Return on intangible for rating corporate and government

CREAM™ Report Corporate Consulting

Return on Intangible CREAM™ Report – Profits Optimisation and Sustainability

IBCM© Research 2014 Page 1 of 8

IBCM© Research

Corporate Education, Training, Consulting


IBCM© Research – ACCESSAccelerating Corporate Energy in Sustainable State

CREAM™ Report

CREAM ™ Report is made up of:

Corporate Governance, Risk Management, Earnings, Accounting Quality and ManagementQuality. C, R and one-part of E i.e. Profitability form Operating capability. Part of E i.e. Balance Sheet, A and M make up for Managerial capability of Corporate. Together it forms Human Capital of a company. Human Capital of a company relates directly to the energy a company put in.

The graph relates to the energy input of the company, an MNC under scrutiny used as a case-study for CREAM ™ Report Corporate Consulting, measured with a maxima of 5 and minima of 0. Observe carefully the relative energy addition or loss of the three values, the outcome of a comprehensive measurement of every aspect of the company covering more than 200 process blocks. The final output for the year ending 2014 and Q1 for 2014-15 confirms the trend.

Participating in group discussions that had Leif Edvinsson creator Skandia Model and Dr. Edna Pasher who assisted State of Israel to create Intellectual Capital of Israel based on Skandia Model as well as many an intellectual, IBCM recasted Intellectual Capital of Israel bythe principle of Return on Intangible that Dr. Edna Pasher appreciated.

• IBCM's Return on Intangible addresses the issue raised by Kant whether a science of metaphysics with a logical structure like that of the well-established mathematical and natural sciences was possible. Combination of Theory of Relativity and principle of advaita provides the solution. By CREAM ™ Report Corporate Consulting IBCM© Research offers you an exceptional methodology optimising and stabilising your company's capability and growth.

There is a huge energy, very huge, with every person within your organisation. Tap that energy by the system CREAM ™ Report offers and grow.


ACCESS

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Value System

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CREAM™ Report – 10 Reasons to adopt – Optimising profitsDIY conducting - Symphony Orchestra

CREAM™ Report – Index of Inactivity

1 Cost of Inaction: IBCM© Research is the first to recognise Cost of Inaction by pioneering the management concept by IBCM - Inactivity Based Cost Management.

Cost of inaction, is spread throughout an organisation resulting in a stunted growth, as is seen in the graph, 1 instead of 5 the difference 4 being the cost of inaction. Inaction refers to the inactive elements of intangible.

CREAM ™ Report Corporate Consulting trains your executives to prepare CREAM ™ Report for your company.

An activity has a cost incidence, that a balance sheet tries to consolidate and post whereas inactivity has a cost consequence. CREAM ™ Report Corporate Consulting prepares your own people to prepare a comprehensive report of your company.

2 The Fault Lines

As given in the graph above the Index of Inactivity is 4 a consolidated cost of inaction.The Index of Inactivity shows clearly the structural damage of a company. In this case-study one major fault line runs through from 2001. There are several fault lines clearly visible. Some inflicting irreversible damage.

By preparing one for your company your executives are targeting to correct the fault lines responsible for limiting your goal congruence – optimising profits and growth.

3 The Corporate structure:

Nature provides the basis of functioning of an organisation. The CREAM ™ Report Corporate Consulting programme shall impart the knowledge of corporate structure based on the laws of physics as matter that takes up space and has mass; and the management of the structure based on principles of metaphysics.

Measuring Return on Intangible is the consequence of understanding metaphysical concepts that the principle of advaita offers. It is simple but most effective. CREAM ™Report Corporate Consulting offers to provide the basis of understanding. It is very important the world of management understands and puts into use this concept should they pursue the goal congruence of profits. CREAM ™ Report Corporate Consulting offers to make understand the basis of profit motive and ethical motive foran organisation.

4 SimplicityThere are only two processes – Creative process and action process with a single denominator – Intangible. There are only two possibilities – Action or Inaction. Binary value obtained readies the participants to prepare the organisation CREAM™ Report. What made the computer hardware to grow exponentially helps companies to contract data to a qualitative single digit data.

Without affecting any of the departments within the current structure but tweaking with 5 KPIs several process blocks are created within each department. Managementis made simple by the structure so created, that profit maximisation is assured. How?



5 Big Data The real purpose of leveraging Big Data is to take action – quick and accurate. CREAM ™ Report Corporate Consulting facilitates compacting data at the root level. This is enabled by slicing the organisation to several process blocks, delegate authority, monitor tasks in real-time, take action and catch inaction, for your rating is reduced automatically. Computer capability has triggered plurality without necessity, your organisation shall realise. How?

6 Variance analysis upfront

The fault lines seen in the graph herein need correction to accelerate growth from the current 1 to an optimised level of 5. Towards optimising effort the team entrusted with each process block is made aware of the targets on a daily basis. How the team is yoked together but act independently is made aware by a mobile rating info, CEO inclusive? CREAM ™ Report Corporate Consulting assists you. By leveraging smallData the purpose is achieved – take action quick and accurate. What the hurdles are?

7 the 11 challenges

At a breakfast1 hosted by the Global Reporting Initiative (GRI) and NYSE Euronext, the Conference Board's David Vidal asked an insightful question: What are the top three reasons for your company's reluctance to embrace sustainability—and to adopt sustainability reporting? The responses that came from an audience representing the glitterati of the corporate social responsibility world might surprise. Summarising the responses thus, the 11 challenges stated were:

Corporate tries to rule its conduct by means internal to itself, by technique not self-control. Ethics is subtler than the subtle. By defining Intangible CREAM ™ Report Corporate Consulting enables you to buttonhole on the purpose and themeaning of quite a number of jargon, corporate has been using over the years. Billions had already been spent on fads that come and vanish. Some of them areindeed purposeful if not for implementation at least for evading the issues. It does affect over a long run the profitability of the company holding the growth rate. Clarity of definitions and spotting within the corporate atomic structure is a boon to knowledge base. Your organisation is fully equipped to deal with these 11 challenges and further more. What is crucial is to bring the abstractions into reality, acknowledge value where value is due, and deconstruct what is valueless, that Intangible clarifies.

1. Doubt2. Liabilities3. Denial4. Resources5. Causality6. Lack of Global Standards7. Benchmarking8. Lack of comparative credibility9. Uncertainty10.Fear of the unknown11. Fear of the known

8 the 14 principles of Deming

CREAM ™ Report Corporate Consulting takes up Deming's 14 principles, identifying the areas that led to sustainable efficiency factors as well as areas that had not.Single principle of Intangible adds value to the said 14 principles.

9 Orchestra: the subject –Object encounter

Management of corporate affairs is akin to conducting an orchestra – only two process – creative process, representing Quality, that genius like Mozart or Leonardo Da Vinci or Einstein or Steve Jobs accomplishes – action process, representing quantity, that many accomplish in infinite succession of finite purposes by controlling each goal, related to what the geniuses have set forth. Each process

attained at optimised level of 5 produces symphony. Anything less, it is cacophony. Tune your organisation to deliver the best.

10 Self-Governance

Corrects the current status of Accountability ex post facto, a non-starter. Self-governance is the ultimate of Delegation of Authority, enabled by entrusting the ownership of a process block to a team of people. Sheer enthusiasm is brought into the working life.

Project Management and Strategic management are enabled to accomplish specific tasks in assigned time – i.e. dT/dT - series of Tasks accomplished in respective Time, block by process block. Cost and time overruns are eliminated as much as NPAs and CDRs. CREAM ™ Report Corporate Consulting deliverables.

1 Credit – Aman Das Singh , Thursday, February 03, 2011 Vault's CSR Blog



Consulting ProgramCREAM™ Report

1 The foundation

The purpose of an organisation is to convert mass into energy. Indeed it is Natural.For the universe to exist as it does requires that hydrogen be converted to helium in a precise but comparatively stately manner - specifically, in a way that converts seven one-thousandths of its mass to energy. Lower that value very slightly - from 0.007 per cent to 0.006 per cent, say - and no transformation can take place: the universe would consist of hydrogen and nothing else. Raise the value very slightly - to 0.008 per cent – and bonding would be so wildly prolific that the hydrogen would long since have been exhausted. In either case, with the slightest tweaking of the numbers the universe as we know and need it would not be here. [Martin Rees]

Your organisation would learn the process of Corporate Atomic Structure and how Policies, Practices and People form precisely in a similar fashion to protons,electrons and neutrons respectively.

School children can learn the governance process by way of a gamesuch as hopscotch as to know the variants under the two processes –creative process and action process.

Introduce workers and staff these variants and organisations have set themselves accelerating growth in every process block.

2 The Modules

CREAM™ Report consists of 5 basic modules – Corporate Governance, Risk Management, Earning [Profitability and Balance Sheet], Accounting Quality and Management quality. There are more than 200 process blocks.

The modules on CREAM™ Report consists a number of independent process blocks such as – UNGC Global Compact, UNCAC implementation, Each process block is analysed and measured to a variety of parameters as necessitated by the rating system. Please see 4 herein.

3 The Add-on Modules

Strategic Management and Project Management are part of the open-ended process blocks that gets merged into the CREAM™ Report independently. The Modules are open-ended. Return on Investment is at the time of project proposal and several years after project completion. Use Return on Intangible during project implementation. Your organisation can arrive at the advantages of CREAM™ Report over annual Budgeting exercise and shall learn the process of accelerating growth in all sector of the company they represent.



4 The Rating System

The data CREAM™ Report provides is more valuable info than a belated Balance Sheet. Illustratively, CREAM™ Report for a company is similar to a passenger in an aircraft who is provided with the video display of the real-time information on the flight path, a map covering the route, the position on dot, altitude, cruising speed, distance to destination, time from origination point and time to reach the destination. What is important and exceptional is the firm foundation and the evergreen rating metrics that in consonance withNature. This means it is intangible and ever lasting.

The measurement is by energy force added that each incremental energy unit by one singleindividual is recognised and adds up to the growth.

5 The Team

6 DeliverablesThrough eLearning, Workshops, Webinar, Intranet, Corporate Training, Corporate Consulting IBCM© Research would like to pass on the knowledge of Intangible.

In the domain of intangible there is only asset and no liability. The cause of all economic problems lie, let us conveniently blame, in the Balance Sheet. Return on Intangible brings that stability and order in treatment of liabilities and assets alike



Return on Intangible is aligning Fiscal Responsibility with Ethical Responsibility

Corporate history since the industrial revolution has been an enormous growth in freedom of enterprise, economic prosperity, innovation, technical and intellectual advancement but ithas also been, stoking the passions of greed, a slow and sure decay of morality and social order culminating in high unemployment and Occupy Wall Street movements.

Rating System: Bear Stearns was rated AAA, like, a month before it went bankrupt? Lehman Brothers; A2, within days of failing. AIG, AA, within days of being bailed out. Fannie Mae and Freddie Mac were AAA when they were rescued. Citigroup, Merrill; all, all of 'em had investment-grade ratings. [Inside Job]

In my recent interaction with the MD and CEO of a major rating agency here at Mumbai while I was telling him why Mandatory Grading is dropped a brilliant move by SEBI's Damodaran, he offered statistics to prove that whenever his agency had rated high the post-IPOs had done extremely well and vice-versa. He although agreed with me on Damodaran's great initiative he squarely blamed the Investment Bankers were not ready to show the correct rating on account of adverse market reaction, during the IPO.

While discussing the opportunity of country rating he did mention that there is a select bandof bigwigs sitting in London where even he is not allowed to participate that over 100 country sovereign ratings are done.

Banking: Raghuram Rajan calls for innovative, dynamic finance, but without the excess risk and outrageous behaviour. And opines that would be hard to achieve but would always be worthwhile.

Government – Corporate – Society: Government extols its ethical responsibility but overlooks fiscal responsibility whereas the corporate is the opposite. The tragedy is, the Society is not conscious of their indifference, worse still Corporate and Government admire themselves and are lost in the masquerade.

Return on Intangible: Outrageous behaviour is what we all have to deal with. What is important is to bring profit motive in line with ethical motive. The central long-run question facing India is where will good jobs come from? Productive jobs are vital for growth. And a good job is the best form of inclusion. [Economic Survey – 2013]. Manufacturing companies are the most affected at the hands of amoral financial sector.

Return on Intangible is the most powerful tool to set right the wrongs of capitalism by aligning with ethical responsibility. I propose to the government

i. Introduce management studies by Intangible from the primary school; further,ii. institute SEBI mandatory grading now defunct, mandatory for all companies that was dropped only due to the world of management and rating agencies had no clue how to prepare, now made possible by measuring Intangible; Government had done it before with introduction of cost audit in the year 1966, that I had the pleasure of participating; iii. Let Corporate initiate the non-mandatory procedure for preparing CREAM ™ Report, the aim of this Corporate Consulting initiative.

Jayaraman Rajah Iyer



Copyright

Inactivity Based Cost Management - Copyright © REGN. NO. L-27490/2006 DATED December1, 2006 Govt. of India, Copyrights Office, by the Author, Jayaraman Rajah Iyer

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Without the knowledge of measuring Intangible there is no Governance. Corporate Education, Training, Consulting is the process you may choose. I prefer DIY consulting i.e. your own people absorb the knowledge and optimise their pockets of ethical and fiscal responsibility. I can be a catalyst.

Think of 50 years hence, you would be equipped to look back to verify the growth years related to energy input and output. This is because of pulsating energy is intangible where time does not invalidate the efforts put in. Today we fall back to a Balance Sheet of tangible evidence that has no value when you start comparing with another. Whereas return on intangible is comparable. Your optimising effort at 5 validates your own benchmarking despite any number of internal and external chaos.

I strongly recommend companies to start the CREAM™ Report Profits optimisation and Sustainability programme for your company. Return on Intangible does not differentiate between one and another. Each is capable of optimising their effort in their own area.

You are welcome:

Jayaraman Rajah [email protected]

Address:“Gayatri Cottage”Bearshola Road,Kodaikanal 624101Tamil Nadu India

704, Sarangi, LokpuramThane 400610Maharashtra


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Return on intangible for rating corporate and government