Creating a successful and order organization for the 21st Century

Dear All,

We cannot break good principle, but we can break oneself going against the good principle.

I will illustrate Good Principle as an example that every vibrant organization should practice in the 21st century.

In a Good Organization, there must be:

1. Order Organization.....right person for the right job.

2. Proper Process.. a process that is proven to be effective and innovative to make it better..  eg...GMP....stands for Good Manufacturing Practice.

3. System is a process that encompass the input and output and how to match it to the bigger ecosystem.

4. Benchmark it with the standard or to the best practice in the industry.

5. Calibrate or in other words post mortem on periodical basis to make it better.
Ideally, principles such as kaizen or everyday improvement should become the manifesto of the organization.

Good luck.

God bless you,

Dr Lion. 

Rationality and Discipline will bring you to new frontier.

Bless day,

A rational mind will always win over an irrational mind.

Say, I have a business debt of rm 1 million.

How to handle it.

A man of honor knows that we should be a problem solver and not a problem creator.

How to handle this scenario.

1. Be calm.
2. Think rationale.
3. Be disciplined.

1. Be calm and count our blessings.

2. Be rational. The only way to be out of the rut is to benchmark oneself against the best player in the industry and model after them.

3. Discipline. Life will give whatever you ask, but, make sure, you pay the price to get whatever you want. It is more about making the decision and bares the consequences.

4. Dream. Build more castles in the air but make sure there are foundations for the castle.

Fear God,
Beginning of wisdom,
Fear God,
Follow his commandments.

Bless day ahead,

Dr. Lion.

Compounding is the eight wonders of the world.

Dear readers,

Those that know it, make it. Those that are ignorant, pay for it.

Einstein claimed that compounding is the eight wonders of the world.

Let's expound further.

Say, I sold Manhattan Island to Columbus, 500 years ago (the year 1518) at 5 dollars and compounded it at 6 percent per year.

How much is it worth now.

Let the magic of 72 works.

It takes 12 years for my money to double.

So, we have 42 doublings.

That money would worth 20 trillion by now.

See 5 dollar turn to 20 trillion if you sit long enough.

Fear God,
Beginning of wisdom,
Lean not,
Own understanding.

Have a Productive day ahead,

Dr. Lion.

Benefit and loser in US Sino trade war

Now the US and China had engaged in a trade war.

Losers
1) The main losers are Finish Goods exporter from China to the US and vice versa.
2) Those working in work in progress (WIP) and their supplier which supply goods from developing countries that sell to China or the US will suffer too.
3) Technology goods will suffer, cost of business increase as China is the technology factory of the world (1/3 of technology goods come from China) and US technology as well will suffer due to drop in demand. Furthermore, a supply chain provider from other parts of Asia will suffer as well.
4) China will dump the US dollar and US recession is inevitable due to cost-push inflation or stagflation that most probably will occur.

Beneficial.
1) China and US exporter will dump their goods to importer from the rest of the world at a cheaper price.
2) China and US importers need to substitute their products from exporters from other countries at a higher price based on "take it or leave it" formula.
3) China will dump US dollar and this benefit company with lots of debts like Malaysia.
4) China converting US bonds to commodity will start a commodity supercycle and benefits country which have their economy based on a commodity like Malaysia.

Conclusion, in this trade war, the US will go bankrupt and for every new job gain from the trade war, 10 US worker will be out of jobs.

In a longer term, factories in America and China would have to close and consumers would have to pay the brunt of the trade war with higher price for essential goods.

God bless America and you.

Halleluyah.

In God we trust,

Dr Lion.

Price: Everything that matters in economics.

In Economics,

When you pass a certain price, there will be no buyer or taker for your goods.

What is this price?

This price is the Golden Price or Ceiling Price in Economics.

So, how do we determine this Golden Price?

By the following factors:

1) Baseline

2) Seasonal Adjustment - usually divided into quarters or more accurately seasons - winter, spring, summer or autumn.

3) Local trend - local scenarios that are affecting the price.

4) International trend - International scenarios that are affecting the price.

5) Random events - Things that are outside our control like a natural disaster, harvest or political changes.

6) Uncertainty - everyone hates uncertainty and need to be paid a price for that uncertainty "seller willing to accept WTA and buyer willing to pay WTP for the uncertainty"

There, will be a discount before the uncertain event like election, WTP and there will be a premium after the uncertain event is over like election, WTA.



So,

We have the Golden Price Equation.

Golden Price (GP) = Baseline (B) + Seasonal (S) + Local (A1) + International (A2) + Random (R) + Uncertainty (U)



May your day be blessed.



"In God we trust"



Yours truly,

Dr. Lion.

How the rich protect their assets.

The last piece of jig-saw in becoming rich forever is to protect your asset.


How do you protect your asset?

By risk management of course.


What type of manager you want?

1. A high risk, high gain manager (aka rabbit)

or

2. Low risk with sustainable earning (aka tortoise).


Rabbit is great.

"But, I wanna ask you?"

"Have any of you see a tortoise walk backward"


So, now the question is "How do you manage risk?"


By the acronym "I AM"


Risk Management encompasses

1) Risk Identification - identified what is the risk that potentially causes the company or business or organization to suffer a severe setback.

2) Risk Assessment - Stratified the severity of the risk. Whereby risk assessment is the vector product of the probability of the risk and the severity of the risk.

3) Risk Management - Quantified the risk based on transferring the risk asset to the third party.
Risk management encompass elimination, substitution, harm reduction, administrative control, management control and personal protective equipment.


Hope these methods of protecting your asset help.


"In God we trust"

God bless you,


Yours truly,

Dr Lion.

Vibrant and Evergreen Organization

We can make an organization vibrant and evergreen when every stakeholder in the organization are motivated towards the organizations' objectives.

So, the question here: What is the stakeholder in the organization and how do we motivate them?



Say, I run a trading company.



The stakeholder in the trading company would be customer, worker, supplier, shareholder, creditor, government and the society around us.



So, how do I motivate them?




Give them what they want and not give them what I think they want. You don't give a carrot to a mouse and cheese to a rabbit, right?




So, back to my trading company.

1) Customer will need the best service or what we say, customer always right.

2) A worker will need their welfare well taken care of.

3) The supplier will need prompt payment of credit.

4) A shareholder will need sustainable profit.

5) A banker will need prompt payment of the loan as stipulated in the agreement.

6) The government will need adherence to rules and regulations and prompt payment of tax.

7) While society will need corporate social responsibilities (CSR).


Teamwork is the basis of the success of an organization whether it is a family, society, country or civilization  as stated by Confucious, "It is more difficult to break a pack of sticks, than to break a single stick."


"In God we trust"


"May your day be bless"


Yours truly,


Dr Lion.