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Resolving the basic debt management problems

admin — Fri, 14 May 2010 13:47:04 +0000

A classic example of this happened to a client of mine: an appliance manufacturing company. The sales and production departments worked together to ensure that stock was delivered on time to cover sales promotions. Things were going well, customers were buying appliances through the promotions, and back orders almost ceased to exist. Yet, while sales managers were making record bonuses, production managers were not seeing any change in their bonuses.When the partnership met, this gap was brought to the attention of the Sales and Production vice presidents. They were told that production managers and supervisors were starting to get angry that salespeople were making huge bonuses while they did all the hard work. The two partners decided to split the promotion sales bonuses evenly between Production and Sales to deal with the inequality and provide mutual benefits to both partners. As a result, the partnership between
Production and Sales worked so well that after a two-year period, both groups got record high bonuses. The partnership moved from resolving a logistics issue to making design improvements based on customer feedback that Sales passed along to Manufacturing. The partnership worked so well, in fact, that the vice president of Sales told me one day: “I can’t even remember what it was like when we were not working together in partnership.”

Meeting your payday loan requirements

admin — Fri, 16 Apr 2010 09:32:12 +0000

The subtitle of Harvey Mackay’s book Swim with the Sharks Without Being Eaten Alive (1996) offers this advice: “Do what you love, love what you do, and deliver more than you promise.” There’s no better way to develop a trusting partnership than to do more than the minimum your partner expects. Trust isn’t automatic; it has to be earned. Trust levels are relative and can increase or decrease depending on what the partners do or don’t do to build trust. If doing what you promise to do builds trust over time, exceeding your promises multiplies the impact of your actions.

We should try to exceed—rather than merely meet—the requirements of our promises. “Exceeding expectations” sounds like you expend full effort and enthusiastically complete the task, whereas “meeting requirements” sounds like you grudgingly perform the minimum. A law of physics states that for every action there is an equal and opposite reaction. Exceeding performance expectations triggers a reciprocal reaction.How do you feel about doing your part when your partner has already given 110 percent?

The flows of pension funds and payday loans

admin — Wed, 11 Nov 2009 11:17:34 +0000

Fund flows measure the amount of money that comes into or leaves the open-ended mutual funds during a given period. Coupon payments are not included. The flows of pension funds, hedge funds and insurance companies are not tracked in this number. Nevertheless, there is a high correlation between high-yield market total returns and mutual fund flows. The reason is that mutual funds account for a big part of secondary trading.

During a period of high market uncertainty and increasing negative event risks the correlation with equity markets tends to rise. Fund flows in the high-yield market are directly related to the developments in the equity market.

Fund Flows are a function of:

Expected risk
Interest rates
Inflation
Default rates
Economic outlook
Event risk