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Analytics: BABOK (Business Analysis Body of Knowledge), SAFe (Scaled Agile Framework)

Finance: Efficient Market frontiers, Capital Budgeting

HR: HR value chain model, Workforce Capability Model

Framework Details:

1 Finance:

Efficient frontier:
Applications of the Efficient Frontier (EF) theory, which was introduced by
Nobel Laureate Harry Markowitz in 1952. The EF is a fundamental concept
in modern portfolio theory (MPT) that evaluates portfolios based on their
return versus risk1.

Here are some ways the Efficient Frontier can be applied:

Covariance-Based Asset Selection:

In venture capital portfolio management, the EF helps select high-

potential startups based on their risk profiles and how they interact with
each other in terms of risk2.

Optimal Exit Strategy:

The EF can guide decisions on when to exit investments. By analyzing the

risk-return trade-offs, investors can determine the optimal timing for
divestment.

Capital Allocation and Rebalancing:

Investors can use the EF to allocate capital efficiently across different

assets. Regular rebalancing ensures that the portfolio remains aligned
with the desired risk-return profile.

Investor Relations and Transparency:

The EF provides a framework for transparent communication with

investors. It helps explain the rationale behind portfolio composition and
risk management strategies.

Co-investment and Syndicate Risk Management:

When multiple investors collaborate in a syndicate, the EF assists in

optimizing co-investment decisions while managing overall risk exposure.
Risk Evaluation during Due Diligence:

During due diligence for potential investments, the EF aids in assessing

risk levels and aligning them with expected returns.

Scenario Analysis for Future Planning:

By exploring different scenarios along the EF, investors can anticipate how
changes in market conditions or asset performance might impact their
portfolios2.

Remember that the EF represents the set of portfolios that offer the
highest expected return for a given level of risk or the lowest risk for a
given level of expected return. It helps investors make informed decisions
about diversification and risk management.

Capital budgeting:
Capital budgeting involves assessing potential major projects or
investments, such as building a new plant or acquiring a significant stake
in an external venture. Before approving or rejecting these initiatives,
companies analyze the project’s lifetime cash inflows and outflows. The
goal is to determine whether the expected returns meet a predefined
benchmark. This process is also known as investment appraisal1.

Importance:
Capital budgeting provides an objective view, helping managers decide
how to invest capital effectively. It not only enhances business value but
also contributes to the overall health of the company. This evaluation is
applicable across various industries and business sizes2.

Methods:

Companies employ several methods for capital budgeting. Here are three
common ones:

2 Discounted Cash Flow (DCF) Analysis:

DCF analysis considers the initial cash outflow required to fund a project,
along with future cash inflows (revenue) and outflows (maintenance
costs). These cash flows (except the initial outflow) are discounted back to
the present date. The resulting value is the net present value (NPV). NPV
accounts for opportunity costs—the return the company would have
received from pursuing an alternative project. The future cash flows are
discounted using a risk-free rate (e.g., the U.S. Treasury bond rate) to
account for inflation and ensure the project’s worth.

Payback Analysis:

Payback analysis focuses on the time it takes for a project to recoup its
initial investment. It measures the payback period—the duration needed
to recover the initial cash outflow. Shorter payback periods are generally
preferred.

Throughput Analysis:

Throughput analysis evaluates projects based on their contribution to

overall system throughput. It considers factors like production capacity,
efficiency, and resource utilization.

Remember that capital budgeting helps companies allocate limited capital

to projects that yield the best returns over a relevant period.

2 Sales and Service:

Target Account Selling (TAS) Framework

Explained
Target Account Selling (TAS) is a strategic sales methodology that focuses on identifying
and prioritizing high-value accounts, tailoring the sales approach to win their business,
and building long-term, profitable relationships.
Here's a breakdown of the TAS framework in the context of sales:
1. Target Selection:
  Account Identification: This involves identifying companies that align with your
ideal customer profile (ICP). Consider factors like industry, size, budget, decision-
makers, and growth potential.
 Prioritization: Rank your target accounts based on their potential value and fit
with your offerings. Focus on accounts with the highest potential return on
investment (ROI).
2. Account Research:
 Conduct in-depth research on your target accounts. Understand their business
goals, challenges, buying process, and key decision-makers.
 Analyze their current vendors and identify any gaps your solution can address.
3. Develop a Value Proposition:
 Craft a compelling value proposition that demonstrates how your product or
service directly addresses the specific needs and challenges of your target
account.
 Quantify the benefits your solution can offer, such as increased revenue, cost
savings, or improved efficiency.
4. Build Relationships:
 Cultivate relationships with key decision-makers at your target accounts. This may
involve attending industry events, networking, or offering informational content
relevant to their needs.
 Focus on building trust and establishing yourself as a trusted advisor.
5. Consultative Selling:
 Move beyond traditional product-centric selling. Become a trusted advisor by
understanding the account's specific challenges and proposing solutions tailored
to their needs.
 Engage in collaborative conversations and showcase your expertise in the
industry.
6. Collaboration and Customization:
 TAS emphasizes customization. Develop solutions that cater to the specific
requirements and decision-making process of your target account.
 Be prepared to adapt your offerings and pricing to meet their unique needs.
7. Long-Term Relationship Building:
 TAS aims for long-term partnerships, not just one-time sales. Go beyond the initial
sale and focus on building a strong, collaborative relationship with your target
account.
 Provide ongoing support, account management, and ensure customer satisfaction.

Example of TAS framework:

1. Medical Device Company Secures Hospital Contract:
 Target Selection: A medical device company identifies a renowned hospital
system as a target account due to its large patient base and reputation for
adopting innovative technology.
  Account Research: The company's sales team researches the hospital's focus
areas, identifies key decision-makers, and learns about their current surgical
equipment and challenges faced by surgeons.
 Develop a Value Proposition: The sales team focuses on how their new
surgical robot can improve patient outcomes, reduce surgery time, and increase
efficiency in operating rooms. They quantify these benefits with data and case
studies from similar hospitals.
 Build Relationships: The sales team cultivates relationships with
surgeons, surgical staff, and administrators at the hospital. They attend
conferences and participate in relevant events to showcase their expertise.
 Consultative Selling: During meetings, the sales team focuses on
understanding the hospital's specific surgical needs and workflows. They
demonstrate how their robot can seamlessly integrate into their existing systems
and address their pain points.
 Collaboration and Customization: The sales team works with the hospital to
develop a customized training program for staff and surgeons. They may also
offer flexible financing options or a trial period to mitigate risk for the hospital.
 Long-Term Relationship Building: After the sale, the medical device company
provides ongoing support, training, and ensures the hospital staff are comfortable
using the new surgical robot. They also work collaboratively with the hospital to
gather data and showcase the robot's positive impact on surgical outcomes. This
builds trust and paves the way for future sales of additional equipment or
upgrades.

Importance of TAS:
Focus on High-Value Accounts: It directs salespeople towards accounts offering the
highest potential return on investment.
Strategic Partnerships: TAS fosters long-term partnerships that generate recurring
revenue and build brand loyalty.
Account-Specific Solutions: It encourages tailoring solutions to meet the unique needs
and decision-making processes of target accounts.
Focus on Value Delivery: TAS goes beyond selling products and emphasizes delivering
quantifiable value to the customer.

The 7-Step Selling Process Explained

The 7-step selling process is a foundational framework used by salespeople to guide
them through customer interactions and ultimately close deals. Here's a breakdown of
each step:
1. Prospecting:
 Identify potential customers (prospects) who fit your Ideal Customer
Profile (ICP). This may involve attending industry events, networking, or utilizing
online lead generation tools.
 Qualify leads: Assess a prospect's needs, budget, decision-making
authority, and potential fit for your product or service. Not all leads are created
equal; prioritize those most likely to convert into paying customers.
2. Preparation:
 Research your prospect and their company. Gather information about their
industry, challenges, and current solutions.
 Develop a customized sales pitch: Tailor your presentation to address the
prospect's specific needs and how your product or service can solve their pain
points.
 Practice your pitch and anticipate potential objections.
3. Approach:
 Make the initial contact with your prospect. This could be via phone
call, email, or in-person meeting, depending on your strategy and the prospect's
preference.
 Make a strong first impression: Be professional, courteous, and clearly
introduce yourself and your company.
4. Presentation:
 Deliver your customized sales pitch. Clearly explain the features and benefits
of your product or service, focusing on how it addresses the prospect's specific
needs and challenges.
 Use visuals, data, or case studies to reinforce your claims and make your
presentation engaging.
5. Handling Objections:
 Prospects will likely have questions or concerns. Be prepared to address
these objections head-on in a professional and confident manner.
 Actively listen to their concerns and provide clear, concise answers that
demonstrate the value of your offering.
6. Closing the Sale:
 Guide the prospect towards a buying decision. Present a clear call to
action, such as scheduling a follow-up meeting, requesting a quote, or signing a
contract.
 Offer different closing techniques based on the prospect's buying signals.
7. Follow Up:
 Don't disappear after the presentation. Follow up with your prospect to
answer any lingering questions and reiterate the value proposition of your product
or service.
 Continue nurturing the relationship even if they don't buy immediately. They
might convert into a customer later or become a valuable referral source.

Benefits of the 7-Step Selling Process:

  Structure and Consistency: Provides a clear roadmap for navigating the sales
cycle, ensuring all crucial steps are covered.
 Improved Sales Productivity: Focuses on qualified leads and targeted
communication, leading to more efficient sales efforts.
 Enhanced Customer Focus: Encourages tailoring the sales approach to each
customer's specific needs and challenges.
 Higher Conversion Rates: Equipped with proper knowledge and
strategies, salespeople can close deals more effectively.
Example: Selling Insurance Using the 7-Step Process
Imagine you're a life insurance salesperson targeting young professionals.
1. Prospecting: You identify young professionals through online platforms or attend
industry events.
2. Preparation: You research common financial concerns of young
professionals, such as student loan debt or starting a family.
3. Approach: You connect with them via email or phone, highlighting the
importance of financial security.
4. Presentation: You explain how life insurance can provide peace of mind and
protect their loved ones in case of unforeseen circumstances. You showcase
different policy options tailored to their budget and future needs.
5. Handling Objections: You address concerns about affordability by presenting
flexible payment plans.
6. Closing: You offer to help them choose the most suitable policy and guide them
through the application process.
7. Follow-up: You schedule regular check-ins to ensure their policy remains up-to-
date and address any questions they might have.
Importance of the 7-Step Selling Process Compared to Other Frameworks:
The 7-Step Selling Process serves as a foundational framework applicable to various sales
methodologies. While other frameworks like Target Account Selling (TAS) or Challenger
Sale focus on specific strategies, the 7-Step process provides a comprehensive structure
for the entire sales cycle.
 TAS: Targets high-value accounts and emphasizes building long-term
relationships. The 7-Step process lays the groundwork for this strategy by
establishing a strong foundation for initial sales and building customer loyalty.
 Challenger Sale: Focuses on challenging the prospect's assumptions and
presenting unique insights. The 7-Step process ensures effective communication
and need identification, making the "challenging" aspect of Challenger Sale more
impactful.

3 Human Resource Management:

Building a Winning Workforce: HR Value Chain and Workforce Capability Model

The success of any organization hinges on its human capital. To optimize this crucial
resource, companies employ frameworks like the HR Value Chain and the Workforce
Capability Model. Understanding these frameworks and how they work together
empowers HR professionals to build a strong, capable workforce that drives business
objectives.

1. HR Value Chain: Aligning HR with Business

Strategy

The HR Value Chain is a strategic framework that illustrates the connection between HR
activities and organizational goals. It highlights how various HR processes contribute to
achieving business objectives.

Key Stages:

HR Activities: This stage encompasses core HR functions like recruitment, training &
development, performance management, and compensation & benefits.

HR Outcomes: Effective HR activities lead to desired results like a skilled workforce,

high employee engagement, and reduced turnover.

Organizational Objectives: Ultimately, strong HR practices contribute to achieving

business goals like increased profitability, market share growth, and innovation.

Applications:

HR Strategy Development: The HR Value Chain helps align HR initiatives with business
strategy by demonstrating how HR activities contribute to achieving overall goals.
Resource Allocation: By analyzing HR activities and their impact on outcomes,
organizations can optimize resource allocation to ensure maximum return on
investment.
Performance Measurement: The Value Chain facilitates the measurement of HR
effectiveness by tracking how HR practices translate to improved business outcomes.

Case Study: A retail company experiencing high employee turnover revamped its
recruitment strategy (HR Activity) to target better-qualified candidates. This resulted in
a more skilled workforce (HR Outcome), leading to improved customer service and
increased sales (Organizational Objective).

2. Workforce Capability Model: Defining the Ideal

Workforce
The Workforce Capability Model defines the skills, knowledge, and behaviors
(competencies) required by employees at different levels within an organization to
achieve strategic goals.

Components:

Competency Identification: Defining the specific skills and knowledge employees need
to succeed in their roles.
Competency Development: Creating training programs and development opportunities
to bridge skill gaps and enhance employee capabilities.
Performance Management: Integrating workforce capabilities into performance
management systems to ensure employees are developing necessary competencies.

Benefits:

Strategic Talent Management: By aligning workforce capabilities with business goals,

organizations can attract, develop, and retain the right talent to achieve their strategic
objectives.
Improved Performance: A workforce equipped with the required capabilities is more
likely to perform effectively and contribute meaningfully to organizational success.
Succession Planning: The model helps identify critical skills for leadership positions,
facilitating the development of future leaders.

Case Study: A technology company facing rapid industry change implemented a

Workforce Capability Model focusing on digital skills and innovation. This enabled
employees to adapt and remain competitive (Workforce Capability), ultimately driving
successful product development and market leadership (Business Goal).

Importance over Other Frameworks

While other HR frameworks exist (e.g., competency-based HRM), the HR Value Chain and
Workforce Capability Model offer unique advantages:

Focus on Business Impact: Both frameworks explicitly connect HR activities and

workforce capabilities to organizational goals, demonstrating the value HR brings to the
table.
Strategic Alignment: They promote strategic talent management by ensuring workforce
development aligns with business needs.
Data-Driven Decision Making: These frameworks encourage collecting data on HR
activities and workforce capabilities to make informed decisions about talent
management strategies.
By understanding and utilizing the HR Value Chain and Workforce Capability Model
together, organizations can create a powerful framework for building a highly capable
workforce that propels business success.

4 Marketing:

The 3 V’s of Content Marketing

We often hear about the 4 P’s of marketing (Product, Price, Place and
Promotion), but have you heard about the 3 V’s of content marketing?

They are: Volume. Variety. Value.

Value is based on what you will provide to your audience. Publishing

content and promoting like there’s nothing better on the planet will fall
very short of your objectives and affect your brand if it doesn’t bring
value. Publish content that is useful. It is key.

Next up is Volume, How often will you post? Don’t give yourself too big a
contract from the get-go. Start with something doable and possible. If it
works well, you will see the return on your content and find the time
necessary to do even more. And remember, if you publish too often, you
will lose on value!

Finally, Variety, Of course, not everyone who will come in contact with
your content will be a hardcore follower of your brand, but for those who
are, it is important to make sure you are not publishing content that is too
predictable. Mix it up, images, text, short bursts, longer copy, etc.

All in all, the 3 V’s don’t make a recipe for content marketing success, but
they are sure to be part of any successful strategy.

The Brand Pyramid

The Brand Pyramid is a brand positioning framework in the form of a bi-
dimensional pyramid (aka a triangle, but the architectonic reference is
probably useful as a selling point), with a more extensive base and
multiple layers on top of each other until a peak.

The BP model we often see in action includes five layers, starting from the
bottom:

Features are technical characteristics of a product/brand. They link the

brand to tangible elements of its product offering, building a more credible
positioning. Examples of features include, among others, awards and
distinctions, certifications (e.g., bio and organic). We should interpret
them as a basement for the construction of the brand.

Functional Benefits: those are the same benefits of the brand key, and
they relate to performance-based attributes that the brands promote.
Research on benefits laddering suggests that emotional bonding through
emotional benefits might happen only in the presence of satisfactory
functionalities. So Maison Hermes spends a lot of time training their
artisans in hand-stitching their bags, and while this is functionality, it
supports the notion of luxury.

Emotional Benefits: This realm of benefits allows for a more robust and
deeper emotional bond between consumers and brands. Emotional
benefits are also responsible for much of the loyalty consumers show
towards brands.

Brand Personality: This component includes all the elements that allow for
brand humanization, including look and Feel, Tone of Voice, and, of course,
Brand Identity and Personality.

Brand Idea: this is the equivalent of the Essence in the brand key. It is
about the promise and the purpose the brand has. It’s at the pyramid’s
peak because it relies on the structure underneath to stand.
5 Business Analytics:

BABOK (Business Analysis Body of Knowledge)

Live Example in Business

Let's consider a company, TechSolutions Inc., which is planning to launch a

new customer relationship management (CRM) software.

Scenario: TechSolutions Inc. needs to gather requirements, design the

solution, and evaluate its performance before launching the CRM software.

Strategy

Business Analysis Planning and Monitoring:

Define the approach for business analysis activities.

Plan the tasks, timelines, and deliverables.

Example: Develop a Business Analysis Plan outlining how requirements

will be gathered and managed.

Elicitation and Collaboration:

Engage stakeholders to gather detailed requirements.

Example: Conduct workshops with sales, marketing, and customer

service teams to understand their needs.

Requirements Life Cycle Management:

Manage and track requirements from inception to implementation.

Example: Use a Requirements Traceability Matrix to track changes and

ensure all requirements are addressed.

Strategy Analysis:

Define business needs and align them with strategic goals.

Example: Perform a SWOT Analysis to understand the strengths,

weaknesses, opportunities, and threats related to the CRM project.

Requirements Analysis and Design Definition:

Analyze, specify, and validate requirements to design the solution.

Example: Create detailed use cases and wireframes to visualize the CRM
functionalities.

Solution Evaluation:

Assess the performance and value delivered by the solution.

Example: Conduct a pilot implementation of the CRM software and gather

feedback from a select group of users.

Implementation

Training and Certification:

Train business analysts on BABOK principles and techniques.

Example: Provide training sessions on elicitation techniques and

requirements management tools.

Adoption of Knowledge Areas:

Implement structured processes for each knowledge area.

Example: Establish a Requirements Management Plan to handle changes

effectively.

Utilization of Techniques:

Apply relevant techniques for different aspects of the project.

Example: Use Root Cause Analysis to identify issues with the current CRM
system and address them in the new solution.

Tailoring to Perspectives:

Adapt BABOK framework to fit the specific context of TechSolutions Inc.

Example: Integrate Agile practices within the BABOK framework to
facilitate iterative development and frequent stakeholder feedback.

Continuous Improvement:

Regularly review and refine business analysis processes.

Example: After each project phase, conduct retrospectives to identify

lessons learned and improve future practices.

SAFe (Scaled Agile Framework)

Live Example in Business

Let's consider a large financial services company, FinServ Corp., which

wants to implement a new online banking platform.

Scenario: FinServ Corp. needs to coordinate multiple teams to deliver the

online banking platform, ensuring alignment with business goals and
timely delivery.

Strategy

SAFe Core Values:

Alignment, Built-in Quality, Transparency, Program Execution.

Example: Align all teams around a common vision for the online banking
platform.

SAFe Principles:

Apply principles like economic view, systems thinking, and embracing

variability.

Example: Use systems thinking to ensure the online banking platform

integrates seamlessly with existing systems.

Levels of SAFe:

Implement SAFe at Team, Program, Large Solution, and Portfolio levels.

Example: Establish Agile Release Trains (ARTs) to coordinate work across

multiple teams.
Roles and Responsibilities:

Define roles such as Release Train Engineer (RTE), Product Owner, and
Scrum Master.

Example: Appoint an RTE to oversee the ART and ensure smooth

execution of the program.

Artifacts and Events:

Use Program Increment (PI) Planning, Backlogs, Kanban boards.

Example: Conduct PI Planning sessions to align all teams on the

objectives for the next increment.

Implementation

Training and Certification:

Train employees and leaders in SAFe principles and practices.

Example: Provide SAFe certification courses for key roles like RTEs,
Product Owners, and Scrum Masters.

Establishing Agile Release Trains (ARTs):

Form cross-functional teams (ARTs) to deliver increments of value.

Example: Create ARTs consisting of development, testing, and operations

teams focused on the online banking platform.

Defining Value Streams:

Identify and map value streams to ensure alignment of strategy and

execution.

Example: Map the customer journey for online banking and identify key
value streams like account management and transaction processing.

Implementing Lean-Agile Leadership:

Promote Lean-Agile principles at all levels.

Example: Encourage leaders to adopt servant leadership and support the

teams in removing obstacles.

Continuous Delivery Pipeline:

Establish a pipeline for continuous integration, testing, and delivery.

Example: Use automated testing tools and continuous integration servers
to ensure fast and reliable deployments of the online banking platform.

Inspect and Adapt:

Regularly conduct retrospectives and system demos to inspect and adapt

processes.

Example: Hold regular Inspect and Adapt sessions to review progress,

identify improvements, and adjust plans as needed.

By integrating BABOK and SAFe into your business, you can

ensure a structured approach to business analysis while
promoting agile practices for rapid and efficient delivery of value.
This combination helps in aligning business goals with execution,
enhancing collaboration, and ensuring continuous improvement
across the organization.