Sustainable Economic growth? - 6 Mar 2011

Robin Trehan

What are the ways to bringing in sustainable economic growth?

Way 1. Stock options- Stock options can be
the best way to bring into alignment the interest of the shareholder and
the employees. The stock options can be a very good way for the
alignment of interest but in a bear market, stock options do not pay off
for employees so employers reduce them.

Way 2. Analysis of the firm on the following grounds

• How is the firm value determined?


• How does the other financing affect firm’s value?


• How is the interest rate determined in the market, how to
  determine whether risks are compatible with the return from the
  opportunity exploited 

Way 3. Benchmarking- is necessary for the
companies both internally and externally. Business model such as
balanced scoreboard prepared by Dr. Robert Kaplan and David Norton,
which measures a company around four perspective- learning and growth,
the business process, customer and financial perspective can be of added
advantage. It is also important for the companies that they business
value index i.e. a process in which ‘the intangibles benefits of a
process are qualified in manner which are measurable.

Way 4. Key performance indicators - a key
performance indicator, which focuses on financial measurements as well
as non-financial measurements, can be of crucial importance. KPI should
be viewed as a forward-looking system of measurements that helps
managers predict the company’s economic performance and spot the need
for changes in operations.

Way 5. Moving towards Knowledge Management -
Knowledge management caters to systematically leverage information and
expertise to improve organizational responsiveness, innovation,
competency, efficiency and corporate knowledge. Corporate knowledge is
an aggregated body of experience and understanding of an organization's
processes for managing both planned and unplanned situations to achieve
the process whereby knowledge seekers are linked with knowledge sources,
and knowledge is transferred to attain knowledge management.

Way 6. Visualizing success - The
visualization of a successful result is another important success
factor. Many consultants believe that imagining themselves performing
their events flawlessly, walking through the entire process in their
mind, is a key factor in their success. Broadening product line: The
ability to continually improve their product portfolio to meet changing
customer requirements.

Way 7. Moving towards learning organization- A
knowledge-based organization will lead to focused vision, faith, and
initiatives. These initiatives will make employees contribute to the
overall mission. Initiative without knowledge, vision and faith is
misguided energy.

Way 8. Training and Development -The system
and its users may need to be updated over time. Staff may slip into bad
habits unless reminded of the system's value.

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