Onkyo Shuts Off With Loud Sound

The operation of the customer base as leverage performance

satisfaction Who says loyalty is often thought, but the correlation between these two concepts is far from established. Many companies see a customer satisfaction rate of over 90% but registers a retention rate of only just over 50%.

A customer can be satisfied, this does not mean it will become true. The customer is in fact quite normal to be satisfied, because if the satisfaction is the result of a perception, faithfulness, it is the result of a behavior.

But it is the loyalty that determines the performance of the company: the customer is a loyal costumer is also a potential prescriber is still a customer less sensitive to price changes and will tend to buy more. The customer is at the heart of corporate strategy should therefore identify its fidelity, it fit a differentiated communication. And this is even more true in difficult economic circumstances in which a defensive marketing is still cheaper than a marketing offensive.

ID? Differentiated communication? It is therefore more necessary than ever to learn to segment its customer base to identify different customer behaviors and thereby enable the establishment of policies tailored to specific marketing and strategic business objectives.

Business Strategy share declined in differentiated marketing, segmentation and identification of indicators, we're back on the ground of the method BSC (Balanced Scorecard).

Suppose that the objective Business is "increase sales by x%" , objective news to the various entities of the company to identify how they will contribute to its realization.

marketing decides to "revise the segmentation of the customer base" approach that can be either a goal or a marketing plan. One can easily imagine a causal relationship between the two objectives: "review the segmentation of the customer base" contributes to "increase sales by x%" .

Indeed, analysis of segmenting the customer base can help guide actions to be taken as the number of new customers acquired, the turnover per segment to reach existing customers, the increase retention rates, regaining lost customers ...

It should also prioritize these actions, and perhaps to give some order to define the proper allocation of resources ( human, logistic, financial) tailored to each client and the action potential of each customer segment.

Thus marketing considers that the review of customer segmentation is fully on the strategic objective of the company. For this CFO will review it in budget period, to define the probability of occurrence of potential sales by customer class.

Segmentation (RFM identify - Frequency - Amount) is the most effective to normalize a database client. This is a method of analyzing the customer portfolio based on three criteria : A review (when the last customer's purchase), frequency (number of purchases during the period) and amount (amount of purchases made by the customer over the period analyzed).

In this method the client portfolio is segmented in 4 periods (quarter, semester, year) called P-1, P-2 P-3, P-4 and which is assigned a response binary 1 or 0 depending on whether the customer has placed an order for the period (1) or remained inactive (0) over the period. Thus, a customer who placed the order only on the periods P-1 and P-3 will be assigned binary code: 1010, the having ordered the four periods will be assigned code: 1111.

thus determined 16 customer segments that can be grouped in 5 macro-segments to simplify and synthesize the communication of analysis results:

1111 = Very good customer

1110 = Very good customer

1101 = Good customer

1100 = Good customer

1101 = Good customer

1010 = Customer cyclic

1001 = Customer cyclic

1000 = New customer

0111 = Good customer

0110 = Customer cyclic

0101 = Customer cyclic

0100 = lost Customer

0011 = lost Customer

0010 = Client lost

0001 = lost Customer

0000 = Customer inactive

These 16 segments and identify customers with similar behavior and which can be associated, in a column in a spreadsheet, indicators such as the number of customers, sales, the average shopping basket, the frequency purchase, etc.. ...

And dragging this history with each new period, we can recalculate a new segmentation thereby determining a new indicator: the rate of conversion of each customer segment that is to say "new clients" that have become "good" clients the "good customers" who have become "very good" clients the "very good" clients lost and so on.

This shows the power of information we can draw from its customer base from the intersection of different customer segments with the selected indicators:

- in hindsight: knowledge of customer behavior based on their segment,

- a vision of the future: anticipation of future customer behavior by adding a probability of behavior.

And from these two visions, it becomes possible to adapt the commercial offers to each customer segment based on strategic choices defined by the head of the company.

Such an analysis presupposes a certain integrity of customer data base, from experience, this is not always realized, it should nevertheless not be an obstacle to its implementation and use of this wonderful performance lever.

In a BSC methodology for assessing the achievement of the objective, then it is best to define the two types of key performance indicators, outcome indicator (lagging indicator) we choose among those cited above and action indicators (Leading indicators) that will strategic choices of the customer defined policy.

On this last point I invite you to read the article by Patrick Jaulent "How to link long-term strategic objectives and daily operational activities? "
What do you think?

Make A Home Made Coin

How do you assess the performance of your business?

What do you use to evaluate the performance of your business?

- The results?

- The PER of the action?

- Customer satisfaction?

- The quality of products?

- Employee satisfaction?

The correct answer? There is not is a matter of choice. Must still make them, share them and stick!

I recently attended a seminar for chief financial officers and controllers on the theme of the implementation process of a Balanced Scorecard (BSC). If all participants were aware and convinced of the necessity of implementing such an approach, hence their presence, there was consensus to share a difficulty in some branches of membership in this process.

[The Balanced Scorecard can be defined as a tool to decline the strategic objectives into a set of operational actions and performance indicators. It plays a key role in operational management.]

This difficulty stems from membership in certain practices:

- A strategy deliberately not spread to the company

- a strategy often referred to in times of budgeting only

- A lack of alignment in the goals

- A focus on the past and the short-term

strategy deliberately not spread to the company

Fear of loss of confidentiality of the strategy was mentioned by some branches to restrict its communication to a few insiders.

It is not yet in the process of performance management to reveal the very sensitive areas of strategy, communication can be sanitized and disseminated in the underlying objectives. In all cases the strategy should be known by those involved in its implementation if it can find to do.

A strategy often mentioned during budget preparation only.

Unfortunately, we all see that the budget has little to do with strategy, it is actually, in most cases a year, very time allocation resources and management of the compromise between what the operational and proposed that ownership imposes.

Jack Welch, former chairman of General Electric sums it up thus: "people work for a month on their tables and their budget submissions for senior management to announce that given the economic environment and competitive situation the best they can do is 2. Branch said while their shareholders expect 4. We scored 3 in the budget and everyone goes home happy. " The purpose is not provocative but so full of reality.

In fact, regardless of the consensual aspect of the budget, the strategy is not always translated into targets on the budget and when it does, it is not often translated into financial and nonfinancial indicators linked by a causal link allowing the rationalization.

A lack of alignment in the goals

indicators exist in the company, each department makes it a point of honor to develop its own and to evaluate its performance according to criteria and priorities that are not necessarily in connection with the strategic objectives.

This brings us to develop a real Encyclopedia of indicators, sometimes jealously guarded by Devers itself and therefore not shared between departments or in checked their reliability until presented in "exclusive" to the next steering committee. Indicators that can be requested again by management to another service to ensure data consistency. And it happens more time to produce and control numbers and to analyze when there is time available, more time in analysis than in anticipation.

It reminds me that I had about read somewhere "the act of measuring does not create more value than the fact of being weighed does not lose weight! "

For the point is there, value creation is the common objective of any business. But the value is created only by the proper execution of policy decisions. Strategy without action is not a strategy. It is therefore introduce into the execution of the strategy measures of value creation and to communicate to the operational objectives in relation to the strategy.

Focusing on the past and the short-term

meetings to present the monthly report are part of the agenda of any CFO. All financial indicators are reviewed. Variances are analyzed and discussed in relation to monthly N-1, the cumulative N-1, NO monthly budget, budget accumulated N, "remains to be done" with respect to N "is to" N-1. From the second half we also introduces deviations from the "re-estimated." And if there's time for this meeting one or two non-financial indicators of the current period will be provided to indicate the trend of the next monthly reporting, and will there be shown to "advance".

Communication rationalization strategy, strategic alignment, consistency and anticipation are so many areas of improvement. Ie moving from a culture of reporting, accounting vision performance to that of the scoreboard oriented toward the future vision for future action.

In this cultural evolution CFO has an opportunity to take to strengthen its role as partner management. What do you think?

To go further on this subject I invite you to browse the blog Jaulent Patrick, President of Balanced Sorecard Europe

German Big Boob Velba

The payroll function is also an issue of performance for the balance of control DAF

We do not say it enough but in French companies 40% of pay slips contain errors.

Result of inflationary evolution of regulation, each year they are averaging almost 150 new texts that are directly impacted the content and calculation of the earnings statement.

result on the complexity of the calculation or application of certain measures: Reduction Fillon Act TEPA, today ... If everyone masters the calculation of the CSG and CRDS, I do not understand yet why do so on the plate as in the calculation rules have been devised to as complex: a plate of 97% of gross salary plus employers' contributions to pension and provident additional complementary taxed at a rate of 8% but not tax-deductible up to 2.4%!

The payroll is often seen in companies with a certain indifference or as an ancillary activity with no real added value. She manages, however, one of the first business expenses, payroll, and is also the conduit for communicating with employees as recurring monthly newsletter delivery. Finally, we must not forget that a pay slip is also a legal document of the employee's rights systematically produced during industrial tribunal litigation.

Financially, the stakes can be very substantial as a result of inspections conducted by URSSAF. The balance control URSSAF 2007 concluded in an adjustment to businesses of nearly 800 million in absolute value, which splits into 550 million in adjustments in favor of URSSAF and corrections to the 250 million profit Employers .

And do not forget that since 2008 URSSAF has become responsible for the control of contributions due for unemployment insurance. The impact unemployment insurance adjustments performed by URSSAF is estimated at more than 100 million euros.

While these figures are justified by the increasing complexity of regulation but also in a lack of appreciation and anticipation of the financial consequences of inaccurate payroll.

The correct evaluation of social avoids the payment of a charge later unfunded in terms of results, not expected in terms of cash but above plus, in addition to penalties, withholding of salary that the company has no employees but also reflected the advisory fee in case of dispute. Note in passing that since the Finance Act 2008, these penalties are not deductible for tax purposes.

The correct evaluation of the charges can also avoid paying too much, which happens more often than one might think of 250 million euros in 2007!

The payroll should be considered one of the levers of business performance , a lever for value creation, issue of HRD as well as finance departments. This is not the case today.

What do you think?

What Did Men Do In The 1800s

URSSAF Contributor 2007

Reading the balance of control URSSAF Contributor 2007 (published June 2008) conducted by Dirr (Department of Regulatory Affairs, Recovery and Service) is particularly instructive to identify the irregularities most frequently in business.

It appears that the mechanism very complex calculation of the "reduction Fillon is the source of the majority of adjustments . We can expect the same effect when the checks will focus on law enforcement TEPA.

At the time of writing this post, the balance of 2008 is not yet available on the ACOSS website, it seemed interesting to me however summarize the highlights and findings of inspections made in 2007 by URSSAF.

For those interested by reading all 59 pages of the report, it is available on the following link: Assessment of control URSSAF 2007

In 2007, 112,000 companies have been the subject of a control plate, or over 5% of total enterprises and 16% of contributions liquidated controllable.

Consolidating data over 3 years revealed that over 16% of companies were inspected representing over 58% of employees.

The corresponding adjustments have exceeded 795 million euros, 542 million of positive adjustments and 253 million of negative adjustments

The number of inspections resulting in a recovery from 54 % in 2005 to 58% in 2008, which confirms the authors of the report, the targeting of the contributors to risks.

analysis by employment size confirms that plans to control URSSAF remain focused on larger companies. Thus the rate of corporate control over 200 employees is over 23% while the overall rate of control is 5.20%.

Furthermore, employers with more than 200 employees represent only 2.30% of the number of checks, but over 38% of total adjustments.

analysis by broad business shows that the rate of recovery increases with the size of the company

Thus, firms employing more than 200 employees control rate of over 23% and a recovery nearly 93%.

analysis of the distribution of adjustments reveals that adjustment comes mainly from the reintegration of the contribution base "compensation not subject to contributions (38.54%) and application error "measures derogating for employment" (34%).

Regarding 'salaries are not subject to contribution " four items of legislation are of generating irregularities in 2007. These are:

• of "hidden work with or without verbalization" (25.4%),
• "benefits in kind (23.61%), the a share of" benefits nature "from 39% in 2006 to 24% in 2007. This significant reduction confirms the trend observed since 2004, particularly in large companies, linked to the implementation of regulation orders in December 2002.
• "employees and undeclared wages without intent to defraud" (20.95%),
• of "gratuities, bonuses and allowances" (13%).

Regarding the "exceptional measures for employment" the amount of adjustments in absolute value reached 346 million euros in 2007, up 34% of all adjustments and 27% of the total adjustments made.

measures "related to the reduction of charges on low wages" in producing the highest amount of irregularities (71%). From this type of irregularity is steadily increasing it represented respectively 50% and 67% in 2005 and 2006. The major deficiency concerns in 2007, adjustments related to reductions in contributions called "Fillon. This irregularity is related to both the amounts claimed or redeemed businesses consequence of a high complexity in the implementation of this incentive scheme for recruitment.

analysis indicates that the meaning of adjustments:

• adjustments biggest positive in amount, are on the "compensation not subject to contribution" (52%), the "exceptional measures for employment" (17%), the "business expense deduction or not justified" (12%),
• the negative adjustments, those in favor of the employer, are a good indicator of the degree of complexity of the legislation. As in previous years, "the derogations for the use of" represent the largest share of income adjustments.

All adjustments payable increased by 80%. This increase is mainly due to a significant increase in reimbursements related to reductions in contributions called "Fillon.

Behavioral Reports For Prek

DAF You said 2.0? The performance of

The current crisis situation encourages companies to increase efforts for improvement.

Optimization of cash, cash which ranks more than ever at the heart of business.

optimization process control, it should now to act rather than react .
vocabulary evolves, we talk steering proactive performance indicators it is now appropriate to maximize optimize, control, enhance, stimulate ...

Companies that incorporate a process of Balanced Scorecard (BSC) in their system of performance management are now becoming more numerous. The subject of financial performance is constantly addressed and CFO is at the heart of this approach in its implementation.

His area intervention has changed, financially, it is no longer the guarantor of financial reporting or blameless, or spreadsheet engineering producing all kinds of indicators. He became the agent of change, the actor in the translation of performance to an extent Some have come and identify the " DAF 2.0.

The circumstances of the moment leads me to take a careful look at sites such as cadremploi.fr including offers of senior financial positions!

I am amazed that in 10 years the vocabulary of position descriptions of DAF have not really changed. Very few of them refer to a control monitoring performance or establishment of performance indicators or to the establishment of a process to prospective action . To use a vocabulary BSC the main tasks of the DAF specified in the job descriptions evoke more production lagging indicators that leading indicators, suggests that the role of CFO, or his environment, does have not changed.

What do you think?

common example of job description:

Attached (e) the Director General and Member of Executive Committee, your main responsibilities will include:

• Oversee the production of accounts and ensure compliance with accounting and tax
• Provide monthly reporting (IFRS) to the group,
• Analyze the deviation from the budget,
• Animate the budgetary procedure,
• Monitor cash,
• Ensure compliance with standards and procedures of the group,
• Oversee management control,
• Ensure compliance with tax rules and legal
• Etc ... ..