So you’ve Got an Idea. Now What?

Steve Nielsen is the founder and CEO of PartnerUp, a site where entrepreneurs can find business partners, advisors and other business resources, like office space. Today he shares a post on how founders can vet their ideas for success potential. Steve’s says his market research recipe “should take no more than a week, in your spare time, and you’ll eventually appreciate every second that you spent on this.”Read the full post here. The highlights follow.

Everyday people come up with thousands of great business ideas that could have produced multi-million dollar companies. But these ideas go nowhere because people aren’t sure where to begin.

The biggest excuse people use for not turning an idea into a business is that they aren’t sure if it will be successful. Instead of immediately succumbing to those fears, follow these five steps to figure out if your idea is worth taking to the next level.

1) Decide if potential customers would be willing to buy your product/service.
Find five people or companies who could actually be potential customers…Ssk them: Would they buy your product/service? If so, why? If not, is there something that you could do that would make it more appealing? Make clear to them that you want their complete honesty… If at least one of the five people/companies previously mentioned had said they’d be willing to buy your product, … your idea is worth moving forward.

2) Perform some initial market research
Market research is not difficult. It is, however, a bit tedious. Your goal is to determine if someone else is already providing the product or service that you envision… How many competitors are in the marketplace? What do you think is the total sales per year for your industry and how much marketshare does each competitor have? Does it look like the companies in this market are making money?

3) Accurately cost out how much it will cost you to create your product/service
Don’t skip this step. Calculate exactly how much money it will cost to provide your service. To come up with this number, add up direct labor costs, all of your overhead, and any other costs that you’ll incur providing your service. When calculating overhead, don’t skimp. … The biggest error that I see people make here is that, by not figuring for the expenses once they are in operation, they underestimate how much it will cost to offer their service.

4) Figure out who will sell your product/service and how much they’ll charge
If you plan to offer your product/service through a retail outfit, call the retailer and find out who the buyer for your product/service is. Ask for a 10-minute meeting [and] for some rough guidelines regarding what sort of margin they expect, whether they expect co-op marketing money, etc…If you are going to go through a sales force, find one or two salespeople who are in a similar but non-competitive line of business. Offer to buy them lunch or coffee…If your product/services will be sold through direct marketing, call up a few smaller/mid-sized marketing firms who specialize in business(es) similar to yours. Setup a 30-minute meeting to hear about their qualifications. Ask about their company.

5) Add up the numbers and decide if you want to proceed
The total cost involved in producing/offering your product/service, the selling costs (or retailers margin expectation), and any other expenses that you’ll incur (on a per-unit basis). Now compare your costs to those of your competitors. Just because you may be more expensive doesn’t mean that your idea isn’t worth pursuing. If you have something that really differentiates your product/service from the competition, people may be more than willing to pay extra for your product. However, if you are offering the same widget as your competitors for a substantially higher price, then this is a red flag.

Steve Nielsen is the founder and CEO of PartnerUp, a site where entrepreneurs can find cofounders, business partners, advisors and other business resources. Steve wrote for Found|READ in August about tips for picking your cofounder.

Top Hostage rescue operations.

1. Operation Jonathan was an operation in which Israeli Sayeret Matkal commandos raided an hijacked airline which was at an airport in Entebbe, Uganda. Ugandan soldiers were also at the airport and helped protect the terrorists.

2. Operation Nimrod was an operation carried out by British SAS who retook the Iranian Embassy after terrorists took it over and held 26 hostages.

3.De Punt Train hijacking occured when South Moluccan terrorists took over a train and held 80 people hostage. They train was later stormed by Dutch Marines.

4.Lufthansa 737 hijacking refers to the airliner hijaked and flown to Mogadishu before two British SAS commandos and some German GSG-9 commandos took the plane over and killed the terrorists and captured some others.

5.The hijacking of flight GA 206 was an airline that was forced to fly to Penang, Malaysia from Indonesia. Terrorists threatened to blow up a bomb on the plane but were later killed when 35 memebers of Kophasanda raided the plane. 

6.The Moscow Theater Siege was an operation to rescue several hundred hostages taken by Chechen terrorists. The terrorists threatened to blow up the theater but were killed before they could.

Israel - India's rescue efforts 'premature and badly planned'

Israel defence officials have criticised the way Indian security forces have handled the terror attacks in Bombay, after it appeared that India turned down their offer of help to defeat the militants.

The officials, from Israel's security forces, told The Jerusalem Post that the Indian troops prematurely stormed the besieged hotels where militants were holding hostages, risking lives in the process.

Indian counter-terrorist forces were well trained but failed to gather sufficient intelligence before engaging the terrorists, they said.

"In hostage situations, the first thing the forces are supposed to do is assemble at the scene and begin collecting intelligence," said a former official in Shin Bet, the Israel Security Agency

"In this case, it appears that the forces showed up at the scene and immediately began exchanging fire with the terrorists instead of first taking control of the area," he said.

Ehud Barak, the Defence Minister, has expressed his concerns about the safety of Israelis caught up in the attack, such as those held hostage in the Jewish Centre stormed in the early hours of this morning.

Seventeen commandos abseiled onto the roof of Nariman House, while snipers peppered the building with covering fire. The two year old son of Rabbi Gavriel Noach Holtzberg, the main representative at the Jewish Centre, was rescued along with some other hostages but this morning gunshots and explosions still echoed around the building.

The security experts' criticism came as it emerged that Mr Barak had offered Mayankote Kelath Narayanan, India's National Security adviser, any assistance possible, either humanitarian or professional.

"Barak offered Israel's help in an advisory capacity and in any other way it could be of assistance, be it humanitarian or professional," it reported.

The two countries have close defence ties. India has bought more than $5 billion worth of Israeli equipment

Second Life: Amul plans aggressive online play

MUMBAI: One company looks set to unleash a revolution in the online world. Here there is no policy glitch, no threat of a Wal-Mart and no small k

irana stores to reckon with. Sample this: Gujarat Cooperative Milk Marketing Federation is studying the feasibility of starting an online store on Second Life, the virtual world owned by Linden Labs. 

GCMMF MD BM Vyas disclosed they are in talks with Trimensions, a metaverse development firm (creator of 3-D online environments) based in Gurgaon to find out whether it can take its product range online on Second Life, where it has already built an ice cream parlour. 

The parlour, which took about three months to create will be launched soon and will allow users to walk into, browse and access information about Amul products and processes. If the company decides to go ahead with selling products online, the initiative will put GCMMF at the forefront of the V-Commerce (virtual commerce) drive in India. 

What’s a new wave at Amul is a new life for Second Life, a free virtual environment on the Internet where users create avatars, move around, interact with other users’ avatars. Second Life was treated largely as a gaming or networking portal in the beginning. But serious business is transacted on it now. “Trade worth rs 6.5 crore happens on the site daily,” says Siddharth Banerjee, aka Zeus Zetkin (as he is known on Second Life), CEO and Founder of IndusGeeks, another metaverse development company. 

He says that the business development potential for companies on virtual worlds such as Second Life is tremendous. At present, it is estimated that there are 20 million registered user accounts on Second Life, though many of those accounts are inactive. “The number of Indian accounts is anywhere over 12,000 and growing,” says Rahul Dutta, CMD of Trimensions. 

Dutta’s team has been working with many clients to develop platforms for them on the Net You can indeed buy and sell products and services in Linden Dollars, the official currency of Second Life. These Linden Dollars can be purchased against and sold for real money in the offline world.

Ask the expert: Online Q&A - Masters in Management

The turmoil in the financial markets over the past few weeks has thrown the spotlight on business schools. What are the prospects for those graduating with a Masters in Management degree in the next few years? Does this mean this is the right time to study for a Masters in Management degree

On the panel were:

Della Bradshaw, Business Education Editor, Financial Times

Navjot Singh, Global Marketing Manager for recruitment at Royal Dutch Shell

Pierre Tapie, Dean, Essec Business School

.....................................................................................................................

Do you expect major changes in the MBA/EMBA programs in leading business schools at universities worldwide that are caused by the financial crisis? What kind of changes can we expect to see?
Viktor O. Ledenyov, Ukraine

Pierre Tapie: The business of degree education is countercyclic (better is the work market, less we receive applicants). But, the placement will be more difficult, as companies will be cautious. My forecast is that these two trends will compensate one another, and in MBA programs we will be rather stable. In Exec MBA it is likely to be the same, but with more applicants coming on their own, with less company support.

Della Bradshaw: After the Enron scadal a few years ago there was a real surge in ethics programmes on business degree programmes. I suspect this trend will continue. Alongside that, I think finance professors will be looking very carefully at what they teach on their courses this year!

Navjot Singh: Changes in business programmes are inevitable as business evolves and courses are designed to become more relevant and appropriate for challenges which organisations face today and in the future. No doubt the recent events will provide opportunities for additional learning in course programmes e.g. case studies.

.....................................................................................................................

I want to start a business school - what should be the procedure?
Salman Maredia, Pakistan

Navjot Singh: First area to start would be assess the market you wish to target e.g. which courses, mode of study, your offering. What’s the competition from other business schools, how will you differentiate your course offering from other business schools.

It would be also worth considering the key enablers in making a business school successful such as sourcing quality teaching staff, identifying research initiatives that can build the reputation of your business school, building partnerships with industry and other business schools. Also worth considering location and how you will secure funding?

Finally, once you have your business plan.....play a simple game called ”Beat My Business School”, which is designed for you to become a competitor to your business model and challenge your proposed plan and identify weaknesses and opportunities.

.....................................................................................................................

What is the value of a masters degree beyond your 1st or 2nd job? In other words: what is the value of a masters degree if you do not live up to it and prove your value in real business situations? Many masters (even from top business schools) do not manage to achieve positions beyond well-paid office clerks, so obviously a degree is no guarantee for success. Is not a masters degree merely a piece of paper that ‘buys’ you into a world of opportunities?
Dennis Vloet, The Netherlands

Della Bradshaw: I think that’s a very fair point but one that relates to all qualifications, not just masters degrees. I also think it is one of the ways in which internships can play a role. If you complete a successful internship - and masters degrees can often include a year of company placements - that in itself can lead to a job offer. From the student perspective it will certainly help in determining what kind of job you will be successful in.

Navjot Singh: As you quite rightly point out a masters degree will provide you with additional skills and learning, but there is no guarantee for success. It is up to individuals to apply their knowledge and skills they have learnt into real life business challenges, by devising solutions which enables the business to be successful further.

For example, if you are working in recruitment like myself, I need to challenge myself continuously to ensure how I can make the business more successful through my actions. How do I do this......I deliver the right external talent, with the right skills, in the right place, at the right time to ensure the business can deliver on it’s plan.

.....................................................................................................................

Thanks to globalization and the so-called ‘flattening of the world’, the talent pool for major corporations has become bigger. However, many of the best talents no longer choose to work for large corporations and opt for smaller, more innovative and more flexible organizations. This clearly puts pressure on the innovative skills of mastodon corporations; their business models might become outdated. The question then rises whether business schools should adopt their curriculum, which is still mostly targeting future managers of large companies. Is there still a need for management if you work with a group of eight like-minded people?
Dennis Vloet, The Netherlands

Della Bradshaw: I think one of the issues under discussion in business schools at the moment is that while many students are interested in management, they are not necessarily interested in business. That is, they want to be able to manage in a charity, NGO or start-up company, not the traditional industrial company. It remains to be seen whether the current financial crisis will accelerate this process. So yes, business schools are adapting their curricula to deal with these issues, most probably through the systems of electives. As to your final question, you may be a group of eight like-minded people, but someone still has to control the cash flow, develop marketing plans or talk to the bank, don’t they?

Navjot Singh: In certain industry sectors, the talent pool may have increased and in some it is also decreasing. There many types of successful organisations in today’s world which people wish to work for e.g. from private sector to public....in all shapes, sizes, cultures.

Different organisations in differing sectors require structures to best suit their business needs. For courses to evolve and meet changing needs, business schools need to constantly evaluate the demand / supply of such programmes and change appropriately.

.....................................................................................................................

What kind of teachable skills are required to succeed in the 21st century? (suggestions: functional /technical fields of expertise, cross-cultural management, supply-chain management integrated with marketing, outsourcing).
Dennis Vloet, The Netherlands

Pierre Tapie: Managing complexity; understanding the societal context in a multicultural world; managing processes.

Della Bradshaw: What a fantastic question! I think most business schools I talk to would say the critical teachable skill is leadership - although personally I find it very hard to understand exactly what leadership is. Most employers I talk to are looking for people with technology skills.

Navjot Singh: All of the above technical skills are needed to continuously develop businesses. In the 21st century, I think a greater need will be to focus on the role of leadership. Key areas of leadership to focus on would be personal, relational and business leadership, especially how your own personal actions impact on business opportunities and on key decision makers.

.....................................................................................................................

The global meltdown has affected almost all sectors. Does this mean that pursuing a management degree at this time is money down the drain? If not, then what is the best sector in business to aim for? Is a degree in International Business a good choice?
Animesh Mathur, India

Della Bradshaw: I actually think there is never really a bad time to study a management degree. In times of crisis what companies need are great managers, when businesses are growing they also need great managers. What is clear, though, is that students graduating in 2008 and 2009 are going to find recruitment pretty tough. I am certain, though, is that those with a masters degree will be better placed than those graduates who only have an undergraduate degree.

Navjot Singh: Education is never a waste of money and should always be regarded as an investment.

Businesses such as ourselves are on an exciting journey to meet the world’s energy needs. There is a surge in energy use, supply will struggle to keep pace and environmental stresses are increasing. These are known as the 3 Hard Truths. So our challenge is how can we obtain more energy for less CO2.

To tackle this challenge we are continuously looking for creative problem solvers to tackle the world’s energy needs, whether in engineering, HR, IT, Finance, Contract & Procurement to name just a few.

.....................................................................................................................

If the Retail Distribution Review forces financial services professionals to have a high minimum standard of qualification and compulsory membership of a professional body, won’t this make those having a Masters degree (level 7, higher than the level 4 equivalent of the FSA’s proposed diploma)even more attractive to firms both in the UK and internationally?
Simoney Girard, London

Della Bradshaw: Ever since the collapse of Barings Bank in 1995 there has been a growing requirement for qualification-based training in the financial sector. The current world situation can only increase that requirement. Both business schools and the FSA - separately and together - have developed programmes to address those needs and I suspect there will be a lot more programmes develop to meet the certification levels needed. Certainly here at the FT we have seen a growing number of Masters in Finance degrees launched to address these sorts of issues.

.....................................................................................................................

I foresee very lean hiring practices for at least 12-24 months, but I am hopeful that the economy will rebound within 36 months. Given the unprecedented market conditions, how important is a solid summer associate position when trying to land a full time position?
Matt Larrabee, New York

Pierre Tapie: Quite important. It is likely that the company will be quite cautious to give permanent positions in the next 2 years, therefore to be known and appreciated by them in a summer position will be of high interest: the level of risk is quite low for a company in a summer job, and you will have the opportunity to demonstrate your talents.

Della Bradshaw: I think a summer placement or longer term internship gives real benefits to both the recruiter and the student. For the recruiter, it is a low-cost way of assessing potential employees’ abilities; for the student it is a way to assess what kind of industry and job they want to work in.

Navjot Singh: Internships are a valuable opportunity for a candidate to experience an organisation, demonstrate their skills and ultimately gain employment.

.....................................................................................................................

Businesses, during different decades, have valued one knowledge set more than others: in the 1930’s it was finance; 40’s and 50’s was production; 1960’s was marketing; 70’s-80’s was advertising; 90’s-present has been finance. Which knowledge set will be most valuable in the coming 20 years?
Alex Olsen, Nashville, TN

Della Bradshaw: Will it be just one do you think? I would like to hedge my bets and propose technology and globalisation.

Navjot Singh: In my view, Converging Technologies coupled with Innovation will continue to have a major focus and impact on us all, whether as individuals or as organisations. For example, mobile communications, transportation, energy, my home.

From a personal development perspective, commercial agility with the ability to develop business partnerships for profitable growth will be key.

.....................................................................................................................

I have just completed my masters in international business & emerging markets and I was wondering what scope does it have in getting jobs. We all know that emerging markets are not as affected as the mature economies and the companies are looking towards the emerging markets for future growth and profits.
Mohsin Ali, Edinburgh

Navjot Singh: Emerging markets are important for many businesses who are looking to grow by offering their products and services. When looking to operate successfully in emerging markets, individuals and organisations should adopt a glocal approach whereby, for example, they recognise and adapt to local cultures, and can also integrate this approach to their overall business model.

.....................................................................................................................

I am a graduate from Bombay University and have migrated to the US 4 years ago. Currently, I am running my own business for the last 3 years in which I have been successful. However, with 12 years of experience in the financial service sector in India at the upper management level, I would like to pursue further studies (CFA and MBA combined). Can you tell me what are the future prospects of doing this course.
Rajesh Patel, Georgia, USA.

Pierre Tapie: There are various Business Schools offering that type of program. On the employment side, these dual profiles are extremely looked for.

Della Bradshaw: That’s a very difficult question to answer and would partly depend where you want to study and what kind of study you are looking at - MBA, EMBA, online learning. If you opt for a two-year US MBA you are unlikely to graduate before 2011 and it is hard to even think about what the business and finance world will look like then.

The general trends show that MBA, EMBA and Masters students from the top schools usually develop very good careers, as demonstrated by the data we collect for the Financial Times rankings. All our rankings can be viewed here:

http://www.ft.com/businesseducation/mba

.....................................................................................................................

What is your perception of double-majors, such as majors in government studies (or public administration) and management? What are the prospects of those who major in public management, but would like to work for private companies?
Elena, US

Pierre Tapie: The prospects for these dual competences are quite good, but mainly in large corporations. Large corporations vividly need that type of profile to deal with their public affairs, and the complexity of the world they are living in will increase, thus the need for managing properly that type of interface will be increaslingly important.

.....................................................................................................................

I am student currently studying in IIT in India and wish to apply for the Masters in Management programme for Fall 2009. Our campus placements have been hit hard by the gloom in the financial sector which was recruiting ravenously. How practical is it to study for a self-funded MiM program in Europe? Moreover, how much of an international perspective are these programs providing especially the ones in the UK (LSE, Warwick), France(HEC) and Spain (IE)?
Mrinal, unknown

Pierre Tapie: An MiM program will enlarge your horizons, and you will have access to other labour markets than the ones you have today. Moreover, how much of an international perspective are these programs providing especially the ones in the UK (LSE, Warwick), France(HEC) and Spain (IE)? Everyone has an international dimension. However, being an English-speaking person, if you go to Spain or France, you will have the opportunity to grasp another language and culture. Indeed, that is a strong asset in the long run.

Della Bradshaw: I think the question of whether it is practical to study in Europe should be replaced with the question: Is it affordable? Living in a city such as London is incredibly expensive, not to mention the course fees. However, if you are looking for an international experience then in my view Europe is the best place to look for an MSc or MBA degree. I would add the proviso, though, that you need to check the entry route for students on the programme. For many of the top schools - this is particularly true in France - the majority of the students will come through the business school’s undergraduate programme. Therefore in French Grande Ecole programmes there will be a predominance of French nationals. In the UK and Spain you will get a much more international mix.

.....................................................................................................................

I am a sales engineer at a tech firm. I have a strong interest in finance and would like to enrol myself in a MS Finance degree. From your experience, do you think we are (engineers with finance degree) favourably looked at when it comes to recruitment? Is it a good move to change profession, especially under the present market conditions?
Raghav Kamma, Utrect,Netherlands

Pierre Tapie: Yes indeed, you are favorably looked in the the Finance market, and we have a lot of these students in our programs, who do extremely well in the labor market. Of course, undertaking such a move today is a higher risk than one year ago, but if you really want to change your career, don’t hesitate: there are large needs, especially in emerging countries.

Navjot Singh: Individuals who possess skills and experience that demonstrate good commercial accumen balanced with technical knowledge are likely to have secure roles upon graduation. Many business schools publish data on employment success rates post graduation and this highlights a balance of skills can be successful in certain industries.

We recruit engineers to focus on engineering expertise and supplement these skills over time with additional commercial knowledge such as Finance for Non-Finance people. As you progress through Shell, we offer learning programmes through personal development which are designed to develop people for broader and senior roles over time. But remember, seeking employment should be also about your past achievements and how you develop your relationships skills, particularly focusing upon your impact on others.

Should you move.....this is a question ultimately only you can answer, but education will help enhance your skills and experience over the long term. It should not be regarded as a short term fix but a long term investment that married with the right job, in the right place at the right time will enable you to be successful.

Della Bradshaw: It is certainly my impression that high levels of numeracy coupled with technical abilities are exactly what employers in the financial sector are looking for. Are they looking for them now? That’s the big question....

.....................................................................................................................

I recently completed an MSc in Management from Birkbeck College. I since moved to Buenos Aires and in Argentina at least this is considered pretty much equivalent to an MBA, provided you have the right employment history to go with it. My first observation is that if you intend to work here having any postgrad from abroad gives your CV a good kick start. So, why bother with a top (i.e. expensive) business school? … I have the impression that MBAs are a bit overrated. Any thoughts?
Juan Carosio, Buenos Aires

Della Bradshaw: There are many markets in which the MBA and MSc are seen as equivalent degrees - India is probably the most significant one. The real difference in these markets, as you have said, is the work experience.

In most of the US and in Europe, relevant work experience is seen as a pre-requisite for studying for an MBA while a Masters degree is seen as a pre-experience qualification. So MBAs are for older candidates. Interestingly Essec is one school which takes a different view, so I would be pleased to hear Prof Tapie’s views on this question......

Pierre Tapie:If you had previous professional experience, the programs more suited to you are usually MBA rather than Master in Management. I do agree that for people with experience, the employers will not make a lot of difference between these two types of degrees. Normally MiM is designed for person taking these programs within their initial education.

Navjot Singh: In my opinion, an MBA is a qualification that allows participants to demonstrate and apply their previous employment experience to a particular standard. As an MBA Alumni, it is not a passport to a job, but one still has to apply and successfully deliver on business challenges. As the world moves forward, international experience will be useful but not the only success enabler. As with any product or service, there are varying levels of quality, cost, duration, mode of study and specialism. What one has to decide is which offering is best suited to you, your circumstances and your professional aspirations.

.....................................................................................................................

What prospects do see for post-graduates who specialised in say IT Security and E-Commerce?
David Ojah, China

Pierre Tapie:There are areas with growing demand, but with a high level of specialization. It really depends on the local job market.

Navjot Singh: Opportunities in these roles will continue to grow as we utilise IT more and more in both our work and home environments. IT Security and E-Commerce will continue to play a prominent role in business as organisations seek to deliver greater efficiency and effectiveness within a secure environment, which supports the interests of organisations and of its stakeholders e.g. customers, employees.

.....................................................................................................................

According to Nassim Taleb, author of the Black Swan, business schools have been teaching in the last decades many models which have no practical applicability. Well known financial economic models such as the Black-Scholes or Modern Portfolio Theory prove to be embedded in many assumptions which do not hold true in real life. Should not PhD professors be substituted by real-life practitioners, to give the tricks on how to deal with these situations?
Joo Neves, Lisbon, Portugal

Della Bradshaw: I have just read a book by journalist Philip Delves Broughton, a former diary writer at the FT, on his two years studying for an MBA at Harvard.* One of his recommendations at the end of the book is that entrepreneurship should be taught by practitioners, not career academics. I’m sure most people would agree with this. Although there is a logic in saying that finance should also be taught by practitioners, I would be concerned that it was practitioners’ lack of understanding of the transactions they were conducting, that exacerbated the current crisis.

*Philip Devles Broughton: ’What they Teach You at Harvard Business School: My Two Years Inside the Cauldron of Capitalism’ published by Penguin

Pierre Tapie:The most interesting places to learn have both academics and practitioners who teaches. And the good academics have a strong relation to practice. Real lives are enlighted by the theoretical models, but a strong level of common sense will always be essential. Don’t forget that PhD academics have a broad and deep view of their areas, while they are professional in the art of teaching.

Navjot Singh: You will find that a number of teaching staff at business schools work on a number of research projects/case studies with industry. A number of business schools also develop programmes with organisations to develop and further strengthen their learning programmes.

The balance in this area is not necessarily copying the model straight from an academic perspective into business, but how you adapt and tailor into individual environments.

.....................................................................................................................

Just how much is the current crisis likely to resonate on those who are in the middle of their studies with substantial student loans?
Augustin Dufatanye, Reykjavik

Della Bradshaw: All the data we collect for our MBA rankings - and I am pretty sure this will be similar for Masters in Management graduates - is that initially the job offers will be fewer and the salaries lower. But after three or four years these graduates will catch up with their counterparts from previous years.

Navjot Singh: I’m sure there will be challenging times ahead for us all. I would encourage students who are in the midst of their studies to research those sectors, economies and countries which are growing and see how your skills can enable that business to become more successful.

Direct experience of an industry sector is not always required and similar principles can be transferred in differing industries and environments. Use professional networks to build contacts and when given the opportunity, be clear on your skills through a couple of statements. Ask yourself the question.....why me....and then summarise into a simple statement which resonates with you and the employer of choice you are seeking to join. Do your research and be prepared.

.....................................................................................................................

What should business schools now be doing differently to best equip students to cope with the changing business environment? And what should they keep unchanged?
Michael Neugarten, Ramat Efal, Israel

Della Bradshaw: I think the big push this year will be on career services: securing jobs will be critical if business schools are to retain their reputation as the degree that guarantees a well-paid job.

On the curriculum I suspect ethics will loom large. After the Enron scandal forensic accounting became popular for a while. It will be interesting to see how the finance curriculum changes this year and what elective courses students select.

Pierre Tapie: They need to give them a deeper perspective in terms of classic humanities, history, complex thinking approach.

.....................................................................................................................

What should students this year try to focus on to make us more attractive to the needs of businesses in today’s market? Should we focus on strategy over finance, for example?
Kasmira Smarzo, UK

Pierre Tapie: You have to know all the basics of the MBAs cursus, AND in addition , find an area where you will be talented, extremely informed, and well-rounded whatever it is because you will be unique there.

Navjot Singh: All aspects of business management are important to the success of the organisation. The challenge is to ensure they all connect and create the value they have been tasked to deliver. The word “strategy” is an over used phrase and one which is set by a small number of individuals, where the majority of the organisation is actually in execution mode.

My advice here would be to pick an area of expertise, do it well and ensure your impact enables the business to deliver on it’s objectives and ultimately leads to growth.....whether use focus on sales, engineering, finance, marketing, innovation.

.....................................................................................................................

In addition to assessing the prospects for those graduating in the next few years, might we consider the opportunity cost of taking time off from a career to attend business school - could this cost be falling?
Ken Liffiton, US

Pierre Tapie: Of course this element is crucial, and you have to make your mind up with a rational choice, especially to know when you undertake an MBA/MiM, and whether it will be full time or part time, are essential. The cost can fall if the average salary you would earn, rather than being in a Business School, would decrease.

.....................................................................................................................

I am currently studying for my MBA, but spent nearly nine years teaching English at a university in Korea prior to joining the programme. Not having a traditional background, I was already worried about competing with those who have more business-related experience. Does the market downturn now mean the competition will be stiffer? What are some areas for a career changer to be looking at upon receiving an MBA
Tawnya Cheatheam, UK

Della Bradshaw: Dont forget, you have work experience that few MBAs will have - working in education. Why not consider working in a business school? Or in educational publishing? Or in a management consultancy which specialises in education?

Pierre Tapie: With such a background, you can be a remarkable head of communication, or be an expert in exports to Korea. Indeed you have a niche, which is the best position on the labor market.

.....................................................................................................................

How is a Masters in Management degree different and comparable to an MBA? How does the cost of a Masters in Management degree compare to an MBA?
Jason Francis, Stockholm

Della Bradshaw: This is the $64,000 question.....There is the general acceptance that an MBA degree is for managers with several years of work experience, whereas a masters degree is for recent graduates from undergraduate degree programmes. An MBA student will probably be 27 years old and have four or five years of solid work experience. An MSc candidate will be 21 or 22 and will probably have no work experience apart from flipping hamburgers in the summer holidays.

The costs of an MBA - at around $30-40,000 will be a lot more than an MSc - indeed in some countries these degrees are still free of charge. The differing costs reflect the lack of government financial support at the MBA level but also the different levels of support, most particularly in the careers development office. The teaching will also differ - expect the MSc to be based more on classroom lectures, the MBA on small group teamwork.

Pierre Tapie: The main difference is that the Masters in Management, in most of the universities, do not require any professional experience, while the MBA programs are usually devoted to people with some professional experience... The so-called Master in Management of the French “Grandes Ecoles” are often a blended model between MiM and MBAs, as they incorporate professional experiences to the cursus which can last up to two years.

.....................................................................................................................

I am a post graduate research student in Biology and am certainly interested in pursuing a business degree in the next few years. Considering my education background and the current state of the economic situation, which option would be a wise choice - studying for a Masters or an MBA?
Vikram Varma, Edinburgh

Pierre Tapie: Both tracks are relevant. You can enter immediately a Masters in Management, or an integrated/junior MBA in some schools, and then enter the labour market with the dual education. You can also practice your biological skills and knowledge for a while, then do an MBA. It depends on whether you want to be a professional biologist for some years, or not.

Navjot Singh: I would advise you to complete a Masters first, gain the necessary experience within a business environment and then look at supplementing your education at a later stage with an MBA. Remember, a number of organisations also sponsor their employees to take a year out and complete an MBA so you don’t necessarily need to look at funding this yourself.

.....................................................................................................................

Could a Masters in Management help me progress faster after one year of professional experience or should I wait two to three years and then do an MBA?
Eric Scaramozzino, London

Pierre Tapie: Both tracks are excellent, in 5 - 10 years from now the career you will have made will depend mainly on your personal performance, and these educational tracks will both be of help.

Navjot Singh: No one qualification will determine speed of progression in an organisation. At the end of the day, your progression will be based on a number of factors, primarily determined by your performance on the job vs. the business objectives. I know this seems simple and relatively obvious, but many career professionals think that a Master’s or an MBA is a passport to promotion. It is not, your performance will determine this.

I would advise you to complete a Masters first, gain the necessary experience within a business environment and then look at supplementing your education at a later stage with an MBA. Remember, a number of organisations also sponsor their employees to take a year out and complete an MBA so you don’t necessarily need to look at funding this yourself.

Why not contact your HR Manager at your company and see if they can support you in your personal development.

.....................................................................................................................

I wanted to know if there is a preferential woman’s average age for taking up a Masters in Management or MBA?
Viviana, unknown

Navjot Singh: No, we recruit candidates from Masters and MBA’s from across all areas irrespective of age.

Della Bradshaw: I think it will be the same for women or men - 22 or 23 for a masters in management and 27 or 28 for an MBA.

.....................................................................................................................

I decided to undertake a Master in Management as I could not pinpoint the exact industry in which I wanted to work. Therefore, a general degree covering most parts of business seemed like a good choice. We have seen some good years now with regards to employment, but now all signs points towards an economic slowdown. Who knows what it will look like in 2010, when I graduate. What I fear is a much tighter job market where companies will seek graduates with more specialized degrees. What are your thoughts on this, and do you believe management graduates will become less sought after in the near future?
Lars Erik Nss, Grenoble, France

Navjot Singh: Stay focused, choose your specialism and ensure you excel in what you decide to do. Talented Management graduates will always be in demand, but it is important that you market yourself in a competitive job market.

Della Bradshaw: It is hard to know what the economic situation will look like in 2010, but I am sure a generalist degree will still be valued, perhaps even more so than today. Over the next couple of years companies may well cut back on their in-house graduate training programmes, making those candidates with higher degree qualifications all the more valuable.

Pierre Tapie: Not at all. Yes, there is a financial crisis, but this crisis mainly concerns the financial sector. Emerging countries have a huge potential of growth, and in western countries the demographic transition is at stake. So the demand for skilled labour force will sustainably be high, and relevant degrees are the best investment for the future.

.....................................................................................................................

I will start my Master in Management next January from one of the top 10 Masters in Management, but at this moment of market crisis I am not sure whether the companies are interested in hiring people from overseas or not?
John Paul, Sheffield

Navjot Singh: We at Shell, are always actively recruiting candidates from international backgrounds. Use your professional networks and look to apply for roles that are available via our careers web site or at portals such as the FT’s executive jobs section amongst others.

.....................................................................................................................

I don’t have a formal management qualification but am thinking of taking a vocational qualification in management, eg. with the Chartered Management Institute. What do you think is the value of vocational qualifications vs. more academic business qualifications during this current downturn?
Philippa Tucker, London

Della Bradshaw: I suspect the more qualifications you have the better. At times like these it is probably more important than ever to check the recruitment records of any institution that you are considering attending. What are their employment statistics? Who recruits from the institution? How much support is there from the development office to get your first job? And how much support will they give you if you are subsequently made redundant?

.....................................................................................................................

Some business schools propose a double degree in France and UK for example. Does it really boost a CV/career or not?
Stera, Lyon, France

Della Bradshaw: Yes, I certainly think it does. What many companies have been doing in recent years is recruiting managers for one country and then rotating them around their overseas offices. The ability to live and study/work is a real advantage.

Navjot Singh: Double degrees can be beneficial if the combination to be used is in the right context. Remember, double degrees is one option. However, some business schools also offer double qualifications i.e. Masters and MBA which might also prove valuable.

Pierre Tapie: If you are in a real double degree track, which means you will have to comply with all the educational requirements of both institutions, such a program will give you excellent access to both local labour markets.

Improving Manufacturing Cycle Time

Customers are rapidly and forever changing the landscape for their suppliers when it comes to quick delivery response, quality and price. More and more, customers demand on-time delivery, product perfection and low cost. They are becoming more unforgiving - no excuses. And yet many manufacturers continue to have trouble delivering products on time, never mind quickly. They are plagued with excessively long order-to-delivery cycle times and cannot seem to find a solution.

Often, more than 95% of the order-to-delivery cycle time consists of waiting: for sales orders to be processed; for engineering documentation; for corrective actions to design information; for a production process to be corrected; for a manufacturing bottleneck to be cleared. All of this waiting just keeps stretching the order-to-delivery cycle time, while adding unnecessary operating expense in the mad scramble to correct the problems that should never have been created in the first place. It's a vicious cycle that feeds on itself, and one that should be stopped. Fortunately, cycle time compression is comparatively easy to accomplish and offers numerous benefits.

Many companies today are so engrossed in cost-cutting that they've lost sight of the value equation. This equation consists of quick, on-time delivery coupled with exceptional product quality and a competitive price. Price and overhead pressures have forced too many companies to focus solely on cost-cutting, frequently at the expense of delivery and quality. Even though customers always ask for better pricing, this is often not their highest priority.

So how does a company know when its order-to-delivery cycle time is too long. Some of the symptoms of poor cycle time include: poor quality, low throughput, falling sales, too much inventory, too much non-value added activity, poor delivery and unhappy customers.


Causes of Long Cycle Times
Most cycle time problems can be traced back to root causes. Identifying and correcting the root cause impediments must be done to achieve significant cycle time improvements. Some of the most common causes for poor cycle time include:

• Bottlenecks. Manufacturing operations are very similar to a six-lane highway, and these bottlenecks can be fixed, like adjusting toll booth capacity or flow to capacity. For instance, too much queue from work-in-process inventory will clog workcenters, slowing velocity, creating bottlenecks.
• Poor supplier relations. Close ties to suppliers is critical to cycle time reduction. Suppliers must know your goals and needs, and have production and business processes that can support nothing less than 100% of your needs. On-time delivery of quality materials is essential to reducing cycle time, decreasing inventories and lowering costs.
• Improper performance metrics. Frequently, management rewards production practices that actually result in longer cycle times. For instance, if the success of the shop floor is measured simply by efficiency and utilization, you can be sure that parts will be produced even when they are not needed, resulting in too much inventory of unneeded material and possibly shortages of what is needed.
• Overly complicated business processes. Ineffective practices and slow, fragmented systems for handling sales orders, acquiring materials, scheduling production and other information are often big contributors to overly long order-to-delivery cycle times. Complication needs to be replaced with effectiveness to reduce cycle times and costs wherever possible.
• Inadequate production scheduling. Poor production scheduling information and practices invariably lead to flow imbalances which create bottlenecks and depress manufacturing throughput. Production scheduling is usually an area of great opportunity. So significant is the production scheduling opportunity that it should be high on top management's list of priorities.

Achieving Cycle Time Reduction
Cycle time reduction can mean reduced costs, reduced inventory levels, improved production predictability, improved customer satisfaction, and better quality. If a company had to pick a single operational issue to focus on, time compression across the entire operation would be an excellent one to start with. Time compression in all aspects of an operation will lead to greater efficiency, better products, higher profit and happier customers.


Cycle Time Improvement Tips
Cycle time reduction must be a cross-company, cross-functional effort. Cycle times must be compressed at every stage of the order-to-delivery cycle, from order processing, material procurement and production scheduling to engineering, marketing, receiving, shipping and accounts receivable. Only by reengineering the entire supply chain can a company effectively achieve a balanced operation and reduced cycle times.

Balance and flow must be maintained in order to reduce bottlenecs in every area of a company. Production bottlenecks generally occur because a poor scheduling routine created them, resulting in the need to expedite orders and a disruption in the flow of production. Many MRP II systems in use today actually increase cycle times due to their "illogical logic" about what the real schedule should be. Many managers believe their MRP II system will provide accurate answers to these questions, but it won't.

Only when a company can accurately answer critical questions like - When will it ship? Which orders wil be late? What is the right sequence of jobs to work on now? - will it be able to get a handle on cycle time reduction.

Companies should measure their cycle time efficiency with a "simple" calculation:

First, determine how much of a particular business process cycle time is devoted to real Value Added Activity - the time during the business process when work that will benefit the customer is actually occurring.

Second, determine the Total Time it takes to deliver the product, including all wait time.

Then, divide the Value Added Activity Time by the Total Time to arrive at an efficiency percentage.

The result is often a surprise for management with Value Added Time at 10% or less in many business process situations. This is something management needs to think hard and quickly about, and then take the right corrective actions.

---

The following performance criteria should be initiated to achieve a reduction in cycle time:

• Thoroughly train key personnel in all aspects of cycle time reduction and quick response.
• Quantify the business impact of cycle time reduction and quick response.
• Organize and train multi-functional teams to shorten cycle time for all manufacturing, non-manufacturing and administrative processes.
• Map all supply chain processes, clearly identifying value added and non-value added activities, bottleneck, queues, cycle times, etc.
• Specifically define the barriers preventing you from achieving reductions in cycle time, and have an action plan to remove these barriers.
• Actively work with key vendors to achieve mutually agreed upon goals for cycle time reduction.
• Reduce lot sizes, changeover times and queues in all areas.
• Heavily weigh primary performance measurements and reward systems toward fast, on-time customer response.
• Precisely predict your delivery leadtime for customers and/or replenish inventories.
• Ensure that leadtimes are equal to or less than what your customers need and want.

By Mike Donovan