Companies reinvest in business

Why companies are in panic of survival in hard economic conditions?

Companies reinvest in business

Primarily because this saves tax

Profit booking is kept lower to take this advantage

Tax escape forces companies to grow by,

saving money and investing it back in business

Public companies,

out of investor outcry can do lot varied things

Putting all money back in business makes it stronger

Money is put back to risk again

Rewards weigh higher than risks, in good time

When companies heading bankruptcy,

Where year on year earned profit is gone?

Since it was reinvested mostly, all profit was put to risk again

Growth changes it all

In bootstrapping phase,

Money is put back to maximize growth

What do you have to loose in early days?

Well ahead on growth path,

Growth rate reduces progressively

Steadily growing self funded re-investments

are consumed by reducing growth rate

There always is an ambient risk

Risk of loosing what ever is achieved so far

When award through growth is limited and risk is elevated

Why put all money to risk?

The gamble

It is gamble,

Put back what you won on repeated bet and multiply fast

It requires consecutive wins at single stretch

Lose once and loose every thing in a single shot

Successive wins raises risk appetite

Self motivating positive feedback builds euphoria faster

Loose wow good fortune in single attempt

And urge for recovery attempt becomes desperate

You feel,

need just one win and

recover everything in a single attempt

before you leave the game safely forever

To bet again requires funds

but funds are already lost

To recover larger fortune lost in single transaction,

you need equally large sums

Odds are against

Loaning funds for last chance

raises risk to survival threat

Repeat attempt with small funds or big

You loose most likely

At a stretch consecutive wins are rare

Even rarer than that is

“Repeat” chance of, at a stretch consecutive wins

which you wanted desperately

A loosing gambler,

must be kept away from playing further

on each round they attempt exponential risk

At a stretch winning gambler,

must be advised to slowdown and

focus on safety than blind growth

move out of the game before it breaks

Balance growth and safety

Recover investments early

Build survival funds

keep transferring part of earnings to safety stock on every cycle

Even you loose,

you walk out with reward

Loosing gamblers loose hard

Once wining gamblers loose harder

Accumulation is effortful

Loss is abrupt

Long played gamble

In bankruptcy situations,

Companies have business down

And costs of operations are high

When revenues are limited

Scale of operations creates cost constrain

Operations can not be get rid quickly

Scaling up operations is a slow effortful cycle

Scaling down is hard and often abruptly cost prone

Companies get locked with operational investments

Operational costs can not be slashed quickly

Business often in bursts

In good times fluctuations are upward

Operations can not handle instantly

Fluctuations stabilized with averaging loads

Operational scale up is capacity building

Since Operations cost,

Operational scaling also scales costs

These costs had to backup by earnings

Earnings depend on throughput from operations utilized by sales

Scale of operations is like style of living

You must downgrade when you can not afford any more

Operations’ scaling up or down has self inertia

Resource utilization affects operational efficiency

Operational efficiency require predictable and continuous load, matching capacity

Utilizations in bursts, offers lower efficiencies

Business when in bursts often demand for high throughput from operations

Throughput of operations is based on capacity, which is relatively inflexible

You can have under capacity utilization causing inefficiencies

You can not have over throughput than available capacity

JIT requires building capacity for peak load,

Peak load is often a short time burst

JIT can be costly as optimal resource utilization is not possible

Less than peak load capacity has to depend on averaging loads,

introducing sluggishness due to lead time

Abrupt changes to operations scale require shock treatment

Flush funds to build capacity and recruit people

Liquidate physical assets and layoff employees

Forces of dark

When on top of success,

every organization shall think itself as winning gambler

Remember Facit story.

System evolve to higher order,

it is continuous process

A revolutionary things changes the way business is done,

this is not everyday phenomenon

Disruption can be caused by alternatives of all kinds that are new and thought to be not so viable for practical reasons

Some categories die as superior one immerge, just under the nose you kept pride for

Watch for Market, Technology and Product against Evolution, Revolution and Disruption

When Safety takes precedence?

Unfortunately to maximize business scale,

Reinvestments are often utilized without taking strategic safety measures

Some part of reinvestment is anyway needed for expansion and growth

But not built a safety is dangerous

It is low occurrence but fetal impact situations

Remind yourself,

If it is possible, it is probable

If it is certain, prepare when time is on your side

When safety shall be built,

Exactly when you think it is not needed immediately now

Having “time on your side” means act now and immediate

A small contribution every time

Companies do not attain financial independence

They depend on recurring cash inflow

Brake it and empire collapse

Lack of building survival funds

Stops them from coming back in the game again

Safety had to built as growth rate starts reducing

Safety must be address when on top of the growth, when it looks unimportant

As growth is attained,

A good chunk of reinvestment must be put into

safety stock, for financial independence of company,

for survival fund for second inning and

for reboot resources if you want to go extreme

Safety stock shall provide financial independence

Some often buy real estate, buildings and rent out, investment in diversified industry, profitable competitor company stock

Something that requires minimum attention to maintain than core business line

Low ROI but safer than core company operations

Safety stock shall allow company to survive for at least 10 years with reduced core business operations are ceased

Survival funds shall be resources that can be liquidated when needed

to build company again after fetal losses

Survival funds are like helmets, which can take one time shock incidence

You need another helmet next time

You must build it again once utilized

You will need survival funds if you do not build safety stock

Use survival funds to diverge into new business

Reboot is extreme thinking, and not considered

Reboot resources are life extension measures

When lost everything and zero activity reached

Reboot must provide bread of the day till you find new start

You need reboot resources when survival funds are consumed

and economic conditions hard

Good product adoption memorandum

Good product adoption memorandum

• Simplicity 
• Speed 
• Enormous integration through loose coupling 
• Flexibility 
• Extending features 
• User training
• User education
• Corrupt your customers with value delivered

The Generic Patterns of Competence Maturity

The Generic Patterns of Competence Maturity

applicable to all faculties

Level 1: Naïve entrant 
Entrant to field, learning
Needs assistance and introduction to concept
Learns how he needs to grow beyond his commonsense
Gaps in domain knowledge
“Exploration and excitement” governs them
“Infants”



Level 2: Inflater Able to model complexity
Works hard on improving his ability to conceive complexity and define it
Enjoys doing more, source of accidental complexity
“More is better” is thought that governs them
“Boys”



Level 3: Professional Has good knowledge in specific domain
Seeks how much complexity shall be delivered
Focus on how things can be practical
Emphasis is on avoiding accidental complexity
Often has limited domain knowledge, typically one of its kinds, limited scenarios
Has a good training abilities, can help train people or customers
“Will this work?” is what governs their head
“Older teens”



Level 4: Expert or consultant Has business focus
Has ability to diagnose business problem and apply domain knowledge effectively
Expert has domain knowledge applicable in multiple scenarios of industry, situation, application, practice, law, etc.
Has a strong mentoring ability, he can setup departments easily, can win customers effectively
“Avoid attractive nonsense” is where they have to spend energy outward
“Men”



Level 5: Premier 
Has ability to setup business by applying peoples of required skills and knowledge
Business account holder, responsible for PL of a unit
“It is business” is the focus they never loose
“Masters”





A case with Business Analysts (problems with most Analysts):

Most of them are at Level 2 of career, “the inflator”.
Most featurism comes from them.
Causing non linear explosion of complexity and efforts required to engineer.



A case with Software Designers (problems with most Designers):
Most of them are at Level 2 of career, “the inflator”.
Most technical fashion victims come from them.
Causing mixed and buzzword technologies used in the product. 

Water fill syndrome

Water fill syndrome

Avoid water fill 
Before something to be done, 

something else needs to be done.. 

to qualify to “this is how it should be done”
Work expands to end later, 

as this recursive work scope extension prevents delivery of 

a “small, manageable and short coursed ‘focused tasks’” 

Avoid water fill at all costs.

Seek, simplest thing that is guaranteed to work, next hour.
Impact on delivery

• This delays deliveries 
• Accumulates associated deliveries 
• Main do-able item looses focus in the process 
• Timely sequence of delivery packets disturbed and takes form of big chunk deliveries with longer delivery intervals

Preventive course
Working on every subsequent associated item shall be discouraged and 

entered into TODOs list so they do not loose sight

Avoid gold plating. 

Gold plating is glorification and hence expansion of a scope

Every unit of expansion adds to complexity

"Complexity" relates to "efforts to do" in exponential relation

My holy bible of "I"

My holy bible of "I"

I am introvert

I avoid talking to others unnecessarily, I avoid people

I feel offended with unnecessary hand shake or touching

I do not look much into others eyes

When given a choice I prefer to involve in lonely activities

I am expressive

I talk too much with people from my inner circle; sure they have enough of me

Keeping things in mind is punishing to me, transparency is my way

I like sorting out conflicts by direct confrontation

I am left brainier

I am Verbal, Logical and Analytical in nature

I have difficulty remembering people’s name

I have difficulty remembering roads and understanding direction on first visit

I am good at expressing thoughts in precise language

I am good at getting unstructured and unshaped thoughts cross threshold of mind to realize expressing it

I seek not to do many things at once but a few things significantly

Emotional correlation to left brain

I have great appetite and patients for all offenses against me

*But* I have difficulty swallowing irrational things

When presented with logical irrationality, emotion of anger takes over

Focus and concentration

I can focus very well under noisy conditions too

I am irritated by repeated distraction while being focused, distraction that generally require me to respond or require switch my focus repeatedly

I can isolate myself from parsing “meaning” in the speech even it is loud; this is great key to focus or cutout noise

I am not fanatic about music

It is difficult for me to focus on song lyrics and music

Music is perceived as torture in most cases, long exposure to music or songs is devastating to mind

I often survive this by selective filtering it out as mentioned earlier

I hate singing in mind also, I seek quite mind

I do like music or songs only on a few occasions

Learning style

I am good listener

I am average reader

I am bad writer

My learning’s are temporal, slow and significant

Memorization style

I have strong episodic memory

I can recall things as sequence of events as they happened

I often replay any event as a sequence in the mind to recall it later

I can recall things in time domain as my mind can process temporal information better

This particularly is left brain capability (Sequential learner)

Sequential or episodic abilities also indicate my mind works on differential of two successive states better

I have been some times criticized about being almost historian by expressing a complete track of “how we came to this point here, now” for most of situations

I am not very good at pushing too many things simultaneously in my mind

I am often criticized and valued for remembering too many and too disparate things

I am often criticized as being encyclopedia of things

I have strong attribute association style of memory

I can describe some thing in details and every thing about it, but not able to recollect its name

My episodic abilities might have been developed because of differential association of states of a sequence

Feeling associated with memorization

“Excitement” is ultimate “feeling” associated with my memorization

I live for “wow” pulse addiction of my brain

Whatever I find exciting, get registered in my mind forever and can be recalled instantly

Intellectual and unbelievable facts excite me; I often easily recall such things

Senses involved in memorization

Visual mainly

I see things as happening in my head space most of the times

Emotions and motivation

“Excitement” is my primary style of motivation, same I use effectively to others

I often enter into panic mode; this is grate fuel of my hyper activation

I hate repeating orders second time

I hate logically wrong answer to my questions

I hate logical or structural disorder

I seek clear address or specification of things

My favorite pass time

“doing nothing” is my favorite pass time

It is highly recreational and great meditation

During this I feel my body senses. My thoughts tend to not take “language form” instead it is visual and inside body senses and feelings

*I need myself alone with me for some time of the day*

My preferences

I enjoy reading or watching documentaries or news because it can provide factual data

I enjoy fiction only for “wow” excitement pulse to brain, but read ahead

I am extremely excited by stories like “Harry Potter”, for a creative and logically consistent story content

I love encyclopedic readings which mention how things evolved over a period

I love to read how things work type stuff

I like intellect

Having left alone with Internet, I end up reading at least 100 web pages in a day completely absorbed in my mind. I only read encyclopedic or scientific explanations that give me “wow” pulse for brain

Conflict and criticism

I avoid conflicts, it requires dealing with people; I would prefer avoiding dealing with people as first choice

In Russian roulette style conflicts I seek being quite and being factual

I confront strongly with people in my close circle; as such dealing with people has no issue

I am very sensitive to criticism

Transformational

I am very expressive, overly bold to enter topics and extrovert for my inner circle

I can switch to extrovert by adding to the circle

My motto

I am not great player, but not having me in team is nightmare for competition

I try to maintain low profile often

My primary DISK profile

47%	20%	66%	72%
Reasonable Moderate Tentative	Reflective Analytical Critical	Reliable Careful Unruffled	Prudent Compliant Cautious

 

My adapted DISK profile (Adjustment to Work Environment)

71%	41%	27%	64%
Goal oriented Decisive Assertive	Objective Cool Doubting	Versatile Spur of the moment Dynamic	Conservative Tactful Diplomatic