthcare needs.

The Role of Change Management in Successful Information Management Solutions

August 14, 2016

IntroductionImplementation of Information Management solutions necessarily brings change to any organization. Business practices, role and relationships all affect the way in which people work and interact on a day-to-day basis. Whether the driver for implementation is for productivity, compliance or risk reduction there is always the need to consider what impact there will be on user communities.Document and records management practices in organizations are not often front-of-mind for most managers and employees and asking them to think about information in a different way or even at all, as a corporate asset requires a fundamental mindset change. This will take many employees out of their comfort zone, impact on their confidence and competence to perform the work and creates a situation where individuals can sense a loss of control in their work context.It is natural that most people initially react with caution with concerns about their future, security and where they will fit in to a new order of things. In any group there will be 10% who are excited by the prospect of change and at the other end 10% who will resist change regardless. This means that there are 80% who can be influenced one way or the other.The successful implementation of an information management system extends far beyond the design and implementation. It extends beyond the support and operation. Effective information management requires a fundamental mind-shift by stakeholders and everyone in the organization that relies on information in their work activities. This shift needs to be carefully executed to create a requisite culture in which information is appropriately and thoroughly managed as a key organizational asset.What is Change Management?Change management is the art of influencing the majority to positively accept and commit emotionally to the change. Many of the issues arising as a response to change can be real or perceived and are closely related in a cause and effect network. Either way, they need to be addressed to avoid resistance or rejection of the change. This requires a combination of communication, understanding, mentoring, coaching and general support with the aim of building trust. It is from this position of trust that the task of building the work culture required for successful information management begins. The ’4 Cs’ of change management help us think about the change from an effected user point of view.Comfort People are creatures of habit and develop patterns of working within a comfort zone of daily activities.Control Changed practices may cause a loss of control over daily routines and activities. This may come through changed reporting lines or responsibilities which can evoke a level of discomfort.Confidence The introduction of new practices may undermine employee confidence in their ability to perform. Some may see this as challenge, for others it can be stressful. Often the introduction of computer equipment is something that can be discomforting. Some people, particularly older workers may have no experience with computers and can cause self doubt over their abilities to learn the new skills required.Competence To be able to operate in a changed work environment there is always an element of re-skilling required. This necessarily means that current skills, often developed over an extended period of time will need updating or may become redundant. This uncertainty can impact on an employee’s competence and ability to perform.The management of the complex web of responses, issues and perceptions requires focused attention. The skills of a change manager are built on an understanding of human behavior and the change manager’s role is to assist people to understand the change and what it means in personal terms and has been proven to be a significant success factor in building Information Management capability.Why is Change Management important?As volumes of information inevitably grow and our regulatory obligations increase amid the ongoing business pursuit of productivity, we cannot afford to waste the opportunity to exploit the benefits of information management solutions.Studies repeatedly show that a key risk in the success or failure of information management solutions is stakeholder resistance to change. Through an investment of time and effort in preparing the user community for the coming change the chances of resistance are lowered. In short without a disciplined approach to managing stakeholders through the change then realization of anticipated benefits is put at risk. This has impact on business productivity, staff moral and the bottom-line. So it would seem logical for us to deploy our information management solutions in the most effective manner.Some common Change Management pitfalls of an IM solution implementation

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We are seeing an ongoing consolidation of the information management vendor community and a subsequent convergence of the underlying technology. There is a growing recognition by organizations that an information management capability is needed. Further, audit activity frequently highlights any shortfalls in performance and organizations react accordingly.The selection of an information management solution is an important corporate investment and common pitfalls addressed by change management include:Focus on TechnologyIgnoring the emotional needs of users in the rush to get the technology in place can create a real project risk. Many organizations with an information management solution already in place experience a negativity of opinion towards the system. Often the cause of this perception can be traced to an initial technical implementation focus that neglected the needs of those who consequently struggled to apply new functionality in their work activities. An effective change management approach including awareness building and communication can turn this perception around.Recognition of the Business importance of InformationThe low profile that information management has in most employees’ minds can be an issue. We are all busy and in the scheme of things ‘filing’ is not front-of-mind for the majority of employee’s striving to keep pace with everyday work pressures. Document management and filing, can fall down the priority list partly because of work pressures and partly because of limited awareness and can be seen one of the things that ‘should’ be done’ rather than something that ‘must’ be done.Organizations recognising the business value of information as an asset can then raise awareness of its importance and manage it accordingly. An increased awareness of this importance should also influence the planning of information management system deployments.Business Case and BudgetThe business case for information management is focused on risk, mitigation, and productivity. However; many benefits are intangible and have an indirect impact on the bottom line. Unfortunately associated costs are very tangible and visible.Consequently, there are challenges in the development of the business case as it can fail to excite the financial fundamentalists who view the whole undertaking in terms of an unavoidable cost that must be minimized. For the uninformed, change management activities can be seen as non-essential and result in budgets being set to minimise cost adding to the risk of failure.Although not unique to Information management implementations these above factors can create significant project risk. Change Management techniques are designed to address the human behavioral issues that can adversely impact on project success and as such, are a necessary inclusion in any deployment activity.What are some Change Management best practices for an IM solution implementation?When it is apparent users are not participating in Information Management practices an objective assessment can identify a way forward that is usually cost effective and will meet organizational needs within a much shorter timeframe. This assessment must take an independent and holistic view of the situation from multiple perspectives.This assessment must identify the root causes of any associated issues and develop a clear strategy to build the information management capability required. There are a number of common elements that have emerged as issues with information management implementations that have nothing to do with the incumbent technological tool and the strategy developed must consider how these are to be addressed.The capability assessment framework enables organizations to holistically assess information management practices and to identify improvement opportunities that will build capability. This is achieved by benchmarking current organizational practice against best practice in each of the dimensions of the framework. The best practice benchmark criteria in the framework have been identified through experience with multiple organizations across industry sectors and geographies, and are augmented through industry collaboration and global academic research outcomes.The dimensions of information management identified in the framework are defined as follows.StrategyBest practice organization’s should have a clear strategy relating to its management and use of information The strategy clearly defines the content and structure of the information, how it is to be governed and applied to support the primary business strategy.ContentWe can assume that most organizations have the information content that is required to manage their business. If this is not the case then it is difficult to envisage the organization operating successfully or at all. However, most organizations suffer from an ad-hoc approach to the management of this important asset. Best practices relating to managing this content start by having an inventory of the content, a consistent architecture governing naming conventions, taxonomy, where content is held, how content is held, i.e. hard copy soft copy formats and who can access what categories of information.ProcessDue process governing how information is created, stored, accessed and communicated is fundamental to the governance of enterprise information.Governance is the combination of processes and structures implemented at management level to inform, direct, manage, and monitor the information management activities of the organization. This consists of clear policy, procedure and business rules guiding information management practices. These must be developed in context of the organization’s business activity and be clearly communicated to stakeholders.Information management governance also includes the development of business classification schemes, taxonomy, naming conventions and rules governing the creation, storage, protection, communication, sensitivities, use and appropriate destruction of information.CultureThe manner in which information is treated and perceived in an organization is reflective of organizational culture. Best practice organizations have clear understandings and norms recognising the importance of information as an asset. This mindset needs to be pervasive across the organizational culture and is fundamental to induction and staff development initiatives.Change management during information systems implementations is a clear best practice aimed at creating the cultural awareness and mindset required.RelationshipsOrganizations operate within a network of relationships with stakeholders. These stakeholders include customers, suppliers, regulators and industry bodies. Best practice organizations have clear understanding and service level agreements with other stakeholders in order that corporate record keeping obligations are met and to ensure information is shared appropriately and to the level required to maximize efficiency.ServicesThe application of Information as an asset is fundamental to the services or products offered to the market place. Best practice organizations embed value-adding knowledge and information into services to maximize attractiveness and utility. Corporate discipline ensuring the validity of information shared is necessary to mitigate risk of non-compliance and avoid potential litigation.TechnologyInformation technology is fundamental to the management of the information asset. Clear and consistent architectures, data and information structures, security and operational tools indicate a mature approach to information management. Best practice organizations have clearly defined architectures.Change Management Best PracticeThe capability assessment framework facilitates benchmarking against specific best practice indicators. The absence of any of these indicators provides an opportunity for the organization to improve. Over and above these specific indicators the following themes have emerged as overarching best practice in change management as information management capability is developed.GovernanceAs discussed above governance is the combination of processes and structures to inform, direct, manage, and monitor information management activities. This includes effective record keeping practices. It is important that organizations develop governance practices as early as possible in implementation projects. This often means putting governance in place prior to specification, selection and deployment of a technology solution. This has a double benefit. Firstly: stakeholder’s become familiar with information management expectations and the requisite culture begins to develop; and secondly; the organization gains the opportunity to refine its governance structures prior to full deployment.Information Management SystemThe selection of an enabling information management technology to meet performance and functional requirements should follow a diligent approach. It is best practice for selection criteria to consider wider information management architectural needs. The functional richness of available solutions can allow the retirement of duplicative products providing islands of functionality. Workflow or WebPages are common examples of these islands where products have been acquired for a single one-off purpose and are unable to integrate with core applications. Once configured and deployed the new infrastructure can provide the opportunity to create an integrated technology architecture thereby reducing support cost.PilotsThere are many examples of high cost, high-profile failures in the information technology industry. Often this can be traced to over-ambition and a big-bang approach to deployment.Implementation of Information Management capability within well defined scope delivered in incremental steps provides many benefits. Primarily incremental implementation through a series of pilot deployments allows adaptation of the solution based on real experience before attempting to conquer the world. Many organizations are benefiting from the adoption of this approach.

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User FocusThe inclusion of change management activities focused on preparing stakeholders to take on the reformed work practices mitigate against risk of stakeholder resistance. This involves considering the emotional needs of all stakeholders to ensure that they feel in control, are comfortable and have the confidence and competence to execute new work practices. For many stakeholders the learning of new skills and changed role and responsibility provides enhanced career opportunity.ArchitectureMost of the solutions available in the marketplace offer rich functionality to manage documents and content in a web-based environment. Full use of the functionality on offer can simplify the technical architecture and realize savings in licence and administrative cost further justifying investment.Change Management Roles and ResponsibilitiesThe change manager works very closely with stakeholders and it is important that relationships based on trust are established. The personal attributes of a successful change manager are empathy and patience. The role and responsibility of the change manager is focused on understanding stakeholder needs, building an awareness of the need for change and supporting these stakeholders as they transition to new work practices.Some key responsibilities for the change manager include communications, setting up reporting and communication channels, participating in business process reform, workshop facilitation, staff training, mentoring and awareness building. In short, any activity that interacts and prepares the user community to participate in reformed work practices.Regardless of the scale of undertaking information management projects require a change management capability. In large scale projects there may be dedicated change management resources. For smaller scale projects this role may be a part-time or shared responsibility. The change management role can in many instances be a shared role across the development. Sometimes this can be provided through a corporate change management function. Regardless of how the role is resourced it is essential that it is included.Many routinely conducted project activities such as workshops, interviews, training and presentations are in fact change management opportunities as these events they are interactions with stakeholders. They therefore present the ideal opportunity to develop the relationship of trust between the project team members and stakeholders.It is important to avoid the situation where contributing stakeholders feel as though they have been sucked dry for information by technical people. This can be avoided through the development of awareness of the importance of the project team/stakeholder relationship thereby maximizing the value of this contact time.Further, ‘champions’ can be identified from within the stakeholder community. This provides a critical change management input. As these champions are representatives drawn from the stakeholder community their roles can be a very influential and positive contributor to project success.SummaryResearch shows proves that higher levels of user acceptance and greater use of installed solutions are achieved when deliberate change management activities are included in the implementation work plan and life cycle. Best practice in change management is focused on the early involvement of stakeholders and on building a trusting relationship. Accordingly, leading organizations have recognized its importance and routinely allocate resources as projects are plannedFor most organizations there is the opportunity improve information management performance. A place to start is through a benchmarking assessment of information management capability against best practice to identify how to realize available benefits by learning from the success of others.This paper has emphasized change management and the resultant outcomes and opportunities as best practice. The selection of an information management solution is an important corporate investment. For those organizations considering implementation and for those that have current infrastructure in place, there is the real opportunity to maximize return on investment and to create a work culture that displays the requisite information management behaviours.

Family Business, Non-Family Business, Urban Myths.

September 1, 2016

After 20 years of working with Senior Executives across the world it’s interesting to see the mistakes when appointing Senior Executives. There can be many reasons why, but one reason is not understanding the differences of working in a Family Business and a Non-Family Business. I’ve recently met several Senior Executives who are unhappy with their employment because of this lack of knowledge and understanding and I’m meeting Business owners who didn’t realise there was a difference. These Business Owners feel that money and title is enough and stick to the Mantra of “Surely experienced ‘C’ level Executives can work in any company?”Due to the change of economy, I have become more involved with assisting Family Businesses rather than just the corporates in finding ‘C’ level people. To do this successfully I believe that everyone in the process of hiring Senior Executives must understand the differences that separate the two entities. Having worked for an English and Indian Family Business in a past life this has helped me at first hand to see the ups and downs of these Businesses; this with a theoretical base has helped with running my own companies or advising others with theirs.One recent company I have been involved with was run and founded by a successful New Zealand Entrepreneur. He does not have anybody in his immediate family to hand the reins over to. He has tried (outside the family) executives to fill his ‘C’ level roles and has had three people in three years! What is the problem? Was this a real Family Business? Was the Problem his, or the Executives?We discussed the reasons for the failures but in terms of assisting the owner I got him to firstly look at where his people came from. All three had been ‘C’ level people in corporates and had done an excellent job in their corporate environment. They all returned to corporate life and continued to do well in their new roles. Why did they fail then in this successful company?What I needed the owner to do was to identify a “Family Business”. I don’t normally use dictionary definitions but feel that in this instance Wikipedia gives a satisfactory explanation of a Family Business;”A commercial organization in which decision-making is influenced by multiple generations of a family-related by blood or marriage-who are closely identified with the firm through leadership or ownership. Owner-manager entrepreneurial firms are not considered to be family businesses because they lack the multigenerational dimension and family influence that create the unique dynamics and relationships of family businesses” Wikipedia 2014.We looked at his company and although he didn’t have anyone in the immediate family to take over the reins he had people who owned the company in minor leadership roles. We both agreed he did in fact have a Family Business.

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He thought that buying in top salaried ‘C’ level Executives from corporates would enhance growth and sustain his business. He had not seen any differences between Family and Non-Family Business.Urban Myths for Family Businesses;All are unstable Small to Midsize businesses’.
As an Executive I don’t want to baby sit the junior family members so they can take over my job.
A non-family member will never run the company.
Mother and Father Companies, the only people that matter in the company are family members.
Emotional hard to work places due to family disagreements/arguments.
Incompetent family members in positions of authority.
Are these statements true or are they just Urban Myths?Family businesses are one of the fastest growing sectors of the world economy and now merit serious consideration by Senior Executives looking to advance their careers. This is an amazing turnaround from 25 years ago when nobody wanted to work for a family-owned business. There now seem to be many positives;Patricia Epperlein from InterSearch reports that;In the USA, 90% of businesses are family-owned. They contribute towards 40% of that nation’s GNP and pay approximately half of its total wages.59% of France’s Top-500 industrial companies are family-owned.It is estimated that 70% to 85% of all businesses worldwide are family-owned.Tom O’Neil NZ Herald. Jan 2014 states;Small to medium businesses are the lifeblood of New Zealand industry. Various sources cite family businesses as representing 75 per cent of Kiwi firms, providing up to 80 per cent of employment and 65 per cent of national GDP.It’s interesting to note that when companies around the world state that they are a “Family Business” they are trying to reinforce positive family values of, Integrity, honesty, trust and loyalty.Not all Family Businesses’ are SMEs. Companies like;Porsche
WalMart
Tata Group.
In New Zealand the Talley Family (Agribusiness) and the Pandey family (Hotels).
Simon Peacocke of BDO Auckland, an accredited Family Business Advisor works with numerous NZ Family Businesses and feels that they do well because of the following reasons;Family businesses think very long-term and are very resilient, much more so than non-family businesses.Second and third generation family business members start their apprenticeship at a very young age. At 5 years old they are hearing their parents talking about the business so they have an incredible depth of knowledge to draw on.Their relationships with staff and communities also tend to be different – closer, more connected, more loyal.Staff tend to become part of the family business and to stay on as long-term committed employees.While corporates like to be seen supporting their communities, family businesses generally don’t promote they are doing this – they just do it.They don’t throw lots of money at things trying to get rich quick.They also have a powerful focus on building relationships with staff, customers and suppliers.So is it worth working for a family company? Is it better to work for a Non-Family Business? Is there any difference when the economy is good or is in a slump?Nicolas Kachaner 2012 in the Harvard Business Review states,”Results show that during good economic times, family-run companies don’t earn as much money as companies with a more dispersed ownership structure. But when the economy slumps, family firms far outshine their peers. And when we looked across business cycles from 1997 to 2009, we found that the average long-term financial performance was higher for family businesses than for non-family businesses in every country we examined”.Senior Executives looking for longevity in the work place should look at the Family Business as this would take them through economies varying peaks and troughs. They will need to be aware that this will always be done in a cost effective way.Business Consultants believe that they can tell easily if the company is Family or Non-Family Business. You just walk into the Head Office. A Non-family office has a very substantial corporate office with a “Wow Factor”. The Family business being more Frugal has very few “Bells and Whistles”. This Frugality is about the Family Business CEO looking to invest in the long term 20 year plan with the business passing down the generations. The Non-Family CEO is looking to make an instant mark and will try and outperform the person they have taken over from. There are many studies that show that Family Businesses did better in the recent Global recession for the above reason. The Family Business is frugal in the good times and the bad allowing them to weather the storms of economic crisis.This is one of the factors that had been wrong in my client with three ‘C’ Level people in three years. His ‘C’ level people came in with a quick turnaround plan which they hoped would give a quick fix and outspending the last person in the hope that they would do something instantly. No twenty year plan for them as they had never been afforded this way of working in the past.Do Family Businesses perform differently in other countries?

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Justin Craig, PhD states,”Interestingly, in many aspects family businesses as a sector do not vary much from country to country. There are obvious cultural differences but a business with family involvement is challenging in every country. It is also more rewarding than the ‘corporates’, let’s not forget that. Of course, there are older businesses in Europe, for example, than in Australia and New Zealand and the United States, and the mind-sets of companies in Europe will differ than in the later developed countries. But day to day the differences are not noticeable. Older businesses have more at stake and lots more to lose but they also have advantages. Family leaders still have to manage three independent and interdependent systems being the family, the business and the ownership group”.Appointing the right Senior Executives is crucial to any company and is a costly acquisition. There are many reasons why hiring at this level goes wrong but getting it right can make a huge difference to your company.To answer one of my questions, can a ‘C’ Level person work in any type of Business, Family or Non-Family?Yes, but only if they are armed with the knowledge of the differences of the two. What they must also be sure of is the type of business that they are going to work in as sometimes this can be a cloudy issue, making it difficult for them to decide which one it is. Look at those mighty corporate companies of Porsche, Tata and Walmart to name a few.Finding the right ‘C’ Level Executive is a lengthy process and shouldn’t be rushed, if you need to rush you are better to go down the Executive Leasing Route in the short term which will allow you to take a breath and get the right permanent person in place. Work with your inside team or your outside partners to establish a good process, so the firm can articulate the process to the Senior Executives. Everyone appreciates the fact that there is a well thought-out plan in place.For me, I decided a long time ago not to build a Family Business. I wanted to give my children the best in life, but wanted them to make their own way in life too. My children might disagree but as one is studying to be a Barrister and one is settled in a corporate I will wait and see if I need to step in? I have however, always agreed with Billionaire Investor Warren Buffett who said, “He would give his kids just enough so that they could do anything, but not so much as they did nothing”.