Month: April 2024

Categories
Education

What are The Five Principles of Locke & Latham of Goal Setting?

5 Principles of Locke & Latham for Goal setting
5 Principles of Locke & Latham for Goal setting.

Goal setting is vital for the success of any organisation’s success. It enables individuals and teams to concentrate their efforts, track progress, and attain desired outcomes. In 1960, Dr. Edwin Locke & Dr. Gary Latham introduced the concept of the Five Principles of Locke & Latham’s Principles of Goal Setting in their book titled “A Theory of Goal Setting and Task Performance.” These principles have since become fundamental to modern management practices and are widely implemented in organisations globally.

In their 1960 book “A Theory of Goal Setting and Task Performance,” Dr. Locke & Dr. Latham presented five key principles of goal setting: clarity, challenge, commitment, feedback, and task complexity.

“What you get by achieving your goals is less important than what you become by achieving your goals.”

In this blog, we will discuss five principles of Locke & Latham’s principles of goal setting.

Five Principles of Locke & Latham’s Principles of Goal Setting: 

 

1. Clarity – Setting Clear & Precise Goals

 

Clarity is essential for achieving optimal results and significant growth in life. Therefore, goals should be clear, precise, specific, and easily understood by everyone in the organisation. Clarity enables accurate result measurement and encourages desirable behavior.

“A goal without a timeline is just a dream”.

 

2. Challenge – Setting Challenging Goals

 

Challenges motivate and inspire individuals to strive for specific goals. Research shows that setting specific and challenging (yet realistic) goals leads to higher performance and greater success.

Specific & challenging (yet realistic goals) = More Sucess

 

3. Commitment – Securing Team Commitment

 

Success is not solely the result of individual efforts but rather a collective endeavor. Goals are more effective when there is team understanding, consensus, and commitment. Encouraging employees to achieve goals by providing clear objectives and the freedom to innovate fosters motivation.

Self-commitment + Team commitment = increased motivation

 

4. Feedback – Evaluating Your Progress

 

Receiving feedback allows for adjustments and improvements, while feedforward (prospective feedback) helps clarify expectations and adjust goal difficulty levels. Providing constructive, measurable, and informative feedback to employees facilitates their development and performance.

 

5. Task Complexity – Managing Complexity

 

Overburdening employees can diminish motivation and impede progress. Breaking tasks into manageable sub-goals and providing adequate support, training, coaching, and mentoring can enhance employee motivation and morale.

“People working in complex & demanding roles often push themselves too hard” 

The Five Principles of Locke & Latham’s Principles of Goal Setting are essential for achieving organisational success. By setting clear, challenging, and measurable goals, securing team commitment, providing constructive feedback, and managing task complexity, organisations can achieve their desired outcomes. These principles have been widely embraced in modern management practices, and their efficacy is well-documented. By adhering to these principles, organisations can foster a culture of performance, accountability, and continuous improvement, crucial for long-term success.

Categories
Powerful Personalities

Shri L.K. Advani: India’s Longest-Serving Minister

Lal Krishna Advani
Leadership Lessons from Shri LK Advani in Hindi.

Indian political system has experienced many ups and downs with different leaders coming in and out. However, in making the nation best suitable for the people to live and express their freedom, some give pieces of advice whereas some leave a heavy stamp with their incredible skill of serving the nation. One such man who has crossed all boundaries to serve the Nation is the longest-serving minister in India. Let’s jump into the journey of Lal Krishna Advani.

Who is Lal Krishna Advani?

Lal Krishna Advani is an Indian politician who served in the Indian Goverment for decades under the guidance of Shri Atal Bihari Vajpayee. He is a man known for his leadership skills, the BJP (Bhartiya Janta Party ) Chief representative, Deputy Prime Minister, Right-wing Hindu nationalist volunteer organization, Home Minister (1995-2004), Leader of the Opposition in Lok Sabha and understands time before time.

Served as the 7th Deputy Prime Minister of India (29 June 2002 – 22 May 2004), he is one of the co-founders of Bhartiya Janta Party (BJP) and a member of the Rashtriya Swayamseva Sangh (RSS). He was also the prime ministerial candidate of the BJP during the 2009 general; election.

From Pakistan to India: A Journey of Serving Nation And Its People!

Lal Krishan Advani was born in Karachi, Pakistan and migrated to India during the Partition of India, settled and completed his college education in Bombay. He was the leader who was familiar with two languages only Sindi and English. He joined RSS at the age of fourteen (1941) and worked as a pracharak (preacher) in Rajasthan.

KickStart Their Political Career At the Age of Fourteen

Lal Krishan Adani joined politics at the age of fourteen. In 1951, he became a member of Bharatiya Jana Sangh (later merged into Bhartiya Janta Party) was founded by Syama Prasad Mookerjee. He performed various roles in his tenure including in charge of parliament affairs, general secretary, and President of the Delhi unit.

Advani was elected as the chairman of the first Delhi Metropolitan Council(1967-1970) while being a member of RSS. Moreover, 1970 was the year of change for him. He became a member of Rajya Sabha (1970-1989). He also became president of Jan Sangha(1973) and merging with the Bhartiya Janta Party in 1977 and victory in the elections, made Advani the Union Minister for Information and Broadcasting, and the leader in Rajya Sabha.

Advani’s Bold Move: Scaling the Heights of the Mountain with BJP

Advani was one of the founding members of the BJP along with Atal Bihari Vajpayee and served as the president of the party thrice. Elected as a member of Lok Sabha for the first time (1989), he served seven terms. However, his journey was not easy. In 1992, he was alleged to be part of Demolition of the Babri Masjid but because of lack of evidence, he was acquitted by the court.

Moreover, He was a major advocate for building a temple on the disputed Ram Janmabhoomi site in Ayodhya and played a key role in the rise of Hindutva politics in the late 1990s. He has held the position of Leader of Opposition in both houses of the Indian Parliament. He served as the Minister of Home Affairs from 1998 to 2004 and as the Deputy Prime Minister from 2002 to 2004. He was a member of the Indian Parliament until 2019 and is credited with the rise of the Bharatiya Janata Party (BJP) as a major political party. In 2015, he was awarded the Padma Vibhushan, India’s second-highest civilian honour. In 2024, he was conferred with the Bharat Ratna, India’s highest civilian honour.

Retired From Politics But Still Known For His Superlative Leadership Qualities

 

  • Vision and Persistence:
    L.K. Advani co-founded the *Bharatiya Janata Party (BJP)* and played a crucial role in shaping its vision provides a lesson that leaders require a clear vision and the persistence to work towards it, even in challenging times.
  • Cultural Nationalism:
    Advani believes Cultural Nationalism, connecting India’s heritage with contemporary politics showcases that leaders should understand and respect cultural roots while adapting to modern contexts.
  • Socio-Economic Progress:
    Throughout his career, Advani stressed that good governance, economic development, and national security showcase that leaders must balance economic growth with social welfare and security.
  • Navigating Controversies:
    Advani faced controversies, especially during the *Ram Janmabhoomi movement. He believes that leaders should handle controversies with grace, transparency, and a focus on the greater good.
  • Party Building:
    Advani’s leadership solidified the BJP’s position as a formidable political force.  It ensures that leaders should build strong organizations by nurturing talent, fostering unity, and staying committed.

LFP Plus by Dr Vivek Bindra

You can read this story in Hindi on our Hindi Business News. – लालकृष्ण आडवाणी जिनकी सोच ने बदला देश की राजनीति का रूप

 

 

 

 

Categories
Technology

Elon Musk’s Neuralink Brain Chip Implants in First Human

ELON MUSK Neuralink Brain Chip
ELON MUSK's Neuralink Brain Chip Implants in First Human.

Elon Musk announced Neuralink on the update of the social media platform “X” (Twitter). The company’s implant is a tiny device known as a “Link”. The size of it is equivalent to five coins stacked together and will be surgically placed inside the human brain.

Neuralink, based in California was founded in 2016. The company has a strong workforce of more than 400 individuals, raising over $363 million in funding as per the reports by Pitchbook.

With taking technology to the heights, Musk’s Neuralink has successfully installed a brain implant in a human patient marking a milestone for the neurotechnology firm. Moreover, the first receipt of an implant is recovering well after the procedure.

The news of Neuralink’s first-ever invention has been shared by Elon Musk on the social media platform X stating that, “The first human received an implant from Neuralink yesterday and is recovering well”. He continued with “Initial results show promising neuron spike detection”. This new step will follow Neuralink’s receipt of approval from US regulators last year (2023) to commence human trials for their new brain implants.

The new innovation by Musk aims to forge direct communication pathways between the human brain and the latest computer technology. This will not only revolutionize the treatment of neurologic disorders and Parkinson’s disease but also help in enhancing human capabilities. This will foster a symbiotic relationship between humans and AI (Artificial Intelligence).

Although Musk often garners significant media attention for his involvement in interference research, he is not only in this endeavour. Moreover, Musk’s collaboration with Synchron, another implant developer who first inserted an implant into a US patient in July 2022, offers a less invasive installation process, not required to open the skull. This collaboration will bring new technology to the world.

Neuralink has a history of delivering promising developments but faces scrutiny over its safety protocol. The company also faced fines for breaching US Department of Transportation regulations related to hazardous material transportation. On November 2023, US lawmakers urged the US Securities and Exchange Commission to investigate the claims on Musk, misleading investors about the safety of Neuralink’s brain implant.

As the world is changing with Neuralink’s achievement, this innovation will mark a significant palace in neurotechnology.

Categories
Sales

10 Ways to Reduce Lead Time, Increase Customer Satisfaction, and Improve Cash Flow

Reduce Lead Time, Increase Customer Satisfaction, and Improve Cash Flow
Reduce Lead Time, Increase Customer Satisfaction, and Improve Cash Flow.

Transformation in the retail business of buying or selling has transformed the business operation. Today, companies are fulfilling customer needs and demands via prompt delivery options, delivery of excellent services and more.

The success of the business is determined by many factors, however lead time, increased customer satisfaction and improved cash flow are the primary key factors in the process.

In this article, we will discuss the ways to reduce lead time, increase customer satisfaction and improve cash flow simultaneously in the business.

Your lead time is important and reducing it can have a major impact on your business

Different Ways To Reduce Lead Time, Increase Customer Satisfaction & Improve Cash Flow

  • Found Diversified and Remove Unreliable Supplier:
    Diversified suppliers help maintain quality supply practices to achieve better performance in quality, flexibility, reliability, cost and design. The materials not only can be sourced from international suppliers, but also many raw materials can come from domestic suppliers.  It helps in quickly reducing the lead time.
    Pro Tip: If you are looking to change your product, always ensure to be stocked with enough inventory to get through the changeover period. This will reduce the chances of inventory deficits and help to run to the new supplier more quickly.
  • Choose Close-By Vendors:
    In the global marketplace, access to more than one vendor has become an easy task however, while chasing the best price from the suppliers across the globe, it leads to waiting for weeks for products to be shipped overseas. This increases the lead time and also complicates the process of returning faulty or unwanted products. One of the easiest lead time reduction strategies for suppliers is to give property to the vendors located nearby to your warehouse or manufacturing plant.
    Tip: If you are unable to find a local supplier that can compete on price, consider placing larger orders but frequently from international vendors and keeping a large inventory in hand.
  • Share Demand Forecasts With Suppliers:
    In an industry that naturally fluctuates its orders monthly, the suppliers must prepare for larger-than-normal orders. It helps in understanding the expectation of increasing demands of products as early as possible. As a result, it gives a message to the buyer that suppliers are not only prepared to handle an exceedingly larger order but also prepared for a quick delivery order.
  • Make In-house External Processes:
    External processes increase efficiency, reduce costs and gain more control over business operations. Setting up the In-house external processes ensures all facilities are under one roof and decreases outsourcing the products from third-party suppliers. This requires a significant investment upfront but the long-term saving makes the financially feasible. So, by keeping everything in-house, you can ensure that your team is trained to handle every aspect of your business with precision & expertise, infrastructure for growth allows you to scale with profits.
  • Automate Orders Increase Workflow:
    Having a raw material gives a kickstart to start the production process, however, poor performance leads to suffering in lead time. Before setting up the production house, consider these pointers:

    • How much time it takes you to get customer purchase orders in the system?
    • How much time does it take you to move engineering change of orders from production and QA?
    • How often has the process stopped as a result of internal miscommunication?
    • How many times do the orders get lost entirely?
  • Multitasking of Things:
    For better results, certain processes have to be completed before others can be started and there will be no way around it. Therefore, identifying processes where individuals can complete tasks at the same time. It increases productivity and reduces the lead time even further.
  • Enhance Internal Communication:
    Communication and order processing is an “all hands on deck” process, however, not collaborating well internally will create unnecessary delays in the production process. Using order entries as an instance, if your process involves multiple steps that require input from several people. This will increase the chance of wasting time, especially if you’re using paper documents that are difficult to track. Keeping paper-based projects sitting on someone’s desk can increase lead time and the likelihood of losing important documents.
    Poor communication is a significant challenge, often a symptom of deeper issues, but manufacturers have several options to eliminate bottlenecks. One solution is implementing a workflow system that immediately routes order-related documents from one department or user to the next. It notifies users that a project needs their attention.
  • Improve Communication With the Customers:
    As per the studies, communication is the primary key to increasing customer satisfaction and loyalty however, it reduces the lead time. Keeping the customer up-to-date about the orders, increases their trust and loyalty towards the supplier. Sending order notifications with the automation of technology decreases the efforts and increases satisfaction.
  • Eliminate Bottlenecks:
    Improving efficiency and accountability can reduce lead time and increase customer satisfaction. Bottlenecks such as running processes in series, multiple hand-offs between departments, machine breakdown or changeover should be eliminated for better results. Running processes in parallel, consolidating tasks in one department, performing schedule maintenance and more should be implemented instead of bottlenecks.
  • Improve Cash Flow and Liquidity:
    By analyzing sales data across multiple channels and taking into account current market conditions, you can improve the accuracy of your demand forecasts. This, in turn, can help you plan your inventory requirements more effectively for future sales. By avoiding overstocking, you can operate with less capital tied up in unsold inventory sitting around in the warehouse.

One of our biggest accomplishments has been setting up real-time inventory tracking systems, which enable us to track inventory levels accurately. “This approach reduces the chances of running out of stock or experiencing an overstock situation”- Priyanka Swamy of Perfect Locks. 

In conclusion, reducing lead time, increasing customer satisfaction, and improving cash flow are crucial factors for the success of any business. By implementing the strategies discussed above, such as diversifying suppliers, choosing local vendors, sharing demand forecasts, setting up in-house external processes, automating orders, multitasking, enhancing internal communication, and improving communication with customers, businesses can achieve these goals simultaneously.

These strategies require some upfront investment, but they can lead to significant long-term savings and increased profitability. By focusing on these key factors, businesses can stay competitive in the ever-changing retail industry and continue to meet the evolving needs and demands of their customers.

You can read this story in Hindi on our Hindi news. – कैश फ्लो में सुधार लाने के 10 तरीके

leadership funnel program by vivek bindra

Categories
Strategy

What is the BHAG (Big Hairy Audacious Goal) Goals Framework in Business?

BHAG Big Hairy Audacious Goal
BHAG Full form is Big Hairy Audacious Goal.

The Big Hairy Audacious Goal (BHAG) framework is a long-term goal-setting framework introduced in the book “Built To Last Successful Habits of Visionary Companies” by Collins and Porras. This framework aims to create ambitious, inspiring, and challenging goals that can drive a company’s growth and success for 12-15 years.

BHAG goals are categorized into four different types, including target-oriented BHAG, competitive-oriented BHAG, role model BHAG, and internal transformation BHAG.

In this article, we will understand the categories of BHAG Goals in Business:

Categories of BHAG Goals:

 

  • Target Oriented BHAG:
    In this category, the goal is to achieve predetermined targets such as reaching a $1 billion valuation of a company in 5 years and becoming a unicorn company. It varies from organization to organization. Achieving a specific goal within a certain timeframe ensures better time management and good results. For example, ‘Microsoft’ target was to ‘A computer on every desk and in every home,’ and ‘Walmart aimed to reach $125 billion in sales by 2000.
  • Competitive Oriented BHAG:
    This category involves overtaking top competitors, where the organization faces competition with larger organizations. For example, in 1960, Nike’s original goal was to surpass Adidas, and NASA’s goal in 1970 was to reach the moon, competing with the USSR. Notably, individuals like Sir Richard Branson, Jeff Bezos, and Elon Musk competed to become space astronauts. Sir Richard Branson reached space before Jeff Bezos on July 11, but Jeff Bezos, being competitive-oriented, broke the Guinness world record in 2021.
  • Role Model BHAG:
    In this category, the goal is to become a role model. For example, Harvard University is much older than Stanford University, however, both universities hold the same position in the market.
  • Internal Transformation BHAG:
    To remain competitive, internal transformation is crucial for businesses. It creates positive change in the business model. For example, Netflix transitioned from DVD mailing to an OTT platform. Another example is Google, which underwent a small transformation to become the top browser in the world.

Internal transformation should be:

  • C- Compelling and Exciting
  • A- Action-oriented
  • D- Decade (minimum 10 years plan)
  • I- Innovative

In conclusion, the BHAG framework is an effective tool for businesses to set and achieve long-term goals that drive growth and success. By categorizing BHAG goals into different types, companies can tailor their approach to goal-setting based on their specific needs and objectives. Whether it’s achieving a specific target, outpacing competitors, becoming a role model in the industry, or transforming their internal operations, the BHAG framework can help businesses achieve their goals in a compelling, exciting, and innovative way.

lfp event by vivek bindra and bada business

Categories
Startup

10 Ways to Raise Funds for Startups in India

10 Ways to Raise Funds for Startups in India
10 Ways to Raise Funds for Startups in India

Money is the bloodline of business and funds are like the vein. However, lack of funds is one of the common reasons for the downfall of any business. This long meticulous yet thrilling journey from the idea to revenue-generating business needs a fuel named “Capital”. Therefore, at every stage of the business cycle, entrepreneurs ask one major question- “How to Finance business” However, the answer remains the same, where to find it?

In this blog, we will share 10 ways to raise funds for startups in India.

Ways to Raise Funds for Startups in India:

 

  1. Bootstrapping:
    Bootstrapping, also known as “Self-funding” is considered to be one of the risk-free ways to kickstart any business. The initial problem for any business is arranging funds while some arrange it from their savings or take it from daily. This step will grant complete control to the founders and could limit the growth of the business.
  2. Crowdfunding:
    Crowdfunding is one of the easiest and newest methods to collect funds from multiple investors through social media sites or web-based platforms. These funds are raised for various purposes like social causes, charities, ideas, disaster relief, events and more. This idea of raising funds for business promotes social and cultural causes.
  3. Business Incubator:
    Business Incubators are the early-stage option for raising funds for business. They are like the parents of the business that nurture it by providing shelter tools, training and networking businesses. Helping to assist nurtures a business to walk, this program normally runs for 4-8 hours and requires a time commitment for business owners.
  4. Venture Capitalists:
    VCs (Venture Capitalists) play a pivotal role in an organization’s ecosystem. They fund early-stage companies with high growth potential and better success. Drawn to make clear and ambitious long-term goals, resilient business model, demonstrating a robust and making strong and competent team, VCS invested in startups expects to secure high returns in future.
    Note: VCs avoid investing in a startup’s initial or later stages when the competition is igh in business.
  5. Peer-to-Peer Lending:
    Peer-to-peer lending is a form of money borrowing with no intermediate involved in the process. In this, the lenders lend money to borrowers for their investment purposes and borrowers get money at their disposal to invest in the business. This way, the lenders earn from the borrowers because the interest rate is higher as compared to banks, NBFCS and MFIs.
    This lending is regulated by RBI to avoid miscommunication between borrowers and lenders.
  6. Strategic partnerships:
    Partnerships with the companies can benefits to infuse funds and resources for startups. They open up the door to new markets and technologies, however, aligning a goal and maintaining a balance between partners can be challenging and also require careful negotiation.
  7. Credit Cards:
    Credit cards are the easiest source of raising funds in business. Easily available after completing few steps, this card can be a course of quick money. However, interest rates and costs on the cards increase quickly and carrying that debt can be detrimental to a business owner’s credit.
  8. Angel Investor:
    Angel investors are individuals who have surplus cash and are interested in investing in new start-ups in India & worldwide. However, the risk involved in this is more as compared to loans offered by financial institutions. These investors invest higher returns for profit.
  9. Business Loan (Private/Public Sector):
    Banks are considered to be the source of raising funds for start-up enterprises with reliability and better conveniences of getting good amounts. They provide funds to the business in two forms, loan and working capital loan. The majority of the banks offer loans to both public and private sectors, however, they vary in interest rates, loan payment, repayment tenure and more.
  10. Government Loan Schemes:
    The government launches various schemes to help start-ups, SMEs, and MSMEs as well as promote the socio-economic growth of rural India, women entrepreneurs, educated youth, individuals from SC/ST category and more. The initiative by the Goverment of India to help start-up enterprises includes the MUDRA Loan Scheme under Pradhan Mantri Mudra Yojana, Start-up India, PSB Loans in 59 minutes, Credit Guara Fund Trust for Micro and Small Enterprises (CGTMSE), Atal Innovation Mission, Make in India, etc.

 

Categories
News

New Rules Come into effect in India from 1 April 2024

new rules came from 1 April 2024
New rules implemented from April 1st 2024 in India, know what will be the effect on you?

The 1st of April, every year marks the beginning of a new financial year. However, this year no major changes have been announced by Finance Minister Nirmala Sitharaman in the Income tax slab rate in interim budget 2024 in February other than the income tax slab.

The changes in the new tax regime were announced in last year’s Budget (2023) which is applicable in the current financial year (2024-2025). However, the new tax regime is now the default option for taxpayers but the option of choosing the old regime is still intact. This has made the new tax regime attractive for individual taxpayers.

New Tax Regime Table:

Income Tax Slabs Income Tax Rate%
From 0 to 3,00,000: 0
From 3,00,001 to 6,00,000: 5%(Tax Rebate under 87A)
From 6,00,001 to 9,00,000: 10% (Tax Rebate under 87A till 7 Lakh)
From 9,00,001 to 12,00,000: 15%
From 12,00,001 to 15,00,000: 20%
From 15,00,001 to above 30%

New Rules Came Into Effect From 1st April:

  • The basic exemption limit increased from 2.5 Lakh to 3 Lakh in the new tax regime. 
  • The standard deduction of Rs 50,000 which was earlier applicable in the old tax regime, has now been introduced in the new tax regime for salaried and pensioners. This helps in reducing taxable income under the new system. 
  • The Rebate under Section 87A has increased the taxable income by Rs 7 lakh which provides a rebate of Rs 25,000 from 5 lakh which provides a tax rebate of 12,500. This shows the individual opting for a new tax regime and having a taxable income of up to Rs 7 lakh will not pay any taxes. 
  • Under the new tax regime, the highest surcharge rate on income 5 cr or above has been reduced from 37% to 25%. 
  • This new regime has reduced the number of income tax slabs from six to five. 
  • Family pensioners can claim a standard deduction of Rs 15,000 in the new tax regime. 
  • The maturity income from life Insurance Policies (issued on or after 1st April 2023) and total premium exceeding Rs 5 lakh will be subject to taxation. 
  • The leave encashment tax for non-government employees has now increased to 25 lakh from 3 lakh.

1st April Brings New Changes:

  • The minimum contribution to NPS (National Pension System) has increased from Rs 500 to Rs 2000 and this change will apply to the age group of 18-25 years. 
  • KYC is mandatory to use Fastag. 
  • SBI has increased the annual fees on Debit Cards
  • The annual maintenance fee of the Pride Premium Business Debit Card will be Rs 425 including GST. 
  • LIC has introduced the Protection of Policyholder Interest Regulation. The changes include new guaranteed surrender value, premium payment options, and more.