Management by trends - Aditya Yadav

1. *
“Running an Agile Fortune 500 Company”
Aditya Yadav, aditya.yadav@gmail.com
in.linkedin.com/in/adityayadav76

2. * A Typical Global Company
* Fortune 500/1000
* 200 Divisions
* 40 Countries
* 25000 Employees
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3. *
@ Acme Inc.

4. * Original Question “What are the best metrics
we should use to Manage our Global company?”
* The Correct Question - “Numbers by
themselves have no meaning. Should we start
managing our company using Continuous
Trends?”
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5. *
And The Philosophy Behind The Answer

6. * An Upfront Exercise
* Assumes Stable Environment and Business Operations
* Assumes – Assumptions wont change
* Relies on Efficient, Coordinated „Dumb‟ Execution
* Golden Rule - “The more upfront effort you put in the
more difficult is it to change later”
* Who do you think this suites best? (i) White (ii) Blue
(iii) Gold Collar Workers?
* Does it suite Knowledge Companies?
* Does it suite Complex Dynamic Business Environments?
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7. * When assumptions change every week or month
* Evolutionary Strategy Enablers
* Organizational structures and design,
* Business Models & Change Process
* Clear Strategic vs Tactical Separation
* Collaborative & Objective Decision Making
* Risk Tolerance & Learning
* Processes
* People & Culture, and
* Innovation
*

8. * Life in the organization starts with –
“Resources are limited”, but
* We have Multiple Objectives
* So what‟s the right Composite Objective
Function?
* How do we achieve an Optimum Solution?
* Obviously the Solution will vary with Time
* We need Adaptive Multi-Objective Heuristic
Optimization
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9. * Most optimization algorithms fail around 40-70
dimension space
* A global organizational division might have 100-
1000+ dimensions
* With - Continuous/Integer/Discrete/Boolean
variables and choices!!!
* Dimensional Reduction for Analysis??? Maybe!
* Can a machine do this for us? Really?
*

10. * How would have a Scorecard or Metrics/Numbers
helped with this problem space?
* We need to use Visual Solutions
*

11. * What do these mean (Good/Bad) or if anything
at all? (For the purpose of Strategy)
* Revenue is $24billion
* 14m iPads sold
* Margin is $300/sale
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12. * M(t+1) = a*M(t) + b*I(t) + c*T(t)
* I(t+1) = d*I(t) + e*T(t) + f*M(t)
* T(t+1) = g*T(t) + h*M(t) + j*I(t)
* These equations are notoriously non-linear, cross
coupled and chaotic
* The solutions are in multiple semi-stable niche
equilibria
* With a model like this how would numbers like
$24bn sales, 14m pieces sold, $300 margin help
even remotely?
* You need „Trends!‟
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13. Aditya!!!
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