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CREAM Report is the essence of Corporate Governance, Risk Management, Earnings, Accounting Quality and Management Quality. It establishes ACCESS - Accelerating Corporate Energy in Sustainable State.
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IBCM© Research 2014
Rationale for adopting CREAM™ Report - Deming way
An IBCM© Research Presentation
IBCM© Research 2014
CREAM™ Report
IBCM© Research 2014
Deming
Deming1 is best known in the United States for his 14 Points (Out of Crisis, by Dr. W. Edwards Deming, Preface) and his system of thought he called the System of Profound Knowledge, consisting of four components, or "lenses" through which to view the world simultaneously:
An appreciation of a system,
understanding of variation,
psychology
and Epistemology, or a theory of knowledge.
IBCM© Research 2014
EpistemologyDespite being honoured in Japan in 1951 with the establishment of the Deming Prize he was only just beginning to win widespread recognition in the U.S. at the time of his death in 1993.
The first half of 20th century saw stalwarts such as Andrew Carnegie, Amadeo Peter Giannini, Thomas Watson Jr and many more contributing to US growth of value system. In the second half great valued companies were overshadowed by persons who shifted their base from Las Vagas to Wall Street. No wonder Deming was not listened to.
IBCM© Research 2014
Amadeo Peter Giannini
Men of stature did live among us and one was Amadeo Peter Giannini, the man who turned Bank of Italy to Bank of America. "When Giannini died
at age 79, his estate was worth less than $500,000. It was purely by choice. He could have
been a billionaire but disdained great wealth, believing it would make him lose touch with the
people he wanted to serve. For years he accepted virtually no pay, and upon being granted a
surprise $1.5 million bonus one year promptly gave it all to the University of California. "Money itch is a bad thing," he once said. "I never had
that trouble."2
IBCM© Research 2014
Banking and NPAs
With CREAM™ Report
Banking eliminates NPA altogether
measuring the external risk appetite,
spreading the internal risk culture
IBCM© Research 2014
Corporate and CDRs
With CREAM™ Report
Corporate avoids reaching to a CDR stage
Accelerating Corporate Energy in Sustainable
State [ACCESS]
IBCM© Research 2014
Corporate Pension fund assets in OECD countries hit a record USD 20.1 trillion but return on investment fell
below zero,with an average negative return of -1.7% [US -3.00%]3
With CREAM™ Report
Fund Managers select the cream
reversing the negative trend
IBCM© Research 2014
Value System
Andrew Carnegie for Industry, Amadeo Peter Gianini for Banking and Thomas Watson Jr. for Services ushered in the US corporate value system.
With CREAM™ Report
identify what is crucial, bring the abstractions into
reality, acknowledge value where value is due,
and deconstruct what is valueless.
IBCM© Research 2014
Product Quality ~ Management Quality
Deming award winners are a class by themselves, nurturing quality and building industry over several years, the backbone of global economy.
Product Quality does not necessarily guarantee Management Quality, as Joseph Murphy disputes OECD's conclusion that large multinational companies generally have adequate internal compliance controls; adding: One need only look at the record at Siemens (whose code of conduct was described as the ―read, laughed and filed code), or the long, legalistic (and ineffective) code that existed at Enron to see the great danger in such sweeping conclusions.4
IBCM© Research 2014
CREAM™ Report viewed by 'lenses' of Deming 14 Principles
CREAM™ Report is based on study of Intangible, unique in its structure, well defined and applied measuring metaphysical concepts for corporate management.
Deming 14 principles are used as 'lenses' to view CREAM™ Report.
IBCM© Research 2014
Principle 1: Constancy of purpose
Deming: Principle 1: Create constancy of purpose toward improvement of product and service, with the aim to become competitive, to stay in business and to provide jobs.
CREAM™Report enables Constancy of purpose. CSR is divided into CER
+ CFR, Ethical and Fiscal Responsibility, in three issue areas: 1. Sustainability of Value System, 2.
Sustainability of Efficiency and 3. Sustainability of Profits.
IBCM© Research 2014
Principle 2: Adopt the new Philosophy
Deming: Principle 2: Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
CREAM™Report aligns Fiscal Responsibility with Ethical Responsibility in a framework of Corporate Atomic Structure.
CREAM™Report exhorts companies to adopt Ethical Responsibility as the new philosophy, crucial for accelerating economic growth.
IBCM© Research 2014
Principle 3: Self-Governance
Deming: Principle 3: Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place.
CREAM™Report defines a product as a tangible object the end result of a creative process - IPR, mandatory as well as non-mandatory policies, code of conduct, business principles etc. besides a manufactured product, covering the entire corporate spectrum.
open ended structured process blocks are spread throughout, owned by a team of 5 sets of people, yoked together but act independently, with delegated authority, establishing self-governance.
IBCM© Research 2014
Principle 4: Code of Business Principle
Deming: Principle 4: End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust.
CREAM™Report measures conflict of interest, differentiates conflict of personal interest, conflict of conscience, risk appetite, risk culture, insider trading, code of business principle etc.
IBCM© Research 2014
Principle 5: Costs monitored
Deming: Principle 5: Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
CREAM™ Report knocks down the entire structure to as many identical manageable blocks of operating structure under 1. creative process and 2. action process, former defining quality and latter sticking to its relative unique Quality, in infinite succession of finite purposes.
Corporate strategy of cutting costs is enabled by big data being compressed within the corporate atomic structure, spread throughout in each process block, at the root level.
IBCM© Research 2014
Principle 6: Training
Deming: Principle 6: Institute training on the job.
CREAM™ Report the 3-day workshop on Sustainability of profits is designed as a training on preparation of CREAM™ Report for subsequent DIY CREAM™ Report.
Each process block owner, the same 5 sets of people throughout, understands the implication of binary value of Action and Inaction applied to each.
IBCM© Research 2014
Principle 7: Leadership
Deming: Principle 7: Institute leadership. The aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.
CREAM™ Report The case study adopted for the 3-day workshop identifies the managerial capability, wanting in every area of corporate strategies from innovation to marketing, by the three issue areas - Sustainability of - value system - efficiency - profits, with an Index of Inactivity. Leadership is measured in each area for optimising performance by self-governance.
IBCM© Research 2014
Principle 8: Corporate fears
Deming: Principle 8: Drive out fear, so that everyone may work effectively for the company.
CREAM™ Report 3-day workshop measures corporate Intellectual Value Capital and Emotional Value Capital, independently by each process block to arrive at the Intangible Value capital of a company.
The only energy resource of a company, the pulsating energy, is measured. Encouraged to collide with the non-pulsating ones the study shows how to optimise the pure energy. Fear of anything disappears, replaced by energy force that each contributes.
Corporate fears are unfounded.
IBCM© Research 2014
Principle 9: Restructure Organisation
Deming: Principle 9: Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to foresee problems of production and usage that may be encountered with the product or service.
CREAM™ Report: Each goal is managed by 5 KPIs represented by 5 categories of people, common throughout each process block, fusions the corporate energy force to - a constancy of purpose. Departments and products disappear replaced and identified by non-pulsating energy.
IBCM© Research 2014
Principle 10: substitute with leadership
Deming: Principle 10: Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
Eliminate work standards (quotas) on the factory floor. Substitute with leadership.
Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership.
IBCM© Research 2014
Principle 10: substitute with leadership
CREAM™ Report analysis by corporate atomic structure endorses what Deming says under principle 10 - as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
CREAM™ Report by Subject - Object Distinction of Qualitative and Quantitative elements of management buttonholes on 3 Ps - Policies, Practices and People - and measures the extent of performance by each process block. Index of Inactivity is derived to perform at optimum level by the 5-sets of KPI owners.
Each single KPI is owned by individuals who are yoked together as a team but perform independently, with a healthy competition between them.
IBCM© Research 2014
Principle 11: Removing the barriers
Deming: Principle 11: Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
CREAM™ Report recognises Ethical Responsibility that equates the highest and the lowest paid. Diversity in working environment are the gems strung together that may vary in colour and species, but the supporting string of ethical responsibility is the same all through.
Corporate that realises this dictum, a huge really huge energy force is awaiting them for tapping.
IBCM© Research 2014
Principle 12: Reward Policy
Deming: Principle 12: Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objectives
CREAM™ Report analyses Reward Policy linking performance to the three issue areas: Sustainability of - value system - efficiency - profits. Besides each goal set is a result of a team work with each input resource acting independently.
To quote5: “Ask senior HR practitioners and employees about the least popular workplace practices, and the bell curve-based performance appraisal system will rank right up there.” n-dimensional problems are converted to n-problems of 1 dimension by CREAM™ Report
IBCM© Research 2014
Principle 13: self-improvement
Deming: Principle 13: Institute a vigorous program of education and self-improvement.
CREAM™ Report endorses Deming's System of Profound Knowledge, that program of education by IBCM© Research, would benefit individual employees, immensely. Case study reveals the distinct possibility of whistleblower protection superfluous, once the CREAM™ Report is put through.
IBCM© Research 2014
Principle 14:
Deming: Principle 14: Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.
CREAM™ Report's ratings by Return on Intangible, the pole-shift theory of management, with pulsating energy of each individual as the denominator and action or inaction by each the numerator, transformation is assured.
IBCM© Research 2014
3-day workshopFor details of:3-day Workshop on CREAM™ Report Measuring Sustainability of Profits: ACCESS - Accelerating Corporate Energy towards Sustainable State July 11,12,13 - 2014 At Kodaikanal, Tamil Nadu, IndiaDownload: https://docs.google.com/file/d/0B01S7vBog6jINnlmSjRQM05aOGM/edit?pli=1
Jayaraman Rajah Iyerjayar.ibcm[a]gmail.com+919869972349
Sustainable efficiencyensures Profits
Sustainable value systemensures sustainable profits
IBCM© Research 2014
Acknowledgement
1. http://en.wikipedia.org/wiki/W._Edwards_Deming#cite_note-5
2. Amadeo Peter Giannini, Consumer banking owes a big debt to a produce seller who refused to say no By DANIEL KADLEC, http://www.time.com/time/time100/builder/profile/giannini.html, The TIME 100
3. Source OECD 21 Oct. 2012
4. Mr. Joseph E. Murphy (Corporate Compliance and Ethics Professional): Review of the OECD antibribery instruments: compilation of responses to consultation paper: 31 March 2008
5. Why companies hang on to the bell curve - http://content.timesjobs.com/why-companies-hang-on-to-the-bell-curve/?fromsite=toi&utm_source=toi&utm_medium=referral&utm_campaign=toi-tj-whitelabel