ProSPOTLIGHT Blog Posts

X-Gap: Using Strategic Planning to Close the Project Execution "Gap"

Teams and organizations are constantly plagued by project execution errors and failures. These failures create an execution gap -- a gap between what an individual and/or team plans to do and what they actually do instead. Just as retention rapidly degrades after learning, so does project execution after strategic planning. So what can be done?

In 1885, Hermann Ebbinghaus, a German psychologist, famously demonstrated a theory concluding that people start forgetting what they learn as soon as they learn it. In his "forgetting curve" study, he demonstrated that humans forget half of what they learn within an hour of learning it, and by the following day, they have forgotten a full two-thirds of the new information. Since Ebbinghaus' study, psychologists have discovered that there are many ways to improve retention and memory; however, if memory is so fragile, what is its impact on project execution and strategic planning - getting the things done that you and your team should do?

Strategic Planning: The Execution Gap Meeting

Strategic planning is a form of team learning. When approached collaboratively, planning is a knowledge-creating and problem-solving process. And strategic planning can create much detail that is difficult to manage, and therefore, execute. Great project execution requires 100% retention in the team learning process. Without such a perfect level of retention, project execution will falter; however, just as there are techniques to improve individual retention after learning, there are techniques to improve the team's project execution after strategic planning. One of these techniques is the Execution Gap Meeting, or X-Gap.

In principle, the X-Gap is simple. Get the team together at regular intervals during the project execution phase, address the progress of each individual task that must be performed, and take action before progress falls behind. In "Teambuilding: Proven Strategies For Improving Team Performance," recognized as the authoritative work on the fundamentals of team building, the authors note the importance of regular interventions within teams to prevent regression like that of the Ebbinghaus Forgetting Curve. Furthermore, they note that regression is more effectively halted when regular interventions are held to focus on tasks as a team rather than on a one-on-one, supervisor-to-subordinate basis. It sounds like a simple strategic planning technique; however, in practice, holding an effective X-Gap requires discipline.

One of the greatest challenges to leading an X-Gap is controlling the discussion and keeping it on task. Fundamentally, the X-Gap is a transparent strategic planning method of applying peer pressure to enhance project execution performance. So, participants have a tendency to provide excuses and open up lengthy discussions to distract the group from individual accountability. X-Gap leaders must fight this tendency.

Leading an effective X-Gap requires a commitment to four basic principles - focus, resolution, action and frequency.

Principle Number One: Focus

First, X-Gap meetings should be short and focused only on the tasks required. This strategic planning technique is not an opportunity for open discussion, complex problem solving or the exchange of general information. It has only one item on the agenda - the review of all due and open tasks within the plan. In an X-Gap, the leader convenes the meeting on time and proceeds task-by-task through the project by asking each task owner to report their progress.
Responses should be succinct. Completed tasks and tasks in-progress but not yet due are simply either "completed," "on track," or "green." Tasks that are in progress but have some uncertainty about the capacity to complete them as planned are "yellow." Finally, tasks that are past due or have encountered some critical obstacle that must be addressed are "critical" or "red." The latter two classifications are the target of the X-Gap strategic planning meeting. The X-Gap leader's purpose is to identify and isolate those "yellow" and "red" category tasks for further review.

Principle Number Two: Resolution

The second basic principle of the X-Gap is to take action to resolve uncertainty, ambiguity and any other obstacles. Once project execution gaps are exposed, the leader should make decisions and possibly reallocate resources in order to close those gaps. Some explanation and discussion is usually necessary. Therefore, X-Gap leaders must remain on their guard against unproductive, rambling discussions. Those responsible for the task targeted for discussion should succinctly explain the issue to the team and state what they believe they need in order to accomplish the task - to close the gap. This need is usually stated as a request for resources or a decision from the leader.

At this point, teams will tend to want to have an open discussion about the matter; however, the X-Gap leader must contain this strategic planning discussion to only a few minutes. If the team is allowed to take too much time, then there will be less time to address other "red" and "yellow" tasks. As a rule of thumb, any task that requires more than two minutes to explain and discuss should be deferred to a separate discussion that takes place after the X-Gap meeting. Leaders must keep the X-Gap meeting focused and moving along smoothly so that all the relevant tasks within the plan are addressed.

Principle Number Three: Action

X-Gap meetings should identify specific actions that must take place during the project execution phase, unless all tasks are completed or on task as planned. Leaders should take care to either clearly indicate the actions that must take place as a result of the task review process, or indicate how and when decisions or other resolutions will take place and who is responsible for them. They must determine whether or not additional resources are required, who will acquire them and by when. And if further deliberation is required to achieve a decision, leaders must decide when this will take place and which team members will be a part of the discussion. Successful strategic planning in X-Gap meetings should never conclude without clarity about the next steps to take.

Principle Number Four: Frequency

Finally, X-Gap meetings should be a recurring strategic planning event that aligns with the team or organization's overall project execution rhythm. If the team holds an X-Gap every Monday morning at 10 a.m., for example, the team will be better able to anticipate, participate more fully, and prepare more thoroughly.

Preparation is the key to a successful X-Gap meeting and strategic planning session. Team members report to the X-Gap at their pre-designated time and place with the statuses of their assigned tasks in the plan. This means being prepared to respond to its overall status, as well as providing both a succinct description of a status that is "yellow" or "red." Participants should be prepared to answer the question: "What do you believe is required to move forward?" Of course, there are often certain dependencies outside an individual team member's control that may be the underlying cause. Hence, the purpose of the X-Gap is to expose these project execution issues and address them appropriately as a team. Good preparation also means that individuals can stand in for others unable to attend the X-Gap, providing a status of their tasks and discussing what is needed to move forward.

An X-Gap strategic planning meeting must be led. As a teacher leads a classroom and utilizes techniques to help students improve retention, a leader should utilize techniques like the X-Gap to improve project execution.

About the Author

James D. Murphy, the founder and CEO of Afterburner, Inc., has a unique, powerful mix of leadership skills in both the military and business worlds. After graduating from the University of Kentucky, Murphy joined the U.S. Air Force where he learned to fly the F-15. He has logged over 1,200 hours as an instructor pilot in the F-15 and has accumulated over 3,200 hours of flight time in other high-performance jet aircraft. Murphy, Afterburner's leadership keynote speaker, has helped top business leaders transform strategy into action, demonstrating how the concepts of the Flawless Execution(SM) strategic planning model could be applied to business process improvement and engaging the proven model - "Plan. Brief. Execute. Debrief." Through his leadership, Afterburner has landed on Inc. Magazine's "Inc. 500 List" twice. Murphy has been featured in a variety of prestigious publications and has appeared on CNN, Fox News, and Bloomberg News to name a few. For more information on Afterburner, Inc., please call 877-765-5607 or visit www.afterburnerconsulting.com.

Collaborative Leadership: A Process for Success in a Turbulent World

Do you know how to provide collaborative leadership in a disciplined fashion? And how does one define disciplined collaboration? The current business and leadership literature touts the importance of collaborating in our turbulent world. Large and small businesses and teams struggle to wrap their heads around just what collaboration is. Many see collaboration or collaborative leadership as a challenge that can be met through technology, whether it is through social media or virtual conferencing, while others recognize the benefits of restructuring an office space so that it appears more open. However, technology and physical space are only superficial means to address the challenge of disciplined collaboration. Collaboration - and successful collaborative leadership - does not derive from "where" or through "which" media people interact. Instead, it is about "how" people interact. And that "how" must be disciplined.

Disciplined Collaboration

Disciplined collaboration holds a central place in Jim Collins' latest work, "Great by Choice." "Great by Choice" is the result of a grand research project that seeks to discover how some companies have continued to thrive in spite of uncertainty, chaos, and luck - good or bad. It's a centrally-important issue in our turbulent world, where change is so rapid and unpredictable. Collaborative leadership has been cited as a vital skill that teams and companies must use in order to constantly create, innovate and adapt to change. Innovation is often seen as the fruit of collaboration; however, this is a dangerously limited perspective. Collaboration is much more valuable than a means to achieve innovation. Disciplined collaboration is an invaluable process that teams can utilize to successfully innovate, solve problems, make decisions, plan and execute.

Above all, disciplined collaboration is a creative planning and decision-making process. In "Great by Choice," Collins defines discipline as "consistency of action." For teams and companies, Collins' definition implies that collaboration and collaborative leadership processes be consistent. "The great task, rarely achieved," Collins writes, "is to blend creative intensity with relentless discipline so as to amplify the creativity rather than destroy it." He goes on to point out that "the signature of mediocrity is not an unwillingness to change; the signature of mediocrity is chronic inconsistency." That inconsistency begins in the planning and decision-making process. And in a world of complex challenges that are best met by teams rather than individuals, that consistency requires a disciplined collaboration process.

Dynamism and Iteration

A disciplined collaborative planning process requires certain elements. Altogether, there are many elements in a planning process; however, some of the elements most successfully impact an effective collaborative leadership process -- these are the elements that allow the process to be dynamic, iterative, participatory and cognitively diverse.

"Dynamic" refers to the adaptability of the planning processes product -- the plan. Change happens; therefore, you shouldn't collaborate on a plan only to find that the plan needs to change without a clear process of making those adaptations.

The process for disciplined collaboration and collaborative leadership should also be iterative. Iteration is similar to dynamism, but is not the same. Iteration is the plan improvement process within the overall planning process, while dynamism refers to the adaptation of the plan after it is executed. Iteration occurs during planning, while dynamic adaptation occurs during the execution of the plan. Teams that collaborate during planning, and those who utilize collaborative leadership, will iterate the plan before its execution, enabling those individuals to more effectively execute and adapt those plans.

Nominal Group Aggregation

Of course, disciplined collaboration requires participation by more than one individual - this is what makes collaborative leadership so challenging. How do a group of individuals come together to produce a plan or make a decision? Fundamentally, it requires a collaborative leadership process for generating ideas at the individual or very small group level (2-5 persons), and then combining and vetting these ideas at a larger group level (5-15 people). This process is called nominal group aggregation.

Nominal group aggregation is a delicate process because everyone has their own ideas - some better than others. In collaborative groups, some individuals voice their ideas forcefully, while others hold back on valuable insight, fearing they won't be heard or appreciated. However, successful collaborative leadership techniques can overcome such obstacles, and these techniques must be part of a disciplined collaborative process. Disciplined collaboration is not about achieving consensus; instead, it is about producing the best plan to achieve the objective. Consensus can lead in any direction, while disciplined collaboration yields a plan that leads in the right direction.

Cognitive Diversity and Simplicity

Finding the correct direction to proceed requires another element of the collaborative planning process: cognitive diversity. Collaborative leadership will not be successful if you are collaborating with a team of individuals that think alike, have similar backgrounds and experience, occupy the same hierarchical positions, and so forth. Creativity and innovation require divergent thinking and dialogue. Therefore, disciplined collaboration must adhere to a process that harnesses cognitive diversity. Utilize your collaborative leadership skills to incorporate a balanced mixture of experience, knowledge and positions for the collaborative process. Consider that two heads are actually not more valuable than one if both heads think alike and see the world in the same way. For example, to a hammer, everything looks like a nail - so make sure that you have a complete toolbox when planning collaboratively.

There is one additional important element. The process must be simple. To collaborate effectively and efficiently, people need a simple process. If a team has to spend time organizing and training about how they are going to collaborate and then struggle to become proficient at that process, then efficiency and effectiveness suffer. Collaborative leadership entails using a process that is simple to learn and apply, consistently applying that process throughout the organization. Disciplined collaboration will become a widely-practiced behavior; and that behavior will ultimately become a healthy collaborative culture.

Achieve Collaboration through Discipline

Disciplined collaboration yields more than a plan or decision; it engages the team to execute successfully. Disciplined collaboration is the first step in achieving success as a team. Humans like to be autonomous, to have the freedom to solve problems and perform tasks on their own and in their own way. However, our complex, turbulent world requires collaboration in order to create, innovate and succeed. Humans also need to be connected to each other, to be a valuable part of a larger whole. Disciplined collaboration is the key to satisfying these often conflicting needs in modern organizations. On one hand, collaborative leadership provides each individual with the opportunity to contribute their own insights and then, once a final plan is created, to go forth and execute in their own semi-autonomous way. On the other hand, what each individual executes becomes a well-coordinated part of the overall objective. However, to fulfill these basic human needs, the team must always achieve collaboration through a disciplined process.

About the Author

James D. Murphy, the founder and CEO of Afterburner, Inc., has a unique, powerful mix of leadership skills in both the military and business worlds. After graduating from the University of Kentucky, Murphy joined the U.S. Air Force, where he learned to fly the F-15. He has logged over 1,200 hours as an instructor pilot in the F-15 and has accumulated over 3,200 hours of flight time in other high-performance jet aircraft. Murphy, Afterburner's leadership keynote speaker, has helped top business leaders transform strategy into action, demonstrating the concepts of the Flawless Execution(SM) model. Afterburner's Embed solution is a strategic staffing service that teaches the Flawless Execution(SM) model to elite transitioning military professionals and places them with its Global 2000 clients. For more information on Afterburner, Inc., please call 877-765-5607 or visit www.afterburnerplacement.com.

Simplicity and Elegance: Expressing Your Core Competencies

Do you know what your business's core competencies are? Is there just one or are there many organizational attributes? If you answered that there are many, how would you describe them succinctly? Core competencies are one or a combination of a few unique or rare abilities; however, a description of core competencies is not simply a laundry list of various organizational attributes. It seems like a simple task, but naming your core competencies can be very difficult. This is because we, as business leaders or managers, get caught up in the tactical day-to-day tasks that we accomplish and we often mistake those tasks as our core competencies.

Years ago, when I walked to the flight line to take my first solo flight in an F-15 fighter, I was struck by an all-encompassing passion that has driven me and everyone on my team to achieve success. That passion was to define and teach the basic principles that helped me, a farm-boy from Kentucky, become one of a very few elite U.S. Air Force fighter pilots. Every individual on my team shares that passion, whether they are a fighter pilot, a U.S. Navy SEAL, a U.S. Army Ranger, Delta Force, or Special Forces operator, or one of many other classes of elite military professionals. We've built a great company. But we've done that with a clear understanding of our core competencies and organizational attributes that have guided us for years.

Defining Your Core Competencies: Examining Your Complex Organizational Attributes

Often, your true core competencies are elusive and hard to pin down, which makes defining your core competencies difficult, even when examining your organizational attributes. However, it is my belief that an expression of your true core competencies can be articulated both simply and elegantly.

Expressing core competencies is about getting to the root cause of why you do what you do and what makes you successful. A core competency is not a mission or vision statement; nor is it a statement of competitive advantage. It is not a statement of the level of quality of the products you manufacture or of the services you provide. A core competency is something more fundamental. It is both a root cause of success and an expression of the organization's unique character or reason for being. A simple and elegantly expressed core competency is a summary of what is most likely a set of complex organizational attributes.

Proof of the complexity of a core competency can be found in the way scholars in the field of business management and leadership have defined the term. In their 1990 Harvard Business Review article entitled "The Core Competence of the Corporation," C.K. Prahalad and Gary Hamel assert that an organization's core competencies can be attributed to success in a wide variety of markets, increase the perceived value to the customer, and prevent imitation by competitors. The authors conclude that these benefits are due to a "complex harmonization" of organizational attributes, creating core competencies.

How Passion Contributes to Core Competencies

Jim Collins famously characterized core competencies as "hedgehog" traits in his book "Good to Great." Instead of describing core competencies in terms of benefits, Collins describes them in terms of three dimensions - what you can be best in the world at; what drives your economic engine; and what you are deeply passionate about. Although each is important, it is often the last "dimension" that is left out of an organization's description of its organizational attributes. What you are passionate about is a core competency -- it's the fire in your belly that drives you to do every day what must be done. Without that passion, descriptions of core competencies are simply statements of what you do well, and do not include what you love. Describing the passion that drives your organization is essential to cutting through the complexity and getting to the simple and elegant truth of the organization's identity.

The science of physics provides an excellent example of simplicity and elegance. Physicists are often driven to refine their theories until they achieve an "elegant" formula. Physics is an elegant science because it seeks to find the fundamental laws of the universe. For this reason, physicists call these laws "elegant" because they are, in essence, both simple and effective.

For example, consider the famous formula E=mc². This formula simply states that energy is equal to mass times the square of the speed of light. This simple formulation was one of the most significant scientific discoveries of the past century - and it is expressed in just five symbols. Pick up any high school physics textbook and you'll find a host of simple equations that explain almost any phenomenon we encounter in the course of our everyday lives. That simple but powerful formulation is what physicists mean by "elegant."

It is essential to include the passion - your organization's "reason for being" - found within your organizational attributes, in a statement or written formulation of your organization's core competencies. Passion is a core competency that is often overlooked. Like other core competencies, passion cannot be duplicated easily. It is important, then, to expand the scope of the core competency to become more than just a statement of fundamental skill. Capture the passion and include the guiding principles - what the organization believes. Altogether, core competencies, core beliefs and the passion to do what it is that you do, come together to create the simplicity and elegance of what I call the "organizational imperative."

Organizational Imperative

Many companies do a good job of capturing the essence of their organizational imperatives by developing eloquent and inspirational mission, vision and goals statements. However, this is an awkward approach, as it usually fails the test for simplicity and elegance, and it may lack a true statement of organizational imperatives altogether.

If you correctly define your core competencies, you will realize that everything your organization accomplishes, along with its organizational attributes, should flow from and connect directly to that description. Furthermore, that definition should become a screen for every decision, however large or small, throughout the entire organization.

My company's organizational imperative is simple and elegant. It is as follows:

"To relentlessly seek to accelerate individual, team, and organizational performance through the inspiration and experience of elite military professionals. Our guiding principles are: (1) seek integrated solutions with transformative power that are simple and achieve results; (2) represent our brand - Flawless Execution; and (3) do right, speak the truth, and demonstrate excellence."

In just 50 words, we have described our passion, our core competencies, our organizational attributes and our beliefs.

Like an elegant formula in physics, a complete and concise organizational imperative describes your organization's behavior. It is the standard to which all actions are executed and decisions are measured and made.

About the Author

As the founder and CEO of Afterburner, Inc., James D. Murphy has a unique, powerful mix of leadership skills in both the military and business worlds. After graduating from the University of Kentucky, Murphy joined the U.S. Air Force where he learned to fly the F-15, logging over 1,200 hours as an instructor pilot in the F-15 and accumulating over 3,200 hours of flight time in other high-performance jet aircraft. He has also flown missions to Central America, Asia, Central Europe and the Middle East. As Afterburner's leadership keynote speaker, Murphy has helped top business leaders transform strategy into action by showing that the concepts of the Flawless Execution(SM) model could be applied to business process optimization and engaging the proven model - "Plan. Brief. Execute. Debrief." Murphy has been regularly featured in such publications as The Wall Street Journal, BusinessWeek, and Newsweek, and has appeared on CNN, Fox News, and Bloomberg News to name a few. For more information on Afterburner, Inc., please call 877-765-5607 or visit www.afterburnerconsulting.com.

Organizational Gravity: Three Steps to Foster Continuous Improvement, Defy Obsolescence and Take Flight

Gravity can be a wonderful thing. It is an irresistible force that keeps us grounded on this big, beautiful, floating blue marble. It is even applicable to organizations in the form of organizational gravity. For example, I worked with an organization that coined a catch phrase for a challenge beyond its scope of control, deeming the situation a "gravity issue." They explained that "the situation is out of our control, much like gravity - you can't do anything about it."

Sadly, this mentality represents the culture in many organizations. Whether it's the culture, the hierarchy, the bureaucracy or the processes, organizational gravity seems to grow ever stronger as an organization matures. Sure, organizational gravity keeps the organization grounded and focused. It may also contribute to a passion for continuous improvement at a very tactical, discreet level. But, it also narrows that focus at the expense of innovation and adaptability, two of the most critical abilities of successful organizations. So how do we defy organizational gravity?

Continuous Improvement Planning

Every company or organization begins as a plan. Never forget that! Continuous improvement planning is the key to defying organizational gravity. It's easy to think of everything we do in our working lives as "processes." For instance, your organization probably has a hiring process. However, this is the wrong way to look at it. Instead of viewing it as a hiring process, think of it as a hiring "framework." Of course you plan for each and every position that you must fill, as every new hire has different strengths and weaknesses. However, many organizations still call this a "process," which evokes the image of a manufacturing line.

What about a new project? Any continuous improvement planning in that? Sure there is. Large scale projects are unique, even if there are a number of processes involved, because in a sense, these projects have never been performed before. If you are an entrepreneur pursuing a new business idea, you begin with a plan. That plan may be a formal business plan or it may just be an idea sketched out on the back of an envelope. Ultimately, with success, those plans transform into processes, the sustaining framework of the business -- and that is where organizational gravity begins to tighten its grip. As our ideas coalesce into plans and the plans further coalesce into concrete processes, organizational gravity strengthens and holds the organization together.

It is this necessary and proper transformation from plan to process that, for good and ill, perpetuates the relentless assault of organizational gravity. As a positive force, we might call it focus. However, the cons of organizational gravity include stagnation and paralyzing bureaucracy. How do we balance the need to "break the surly bonds of earth" to adapt and innovate in a constantly changing environment with the grounded focus of organizational gravity?

Three Tasks to Defy Organizational Gravity

Freeing ourselves from the constraints of organizational gravity while anchoring ourselves safely in the terra firma of our proven processes takes a constant commitment to accomplish three tasks: Always state a clear objective, always align every objective to your purpose, and always plan over the process.

Have a Clear Objective

The objective is everything! I often observe individuals and teams charging forward to execute a task or project without a clear objective in mind. They get caught up in doing without thinking, and if you stop these individuals to ask what the main objective is, they would have a very difficult time articulating what it is they are attempting to achieve. However, if you ask them to think clearly about their objective, they often realize that their approach is flawed or even wrong.

Always have a defined objective for even the most routine tasks. This will help you think freshly in terms of the continuous improvement process. Consider how you will achieve the objective and question whether a given process or approach is really sufficient, effective, or relevant.

The Big Picture Objective: Differentiate the "Why" from "What"

Align to the big picture objective -- the big picture objective refers to your purpose, mission, strategy and long-range goals. Simon Sinek, author of "Start with Why," makes this compelling point: Aligning to the big picture purpose, or as Sinek puts it, the "why you do it," is what separates Apple from companies that make computers. Making something or providing a service is just the "what," and the "what" may change as the environment or market changes. However, the "why" never changes. The "why" helps us look beyond our terrestrial existence and the organizational gravity, helping you to re-align to the fundamental reasons why we and our organizations get up every morning. When you constantly remind yourself of the "why" and align your actions to the big picture, you simultaneously free yourself from constraints of process-thinking while grounding yourself in the fundamentals of the organization.

Plan Over the Process

Third, always plan over the process. The Blue Angels, the U.S. Navy's world famous flight demonstration squadron, fly the same show on every performance, but the location changes. Do you think that the Blue Angels fly a process? No, they fly a continuous improvement plan that they adapt to every different location, situation and changing weather condition. Unless you are manufacturing the same widget day in and day out, you need to plan over the process. And I guarantee that you won't manufacture that widget the same way for too many years. Change always happens -- like organizational gravity, it's relentless.

One can plan over the process by taking the standard process, clarifying the present objective, aligning that objective to the big picture objectives and fundamental "why" of the organization, and then asking a few questions. First, ask what stands in your way - what threatens the successful accomplishment of your objective? Second, ask what resources are needed to accomplish this objective. Existing processes fool us into making assumptions about threats and resources - that they remain the same day-in and day-out. Never assume that a process may be followed blindly without considering what may have changed in the current context. Instead, plan over the process - never assume a process is sufficient in every given scenario. Always perform fresh continuous improvement planning by considering new threats and resources and then develop a new course of action appropriate to the present context.

Balancing the benefits and limiting tendencies of organizational gravity comes down to maintaining a clarity of purpose, approaching every task, every project, and every day as an opportunity to conduct continuous improvement planning.

About the Author

Executive Coaching and Debriefing for Corporate Leadership Development Programs

In today's management environment, new forms of and tools for corporate leadership development programs have emerged. One of the most popular development tools is executive coaching. The number of executive coaches has more than doubled in the past decade and corporate leadership development programs are utilizing their services more frequently. However, the fundamentals of executive coaching have actually been around for many years in the form of debriefing.

In the U.S. Air Force, debriefing after every flight was an essential process in my training and development as an F-15 fighter pilot. My instructor pilot debriefed with me after every training flight. Later, when I became an instructor pilot and squadron training officer, I did the same with my young pilots. After leaving the Air Force, I used the basic tenets of the debriefing process I had learned, adapted the process to a sales force I led in a civilian company, and further refined that process over the next 16 years.

I was recently reminded just how broadly applicable the debriefing framework is as an executive coaching tool when a professor approached me at the end of a lecture to a healthcare team, thanking me for explaining the process of debriefing to the team. She told me, "You've given me the means to have a difficult conversation with a student, allowing her see what, in herself, needs to change in order for her to be successful."

Corporate leadership development programs require both executive coaching and debriefing practices, processes that utilize complex discussions and deep analyses that resist oversimplification. Executive coaches help their clients to see themselves more accurately, allowing clients to establish actionable objectives for personal change. Likewise, debriefing helps individuals and teams more accurately analyze the work that they have done in order to make efforts to improve upon their past initiatives. While executive coaching focuses upon the individual, proper debriefing is effective in both individual and team development. The principles are the same, but for the debriefing process, the approach is more direct, objective, and simple.

Differences Between Executive Coaching and Debriefing Practices

Although corporate leadership development programs draw from both executive coaching and debriefing practices, there is a significant difference between the two processes: First, executive coaching practices struggle to get to the actionable objectives for change. This is where the highly subjective talent and skill of the coach comes in to play. Second, coaching is less process-driven than proper debriefing. Successful executive coaching is dependent upon the individual style and skill of the coach and the character traits of their client. Successful debriefing, however, is driven by a repeatable, structured process.

Let us examine some of the elements of a good debriefing process and compare them to an executive coaching practice. The first of those elements is what we call "tone." In the debriefing practice, setting the right tone is critical. The right tone is nameless and rankless, which gives everyone an equal footing. Amy Edmondson, Novartis Professor of Leadership and Management at Harvard Business School, has labeled such a tone "psychologically safe." In executive coaching, a coach will take care to establish a trusting and psychologically safe tone much like a professional therapist or physician would for a patient. This tone is essential in order to achieve the honesty and truthfulness necessary to identify objectives for change. In debriefing, the proper tone is critical to uncovering mistakes and isolating successes.

Corporate leadership development programs also require the correct tone. With the right tone, debriefing and executive coaching practices can enable teams and individuals to find the truth. In the executive coaching practice, obtaining the truth of how others see or perceive the client can be a tough process, which is typical of the analysis of any complex issue. This is the same in the debriefing practice. Whether we're debriefing a team or an individual's performance, we have to be prepared to dig deep into the root causes of both successes and errors. In order to do this, we only use the debriefing practice for clear and measurable objectives. One cannot debrief in any truly successful and meaningful way without specific and quantifiable objectives.

Utilizing Clear and Measurable Objectives

In our corporate leadership development programs, we emphasize the importance of stating clear objectives in both executive coaching and debriefing practices. Clear objectives allow the debriefing process to take two procedural steps in order to discover the root causes. First, we take a look at how well we executed toward our stated objectives - did we do what we said we were going to do? Did we execute this process in the way that we said we were going to do it? Take a look at each of the tasks we had to perform in order to meet our objective(s). Was each of these steps effective? From this inquisitive process, we are able to create a short list of successes and errors that form the basis of our next step: analyzing the execution.

We analyze the execution by taking each of our results – the successes and errors – and subject each to a series of "why's" until we get to the root cause. We continually ask "why" until we get to the fundamental root cause: Why did that happen? What really failed? Did we just get lucky? We can't fix something, replicate a success, identify a near miss, or address a personal shortcoming until we know exactly what needs to change and why.

The Importance of Actionable Feedback

As soon as we know what that root cause is, we can get to the real point of debriefing and executive coaching - taking corrective action. We need actionable feedback in order to improve ourselves. Corporate leadership development programs help to continuously improve teams and organizations by requiring actionable feedback. Research demonstrates that feedback that is not actionable can actually result in negative behaviors. The product of debriefing and executive coaching must focus upon what can be done to address the root causes. Without a specific course of action, reflective activities will be a waste of time at best, and can potentially trigger negative behaviors at worst.

An effective debriefing process develops an actionable lesson learned that addresses each of the identified results - each success or error. A lesson learned is a set of steps intended to resolve the error or replicate the success of each of the root causes. It is an objective and clear set of instructions or actions necessary to improve personal, team and organizational performance in the future. Furthermore, in the context of team debriefing, it assigns a single accountable individual to take that set of actions or to properly store the learning for future use.

Such are the basic processes, utilized by corporate leadership development programs, for both debriefing and executive coaching. However, there is one final secret to successfully using these practices. In our corporate leadership development programs, we recommend performing these processes frequently and in small, achievable portions. Successful executive coaches help clients to tackle personal goals a little at a time, meeting with individuals to assess incremental progress relatively frequently, typically every two weeks. The debriefing frequency should also follow this timeline. If debriefing occurs less frequently than once per month, the individual or the team is likely to "choke on the elephant." It is hard to change, especially when you are attempting a great amount of change in a short period of time. Aim to change slowly, a little at a time. This is the same philosophy behind successful change methodologies.

Conclusion

There is a deep, meaningful correlation between the debriefing and executive coaching processes. James Hunt and Joseph Weintraub, Babson College of Management professors, argue that facilitated learning, such as executive coaching, is leveraged to extraordinary results through forms including the U.S. Army's After Action Review (AAR) and the U.S. Air Force's debriefing process. Both executive coaching and debriefing are forms of facilitated learning, and both are utilized in successful corporate leadership development programs. However, in executive coaching, a third party facilitates the learning for one member of an organization. But the debriefing process allows the team to facilitate learning for individual team members and the organization as a whole.

About the Author

The Red Team: A Simple But Effective Method to Improve Mission Planning

The May 1, 2011 mission to find Osama Bin Laden has become one of the most celebrated military mission planning successes in recent memory due to the utilization of a little-known and seldom-used practice called the Red Team.

The mission was a daring raid executed by the courageous members of the U.S. Navy SEAL DEVGRU, also known as SEAL Team Six, especially when considering the potentially disastrous political and diplomatic consequences that would have occurred had the mission failed. In spite of the dangers, the odds, and the loss of one of the two Blackhawk helicopters that delivered the SEALs to the target, the mission to get Bin Laden was an extraordinary mission planning success that continues to inspire awe. The Bin Laden mission was executed by some of the finest warriors that history has ever known. However, aside from skill in the profession of arms, it was the overall tactical planning process that went into the mission that provides an important lesson for planners in all fields - in military, business, or in everyday life.

The Overconfidence Bias

We fall in love with the plans we make. Mission planning is much like giving birth to a child. When the plan is complete, whether developed by an individual or a collaborative team, the planners can step back and congratulate themselves on the genius of the plan that they have created -- such overconfidence is one of many cognitive biases we humans fall prey to.

This is why the practice of utilizing a Red Team is necessary. A Red Team is a simple means to overcome the overconfidence bias and the theory of "groupthink," the need for groups to seek conformity and unanimity in planning and decision making. The mission planning effort that went into the Bin Laden mission was the detailed product of many different planners, but that alone was not enough to ensure success. The tactical planning process had to be subjected to a Red Team.

The Role of the Red Team

For the Bin Laden mission, military planners invited an outside group of experts who were previously unaware of the plan and had not taken part in the mission planning process to comprise what we call a Red Team. A Red Team examines a plan and offers frank criticism of the plan without bias. The Red Team's purpose is to expose flaws or weaknesses in the tactical planning process - to test the plan with dispassionate reason and respectfully offer detailed criticism. However, the planners must accept the criticism humbly, without commenting or defending the plan. It is vital that the planners involved are able to accept and incorporate this criticism, or the practice of utilizing a Red Team will be rendered moot.

Historical Examples of Mission Planning Using Red Teams

The Red Team is not a new concept. In 1962, faced with the threat of Soviet nuclear missiles in Cuba, President John F. Kennedy utilized a form of the Red Team to great success. He had suffered a terrible and embarrassing debacle in the botched Bay of Pigs Invasion and Kennedy was not going to allow such an error in mission planning to happen again. He began by dividing his Executive Committee in half and tasked each of the two groups to argue for one of two primary options to deal with the threat. One group argued for a naval blockade and the other for an air strike. Kennedy then had the groups switch positions and critique the other group's proposal. The last step in Kennedy's tactical planning process was to ask his brother, Robert Kennedy, and one of his close counsels, Ted Sorenson, to act as a Red Team on each group's proposal. The result was one of the most masterfully played moves during the Cold War - a naval blockade that forced Soviet withdrawal of nuclear missiles from Cuba.

The Red Team has been utilized with great success in the U.S. military. During the Gulf War mission planning effort, planners employed this practice, asking Red Team members to defeat a proposed plan. Planners then took the weaknesses exposed by the Red Team and improved the tactical planning process, making plans tighter and nearly foolproof. The result was a successful war fought on foreign soil to expel invaders in just five weeks - a mission accomplished with minimal loss of life and destruction of property. Like the Bin Laden mission, the Gulf War met with success through the use of a tactical planning process that included Red Teams.

Eliminate the Fear of Personal Attacks When Using a Red Team

One might think that it takes courage to employ a Red Team. It is hard to expose your "baby" to such criticism, as we naturally view critiques as a personal attack. However, when performed correctly, a Red Team need not invoke fear of personal attack. The secret to successfully incorporating this practice into the mission planning process is to diffuse resistance to personal criticism before the Red Team critique takes place. Individuals must incorporate the idea that "it is not 'me' that is being assaulted by critics, it is 'us.'"

To further ameliorate the sense of offense and fear that the Red Team may create, this part of the tactical planning process should take a simple, disciplined and respectful structure. Invite the Red Team to sit down while someone from the mission planning team briefs the plan to the room. After the plan has been detailed, the Red Team should then have an opportunity to ask clarifying questions. After all questions have been asked, the Red Team should offer criticisms of the mission planning process in a round-robin fashion until all concerns have been voiced.

Offering and accepting criticism is much easier when it is communicated correctly. All members of the Red Team should begin their critical remarks with a statement such as, "Have you considered..." Furthermore, all responses to Red Team criticisms should be grateful, beginning with statements such as, "Thank you for your input." There should not be discussion or defense. The mission planning team will have a natural tendency to want to argue with the Red Team about their tactical planning process and will have to avoid the urge to defend the plan and learn to respond with gratitude.

Because the Red Team has no prior knowledge of the tactical planning process and also lacks knowledge of the considerations that were part of the mission planning effort, beginning each comment and criticism with the aforementioned "Have you considered..." statement is vital. This relieves the mission planning team of the need to respond and also relieves the Red Team from concern that a comment or criticism will not be valid. After pointing out the flaws and weaknesses in the tactical planning process, the Red Team should depart and the mission planning team should begin incorporating the newfound criticism to better the plan as a whole.

The Red Team utilized during the Bin Laden mission provided invaluable input as a critical component of the mission planning process. This practice can improve any plan, in any context and in any company. The best part is that utilizing the practice does not take much time, as a Red Team requires a minimum of only three or four members to discuss the tactical planning process. The meeting is also short, at approximately 30 - 60 minutes - and the results can make a world of difference.

About the Author

Thirteen Elements of Effective Planning

All plans are not good plans. In fact, even good plans can fail. We cannot predict the future – we can only imagine it imperfectly. In our companies and organizations, effective planning is a social activity. Deciding on a strategic planning process as a group, rather than as an individual, adds even greater complexity to an already complex task. Collaborative and effective planning techniques, then, require 13 essential elements.

1. Effective and Strategic Planning Process

First, effective planning requires a process, and that strategic planning process should include the remaining 12 elements of good planning. In collaborative team planning, that process must be structured and disciplined in order to be efficient and thorough. Without a process, your planning techniques will be awkward, inefficient and often insufficient.

2. Effective Planning Techniques: An Envisioned Future / Objective

When we envision the future, we must describe it clearly and provide specific measurements in order to judge our success. To this end, the objective of our effective planning techniques is the goal we envision attaining in the future. Objectives must be clear to all involved. They must also have a scope that is commensurate with the span of control of those involved with the effective planning process. An objective that is not achievable by those tasked with developing a plan is, obviously, doomed to failure. Objectives must also be measurable. Without measurements of success, there is no means of establishing whether or not the objective was achieved, and your strategic planning process will be flawed.

3. Dynamic, Adaptable Planning

In terms of effective planning, "dynamic" means that plans are adaptable, in two ways. First, the act of effective planning considers the current and predicted environment and adapts the plan accordingly. Second, in the strategic planning process, plans must be devised in such a way so that they are not overly detailed. Effective planning ensures that your plans can adapt to changes that occur while the plan is being executed.

4. Iterative Improvements

Effective planning at your organization will also be iterative. By "iterative," we mean that a plan will improve continuously from one iteration, or version, to another before it is executed in the strategic planning process. The iterative nature of planning supports its adaptive or dynamic nature. Iteration can be sped up by an effective planning technique known as "Red Teaming." In Red Teaming, a group of individuals outside the planning effort are invited to criticize the plan or expose its weaknesses, acting as a form of rapid iteration and improvement.

5. Effective Planning Requires that You Learn from Experience

A complex and rapidly changing environment demands the ability to rapidly learn from the changes in that environment. Even the most well-educated and trained organization will soon become obsolescent as changes in the environment eventually overwhelm it. Good organizational planning requires sophisticated and effective planning techniques that the organization learns continually, through interaction with its environment and the execution of its plans.

6. Means to Achieve / Course of Action

The central element of all effective planning techniques is the Course of Action (COA). These are the actual tasks that must be completed, whether in parallel, in series, or a combination of both, to achieve the goal. For the most part, in a strategic planning process, the Course of Action, for simple plans, is intuitive or even obvious. However, for most organizations, plans may require great detail. Therefore, an effective planning process must be flexible enough to handle both simple and detailed plans. Effective planning processes should have the ability to repeat the planning process at successively lower levels in the organization, while supporting the objectives of the overall plan.

7. Decentralized Effective Planning

Another effective planning technique is the decentralization of plans, closely related to the flexible and successively repeatable nature of the Course of Action. Effective planning teams should not plan beyond their scope or expertise. In other words, the executive team of a large corporation should not develop the details of a strategic planning process to replace a main server in their IT infrastructure. Such a task is both out of their scope and, most likely, their expertise.

8. Individual Accountability

The scope and detail of effective planning is concluded when each task within a Course of Action is assigned to a single individual, not a team, to complete. Without individual accountability to each task and each plan, there is a significant risk of miscommunication, misunderstanding, and ultimately, failure.

9. Effective Planning Techniques Support Initiative and Good Judgment

General George S. Patton said that plans "[...] should be made by those who are going to execute them." Decentralization and accountability go far in supporting the success of effective planning techniques. However, when a strategic planning process is developed by the team responsible for accomplishing the plan's objective, the overall quality and likelihood of creating a successful plan improves exponentially.

10. Consider Resources

Effective planning means not committing to or wasting resources unnecessarily. In a strategic planning process, planners must determine the appropriate targets or objectives and focus resources upon those objectives. Because resources are often limited, prioritizing and planning successive phases of implementation may be necessary.

11. Assess Risk: Leadership Responsibility

Resources are considered carefully at every level of effective planning. Furthermore, the assessment of objectives, threats and resources are critical steps in every strategic planning process that, when taken together, form the basic risk assessment for any plan. Without the necessary resources to either avoid or mitigate the threats to accomplishing an objective, the risks in undertaking that plan should be given due consideration by the leadership within the organization. Because risk is often necessary, the final decision to execute the plan is left to its leaders, not the planning team.

12. Participatory and Cognitively Diverse

Isolating effective planning in a single individual or a group of individuals without the benefit of field experience and a diversity of knowledge, skills, and abilities is a recipe for failure. The world we live in is increasingly complex. Problem-solving in our complex world requires teams of cognitively diverse individuals contributing their unique knowledge to form a combination of effective planning techniques. If effective planning is conducted by a single individual or by groups of people with similar knowledge, skills and abilities, the qualities necessary to solve complex problems and to create an innovative strategic planning process will be absent.

13. The Most Effective Plans are Simple

The more complex a plan, the more likely it will fail. As Statistical Process Control and Six Sigma methodologies instruct, the greater the number of steps in a process, the greater the potential for a defect. That is why it is critical that the effective planning process remains simple. Simplicity is not just about minimizing the number of tasks, it's about making sure that each task is clearly defined through answering some simple questions: "who will do what and when."

There is a paradox at work in effective planning. It is simply this: that our human tendency is to implement plans rigidly while the purpose of a plan, in light of the complexity and constant change in the world, is to define objectives and establish a point of departure to react to change. The paradox of the strategic planning process is that effective planning does not involve merely creating a list of sequenced tasks, but establishing a constantly evolving problem-solving process that adapts and thrives in the environment.

About the Author

Voiceovers By Wayne demo files

To listen to some of my work and demo files, please use this link.

http://soundcloud.com/vosbywayne/sets/voiceover-demos-for-wayne

Thank you,

Wayne

Hiring the Voice, not the rate

I want to share some information my Voice Coach shared with me recently.

First, let me preface by saying, being a professional Voice Artist takes training, practice, professional equipment, and a commitment to excellence in the work provided. Many people in search of a professional voice, have this idea that all it takes is someone with a good speaking voice, ability to articulate, and good enough reading skills to quickly and simply record their project.

Bing, Bang, Boom - Voila! In just a few short minutes, the narration's done. All the while thinking that a 5 minute narration is worth $20. Well - that's simply not the way it works. Yes, a good speaking voice, ability to articulate, and good reading skills are all important, but there is much more to be done than just that. Here's the advice my Voiceover Coach, Terry Daniels, has provided.
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In most, if not all, business decisions, cost is a factor. it should not be the number one objective when hiring voice over talent. Take car shopping for example. Do you look for the lowest price tag or the car that will best fit your needs? The same holds true with a well-versed and seasoned voice talent.

They can interpret a script to make it sound conversational and believable. A specialized voice talent will offer superior sound and quality, which comes at a cost. They take pride in purchasing top-of-the-line equipment and have expenses as with any professional business.

Occasionally, a client will take the less expensive route only to be dissatisfied with the quality of the talent and eventually hire a more experienced talent to record the voice over. Understanding the proficiency and skill that I have as a professional voice talent, the cost should not be a factor, as the end product will result in exactly what you are looking for. Keep in mind the old proverb "you get what you pay for."

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So, with that in mind, let me also just add this bit of information that will help you in selecting a professional voice at a rate you can live with. Most Voice Artists have a rate card they use to quote a project. You've found the Voice you like, but perhaps the rate is a bit over your budget. Don't be afraid to negotiate, and let the Voice Artist know that you have a budget. I like to know you have a budget, and if it's reasonable, I'm willing to work with the client. Many professional Voice Artists will do that.

Also, ask what the quoted rate includes. Background music, sound effects, studio time, retakes, script revisions, copy writing, etc. These are all factors that make up the rate. If all you need is a dry voice and cleanly edited audio, the rate can be negotiated down. Be aware, that most Voice Artists will specify in their quote what is included or not included. I try to do that for every audition and quote I do.

Just remember - When hiring a professional voice, expect to pay a professional rate, but that doesn't mean you won't be able to afford it. We're committed to providing top quality, professional work, regardless of the rate. Feel free to contact me through this website anytime if you have questions. Don't be shy! Even if I'm not your preferred choice to be the voice, I'll be glad to help, and even suggest a few Voice Artist associates that may be the voice you're looking for.

Best success to all,
Wayne Edwards
VoiceoversByWayne
wayne@waynesvoiceover.com

Unemployed? How to sell yourself and land your dream job

How many of you know people that have been unemployed for 1-2 years and are lamenting that there are no jobs to be had? How many of you are those people?

It's not something to be ashamed about, but if you're going to fix it, you need to change your outlook on things. First of all, you need to stop looking to others to give you a job. I'm not saying to stop applying for work, going to interviews and the like. What I'm saying is that you need to stop being passive about it.

I recently had a conversation with somebody that has been out of work for nearly a year. She was stressing because her unemployment was potentially going to run out if her extention wasn't approved. I asked her how many interviews she had been to recently and she told me none.

Does this sound familiar?

I asked why she hadn't been to any interviews and her reply was "because nobody has called me to come into an interview".

People, wake up. When the economy is down and unemployment is high, you cannot be passive about getting a job. You have to assume that there are 400 people applying for the same job you are.

There are 2 ways out of this scenario - landing a job or creating your own. I recommend a hybrid of the two. Read my article, Teach your kids to build a business instead of working fast food for excellent tips on how to create your own job. Doing that takes time; however, so you'll want to start as soon as possible. In the meantime, you're going to need to land a job working for somebody else.

To get your name to the top of that list of 400 applicants, you have to be aggressive. Learn everything you can about the company. Read their website and all their press releases. Try their products, if possible. If they're a public company, check out their financial statements and see if they're making a profit or not. See if their PR department and their Accounting department are saying the same thing and use this to your advantage.

If they are hurting, how can you solve their problems? If they are doing well, how can you make them even better? Be prepared. Become a salesperson because that's what you are.. you're selling yourself. How would a salesperson handle it? Would they come in with powerpoint slideshows, marketing materials, and other things to land the sale? Sure they would. If you take charge of the interview and prove to them that you are their solution, not just more overhead then they're going to be impressed - and you're going to get hired.

And then call them. And call them. And don't let the receptionist filter you. Use LinkedIn and other sources to find additional contacts in the company that you can use to finally get to the right person.

Do this for several companies and one of them is sure to hire you. You may even be surprised at the outcome. Sometimes the company realizes that you're of a higher caliber than the position you're applying for and may offer you a better job.

Taco Bell lawsuit claims its meat doesn't meet federal standards

Taco Bell was recently sued because its meat only contains 35% beef, with the rest being fillers such as water, wheat oats, soy lecithin, maltodrextrin, anti-dusting agent, and modified corn starch. The suit wants them to discontinue using the word "beef" because it doesn't meet federal standards.

More information can be found at Taco Bell defends lawsuit claiming beef doesn't meet federal standards with major ad campaign and this article at Fox News.

Introducing That's Just Brilliant

Recently, we've launched That's Just Brilliant, a marketing blog that highlights some of the great and not-so-great marketing campaigns out there. It also discusses marketing concepts and how to maximize your marketing budget's ROI.

Topics include:

Email Broadcasts
Websites
Marketing Strategies
Marketing Plans
TV Spots
Branding
Marketing Principles

New posts are being added all the time, so keep an eye on this exciting new blog.

Link Building Explained

When dealing with seo, there are two things you must take into consideration. Your page needs to be properly optimized for the keywords you're targeting, and your page needs to have links pointing to it from related pages. In addition, to maximize the worth of your link, make sure the text portion of the link is related.

For more information, check out the article I wrote that explains how links affect search engines as well as this article on link strategy.

Without knowing the basics, you can spend a lot of time with very little ROI. Happy Link Building!

How to select a wedding venue ?

Your wedding should be one of the best days of your life, a day that sets the tone for the rest of your marriage. To make sure that everything goes as planned, there are a myriad of tasks that need to be taken care of. Your first real ‘wedding task’ is to find your reception and ceremony location - and a word of advice from those who have experienced planning weddings first-hand: it is probably one of the hardest decisions you will ever make.

You need to consider the size of your guest list, your budget, a convenient location and a whole lot of other small and big factors. So take a deep breath and don't get overwhelmed by those seemingly insurmountable considerations and suggestions because we have all listed for you all those essential questions that every bride must ask herself before choosing that perfect wedding venue:

Question 1 : How much am I honestly willing to spend on the venue?
Hammer out your budget before going in search of venues and make sure you stick with it because things tend to spiral out of control. A couple of thousands here and there add up to quite a lot when you actually sit down to total up the costs. If you live in the city, look for nice venues which you can afford, and which are convenient. You really shouldn’t even be thinking of how pretty a beach wedding would be if you’re on a tight budget.

Question 2 : So am I going to have my wedding and reception at the same place?
Weddings usually have a ceremony and reception. Ask yourself if you need a location which will cater for both your ceremony and reception, because this is much more cost effective. Second, If you have already agreed on a specific Temple/Church for the ceremony, make sure you choose a reception venue close to the selected ceremony location. It will be easier for you and your guests to commute from the service to the reception when they are minutes apart from each other. Another exotic choice would be to have an outdoor wedding such as a beach or garden wedding. If you do decide to have an outdoor wedding then, it is always better to have the ceremony and reception in the same place. It is also much more convenient for the guests since it reduces the hassles of travelling from one location to another.

Question 3: Will the location be convenient for my fiance, myself and all our guests?
The location of your wedding venue largely depends on where you and your respective families stay, because after all you are the most important people there.
Then, consider where the majority of your guests are travelling from. If they are flying in for your wedding, it makes sense to choose a venue easily accessible from a major airport either by train or coach. If the reception location is quite remote, you might want to consider organizing transport for your guests. This will certainly make your guests lives easier, but at the end of the day it will certainly add to your budget. So choose wisely. Also, if your guests need to stay the night, you will need to consider a location that is conveniently located around suitable hotels or lodges.

Question 4: How many guests, and more importantly will I have room for last minute confirmations?
Now that you have the location and budget set, you need to decide how big a place you will need. Planning your wedding guest list can be an exciting, yet tiring task. Here are some factors that you need to consider, before you even start looking at possible venues.

* Be sure to have a good estimate on the number of people on your guest list. This will probably include family, friends, workmates, entertainers etc.
* Do you want a formal dining setting or a buffet: Formal dining would obviously require more space compared to a stand up buffet. A venue with a seating capacity of 100 may accommodate 200 people for a reception.
* Oops did I plan space for the band? Bands and other entertainment facilities need a large amount of space, so make sure you plan for it. Decide on a spot where you want the entertainment.
* Always make sure you have space to spare for those last minute confirmations.

Question 5: Ok, so why would I opt for a marquee extension?
Some venues offer this as they cannot accommodate large numbers in the property. If this is the option for you, do check what is included in the cost of the marquee. Items such as heating/cooling and furniture can all be extras that add to your total cost. Ask to see pictures so you can see what details such as the flooring look like.

Question 6: Oh God! The caterers?!
When choosing a venue, also consider if the venue has in-house caterers. Then, consider if they require a catering tent and equipment and if this is included in the venue hire price. If you are bringing in caterers, it is a good idea to request estimates from a few of them to compare menus and costs. Ask them how much space they would need and the facilities they would require and factor them in when you go looking for venues.
On a side note, regardless of whether the catering is in house or hired in, you must ensure they offer a tasting so you can try your menu and make any adjustments prior to the day.

Once you have answered these questions, you should be able to shortlist a couple of venues. Now, you will need to call each of your shortlisted venues to finalize your decision. Now, Now... hold your horses, before you settle on the final location, make sure you ask them the following questions first.

What’s the deal with parking?

Ask the venue vendors if there is any restriction for parking. If there is, then you will need to let your guests know about this. That way they know to book taxis. If you are providing transport for your guests , you will be prepared to allow for parking facilities for the vehicles.

Can I get a pricing breakdown please?

Once you have narrowed down your choice of venue, ask them to supply you with an estimate of costs for your wedding so you can establish what is included. Some venues include items such as tables, chairs, stationery, flowers, in their per person cost.

What is it that my guests and I can and cannot do?

Ask what you can and cannot do at the venue. Things that may be prohibitive, for a variety of different reasons, could include amplified music, late license, drinks license, fireworks and children (yes children! not kidding!).

Can my guests get accommodation?

If the majority of your guests are travelling to the wedding. then ask the venue to provide you with a list of local hotels which helps guests form an option as to where to stay and what to spend.

So there you have it. Armed with this essential guide, you are all set to choose your venue. Do your due diligence, check up on the available vendors in our exclusive listing facility at www.shaadiinvite.com to make the most informed decision, and make the process even easier :)

All the best on your planning and wish you a wonderful married life ahead!

Library & Marketing Resources

Brassey’s Guide to War Films

Brassey’s Guide to War Films

is a comprehensive listing of over 2,000 war films set from Ancient Greece to the first Gulf War. Entries include information on the director, major actors, and a plot synopsis. This book also contains indexes to locate films by director or a specific period (ie. World War II, the Middle Ages, etc.).

Brassey’s Guide to War Films is located in the Reference Collection ofEmerson Library

March 4, 2010 jborgerding-->

Mashup: Best Movies of 2000s

I came across a cool mashup of the best films of 2000s.

http://bit.ly/c0z9Pt

Enjoy!

February 25, 2010 jborgerding-->

Edited Clean Version

Edited Clean Version: Technology and Culture of Control byRaiford Guins

takes a look at how media technology has changed censorship and control. With the emergence of V-chips, Internet filters, and parental control features, censorship is occurring at the hands of the technology users, not the government.

Edited Clean Version: Technology and Culture of Control can be found on the 4th floor of Emerson Library

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February 18, 2010 jborgerding-->

As Heard on TV

As Heard on TV: Popular Music in Advertising by Bethany Klein

takes a look at how popular music is used effectively in advertising. Klein also looks at how advertising helps musicians and the future of popular music in advertising. A bibliography is included for further research and reading.

As Heard on TV: Popular Music in Advertising is available on the 3rd floor of Emerson Library

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February 11, 2010 jborgerding-->

New Library Database for Media Marketing and Advertising

Standard Rate and Data Service (SRDS) Media Solutions Online is now available through the library’s website. You can search media advertising information, contact data, as well as demographic and lifestyle statistics. For example, you can use the SRDS Lifestyle Market Audience Analyst (LMAA) module to find out which city has the biggest concentration of 18-24 year olds (Lafayette, IN

). With that information, you can then search radio stations in Lafayette, IN that target the 18-24 age groups for advertising and marketing. You can also search for information on television, cable, newspapers, magazines and business media. Additional lifestyle ranking data in the LMAA module that can be searched include travel, health, food, automotive products, psychographics, and more.

More information on SRDS Media Solutions Online can be found at:http://library.webster.edu/databases/datalpha.html#dscsrds

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February 4, 2010 jborgerding-->

Encyclopedia of Animated Cartoons

The third edition of The Encyclopedia of Animated Cartoons

is now available. From the silent era to the computer generated animation of today, this work covers the complete history of animated shorts and full-length features. Also included is a list of awards and honors and a bibliography for further research and reading.

The Encyclopedia of Animated Cartoons is available in the reference collection at Emerson Library

January 28, 2010 jborgerding-->

iPoll: New Database of Public Opinion Polls

iPoll, by Roper Center for Public Opinion Research, gives you the power to search multiple public opinion polls at one time. Over a half million questions from organizations, including Gallup Poll, Pew Research Associates

and various media outlets, can be searched through this database. Some of the content goes all the way back to 1935 for a great historical perspective on public opinions. General public opinion polls, such as health, economy and media, are covered as well as specific polls such as election exit polls, presidential job performance, and others. Datasets for many of the polls are also included so you can view the research methodology and statistical calculations behind the results.

More information on iPoll can be found at:http://library.webster.edu/databases/datalpha.html#dscipoll

January 21, 2010 jborgerding-->

Now In Reference: Editor & Publisher Market Guide 2010

The latest edition of Editor & Publisher Market Guide

is now available. The 86th edition has been updated with the latest quality of life and census data, as well as economic and demographic projections for 2010. E & P Market Guide is an invaluable source for finding information on newspaper markets for media and advertising.

Editor & Publisher Market Guide can be found in the Reference Collection at Emerson Library

January 14, 2010 jborgerding-->

2010 Photographer’s Market

Now available in the Reference collection is the 2010 Photographer’s Market: Where & How to Sell Your Photographs

. This popular book contains over 1,000 listings of magazines, book publishers, galleries, contests, and other markets that may publish your photographs. Each listing contains contact information, specs, tips for submission and other important information. Also included is expert interviews and articles to help you start selling your work.

2010 Photographer’s Market: Where & How to Sell Your Photographscan be found on the 2nd floor of Emerson Library

November 20, 2009 jborgerding-->

Key Concepts in Public Relations

Key Concepts in Public Relations explains over 150 concepts important to public relations. This book also provides a brief introduction into the history of public relations. Also included at the end of every concept is a bibliography for further research and reading.

Key Concepts in Public Relations can be found on the 3rd floor ofEmerson Library

October 30, 2009 jborgerding-->

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Exploring the Web My Way

Chapter 1: What Is Public Relations? « Sarah's PRCA Blog

Public Relations Strategies and Tactics 9th Edition

There are 6 key words to remember when thinking of the definition of public relations:

• Deliberate: Public relations is intentional and its goal is to influence, gain understanding, provide information, and obtain feedback.

• Planned: PR is organized.

• Performance: ”Effective public relations is based on actual policies and performance. No amount of public relations will generate goodwill and support if the organization is unresponsive to community concerns.”

• Public Interest: PR work is there to help out and organization and the public.

• Two-way communication: ”Public relations is more than one-way dissemination of information materials. It is equally important to solicit feedback.”

• Management function: ”Public relations is most effective when it is a strategic and integral part of decision making by top management. Public relations involves counseling and problem solving at high levels, not just the dissemination of information after a decision has been made.”

Public Relations as a Process:

Research- What is the problem or situation?

Action (program planning)- What is going to be done about it?

Communication (execution)- How will the public be told?

Evaluation- Was the audience reached and what was the effect?

**Public relations differs from journalism, advertising, and marketing.

“Marketing executives in a 2006 PRWeek survey [ranked] the effectiveness of public relations higher than advertising or marketing in nine areas.”:

• Brand reputation

• Corporate reputation

• Cultivating thought leaders

• Strategy development

• Launching a new product

• Building answers

• Generating word of mouth

• Message development

• Overcoming a crisis

–There are 5 essential abilities one should have if planning a career in PR:

(1.) Writing skills

(2.) Research ability

(3.) Planning expertise

(4.) Problem-solving ability

(5.) Business/economics competence

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sfarmer2.wordpress.com

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everyclicknews.wordpress.com

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News Alert! Latest Developments on Sharath Sury

News Alert! Latest Developments on Sharath Sury;

PLUS: Sury's Speaking Engagements List Updated and Just Released Today!

Posted 6/5/2010 by STAFF on Blog.SuryOnline.Net

Professor Sharath Sury was awarded the honored "Extraordinary Faculty Award" by Santa Clara University. The award was given to Professor Sury for his teaching and University service.

Mr. Sury spoke at the Real Estate Investors Summit: Dealmakers Conference in Miami in April. Sharath Sury was a key contributor to the topic of "FDIC and the Bank Auction Process"

Sharath M. Sury spoke at the Emerging Managers Summit in Chicago in May; Sury joined the discussion which focused on the topic of "Risk Management".

Professor Sury moderated the Santa Clara Initiative for Financial Innovation & Risk Management (SIFIRM) "Value of Values" Conference, focusing on corporate social responsibility, social investing, and behavioral finance.

An Appointment as an Honorary Deputy Sherriff was awarded to Sharath Sury by the Santa Clara Co. Sheriff's Office. Mr. Sury received the award in May and is a full member of the Sheriff's Advisory Board.

** Please Check back for the latest updates and news bulletins for Profs Sharath and Manda Sury.

***Upcoming Speaking Engagements Coming Soon.

SOURCE http://blog.suryonline.net/2010/06/05/alert-latest-news-on-sharath-sury-and-surys-speaking-engagements-list-updated-today.aspx

“EXPLORING THE BASICS” With Mr. Sharath Sury – part 2 of 10

“EXPLORING THE BASICS” With Mr. Sharath Sury – part 2 of 10

Posted 5/25/2010 by Chinnu S. on Everything-Finance.net

The following contains excerpts from an interview with Mr. Sharath M. Sury on 05/11/2010. Part two of a ten part series begins below.

So, what exactly is a Bear Market? Before I could even ask, Professor Sharath Sury raised an eyebrow and said, "So, you're probably wondering what a Bear Market is, in comparison." I chuckled, but was amazed with his ability to relate to students, as i nodded affirmatively.

Professor Sury continued, "A 'bear' market can be defined as a market in which a particular asset class is experiencing a secular or long term decline either in absolute or relative terms. Thus, if the Russell 2000 is exhibiting steady, declining returns—usually for at least 20% or more, we might surmise that the US small cap equities market (as represented by the Russell 2000) is in a 'bear market' phase."

Eager to learn if some of the theories floating amongst the students were true, I asked Prof Sury, "is it true that a 'Bear Market' is nothing more than a market correction?"

"Good question," Sharath Sury replied, "..[however, Bear Markets' are] to be disinguished from a "correction," which is a drop of approximately 10% from a recent peak to current trough." Sury continued, "A correction may be self-limiting before a return to a bull market or may lead to continued declines, culminating in a bear market."

Natural curiosity begged the question, "When do Bear Markets typically occur in relation to major economic events?" Sharath Sury explained that they "usually occur after the burst of a 'bubble' (e.g., housing, dot-coms, etc.), a major macroeconomic shock (e.g., credit crisis, commodity price shocks, geopolitical instability), or sustained decline in aggregate (GDP) and profits growth.

(...to be continued; Check back soon for part 3!)

SOURCE blog.everything-finance.net/2010/05/14/the-basics-with-mr-sharath-sury—part-1-of-10.aspx

Finance Education: “THE BASICS” With Mr. Sharath Sury – part 1 of 10

“THE BASICS” With Mr. Sharath Sury – part 1 of 10

Posted by Everything-Finance.net 5/13/2010 2:55 PM

The following contains excerpts from an interview with Mr. Sharath M. Sury on 05/11/2010. Although I was nervous (as any fan would have been), struck with awe and inspiration over the simplest of words being spoken by my role-model, Professor S.M. Sury remained humble and was pleased to help as always. Part one of a ten part series begins below.

Recently, I sat down with Professor Sharath M. Sury, 38, whose career in professional finance began after earning an MBA with High Honors from the University of Chicago. I met with Mr. Sury to discuss some of the more common questions the Forum has been asked when students first begin learning finance on a high school or collegiate level.

With an impressive resume that we all hope to emulate (if at all possible), Sharath Sury remains a highly sought after source of financial information and education – and even more so after his recent retirement as CEO from S4 Capital, LLC. Often, we receive emails asking us the definitions of commonly used lingo on Wall Street, and while we realize that these terms may be commonplace on The Street, the average layman’s dialogue may only encompass these words when speaking of sports, or perhaps casually pondered when succinctly mentioned on the evening news.

Let’s briefly explore the intricacies of both “Bull Markets” and “Bear Markets” with valuable explanations from the revered Professor Sharath Sury, and for the sake of: 1) those who have never become familiar with the terms; 2) those who wouldn’t mind a refreshing reinforcement of the terms; 3) avoiding the misuse of commonly used terms while gaining an understanding of the fundamentals for each type of market label; and 4) simply wanting to include “Everything Finance” on Everything-Finance.net.

After asking Professor Sury if he would be kind enough to help us again (as he did with his acclaimed explanation of the Alpha), he agreed without hesitation, and asserted his willingness and desire to help as many students and enthusiasts as time allowed, without regard to how easy or difficult questions will be, and without concern to how much finance education any particular individual has. It is our hopes that having such credible and trusted authorities (like Profs Sharath and Manda Sury ) answering some of our forum newbies’ most common, basic questions will support the members’ faith and belief that there really is ONE place online to have your questions answered by experts in finance [shameless plug: Everything-Finance.net]; that novices, intermediates, or advanced students should never hesitate to ask questions – no matter how “ridiculous” others may deem those questions to be. Professor Sury emphasized that no question is “silly”, or beyond a worthy and accurate explanation by recognized professionals and venerated field experts (as all serious students should have access to). We both agree that this additional avenue of communication is a necessary component in Sharath Sury’s Initiative to bring instructors, professionals, and students together in an effort to help facilitate a new, cautious, and responsible generation of finance enthusiasts that will soon shape the economy of our future.

So, with as much control over my admiration for Professor Sury as I could manage (without being blatantly obvious that I may have been too excited to conduct the interview), I asked him to explain what exactly “Bull” and “Bear” Markets are, and suggested that it could help if he described some of the characteristics associated with each.

Prof. Sharath Sury gave me a reassuring smile and replied, “A ‘bull’ market can be defined as a market in which a particular asset class (e.g., equities or stocks, fixed income or bonds, or commodities, etc.) is experiencing a secular or long term rise either in absolute terms or in relative (to other asset classes) terms. Thus, if the S&P 500 is exhibiting steady, upward returns—usually for at least a sustained growth of 15-20%, we might surmise that the US large cap equities market (as represented by the S&P 500) is in a ‘bull market’ phase.”

Thrilled with how clear and concise his answers are, I may have been somewhat quick to interrupt, but was eager to ask Professor Sury the reason why some news anchors and hosts claim that there is always a bull market to be found. Sharath Sury’s gentle demeanor settled my anxious behavior as he answered confidently: “Because bull markets can also be relative (to other asset classes), it is possible to have a bull market in equities while simultaneously having a bear market [defined in part 2] in bonds, for example.” Mr. Sury concludes, “This leads some commentators, such as CNBC's Jim Cramer of ‘Mad Money’ to speculate that "...there is always a bull market somewhere.”

Pausing to ensure that I wouldn’t rudely interrupt him again, Sharath Sury and I exchanged a smile to acknowledge the humor, but was quick to regain my focus as he continued earnestly, “Sustainable bull markets are predicated upon attractive valuations, strong profits growth (in the case of equities/stocks), strong credit (in the case of fixed income/bonds), and so on.” Sury concedes that it is sometimes difficult to distinguish a genuine bull market from a bear market rally (also discussed in part 2).

SOURCE

http://blog.suryonline.net/2010/05/14/the-basics-with-mr-sharath-sury--part-1-of-10.aspx

Networking On A Budget

Chances are if you have started your own business you have access to the internet. Chances are you’re also on a start up budget when it comes to marketing your business. Well, guess what? There are a ton of ways to network with other professionals right there on the internet. Now, for some of you this is a no-brainer. But there are plenty of new business owners that just don’t know where to begin.

Do some research. Test the waters on many networking sites and see what works for you and what’s comfortable for you. Check out Yahoo message boards, look up people in your industry and follow them on Twitter. See if your local chamber has an online forum you can join.

Remember, joining all of these sites won’t get you immediate business. You have to participate. Join in chat conversations, post questions and answers on the forum message boards.

If you find you just don’t have the time to post a few tweets or update your fan page or you just don’t have the patience think about hiring a virtual assistant. We are here to help you run your business so you can succeed doing what you do best!

Just In! What Are 'Fundamentals'?

An Examination Of Fundamentals

By Dr. M. Sury

As Posted On http://www.focus.com/profiles/sharath-sury-1/public/

In investing, one can select securities based on “Technical considerations” or based on “Fundamentals”. We say that the decision to select a particular security (e.g. a stock or a Bond or a commodity etc) is based on technical considerations if the information used in the decision process is solely the patterns observed in the historical returns of that security and any associated statistics.

Such an approach believes in the “pattern behavior” and that the company’s performance characteristics are already captured in the series of historical returns. In contrast, those who select a security based on Fundamentals believe that the success or failure of the investment in that security will depend on the Management Team for that security as well as the resources they have access to and how they would use those resources to steer the growth of the security. Information such as the Earnings in the past four quarters, earnings predicted for the next four quarters are most commonly used fundamentals. To be able to compare the earnings of two different securities involved in the decision process, we use PE (or price to earnings ratio). Clearly higher the PE, the price per a dollar of earnings is higher and thus the security with the higher PE is Costlier. Every thing else being equal, lower PE is preferred.

Sometimes, the price P of a security is compared to its assets (also referred to as the Book B ) and the ratio P/B (Price to Book) is used in comparing two securities, especially if the companies are in distress the investor is thinking of a Liquidation value of the remaining assets to decide on the investment.

Other fundamental information commonly used is the Debt to Equity Ratio. Clearly, the fact that debt holders have to be paid prior to holders of equity (in any liquidation) makes a security with higher Debt to Equity ratio to be less favored. It is to be noted that the revenues used to service an existing debt reduce the amount available for either growing the company or to pay dividends to the shareholders.

~ Manda Sury

_____________________________________________________

About Dr. Manda Sury

As a Principal and member of the Investment Committee at S4 Capital, Dr. Sury supervises the Firm’s quantitative/analytic programs and information architecture. In particular, Dr. Sury is responsible for the design and implementation of the portfolio optimization procedures for S4 Capital’s critically acclaimed “Efficient Portfolio Management (EPM)” process.

Dr. M. Sury is a recognized expert in the fields of portfolio optimization, equilibrium-based asset allocation, and active risk budgeting. Among his research interests are investment risk modeling (including the incorporation of non-normal skew and kurtosis, conditional value-at-risk, and regime- or state-dependent performance), alpha-beta separation (analysis and identification of the systematic risks assumed by active investment managers), and the design of high-efficiency, high-speed computational procedures to facilitate complex financial simulations and calculations.

In addition, Dr. M. Sury is responsible for engineering S4’s database architecture, which manages and integrates information across the firm’s global portfolio management, relationship management, and risk management efforts.

Dr. M. Sury had previously held a variety of senior-level technical positions in both industry and academia, including Fidelity Investment Systems Co., Lockheed Missiles & Space Co., AT&T/Bell Laboratories, and the University of Michigan. Dr. M. Sury is a prolific author, with over two-dozen major research publications in the fields of mathematics, optimization, and computer science. He received his M.S. in Mathematics, M.S. in Computer Science, and Ph.D. in Mathematics from the University of Michigan at Ann Arbor.

A loving husband, and father of two, Dr. M. Sury is cited by his son, esteemed professor and internationally recognized expert in Risk Management and Asset Allocation — Sharath Sury, as being the single most beneficial influence in his life.

SOURCE http://Everything-Finance.net

Investment Education Series - 1/3: "Diversification - A Useful Tool, Until You Need It!"

I found a Series of Articles from Wealth Management Expert, Author, and Professor, Sharath Sury. There are three Ezinearticles written by Professor Sury, covering Diversification, ALM, and Risk Measurement. I felt Sharath Sury's articles are a must read for anyone wanting to sharpen their knowledge on important investing techniques. This entry includes Professor Sury's "Diversification - A Useful Tool, Until You Need It!" article. i will follow this article in a later post with "Risk Measurement - A Multi-Dimensional Concept!".

** If you find any of the articles in this series informative or useful, please leave a comment for author Sharath Sury on Blog.SuryOnline.net !

Diversification - A Useful Tool, Until You Need It!
By Sharath Sury

Posted On: SURYONLINE.NET at 3/11/2010 6:18 PM

We have all been taught about themerits of diversification in investments. It is a variation of the oldadage, "Don't put all your eggs in one basket."

Indeed, professional investment managers are trained to develop portfolios according to the tenets of Modern Portfolio Theory (MPT). MPT traces its roots to the work of Harry Markowitz and his seminal writings on "Portfolio Selection." In his pioneering research, Markowitz was able to demonstrate the mathematical basis for diversification.

Essentially, Markowitz showed that selecting assets that have a positive expected return but exhibit low or (preferably) negative correlation to one another produces a combined portfolio that retains the positive expected return properties, but with lowered risk (as defined by variance).

Theoretically, this result arises due to the presence of at least two major sources of risk: nonsystematic (or unique) risk and systematic (or market) risk. While it is very difficult to eliminate market risk, it is possible to reduce the risks associated with unique investment assets. By combining investment assets that are subject to certain specific, unique risks with other investment assets that are subject to other unique risks, it may be possible to reduce the overall risk of the combined portfolio.

For the past several decades, this has been the mantra to which all investment managers adhered. Unfortunately, recent experiences in the capital markets have led both academics and professional investment practitioners to rethink portfolio construction. With the increasing interconnectedness of global markets and investment pools, we have seen that correlation structures among various investment assets are not always stable.

As a result, investment managers need to be exceedingly careful in constructing portfolios that are able to withstand the dynamic nature of correlations, especially as the market experiences large disturbances. These "disturbances" are becoming much more commonplace: the Asian currency crisis of 1997, failure of the major hedge fund "Long Term Capital Management" in 1998, the burst of the "dot-com" bubble in 2000/2001, the terrorist attacks of 2001, the burst of the real estate bubble in 2007/2008, and the credit crisis of 2008/2009. In nearly every case, correlation structures among various assets increased at precisely the time when investors needed protection the most.

The best portfolio construction techniques have an appreciation for the fact that correlation structures may change during different "states of the world" or regimes. By incorporating these state-dependent correlation structures into portfolio design and optimization, investment managers can move to better protect portfolios during times of market distress.

----------------------------------------------------------------------------------------------------------------

Professional Summary for Asset Allocation and Risk Management Expert, Sharath Sury:

Sharath M. Sury - Founder and Executive Director of the Sury Initiative for Financial Innovation & Risk Management (SIFIRM) at Santa Clara University, Sharath Sury devotes his time and energy to bringing together thought leaders who can address the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts, Professor Sury has established this invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry. Sharath Sury also serves as an Adjunct Professor of Economics at the University of California and Adjunct Professor of Finance at DePaul University in Chicago. Sharath Sury's interest and experience in wealth management began as an Associate and later Vice President at Goldman, Sachs & Co. He later founded and worked at S4 Capital, where he earned numerous accolades for his work.

Article Source: Sury, Sharath "Diversification - A Useful Tool, Until You Need It!." Diversification - A Useful Tool, Until You Need It!. 9 Mar. 2010 EzineArticles.com. 31 Mar. 2010 <http://ezinearticles.com/?Diversification- - - A- Useful- Tool,- Until- You- Need- It!&id=3883169>.

----------------------------------------------------------------------------------------------------------------

Visit Sharath Sury At:

http://blog.suryonline.net

 http://Everything-Finance.net

http://www.focus.com/profiles/sharath-sury/public/

Just In! Dr. MBS Investigates The BETA -- a response to "Sharath Sury Explains The Alpha"

The BETA Significance

by Dr. M. Sury

As Posted On http://www.focus.com/briefs/finance/finance-discussion-beta-significance/

CHICAGO, APRIL 5 /Everything-Finance.net/ — Sharath Sury explains that the returns from a fund are attributable to three sources – the Manager’s skill, the Market and Random fluctuations. The return derived from the Manager’s skill alone (if consistent during the period of observation) is called Alpha (Greek letter a). The return attributable to the Market is denoted as a multiple Beta (Greek letter b) of the Market’s return. Finally the random fluctuation is denoted as Epsilon (Greek letter e). While this is a simple concept, there is quite a bit of complexity swept under the word “Market”.

When the investable universe is U.S. Domestic equities (more specifically, the members of an index such as S&P 500), then the market is that index and so the volatility of the index becomes the Market risk. Beta, in this case, represents the “relative volatility” (called Covariance) in the fund per unit level of Market volatility. The return of the fund attributable becomes Beta* X where X is the return of the S&P 500. When we take this more precise definition, and analyze what is practiced in the industry, we come to realize that the definition of Market can be different in different contexts. Thus, for example, we look at both equities and debt instruments; the Market has to include not only Stocks, but Bonds of all types as well. If we wish to include the entire World Markets, then the return attributable to market is Beta*W where W is the return of a portfolio that consist of all bonds and equities in the entire world.

To simplify the discussion, some analysts have taken the approach that the return W of the entire World market is not significantly different from a “workable subset” such as the MSCI World Index and any small difference can be included in the Epsilon factor. This still does not address the fact that there are other asset classes (e.g. Commodities and real estate) that also can be invested and are actually traded in practice.

Yet another complexity in defining the “market” is the inability (or unwillingness) of the investor to participate in certain segments of the market. For example, an investor may wish to invest only in Socially Responsible Investments (SRI). This would then restrict what the “Market” can include.

Thus, for an investment advisor, the practical approach consists of the following steps: (a) Determine the “universe of investments” applicable to this investor and identify one or more (non overlapping) asset classes that represent this universe (b) Identify the allocation of assets to be invested in each class (c) construct a “custom index” using these allocations and find the “calculated returns” of the custom index to be used as the “Market return” X and (d) use statistical “regression” technique to find the regression coefficient of the Fund’s historical returns relative to the corresponding market returns X.

There are several variations of the above technique in the literature using multi- dimensional Statistics which are beyond the scope of this note.

SOURCE http://Everything-Finance.net

It's Official! Dr. M.B. Sury, father of esteemed Professor of Finance Sharath Sury, named In-house Expert Contributor for Everything-Finance.net.

Dr. M.B. Sury named Official In-house Expert Contributor for Everything-Finance.net.

Posted by SURYONLINE.NET at 3/31/2010 5:13 AM

Today, Everything-Finance officially announced that Dr. M. Sury, Father of the well-regarded Professor Sharath Sury, will be the exclusive In-House Expert Contributor for http://Everything-Finance.net

The site is scheduled to make an announcement later today regarding its re-vamping process, release dates, and any other updates that have not been released to the public as of yet.

Check back soon for the latest updates and news about Professors Sharath and M. Sury, right here, on suryonline.net!

SOURCE http://blog.suryonline.net/2010/03/31/dr-mbs-father-of-esteemed-professor-sharath-sury-and-expert-author-of-finance-and-statistics-is-named-the-inhouse-expert-contributor-for-everythingfinancenet.aspx

NEWS BULLETIN! SuryOnline.net Shifts the Focus of its website, Mr. Sharath M Sury, to Expert Author and Contributor, Dr. M. Sury.

Posted by SURYONLINE.NET at 3/18/2010 2:51 PM

The Site Administrators of SuryOnline.net, announced today, that the focus of its website, Mr. Sharath M Sury, will shift to Expert Author and Contributor, Dr. M. Sury.

Additionally, SuryOnline.net will provide a platform for family, friends, and invited guests, to discuss business on every level and subject, from Marketing to Management, and from Accounting to Finance.

We'll also investigate, explore, and discover the rebirth of Entrepreneurism and the recent trends of Entreprenuerial programs in Undergraduate studies.

Check Back Often For More Details!

Make Sure You Got The Latest One: 415-SHARATH is now 312-450-SURY!

415-SHARATH is now 312-450-SURY!
Now You Can, "Tell It 2 Sury"!

Posted by SURYONLINE.NET at 3/18/2010 12:48 AM

Beginning Thursday, March 18, 2010, we will be announcing the immediate and official end of the 415 - Sharath comment project, and will be pleased to introduce (312) 450 - Sury as the new, also non-profit, comment line for Dr. M. Sury and Family!

Join us next weekend, starting 3/26/10, as we bid farewell and pay respects to the non-profit project attempt by posting three common questions from 415 - Sharath to be answered by Expert Contributor of Finance and Statistics, Professor M. Sury, online and exclusively at

http://blog.everything-finance.net .

Then, after some administrative transitions have been quickly implemented, we will begin proceeding with the introduction of Tell It 2 Sury! - the new, interactive comment line for M. Sury and family that replaces 415 - Sharath. M. Sury, like his son, wants to see participation online and over the phone to give users a platform in which they are encouraged to safely network and solve problems together, instead of secluding themselves — discouraged from what they think is impossible to learn.

Dr. M. Sury wants these students and future enthusiasts to know that Finance is exciting, fast paced, and can be very rewarding. Like Sharath, M. Sury would like to see a new cooperation amongst students, enthusiasts, finance thought leaders and instructors to get these students more involved, while cultivating an ethical environment with a focus on implementing innovative safe-guards against the types of failures that led to the financial crisis we still face. While there is no way to stop some students from spitefully turning away from finance, M. Sury hopes to keep students interested with interaction today, attempting to inculcate the new perceptions that forge the new standards of tomorrow.

So, the next time someone tells you to "Tell It to Someone That Cares", assure that person that you will, indeed; and go "Tell It 2 Sury"!

SOURCE http://blog.suryonline.net/2010/03/17/415sharath-is-now-41542sury.aspx

Tip your Favorite Finance Articles by Expert Sharath Sury to The Top! Vote Now: Your Opinion Counts!

Sharath Sury Wants to Hear From You, Today! Voice Your Opinion and vote!

Posted by SURYONLINE.NET at 3/15/2010 1:19 AM

Vote for the one of the several Aricles by Sharath M. Sury on Tipd.com, and let your choice be heard!
You can also call 415-Sharath (* Sury Online advises that long distance charges may apply), and leave a voicemail for the chance to be selected by Sharath M. Sury as one of three messages, monthly, to receive closer attention and examination to, on SuryOnline.net, and/or its affiliate sites.
So, Be Heard! Sharath Sury Listens.

SOURCEhttp://Blog.SuryOnline.net/2010/03/15/now-you-can-voice-your-opinion--vote-for-the-articles-by-sharath-sury-today.aspx

Sharath Sury's Headlines of 2010 (Recent and Upcoming Events of Sharath M. Sury in Chronological Order)

Sharath Sury's Headlines of 2010
(Recent and Upcoming Events of Sharath M. Sury in Chronological Order)

January | 2010

“Analytic Due Diligence Using an Alpha Cost Index,”
- by Sharath Sury and Manda Sury;
- Published to SSRN/Social Sciences Research Network Sharath Sury is Named to Executive Advisory Group of the University of California’s Silicon Valley/School of Management Initiative

February | 2010

Sharath Sury has been Featured as One of “Chicago’s Leading Bachelors” at Starlight Foundation’s “Dream Date” Charity Auction in Chicago; Benefitting Hospitalized Children
Professor Sury is Recognized for “Extraordinary Performance” by Santa Clara University’s Leavey School of Business.

March | 2010

Professor Sury to Speak at the Exclusive Family Office & Private Wealth Management Forum in Providence, RI
Professor Sury to Speak at Opal’s Emerging Manager's Summit 2010 in Chicago, IL
“Efficient Portfolio Management: A Guide to Effective Investment Supervision Processes,”
- by Sharath Sury;
- Published to SSRN/Social Sciences Research Network
Professor Sury to Moderate “Government & Regulatory Panel” at the Real Estate Investors Summit: Dealmakers’ Conference
The Highly Anticipated Anthology, “Essential Readings in Applied Financial Economics,”
- edited by Sharath Sury,
- published and distributed by Cognella Publishing.
Sharath Sury writes the brief, "The Alpha: Revisited & Clarified" to help enthusiasts and students understand the intricate and sometimes controversial subject.

April | 2010

Professor Sury to lead advanced lecture (undergraduate and MBA) course in Applied Portfolio Management.
Professor Sury, Adjunct Professor of Economics at University of California, to Provide Leadership Guidance to New Center for Computational Finance & Risk Management at the University of California, Santa Cruz.

The Importance of Asset Liability Matching (ALM) - An Informative Brief by Sharath Sury

The Importance of Asset Liability Matching (ALM)

By Sharath Sury

Posted On: About Sharath Sury - News and Events at 3/11/2010 4:33 PM

In recent years, investment, portfolio, and endowment managers have become acutely attuned to the risks of unmatched cash flows in their portfolios. In particular, the ability of assets to generate sufficient cash flows to meet liability funding obligations has waned in the past decade.

As a result, new emphasis has been placed upon so-called "asset liability matching." In this brief, we'll examine one example of the ALM technique. Consider the case of an investment manager that has a series of assets that must fund a series of liabilities. For simplicity, we will assume that the assets consist of fixed income investments with no default risk and the liabilities consist of a known set of payouts to be made in the future.

In any analysis of fixed income (or liabilities), it is important to measure the "duration" of the income (or liability) stream. Duration is the cash-flow adjusted effective term to maturity for a series of given cash flows. Thus, duration is also sometimes referred to as "effective maturity." It is also important to know that the duration of a portfolio of assets (or liabilities) is equal to the weighted average duration of the underlying assets (or liabilities). In addition, the higher the duration of a series of cash flows, the greater its sensitivity to a change in interest rates.

There are a variety of ways to calculate duration that are beyond the scope of this brief; however, most involve either a simple calculation heuristic or an automated spreadsheet. Either way, there is a very important benefit of knowing the duration of a series of cash flows. A bondholder that holds (and reinvests the coupons of) a bond to its duration is effectively "immunized" from interest rate changes and should experience a holding period yield (HPY) that is approximately equivalent to the original yield to maturity on the bond.

Of course, there are several assumptions (e.g., the bond issuer does not default, etc). However, in the base case, this notion can be very valuable to an investment manager that needs a certain cash flow at a certain date and time. This is often the case for endowments that have payout requirements or pensions that have retirement obligations.

If an investment manager can calculate the duration of its assets and the duration of its liabilities, it can make a determination as to the interest rate sensitivity of the portfolio; and thus estimate its ability to meet its future obligations. For example, if the duration of the portfolio assets is greater than the duration of the portfolio liabilities, then the portfolio structure is susceptible to rising interest rates.

This is because the higher duration assets are more sensitive to interest rates than the lower duration liabilities. Should interest rates rise, the assets will decline in value more quickly than the liabilities will. If interest rates remain at that level, there may be a shortfall in funding the liabilities.

One way to mitigate this problem is to rebalance the asset portfolio such that the duration of the assets is equal to the duration of the liabilities, such that any interest rate change has a negligible effect. If, in the case above, the asset portfolio duration is too high, the duration must be reduced.

This reduction may be accomplished by either rebalancing the portfolio with shorter duration assets (e.g., shorter term Treasuries or even cash) or by shorting longer duration assets. The zero coupon market in Treasuries (STRIPS) is often used due to the unique result that zero coupon bonds have durations that are exactly equivalent to their maturities.

When the duration of the portfolio of assets and the portfolio of liabilities is equivalent, changes in interest rates should have a negligible effect on the structure: the portfolio is said to be duration matched. This is a prime example of the benefit of ALM.

Of course, there are risks other than changing interest rates. Furthermore, duration itself is not static, and portfolio rebalancing must be dynamic to account for such changes. However, in principle, this form of ALM can work to help investment managers put some control on at least one form of risk in our ever-more complex investment world.

About the Author - Sharath Sury devotes his time and energy to bringing together thought leaders who can address the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts, Professor Sury has established an invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry at Santa Clara. Sharath Sury serves as the Dean's Executive of Finance at Santa Clara University, an Adjunct Professor of Economics at the University of California and Adjunct Professor of Finance at DePaul University in Chicago. Prior to his immersion in teaching and research, Sharath Sury founded and led S4 Capital in Chicago, managing the considerable assets of some of the most well known, high profile, and affluent families in America. Through this work, Sharath Sury gained attention from the Bloomberg Wealth Manager Survey, Financial Advisor Magazine, and Wealth Manager Magazine, each of which ranked S4 Capital's wealth management business highly. Sharath Sury had founded S4 Capital's predecessor, Chicago Analytic Capital Management LLC (CACM), during which time he made Crain's Chicago Business list of "40 Under 40" in 2003. Sharath Sury began his investment career at Goldman Sachs & Co., working his way up from the position of Associate to Vice President of the firm's elite wealth management division.  

Article Source: http://EzineArticles.com/?expert=Sharath_Sury

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For the past 50 years, many financial economists and professional investment managers relied upon the concept of "mean variance optimization (MVO)" to design investment portfolios. The principle was simple: maximize mean return subject to a certain varian

Risk Measurement - A Multi-Dimensional Concept!

By Sharath Sury

For the past 50 years, many financial economists and professional investment managers relied upon the concept of "mean variance optimization (MVO)" to design investment portfolios. The principle was simple: maximize mean return subject to a certain variance (risk); or minimize variance subject to a certain mean return.

While the MVO technique is well-intentioned, it suffers from an incomplete definition of risk. It has long been known that asset classes can be described using various degrees of specificity, sometimes known as "moments of the distribution." For example, the first moment of the return distribution of an asset class is its mean return. The second moment is known as variance. For a normally distributed asset class with well behaved properties, a variety of analytical techniques can be applied and conclusions drawn based upon these two moments alone (mean and variance).

Unfortunately, many asset classes do not behave according to what the normal distribution would suggest. Further, asset classes that exhibit "normality" for one time period may not exhibit it during other time periods. The incorporation of alternative asset classes (e.g., hedge funds, real estate, private equity) increases the likelihood that an overall portfolio will exhibit degrees of non-normality.

As a result, it is often important to consider at least two other "higher order" moments of the return distribution. The third moment is known as "skew" or asymmetry. It reflects the degree to which an asset class may have a higher proportion of negative (or positive) returns. Some hedge fund strategies are built and marketed explicitly on this notion: while they may exhibit low levels of variance (or standard deviation), they concomitantly exhibit high levels of negative skew (or returns which are asymmetrically biased to the downside).

The fourth moment of a return distribution is referred to as "kurtosis," or more colloquially as "fat tails." Kurtosis reflects the degree to which the return distribution may be subject to extreme events. Thus, the "fat tails" refer to the graphic representation of the returns as exhibiting a higher probability of extreme results than the normal distribution would suggest. As an example, higher levels of geopolitical uncertainty can increase the kurtosis of particular asset classes.

Thus, investment managers and asset allocators who rely solely upon the popularly employed MVO techniques may be missing key risk factors that can adversely affect a portfolio and may therefore provide solutions that are incomplete with respect to skew and kurtosis.

New methods for dealing with the shortcomings of MVO include the use of other constraints in the optimization. For example, the so-called "mean-conditional value at risk (MCVaR)" is a methodology which seeks to incorporate skew and kurtosis. CVaR essentially relates to the "area of the return profile" below which an investor is "at risk."

By maximizing mean return subject to an acceptable level of CVaR, an investment manager may be better able to capture the important risks of the portfolio. Recent (and repeated) empirical research has shown that-in hedge fund portfolios alone-the MVO methodology has underestimated the amount of risk (as defined by CVaR) by as much as 50%!

In the past few years, CVaR has been joined by other risk measures, such as "Omega," to help broaden the traditional definition of risk beyond the confines of simple variance or standard deviation. In the end, more complete definitions of risk should lead to more robust portfolio optimization solutions.

Sharath Sury was selected as one of the "40 Under 40" professionals to be published and recognized in Crain's Chicago Business List [of outstanding individuals]. Within a few years, S4 Capital, LLC was created by re-branding CACM. Sharath Sury's incredible work ethic led the company to be highly ranked and esteemed in the industry across publications like Bloomberg's Wealth Manager Magazine and Financial Advisor Magazine. Today, Sharath M. Sury has retired from the corporate sector to focus his efforts in academia and research. Professor Sury is the Dean's Executive Professor of Finance at Santa Clara University, and Adjunct Professor of Economics at the University of California. Sharath Sury is frequently sought after to moderate panels on highly debated topics for an unbiased view, or to serve as an expert in intricate finance matters. An expert author for multiple, prominent online publications, and Founder of an Initiative for Financial Innovation and Risk Management in Santa Clara, Mr. Sury works to bring together leaders and the new generation of Finance students with close attention to the crisis we presently face.

SOURCE:

Sury, Sharath "Risk Measurement - A Multi-Dimensional Concept!." Risk Measurement - A Multi-Dimensional Concept!. 10 Mar. 2010 EzineArticles.com. 11 Mar. 2010 <http://ezinearticles.com/?Risk-Measurement---A-Multi-Dimensional-Concept!&id=3905284>.

Sharath Sury - New, Official List of Speaking Engagements in 2010.

Posted by SURYONLINE.NET at 3/9/2010 6:47 PM

The Following List Contains Sharath Sury's Tentative Speaking Engagements for 2010:

Emerging Manager's Summit 2010

Sharath Sury to Moderate a Panel Discussion over the "Asset Allocation and Risk"
segment
May 12-14, 2010 at the Swissôtel Chicago in Chicago, IL
- The Asset Allocation and Risk segment is scheduled from 9:45am - 10:45am

2nd Annual Real Estate Investor's Summit
- Sharath Sury to Speak at the Senior Level Capital, Private Equity, Fund,
  Investor and Developer Conference
- April 25-27, 2010 at Trump International Beach Resort in Sunny Isles, FL
  - Please check back soon for more information and/or to see the official agenda posted right here.
SOURCE About Sharath Sury - News and Events

Diversification - A Useful Tool, Until You Need It! Read what they don't tell you!

Diversification - A Useful Tool, Until You Need It!
By Sharath Sury

We have all been taught about the merits of diversification in investments. It is a variation of the old adage, "Don't put all your eggs in one basket."

In fact, assets that typically exhibit low correlation with one another can dramatically change direction and begin exhibiting increased correlation during periods of market distress. The increased correlation leads to a reduction in the power of diversification and thus to increased risk in the overall portfolio. Unfortunately, this upward shift in correlation happens at exactly the time when an investor needs correlation the most: market distress.

Sharath M. Sury - Founder and Executive Director of the Sury Initiative for Financial Innovation & Risk Management (SIFIRM) at Santa Clara University, Sharath Sury devotes his time and energy to bringing together thought leaders who can address the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts, Professor Sury has established this invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry. Sharath Sury also serves as an Adjunct Professor of Economics at the University of California and Adjunct Professor of Finance at DePaul University in Chicago. Sharath Sury's interest and experience in wealth management began as an Associate and later Vice President at Goldman, Sachs & Co. He later founded and worked at S4 Capital, where he earned numerous accolades for his work.

SOURCE: http://ezinearticles.com/?Diversification---A-Useful-Tool,-Until-You-Need-It!&id=3883169

NEW!! Analytic Due Diligence Using an Alpha Cost Index

Analytic Due Diligence Using an Alpha Cost Index

Posted On:

Founder and Chief Executive Officer of the Sury Initiative for Financial Innovation & Risk Management (SIFIRM) at Santa Clara University in California’s Silicon Valley, Sharath Sury devotes his time and energy to the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management through SIFIRM and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts with SIFIRM, Sharath Sury has established an invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry.

Issue
Effective portfolio managers recognize that not all returns are created equally.

Examination
Investment strategies can deliver returns that are the result of systematic (market or beta) exposures, nonsystematic (skill or alpha) exposures, and random variation. The relative proportions of alpha, beta, and randomness vary across strategies and even within strategies as they evolve over time. Historically, most investment products have bundled alpha and beta. However, as low-cost, investable proxies for beta grow more pervasive, it is increasingly important for portfolio managers to consider only those actively managed products that are truly delivering incremental alpha. In this article, we introduce a new measure that adjusts product fees to account for the level of alpha delivered—the Alpha Cost Index (ACI).

Conclusion
The ACI levels the playing field by penalizing products that charge active management fees but deliver the preponderance of their returns from beta exposures; thus serving as a useful ranking tool for due diligence.

Keywords: hedge funds, alpha, beta, fees, due diligence

JEL Classifications: G10, G19

Working Paper Series

Date posted: October 06, 2009 ; Last revised: November 04, 2009

Suggested Citation

Sury, Sharath M. and Sury, Manda B, Analytic Due Diligence Using an Alpha Cost Index (April 16, 2006). Available at SSRN: http://ssrn.com/abstract=1482904

Contact Information
Sharath M. Sury (Contact Author)
Santa Clara University ( email )
500 El Camino Real
Santa Clara, CA 95053
United States
HOME PAGE:
University of California ( email )
Santa Cruz, CA 95064
United States

Manda B Sury
DePaul University - Department of Finance ( email )
1 East Jackson Blvd.
Chicago, IL 60604-2287
United States

Disclosures and References Source: http://www.manyworlds.com/exploreco.aspx?coid=CO31104305960

Learn More About Sharath Sury And Read His Latest Finance Articles!

SOURCE: http://www.manyworlds.com/exploreco.aspx?coid=CO31104305960

New Paper Written by Sharath Sury - Analytic Due Diligence Using an Alpha Cost Index

Mr. Sharath Sury is an Internationally Recognized Expert in Asset Allocation and Risk Management. He is currently one of the highest rated professors at Santa Clara University and is a sought-after speaker at various US and International venues.

Posted On:

http://www.manyworlds.com/exploreco.aspx?coid=CO31104305960

Analytic Due Diligence Using an Alpha Cost Index

Sharath M. Sury
Santa Clara University; University of California

Manda B Sury
DePaul University - Department of Finance

April 16, 2006

Abstract:
Effective portfolio managers recognize that not all returns are created equally. Investment strategies can deliver returns that are the result of systematic (market or beta) exposures, nonsystematic (skill or alpha) exposures, and random variation. The relative proportions of alpha, beta, and randomness vary across strategies and even within strategies as they evolve over time. Historically, most investment products have bundled alpha and beta. However, as low-cost, investable proxies for beta grow more pervasive, it is increasingly important for portfolio managers to consider only those actively managed products that are truly delivering incremental alpha. In this article, we introduce a new measure that adjusts product fees to account for the level of alpha delivered—the Alpha Cost Index (ACI). The ACI levels the playing field by penalizing products that charge active management fees but deliver the preponderance of their returns from beta exposures; thus serving as a useful ranking tool for due diligence.

Keywords: hedge funds, alpha, beta, fees, due diligence

JEL Classifications: G10, G19

Working Paper Series
Date posted: October 06, 2009 ; Last revised: November 04, 2009
Suggested Citation
Sury, Sharath M. and Sury, Manda B, Analytic Due Diligence Using an Alpha Cost Index (April 16, 2006). Available at SSRN: http://ssrn.com/abstract=1482904

Export to: Export Citation What's this?

Contact Information
Sharath M. Sury (Contact Author)
Santa Clara University ( email )
500 El Camino Real
Santa Clara, CA 95053
United States
HOME PAGE: http://phonebook.scu.edu/index.cfm?v=pid&i=1894
/>University of California ( email )
Santa Cruz, CA 95064
United States

Manda B Sury
DePaul University - Department of Finance ( email )
1 East Jackson Blvd.
Chicago, IL 60604-2287
United States

EXCLUSIVE! Sharath Sury Explains The Alpha to Finance Enthusiasts Worldwide on Everything-Finance.net.

Sharath Sury Explains The Alpha to Eager Finance Enthusiasts and Focused Students Online

Posted by Everything-Finance.net STAFF on 3/6/10

SANTA CLARA, Calif. March 6/Everything-Finance.net/ -- With many finance students and enthusiasts eager to solidify the concepts of Alpha and Beta within the context of the recent Alternative Investment Summit chaired by Mr. Sharath Sury, many followers have shown continued interest online, posting comments on various blogs that reveal an eagerly awaiting clarification of this elusive Alpha by an experienced, esteemed professional like Sharath Sury - an internationally recognized expert in Risk Management and Asset Allocation. As a former VP at Goldman Sachs, and CEO Emeritus of S4 Capital, Sharath Sury handled very complex investment portfolios of some of the nation's most wealthy families and individuals. Mr. Sury is has been recognized by numerous notable magazines as one of the top professionals in his field. Also a revered university instructor, Professor Sury has established a forum for the research and discussion of new developments in economics and finance, with an emphasis on risk management and innovation. Who better to answer our audience's questions than Mr. Sury, himself? Everything-Finance.net now has the exclusive, wealth manager's definition of Alpha by Professor Sharath Sury, in his own words:

"In any investment strategy, there are essentially three components to the ex-post return: market related exposure (beta), manager skill or 'risk adjusted excess return' (alpha), and randomness. The goal of any active investment manager is to maximize alpha to the extent possible as this is the portion of the return that is attributable to the manager's skill or strategy. In most cases, it is extremely difficult to know what alpha a manager will produce 'before the fact (ex ante)', however, there are certain clues that can help provide guidance on whether a manager is capable of delivering alpha. Among these maybe: superior execution, highly developed capital market analytic skills, superior processing of public information, ability to exploit systematic mispricings, etc. These and other such sources of alpha are colloquially referred to as 'edge'. Every successful investment manager always strives to maximize their edge, and thus their alpha."

Professor Sharath Sury has also generously extended his hand to Everything-Finance.net, offering his expertise again soon! In the near future Sharath Sury will answer, conceptually clarify, and define additional special investment terms that have significant importance in current and future economic climates. Special thanks to Professor Sury for taking the time to briefly analyze and precisely define these terms in efforts to help students (and enthusiasts, alike) avoid further confusion on what can already be very complicated subject material. This is especially true -- as we've found with the Alpha -- if you're not careful about where, and in what context, you find a certain definition.

About Sharath Sury - Founder and Executive Director of the SCU/Sury Initiative for Financial Innovation & Risk Management (SIFIRM) at Santa Clara University in California’s Silicon Valley, Sharath Sury devotes his time and energy to bringing together thought leaders who can address the development of real-world solutions to the current economic climate. Sharath Sury has worked with some of the brightest and most experienced experts in finance and risk management and aims to bring a greater sense of ethics and responsibility to his profession. Through his efforts, Professor Sury has established this invaluable forum for the research and discussion of new developments in the world of economics and finance and has attracted a renewed spirit of innovation to the industry. Sharath Sury also serves as an Adjunct Professor of Economics at the University of California and Adjunct Professor of Finance at DePaul University in Chicago. Sharath Sury's interest and experience in wealth management began as an Associate and later Vice President at Goldman, Sachs & Co. He later founded and worked at S4 Capital, where he earned numerous accolades for his work.

SOURCE: Everything-Finance.net

http://blog.everything-finance.net/2010/03/06/exclusive-sharath-sury-explains-the-alpha-to-finance-enthusiasts-worldwide-on-everythingfinancenet.aspx

Posted by Everything-Finance.net at 3/6/2010 11:13 AM | Add Comment

Analytic Due Diligence Using an Alpha Cost Index

Analytic Due Diligence Using an Alpha Cost Index

Sharath M. Sury
Santa Clara University; University of California

Manda B Sury
DePaul University - Department of Finance

April 16, 2006

Keywords: hedge funds, alpha, beta, fees, due diligence

JEL Classifications: G10, G19

Working Paper Series

Date posted: October 06, 2009 ; Last revised: November 04, 2009

Suggested Citation
Sury, Sharath M. and Sury, Manda B, Analytic Due Diligence Using an Alpha Cost Index (April 16, 2006). Available at SSRN: http://ssrn.com/abstract=1482904

Export to: Export Citation What's this?

Contact Information
Sharath M. Sury (Contact Author)

Santa Clara University ( email )
500 El Camino Real
Santa Clara, CA 95053
United States
HOME PAGE: http://phonebook.scu.edu/index.cfm?v=pid&i=1894
University of California ( email )
Santa Cruz, CA 95064
United States

Manda B Sury
DePaul University - Department of Finance ( email )
1 East Jackson Blvd.
Chicago, IL 60604-2287
United States

Sharath Sury Has Indicated that the following articles May Be Hot and Happening Now!

Click Here To Read Articles!

Stainless Steel surcharges to increase

Surcharges for February delivery in Europe are expected to rise following recent commodity gains. Nickel has been stronger since mid December and allthough the price slipped back from highs around $19,000 per tonne on the LME it remains stronger. Even stronger gains for Molybdenum look set to drive moly bearing grades typically 316 even higher with [...]

Have an Interest in Finance and Investing?

If you have an interest in *anything* related to finance, then It would be worth your time to check out the blog:

http://blog.suryonline.net !

It contains some very interesting Finance articles and Videos, including Implementing Alternative Investments.

Sharath Sury - Current and Future Speaking Engagements (Continued:Part II)

SHARATH M. SURY DEAN'S EXECUTIVE PROFESSOR OF FINANCE, SANTA CLARA UNIVERSITY
ADJUNCT PROFESSOR OF ECONOMICS, THE UNIVERSITY OF CALIFORNIA
CHAIRMAN OF THE BOARD, SURY INITIATIVE FOR FINANCIAL INNOVATION & RISK MANAGEMENT (SIRFIRM)
CEO (EMERITUS) S4 CAPITAL, LLC
SELECTED SPEAKING ENGAGEMENTS(CONTINUED)

LIPPER INVERSTER OUTLOOK and MASTER CLASSES"The Changing Profile of Sophisticated Investors"

REUTERS ADIVCEPOINT FORUM"Implementing Alternative Investments: Single Hedge Funds vs. Fund of Funds"

HEDGE FUNDS WORLD - BAHAMAS 2007"Greek Lessons-Differentiating Between Alpha and Beta"

PRIVATE BANKING INDIA 2007 (CONFERENCE CHAIR)"Chairman's Opening Address"""Integrating Wealth Management and Risk Budgeting"

LIABILITY DRIVEN INVESTING (THE HARVARD CLUB,NYC)"Risk Budgeting and Hedge Fund Replication: Are You GettingWhat You Paid For?"

CFO PRIVATE EQUITY ROUNDTABLE, DEPAUL UNIVERSTIY"Convergence in the Hedge Fund and Private Equity Arenas"

ASSOCIATION FOR INVESTMENT MANAGEMENT and RESEARCH/CFA INSTITUTE"Controlling Firm Risks"

ALPHA BETS - 2006"Risk Budgeting in the Pursuit of Alpha"

SANTA CLARA UNIVERSITY"Investments and Applied Portfolio Management"

UNIVERSITY ECONOMICS ASSOCIATION"Industry Fundamentals - Investment Banking"

THE UNIVERSITY OF CALIFORNIA"Corporation Finance"

Sharath Sury In San Jose/Silicon Valley Business Journal

Click Here To Read Full Article

Sharath Sury - Current and Future Speaking Engagements

SELECTED SPEAKING ENGAGEMENTS(INCLUDING FORTHCOMING)

INDIA INVESTMENT SUMMIT 2010"Asset Allocation and Risk Budgeting Across Global Portfolios"

FAMILY OFFICE & PRIVATE WEALTH MANAGEMENT FORUM 2009"The Role of Risk in Asset Allocation: Tactical & Strategic"

THE ARDITTI CENTER FOR RISK MANAGEMENT - ANNUAL CONFERENCE 2009"Remarks on Systemic Risk in the Financial Markets"

10th ANNUAL ENDOWMENT & FOUNDATION FORUM 2008"Challenges Facing Endowments & Foundations: Past, PResent & Future"

STRUCTURED PRODUCTS FOR THE PRIVATE BANKING INDUSTRY 2008"Providing Best in Class Investments: Matching the Right Product to the Right Client"

PRIVATE WEALTH MANAGEMENT SUMMIT 2008"Insight into Family Office Investing"

CIRCLE OF FINANCE OPPORTUNITIES (CFO)"Systematic Risk: Financial Bubbles & Fads"

DEUTSCHE BANK ULTRA HIGH NET WORTH SEMINAR"Designing Prudent Portfolios: Evaluating Investment Managers"

4th ANNUAL STRUCTURED PRODUCTS IN THE PRIVATE BANKING INDUSTRY"The Use Of Structured Investments to Enhance High Net Worth Portfolios"

Video - An Introduction to Sharath Sury

Posco starts new stainless steel production

POSCO’s CRC stainless steel mill with the capacity of 400,000 tons started into production on December 16. Spokesman of POSCO said that it is a main body for the company’s strategy in adjusting the products structure. The CRC mill began to be started in August and tried out production in November. The output had input in [...]

What Defines a True Alpha? Sharath Sury Chairs Panel at Alternative Investment Summit

From: http://everything-finance.net

What Defines True Alpha? Sharath Sury Chairs Panel at Alternative Investment Summit 2009.
SANTA CLARA, Calif. Dec.10/Everything-Finance.net/— Today, Everything-Finance.net announced that the website intends gain insight for its users regarding the popular investment terms, “alpha” and “beta”, in finance. Everything-Finance.net anticipates interviewing several prominent experts in the field, including noted finance professor Sharath M. Sury.
Earlier this month, Mr. Sharath Sury led a highly distinguished panel of experts at the Alternative Investment Summit 2009 held in Southern California. Sharath Sury, a well regarded professor of finance and internationally recognized expert in asset allocation and risk management, led the panel in a diverse discussion that addressed the definition of “alpha,” the misuse of the term by many fund managers, and where the best opportunities for finding “alpha” currently exist.
So-called “alpha” measures the excess risk adjusted return on an investment as compared to the return of its benchmark (e.g., the S&P 500). Alpha is commonly used to identify the performance of manager-specific skills, as opposed to “beta” which measures the extent to with the manager had exposure to the movements (positive or negative) of the general markets.
The relative levels of alpha and beta are used to estimate the effectiveness of investment managers. However, the precise measurements of both alpha and beta are the subject of great debate.
In the coming weeks, Everything-Finance.net intends to contact notable finance professionals, like Sharath Sury, in attempts to conceptually clarify and define special investment terms that have great importance for today’s investment public. As a blogger recently suggested in a comment on blog.suryonline.net, “given the importance of evaluating manager skill, discussions of this kind are vital.” Professionals like Professor Sury, whose background includes extensive academic, research, and practitioner experience this field, can offer valuable insights.

Outokumpu revive plans for Indian service centre

Finnish stainless steel major Outokumpu on Sunday said it may revive its plan to invest around Rs 300 crore in India as the commerce ministry has decided not to levy anti-dumping duties on imports of certain products of the alloy steel. In April, the government had imposed a duty across stainless steel categories of between $12.74 per [...]

Women of steel

Jessica Ennis – World Heptathlon Champion 2009 – Made in Steel City Sheffield famous for the first production of stainless steel I was made in Sheffield. From the Don Valley Stadium, where the smell of the track can still transport me back to being a ten-year-old girl sitting on the concrete steps, to the Peace Gardens, [...]

EU may launch anti dumping on China for stainless steel

Wolfgang Lipp, CEO of Austria stated that EU will possibly launch the anti-dumping on China’s stainless steel exporters to stop China to pour a large amount of materials into Europe market. Although the demand slows down, China’s stainless steel exporters have a consecutive and rapid expansion plan, in the incoming four years, to sell out [...]

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December stainless surcharges for Europe fall

Outokumpu the Finish based stainless steel supplier have confirmed surcharges for delivery of stainless steel in December 2009. Industry experts expected surcharges to fall and 316 stainless steel seems to be the biggest loser with a reduction of over 80 Euros for December deliveries. The recent commodity falls from both nickel and Molybdenum prices have [...]

Top Scholar in Ethical Finance & Risk Mgmt to be Awarded

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