Sunday, April 8, 2012

Survival of Fittest ->“SoF” an evolutionary Saga

Evolutionary meaning and usage of the phrase “Survival of Fittest
It was originated in an evolutionary theory, as an alternative description of natural selection. British polymath philosopher Herbert Spencer and Charles Darwin coined the term first and it was first used in ‘The Principles of Biology of 1864’.
Theoretically speaking, it means "only the fittest organisms will prevail”
What is a Natural Selection?
It is the portion of variation in reproductive success that is caused by heritable characters; Or
It is the preservation of favoured races in the struggle for life; Or
Alternately it means "survivors survive, reproduce and therefore propagate any heritable characters which have affected their survival and reproductive success"
Idealism ^Realism
Notions of Natural Selection
q Survival of Fittest (Idealism)
q Preservation of Strength
q Heritable Characters
q Survival of Fittest (Realism)
q Survive” (The Natural Selection)
q Grow” (While we Survive)
Preservation of Strength
Preserve and grow the Individual and Team Strength within Organization in relation to their knowledge domain, synchronization ability, interdepartmental coordination and exploit the strength of each department or each individual;
Preserve and grow the organizational strength i.e. core business of your organization
Preserve the Strength the Competitors curse and customers appreciates
Explore the market based on our strength and exploit our strength in the right place for eg. If we are good in SME market then let us preserve that customer base while we explore any other market or industry even if the market is very lucrative
Realize our weakness soon but focus to improve it gradually as we know that the current level of our business is due to our strength and weakness both, so it is not a matter of concern always.
Vendor relationship and personnel management is our strength. In my view our strength is not preserved as there is no specific business model predefined to ensure vulnerabilities are treated well, at business level
Heritable Characters
Reproductive success can genetically pass in employees, by way of work environment(WE) which are controlled, adapted and progressed by unambiguous policies and governance model, prompt feedback and clarification mechanism, approachable attitude in the hierarchy;
Heritable Characters can be continuously preserved by creating and retention of key employees and mentors;]
It is necessary that the organization imbibes genetically a positive cultural change in the WE
Bring and demonstrate a WE attitude from the orientation to exit process;
“Survive”(The Natural Selection)
Strategic Level Selection
Let leaders be decision makers and accountable; let all the decisions be reason based with reviewable timelines and mitigation plan while approving it.
Trust the subordinates to the extent the delegation have been made and make review of anything beyond delegation.
Take review of all the decisions one level below and percolate the same practice down the line.
Have review committee of business, legal, delivery and CFO to advice on long term or large projects. Do not take large or long term projects in haste.
Review the strategic level manual with live / closed projects.
Delegation of Authority for smaller projects and one non-incentivized personnel acting as an authority for creating exception to smaller projects
Project Level Selection
Work on relation based projects; as far as possible do not encourage commencement of project before finalization of all the documents including the agreements.
In case if delivery needs to work before contract then approval of the committee to be taken and cap it to 5% of the project budget with MOU to finalize the contract within __days of release of Purchase Order.
Encourage short term projects to get in fast cash or
Split the long term development/implementation projects into smaller modules/ projects or have shorter payment timelines.
Incentives of Sales Team linked with release of the payment, Guaranteed performance bonus of delivery and support team linked with accomplishment of their respective obligations under the performance based large projects to get the incentivized focus on such large projects.
Offer discount to clients as an incentive for cooperation of the client in the project to close the projects before the timelines. Such incentive shall be calculated up to 50% of the financial interest that we would have to pay if the cash would have not reached us.
Ensure feedback from client and project leaders as part of review duly documented and signed by them
Employee Level Selection
Have a quarterly meeting of key personnel from each department to improve inter-departmental activity.
Develop a culture of at par respect towards the other to circumvent individual egos
Indentify and groom the key employees to enable them to stand fit to survive. Such identification shall be based on the performance evaluated by the review committee.
Keep alive the fighting spirit; have a never let go attitude; Remember size of organization does matter but what matters is the individual strength to survive.
“Grow” (While We Survive)
• ;Formulate and meticulously follow processes, policies and decisions;
• ;Percolate the same in the same spirit, so that we all speak the same language and remain on the same page always
• ;Modulate process from time to time with the reasoning for such modulation;
• ;Substantiate our decisions with a reasoning, mitigation plan, and strict review of the risk approved.
• ;Short term projects to have shorter decision making process and approvals
• ;Long term and large projects need to be prioritized and focused by meticulous documentation and timelines.
• ;Retention policies to be strengthen for key resources by recommending the career path and expectation with timelines of achievement.

Negotiation Tips: Stand that generally are adopted by IPR Owners

Software Licensing Agreement

  1. Escrow arrangement will hold valid if the payment under the license agreement and subsequent maintenance agreement is made in full and on time.
  2. If Affiliates or Subsidiaries if are to enjoy the benefits of the Licensing rights then the interpretation shall only limit to existing Affiliates or subsidiaries which are present at the time of execution of this licensing agreement and fall within the ambit of the respective definitions.
  3. In the events where escrow materials are to be handed over due to stoppage of support, post the life cycle published for that version of software or in absence of no life cycle published then 5 years, the written down depreciation value of the source code will be transfer value or shareable value to handover the escrow materials for internal use only i.e. no commercial use to gain profits (or even deferred profits) by selling or sharing the source code with any person for whatever reason. Hence the cost of escrow material is to be determined in the escrow arrangement and this cost is not the cost of source code but access rights to the source code for internal development and maintenance purpose only.

In customization of software or interface development or development from scratch (inputs exclusively from customer)

  1. For the customer exclusively (like Bespoke), the IPR shall will owned by the customer but IPR Owner shall have restricting rights to allow the use of the software by the customer unless and until payment is paid in full.
  2. In the events where source code is to be provided when software is live, the handover shall not restrict us to develop any similar or same type of software or module or interface for any customer if the same is made without using the same code or independently developed to suit the customer requirements or IPR Owner has not done breach of confidentiality agreed under this agreement.
  3. It is mandatory for execution of Business Process Study and Gap Analysis by both the parties to freeze the scope of deliverables under customization agreement. In event of dispute of timeline delays and in absence of such documents, the contract shall be evaluated on time and effort basis by having a panel of 3 members ("BenchMarkers"), comprising of experts in the fields of commercial, technical and HR to determine the cost of project, time invested and resources utilized. The each party shall nominate one member and the 2 nominated member shall nominate the presiding member who would make a "Draft Report" and send it for both parties comment and the final commented report shall be called as "Final Report". In case if either party is not satisfied with the "Final Report" the Dispute Resolution Mechanisms available under the agreement shall be invoked and the dispute may be settled. ( Note: The nominated members can be neutral or external party and cost of each nominated member will be borne by the respective party nominating it and cost of the Presiding member will be borne by both parties equally. In no event, such nominated member be associated with the competitor's of either party so as to have just and fair amicable resolutions)
  4. Every License or customize agreement should have 'designated place/jurisdiction of use of license or software', any change of legal status due to acquisition or merger shall be reviewed commercially and operationally if the onsite support is required.
  5. To & fro and other travel, lodging, etc activities that requires commuting of personnel or expert shall at actual along with the pocket expenses.
  6. Taxes applicable to the services under this agreement shall be borne by customer and be levied as per the latest rate applicable at the time of billing
  7. Customer shall have a right to deduct tax on income and It shall be obligatory for customer to issue the certificate of such tax deduction in the same financial year. In the event, if the said certificate is not issued within 30 days of deduction or before 30th April of coming financial year, for the deduction in the preceding financial year, then IPR Owner shall have a right to claim such money as legal due and recover the same from the customer with interest rate applicable under law shall also be applicable on such dues.