1. Offshoring Strategy Framework

1. Offshoring Strategy Framework
Strategy Evaluation Efficiency Evaluation Offshoring Evaluation Selection Current Situation Context Processes External analysis Market Conformity of Cost Cost comparison Cost benefit Economic of scale Offshoring Feasibility Location requirements Opportunities abroad Intensity of labor Geographical fragmentation Country Selection Cost benefits Distance Culture and stability Tax advantages Primary Competence Differentiation Strategic choice Flexibility Value chain assessment Distinctive capability Critical aspect Make or Buy Decision Possible alternative Possible partners Cost differences Technology & knowledge Employees Financial stability Mode & Partner Independent Outsourcing Joint ventures Buying process Contracts and service level Risk & Improvement Potential for improvement Limitations Risks Maintain Optimize No Offshoring Offshoring

2. Cradle to Cradle Concept
C2C suggests that industry must protect and enrich ecosystems and nature's biological metabolism while also maintaining a safe, productive technical metabolism for the high- quality use and circulation of organic and technical nutrients. It is a holistic, economic, industrial and social framework that seeks to create systems that are not only efficient but also essentially waste free Plants Biodegradation Biological Nutrients Products Technical Nutrients Use Production Disassembly Return and Biological Cycle Technical Cycle

Performance improvement required(and expected) by main market
3. Disruptive Innovation In business theory, a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. Time Performance Current performance of potentially disruptive technology Current (market average) performance Performance improvement required(and expected) by main market Expected trajectory of performance improvement of disruptive technology

Economic Value Added (EVA)
Economic value added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. Economic Value Added (EVA) Net Operating Profit After Tax (NOPAT) = Cost of Capital (Invested capital * WACC) - Improvement of profit and loss (Income Statement) Improvement of asset efficiency (Balance Sheet) Operational Profit After Tax Invested Capital WACC (weighted average cost of capital) = -

Number of New Adoptions
It consists of a simple differential equation that describes the process of how new products get adopted in a population. The model presents a rationale of how current adopters and potential adopters of a new product interact. 5. Bass Diffusion Model Time 5 10 15 20 25 30 35 40 Number of New Adoptions Development Time Diffusion Time Diffusion Start Adoption from imitation = Adoption of innovation = Cumulative fraction of adoption =

The DuPont identity breaks down ROI (that is, the returns that investors receive from the firm) into three distinct elements. This analysis enables the analyst to understand the source of superior (or inferior) return by comparison with companies in similar industries (or between industries). 6. DuPont Analysis Return on Investment Asset Turnover Profit Margin Sales Total Assets Profit Current Assets Fixed Assets Contribution Margin Fixed Cost Variable Cost

A value-creating business process that, when applied effectively, drives the development and launch of a steady stream of successful new products. It is considered the 'industry standard' and is the world's most widely benchmarked, referenced and implemented innovation management model. 7. Stage-Gate Model Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Stage 5: Finalize, Market launch and Review Stage 1 Initial Examination Stage 2 Detail Examination Stage 3 Development Stage 4 Test and Validate Initial screen Second screen Decision for a business scenario Review and improvement Pre-market analysis

8. CYNEFIN Framework contexts or "domains"— obvious (known until as simple), complicated, complex, chaotic, and disorder— that help managers to identify how they perceive situations and make sense of their own and other people's behavior. Not Ordered Complex Increase communication and interaction Emerging Method Chaotic Focus on what really works, rather than looks for answers Transition Complicated Create expert group Transformation New Method Good Method Simple Keep things simple Proven Method Ordered

9. 8D Process The eight disciplines (8D) model is a problem solving approach typically employed by quality engineers or other professionals, and is most commonly used by the automotive industry but has also been successfully applied in healthcare, retail, finance, government, and manufacturing. D1 Establish team D2 Define problem D3 Develop containment actions D4 Identity root cause D5 Establish corrective actions D6 Implement corrective actions D7 Prevent recurrence D8 Recognize team effort

10. Innovation Cycle The innovation management process has become an important part of the operations of many businesses, as the recognition of the importance of initiatives towards innovation has become much more common. Setting the goals 1 8 2 Repeat Process Cooperation 7 3 Innovation Lifecycle Assessment of innovation life-cycle Combination of Ideas 6 4 Evaluation of Innovation Execution of innovation implementation 5 Testing the Ideas

11. Organizational Configuration
This can help business owners and managers to understand exactly how they should be setting up their operation based on what they are trying to accomplish. There are five structures outlined within this model, as follows: Operational core Upper management Middle management Technostructure Support Staff Ideological components Upper Management Pull Towards Rationalization Pull Towards Collaboration Division into independent units Techno-structure Support Staff Middle Management Operational Core (Pulls towards professionalization)

12. Focus-Energy Matrix This matrix, by Heike Bruch and Sumantra Ghoshal, shows the effectiveness of a manager’s behavior. This effectiveness is the result of understanding how to improve actions as well as impact. Focus High Low Detachment Unable to commit to tasks that hold no meaning. Defensive avoidance. Fear of failure, sabotage, rejection. Easily overwhelmed by the unexpected. High burnout rate. Purposefulness High self-awareness. Great planners and managers. Pick goals and battles carefully. Strong willpower, good boundaries. Personally accountable for making meaningful contribution. Value time: carefully manage s, phone calls, and interruptions. Manage external environment to meet their goals Procrastination Fail to take initiative, raise level of performance, or enhance strategy. Chronically passive state and learned helplessness. No strategy or goals Distraction High energy with no focus. Aggressive unreflective behavior. No strategy: shoot first and aim later. Over committed. Fight fires or abandon projects. Energy Low High

Greater Level of Attention
13. Schein’s Three Levels of Culture According to Edgar Schein there are direct and indirect mechanisms within organizations. The organizational culture model is directly influenced by direct mechanisms. This includes exemplary behavior, opinions, status and appointments. Indirect mechanisms do not influence the organizational culture directly however they are determinative. Preconscious Creations & Artifacts Visual organizational structure and process Invisible Values Strategies, goals, philosophies Assumed Greater Level of Attention Assumptions Perceptions, thoughts and feelings Visible

Framework and Guidelines
14. Architecture Development Method (ADM) The Architecture Development Method (ADM) is at the heart of TOGAF and comprises a detailed step-by-step process for developing or changing an enterprise architecture. Much of the TOGAF documentation covers the ADM, and everything else in TOGAF can be mapped back to the ADM. Framework and Guidelines Architecture Change Management Architecture Vision H G F E B C D A Requirements Implementation Supervision Business Architecture Migration Planning Information System Architecture Possibilities and Solutions Technology Architecture

15. Trompenaars’ Dimensions
According to Fons Trompenaars, cultural differences will create a better understanding of reality. Fons Trompenaars and Charles Hampden-Turner developed a cultural model, that distinguishes seven cultural dimensions. The name of this management and communication model is the Trompenaars Cultural Dimensions. 15. Trompenaars’ Dimensions Alfons Trompenaar’s Cultural Dimensions Nature Oriented Individualism Universalism Affective Specific Achievement Time Oriented Collectivism Particularism Neutral Diffusion Ascription These are cultures that try to control nature, or cultures that want to live in harmony with nature. Individualism reflects the extent to which a person places his own interests above those of society. With collectivism, society is more important than the individual. Universalism shows how feasible it is to establish and enforce certain rules within a culture. Particularism, on the other hand, is directed against such rules. In affective cultures, expressing strong emotions is accepted and encouraged. In neutral cultures, emotions are controlled and reason is preferred. In specific cultures, work and personal lives are kept separate. In diffuse cultures, an overlap is commonly found. In an achievement- based culture, work performance is highly valued. In an ascription-based culture, value is put on who you are. This refers to past- oriented, present- oriented and future-oriented cultures.

Positive risk-reward balance Negative risk-reward balance
16. Risk-Reward Analysis A risk-reward analysis is a very simple tool which can help you assess the risk and reward profile of completely different options. It works in the same way as a risk- return analysis which you may already be familiar with. It can be applied at any level. The template works by having risk plotted along one axis and reward along the other. Positive risk-reward balance Risk-seeking Risk Reward New Product B Internationalize Ecommerce Outsourcing New Product C Improve Customer Service Supply Chain New Product A Support Risk reverse Negative risk-reward balance

Gives criteria in setting objectives, such as in project management, employee-performance management and personal development. 17. SMART Targets S M A R T Specific Goal should be clear and specific, otherwise you won't be able to focus your efforts or feel truly motivated to achieve it. Measurable It's important to have measurable goals, so that you can track your progress and stay motivated. Assessing progress helps you to stay focused, meet your deadlines, and feel the excitement of getting closer to achieving your goal. Attainable When you set an achievable goal, you may be able to identify previously overlooked opportunities or resources that can bring you closer to it. Relevant This step is about ensuring that your goal matters to you, and that it also aligns with other relevant goals. Time-Limited Every goal needs a target date, so that you have a deadline to focus on and something to work toward. This part of the SMART goal criteria helps to prevent everyday tasks from taking priority over your longer-term goals.

Investment Stages provide information about the phases of a company’s development and the various investments and investment sources that are necessary or useful at any given time. 18. Investment Stages Capital Source Family and Friends Private Assets Angle Investor Venture Capital Banks Public Funding Stock Market Earning Power IPO MBO Market Entry Idea Proof of Concept Prototype Stages Seed Incubation Start-up Expansion Buy-out

19. Seven Habits of Highly Effective People
The 7 Habits of Highly Effective People, first published in 1989, is a business and self-help book written by Stephen Covey.[1] Covey presents an approach to being effective in attaining goals by aligning oneself to what he calls "true north" principles based on a character ethic that he presents as universal and timeless. Interdependence 7. Sharpen the saw Public victory 5. First understand then to be understood 6. Achieve synergy 4. Think win-win Independence 3. Put first things first Private victory 1. Be Proactive 2. Begin Dependence

This model was given by George Milkovich, Jerry Newman and Barry Gerhart which is a method for examining current pay systems. It also helps to develop and implement a company’s remuneration policy. 20. Compensation Model Guidelines Alignment Competitiveness Contribution Management Techniques Work Analysis Description Evaluation or Certification Market Definitions Surveys or Studies Guidelines Seniority-Based Performance-Based According to Specifications Costs Communication Changes Internal Structure Pay Structure Incentive Programs Assessment Goals Efficiency Fairness Agreements

21. CAGE Distance Framework
The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies. It may also be used to understand patterns of trade, capital, information, and people flows. 21. CAGE Distance Framework A G Geographical Distance Includes the distance between borders such as accessibility, time zones etc. Administrative Includes differences in legislation, level of corruption, colonial connections, historical or political etc. C E Cultural Distance Includes differences in religion, ethnicity, language, values and social norms Economic Distance Includes differences in consumer wealth, labor costs and availability of resources Stakeholder Distance

Resource Investigator
22. Belbin’s Team Roles Belbin believes that each of us possesses a pattern of behaviour that characterises one person's behaviour in relationship to another in facilitating the progress of a team. Dr Meredith Belbin defines a team role as: "A tendency to behave, contribute and interrelate with others in a particular way." Action Oriented Shaper Challenges the team to achieve objective Implementer Put ideas into action Completer Ensures thorough, timely completion People Oriented Coordinator Acts as a chairperson Resource Investigator Explores outside opportunities Team Worker Encourages cooperation Thought Oriented Plant Present new ideas and approaches Specialist Provides specialized skills Monitor Analyzes the options

23. Competing Values Framework (CVF)
The Competing Values Framework is a theory that was developed initially from research conducted on the major indicators of effective organizations. Based on statistical analyses of a comprehensive list of effectiveness indicators, Quinn and Rohrbaugh discovered two major dimensions underlying conceptions of effectiveness. Individuality, Flexibility Clan Cooperation Create Flexible, Organization, Structure Internal Focus External Focus Control Hierarchy Compete Market Stability

To gain more insight into the competitive position of organizations, Arthur D. Little developed the strategic condition matrix, which is also known as the ADL Matrix. The ADL Matrix consists of two important dimensions: the competitive position and industry maturity (maturity of the product). 24. ADL Matrix Embryonic Growth Mature Ageing Dominant All out push for share. Hold position Hold position, hold share Hold position. Grow with industry Attempt to improve position Hold position or harvest Selective attempt to improve position Selective push for share Custodial or maintenance. Find niche and protect it. Phased out withdrawal or harvest Selectively push for position Find niche and protect it Phased out withdrawal or find niche and hang on Phased out withdrawal or abandon Up or out Turnaround or abandon Turnaround orphaned out withdrawal Abandon Strong Favorable Tenable Weak

Your Competitive Advantage
Michael Porter’s tool consist of the following three strategies: Cost, Leadership, Differentiation and Focus. All three strategies can create a sustainable competitive advantage. The goal is to follow the three strategies simultaneously. 25. Generic Strategies Cost Leadership Differentiation Focus Your Competitive Advantage Your Scope Costs Distinctiveness Extensive Cost Leadership Differentiation Limited Focus

26. Bottom of the Pyramid (BOP)
The BOP Model by C. K. Prahalad and Stuart L. Hart includes a market- oriented management in developing countries, known as the “Bottom of the Pyramid” countries. The theory is that this model can open up new growth markets and help end poverty. Purchasing Power (dollars per day) World Population (in inhabitants) Level 1 More than 20K dollars millions Level 2 & 3 Between 1.5K to 20K dollar 1.5 to 1.7 millions Level 4 Less than 1.5K dollar 4 millions

The Ofman methodology (1992) is mainly used to examine how you operate on a personal level. The methodology charts your core qualities, pitfalls, challenges and allergies. 27. Core Quality Quadrant What annoys others about your business What you justify What you mean by “normal” What others like about your company Core Quality Pitfall Too much What you expect from others What you are willing to overlook x Positive Positive Core Quadrants Allergy Challenges What others wish from your company What you don’t like about other company What others expect from you Too much What you don’t like about your company What your company lacks What you admire in others

28. Seven Levels of Sustainability
Richard Barrett’s Model shows how a corporate culture can be designed to fulfill all the stakeholder’s needs. 28. Seven Levels of Sustainability Organizational Motivations Human Motivations Survival 1 Financial Sustainability Relationships 2 Social Sustainability Feeling of self-worth 3 Organizational Sustainability Transformation 4 Structural Sustainability Internal Cohesion 5 Cultural Sustainability Making a difference 6 Collective Sustainability Service 7 Global Sustainability

Economic Development & Social Transformation
29. BOP Framework This BOP Framework is based on the BOP Model. It aims to integrate previously neglected and economically weaker populations into a company’s value chain. Private Sector Economic Development & Social Transformation Development and AID Organizations BOP Consumers BOP Enterprises Civil Society and Local Government

Satisfaction/Dissatisfaction
30. Two-Factor Theory This theory states that there are certain factors in the workplace that cause job satisfaction while a separate set of factors cause dissatisfaction, all of which act independently of each other. It was developed by psychologist Frederick Herzberg. Promotion Opportunities Achieving Specific Goals Recognition Responsibility Progress Motivation Factors Satisfaction/Dissatisfaction Work Conditions Policy & Management Interpersonal Relationship Supervision Remuneration Hygiene Factors

31. Balancing Transparency
This Model, by Piet Hein Coebergh and Edi Cohen, is used to illustrate when corporate transparency is achieved. It helps to identify the risks and benefits of transparency. Flexibility Confidence High Low High Independence Juridification Low Transparency (Source of confidence and uncertainty)

Experience of Cultural Differences
The Developmental Model of Intercultural Sensitivity (DMIS) was created by Dr. Milton Bennett (1986, 1993, 2004, 2013) as a framework to explain how people experience and engage cultural difference. 32. DMIS Model 1. Denial 2. Defense 3. Minimize 4. Acceptance 5. Adjustment 6. Integration Experience of Cultural Differences Ethnocentrism Other groups are judged based on one’s own cultural norms and perceptions. Ethnorelativism One’s own perceptions are questioned and attempts are made to understand the cultural norms of other groups.

33. Total Perceived Service Quality
This tool by Christian Grönroos is used by companies to identify gaps between technical, functional, experience and expected quality aspects. Experienced Quality Image Expected Quality Total Perceived Quality Marketing Communication Sales Buzz Marketing Public Relations Customer Requirement and Values Technical Functional

34. Identity and Image (Birkigt/Stadler)
According to Klaus Birkigt and Marinus Stadler, the identity of a company can also be described as the corporate image. The core identity can be defined by these 3 attributes : Communication (marketing, presswork etc.) Symbolism (logo, slogan etc.) Behavior Image Corporate Personality = Behavior Identity = Communication = Symbolism

Engaging and enabling the organization Creating the climate for change
n 1996 John Kotter wrote Leading Change* which looked at what people did to transform their organizations. Kotter introduced an 8- step change model for helping managers deal with transformational change. This is summariZed in Kotter’s 8-step change model. 35. Kotter’s 8-Step Change 8. Reinforce 7. Don’t Ease Up 6. Create Short Term Wins Engaging and enabling the organization 5. Enable Authorization 4. Communicate Buy-In 3. Establish Vision Creating the climate for change 2. Determine Management 1. Increase Urgency

36. MDA Framework In game design the Mechanics-Dynamics- Aesthetics (MDA) framework is a tool used to analyze games. It formalizes the consumption of games by breaking them down into three components: Mechanics, Dynamics and Aesthetics. Mechanics Dynamics Describes certain components of a game at the data representation and algorithm level. This includes components, controls, and courses. Aesthetics Describes the run-time behavior of the mechanics which affects player input and achievements. This can include context, constraints, choices, chance, consequences, completion continuation, competition, and cooperation. Describes the emotional response of the player. This can include challenge, commendation, confidence, cognizance, creativity, contribution, community, and compliance.

37. Business Process Management (BPM)
BPM is a discipline in operations management in which people use various methods to discover, model, analyze, measure, improve, optimize, and automate business processes.. Any combination of methods used to manage a company's business processes is BPM. Identify performance gap Identify customer requirement and benchmark Set vision and objectives Business Process Management Measure and evaluate process Change or replace process Assess results

38. Cialdini’s Seven Principles
The Six Principles of Influence, according to Robert Cialdini, are intended to illustrate the extent to which people can influence or convince themselves to buy product or to use service. He recently added seventh principle. 38. Cialdini’s Seven Principles People are likely to return the favor 1. Reciprocity People rarely like change & prefer consistency 2. Consistency People often follow the heard 3. Social Influence People trends to submit authority 4. Authority and Obedience People are more easily persuaded by those they like 5. Liking People inevitably view something that is rare as more valuable 6. Lacking People are more likely to be influenced by others if they strongly identify with them 7. Unity

39. Model of Entrepreneurship
The Timmons Model of entrepreneurship is ag guide for improving a company’s chance of success. This success is based on the following factors: Possibilities Team Resources Resource Communication Leadership Team Possibilities Founder Creativity

This is the blanket term for the level of education and participation of the entire staff. It includes a reward system that intends to link the group effort to the company’s overall performance. 40. Gainsharing Promised Bonus Employee participation Readiness to implement solutions Improved productivity Bonus payment Confidence in management Initial acceptance of gainsharing Cooperation between employees & management

41. Elaboration Likelihood Model (ELM)
Audience Factor Processing Approach Persuasion Outcome This is a dual process theory describing the change of attitudes. The model aims to explain different ways of processing stimuli, why they are used, and their outcomes on attitude change. The ELM proposes two major routes to persuasion: the central route and the peripheral route. High motivation and ability to think about the message Deep Processing Lasting Change MESSAGE Low motivation or ability to think about the message Superficial Processing Short Term Change

42. Blue Leadership Jan Moen and Paul Ansems Model assigns color to leadership behavior. Companies should strive for a “Blue leadership” management concept. Red White Aggressive Defensive Competitive Perfectionist Power-oriented Relaxed Honest Humble Cooperative Confrontational Green Evasive Dependent Conventional Needs Approval Blue Black Constructive Selfless Motivated People-oriented Self-realized Cynical Autonomous Inefficient Detached Notable

Provides value to customers Other proprietary assets
Aaker defines brand equity as a set of five categories of brand assets and liabilities linked to a brand, its name and its symbol. These can add to or subtract from the value that a firm's product or service gives its customers, providing various benefits and value. 43. Aaker’s Brand Equity Reduced marketing costs Trade leverage Attract new customers Time to respond to competitive threats Provides value to customers by enhancing their Interpretation and processing of information Confidence in the purchase decision User satisfaction Brand Loyalty Anchor to which other associations can be attached Signal of substance and commitment Brand to be considered Brand Awareness Brand Equity Reason to buy Differentiate/position Pricing Channel member interest Provides value to firm by enhancing Efficiency and effectiveness of marketing programs Brand loyalty Prices and margins Brand extensions Trade leverage Competitive Advantage Perceived Quality Help process / information retrieval process Create positive attitudes Brand Associations Other proprietary assets Competitive advantage

44. 3R Model Corstiaan Marinus Storm’s Model is designed to identify a company’s ability to observe and manage its retail, reputation and relationships as a whole. Reputation Returns Retail Model Relationships

The service–profit chain is the central concept in a theory of business management which links employee satisfaction to customer loyalty and profitability 45. Service-Profit Chain Revenue Growth Employee Retention Internal Services Quality Employee Satisfaction External Service Value Customer Satisfaction Customer Loyalty Employee Productivity Profitability Service concept and results for customers Workplace design Job design Employee selection Employee development, rewards, and recognition Tools for serving customers Service designed and delivered to meet customer needs Retention Repeat business Referrals

46. AMO Model The AMO model is an illustration of how employees can be motivated by the line managers using the HR policies and practices involved so as to enhance performance and well-being. The term AMO means A=Ability, M=Motivation, O= opportunity. Performance-based remuneration Internal promotion Opportunities for personal development Evaluation and feedback Job security Ability Opportunities Training Coaching and mentoring Socialization programs Targeted recruiting & selection Learning on the job Flexibility in tasks Meeting Employee involvement Participation in hiring Job Enlargement Motivation

47. Situational Leadership
Paul Hersey and Kenneth Blanchard’s Model asserts that effective leadership is dependent on the situation. It is used to achieve optimal management. 47. Situational Leadership Provided Support High Low The company’s maturity is assessed as "capable but not yet ready“ Appropriate management style: supporting and participating Motivated joint decision-making process The company’s maturity is assessed as "incapable but ready" Appropriate management style: coaching A dialogue with socio-emotional support to motivate employees’ commitment Situation 3 Situation 2 Supporting Coaching Situation 4 Situation 1 The company’s maturity is assessed as "capable and secure” Appropriate management style: delegating Apart from strategic decisions, the main process and the responsibility is handed over to the employees The company’s maturity is assessed as "insecure" Appropriate management style: directing One-sided communication in which leader determines roles of employees Directing Delegating Specified Direction High Low

48. Boonstra’s 8 Routes for Cultural Change
Jaap Boonstra’s Model shows the different ways a company can change its corporate culture. Develop Breakthrough Innovations Minimize Customer Value Create & develop new business ideas Appreciate diversity and changes Develop future based qualifications Survive Crisis Situations Reinforce Legitimate Position Expand Internationally

49. Situational Crisis Communication Theory (SCCT)
SCCT is a theory in the field of crisis communication. It suggests that crisis managers should match strategic crisis responses to the level of crisis responsibility and reputational threat posed by a crisis. Crisis History Pre-Existing Relationship Crisis Responsibility Company Reputation Behavioral Intention Crisis Response Strategies Effect or Emotions

50. Interpersonal Circumplex
Timothy Leary’s Model (also called Leary Circle or Leary’s Rose) is intended to illustrate how people are interrelated by exploring individual personalities. Competitive Guiding Aggressive Defiant Dependent Reticent Helping Cooperative Above Together Leary Circle Opposed Below

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