Category Archives: Management and Strategy

Jack Welch, A Best Run Organization is a Learning Organization by Russell Sarder: CEO, Author, Business Magnate

If anyone knows what it takes to run a successful corporation Jack Welch is that person. The former Chairman and CEO of General Electric at one time lead the company to be one of the most successful in the world. Welch became a great leader by becoming a great lifelong learner. In this video NetCom Learning Chairman and CEO will share why he believes in Welch’s statement that the best run organization is a learning organization and how the ability to learn and translate that learning into action is a competitive advantage.

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How to Develop Business Acumen and Become a Successful Entrepreneur

There are certain skills that every entrepreneur should know in order to become a successful business person. The most important of those skills is developing business acumen. How do you know if you have developed the business acumen needed to become successful? Russell Sarder will tell you exactly what it takes in this video. Find out how to identify if you have what it takes to succeed in the world of business.

NetCom Learning’s Goal: to Promote the Values of Lifelong Learning

The purpose of NetCom Learning is to promote the values of lifelong learning. Help individuals and organizations with their learning process to reach new heights.

Learning: steps to becoming a passionate lifelong learner is available on Amazon Now.

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 Learning: steps to becoming a passionate lifelong learner is Russell’s second book. In it, he explains eight specific steps that will teach you how to become a passionate lifelong learner.   

Learning: steps to becoming a passionate lifelong learner


Characteristics of A Team Player

Characteristics of a team player
View more presentations from Russell Sarder

Financial Education for the Leaders

If you want to be on the top of an organization, you must understand basic finance. Finance is critical in the successful running of an organization. The U.S. Small Business Administration organization reports that 50% of small businesses fail within the first five years of operation. In the book, “Small Business Management,” Michael Ames lists a number of reasons for these failures. Half of the reasons cited are related to finance, namely:

  • Insufficient capital
  • Over-investment in fixed assets
  • Poor credit arrangements
  • Personal use of business funds

Since business survival depends so much on the understanding of financial issues, it is imperative that business leaders have a good grasp of financial concepts. A lack of understanding can lead to poor decision-making with regards to money, which may ultimately lead to the untimely demise of a business.

Finance Basics

At a very basic level, there are two income flows within your business. One is revenue (money coming in), and the other is cost (money going out). Revenue should not be confused with profit. Profit is the money that your business makes when you deduct cost from revenue. Revenue and profit are not one in the same. To achieve a profit, revenue must always exceed cost. Good business leaders will always be asking themselves the following three questions:

How can I increase revenue?
Increasing revenue be achieved in a number of ways. For example, raising the price of a product or service is one method of bringing in more revenue. Businesses considering taking this approach need to be sure that their customers will be willing to pay the new price before raising the current price. Another common business approach is to raise Average Revenue Per Unit (ARPU). A unit is a customer, so the idea behind this approach is to increase the amount of products or services that you are selling to each customer. This is a popular method because it is usually cheaper to sell to existing customers than to find new ones.

How can I decrease cost?
Decreasing cost can be accomplished by either cutting back or improving efficiency. To cut costs, you may choose to reduce staff, spend less on marketing, or slash the company’s training budget among other options. When you decrease costs by cutting back in any area, you need to be sure that you can continue to offer your customer a product or service that they will be happy with. Cutting back and losing customers at the same time is not the goal. On the other hand, improving efficiency is a great way of decreasing cost. By looking at efficiency, you may find that you only need two people instead of three to achieve the same goal. Often, this entails having employees work in a new, more efficient way.

How can I improve cash flow?
Improving cash flow is all about optimizing the time when you take money into the business and when you pay it out. Good finance managers know that most bills can be paid up to ninety days without incurring penalties, and so they will pay at ninety days in order to gain as much interest as possible on the funds. Conversely, they will chase clients to get money coming in much earlier than ninety days. The goal is to keep money in your account for as long as possible so that interest accrues.


Here is what we have covered in top level with you earlier today:

P&L Statement

The Profit and Loss Statement shows funds coming in (revenues) and those leaving the business (costs). In this example, there are two main revenue streams – that of tuition and those associated with other related items such as course materials (books).

Costs are broken down into different sections. There are costs associated directly with providing the service. These costs include instructor fees, printing of course materials, renting of a classroom, and provision of food and accommodation to clients. Other costs include marketing and sales, salaries, utilities bills and more.


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What’s the best way to segment your customers?

Not all customers are the same. Customers are different ages, different races or ethnicities. They are of different genders; they have different levels of disposable income to spend;  they live in different locations, and have different values and standards.

Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing such as age, gender, interests, spending habits, and so on.

The practice of customer segmentation allows companies to target groups effectively and allocate

marketing resources to optimize the results. To do this, companies need to understand which customer segments they are targeting. All too often, you’ll hear business owners saying that “everyone” is their customer. This is not helpful from a marketing perspective. If the customer is indeed every person, it is difficult to develop a marketing campaign that will be attractive to the customer because all customers are different. It also often means that the product or service may not be specific enough to be appealing to any group of customers at all because it does not target anyone’s specific needs effectively.

Companies can use customer segmentation to:

  • Develop customized marketing programs – With clear segmentation, it is possible to target marketing campaigns effectively to make sure that the widest possible audience for the product or service sees some aspect of the campaign. For example, if the product or service is targeted at a customer segment that has been identified as fairly affluent women from the ages of 18-35 who like fashion, the marketing campaign would be very different than the one for a product that was designed with the 80 year-old man in mind. The former may be targeted by placing ads in women’s magazines or carrying out social media marketing on Facebook. An 80 year-old man, however, likely does not use Facebook and probably doesn’t read women’s magazines.
  • Establish appropriate service options – If a business knows which customer segments it is targeting, it can add service options to suit this group. For example, service options designed for children may not be appropriate for adults and vice versa.
  • Prioritize new product development efforts – As mentioned above, savvy businesses that have identified their exact customer base can develop their product further to better suit their clientele.
  • Choose specific product features – In an effective marketing campaign that is targeted at a specific customer segment, certain features of the product may be highlighted to appeal to that segment.
  • Design an optimal distribution strategy – Products and services can be distributed to different segments according to their needs. For instance, let’s use the example above of a woman aged 18-35 and an 80 year old man. For the former, products might be best distributed via the Internet. The 80 year-old man may not be online, however. The best distribution channel to reach him may be his local store.
  • Determine appropriate product pricing – If the customer segment targeted is a small start-up company operating on a shoestring, there is no point pricing the product at $10,000 – this will be out of range for most start ups. It does not matter how good the product is; success depends on effective product pricing according to customer segment.

The market can be segmented in so many ways, and there is no “one-size-fits-all” approach. The best way to segment the market depends on the specific business and its products or services. Here are some ideas of how this may be done:

  1. Geography –Where does the customer reside?
  2. Industry – What business is the customer in?
  3. Customer size – How big is the customer?
  4. Benefits – What benefit does the customer seek?
  5. Customer behavior – Who are the key buying decision makers?

My company, Information Technology (, targets business customers or B2B. As an example, here is a basic snapshot of customer segmentation of my company, NetCom Learning:

We target each of the above customer segments using the following criteria:

  1. Geography
  2. Job Title
  3. Technology Area
  4. Client type – existing vs. new

This allows us to develop marketing campaigns or service features that are relevant to our different segments. For example, if we are selling to a new client, we have to focus our campaign on selling the company since new clients may not be aware of who we are. However, if we are trying to sell to an existing customer, this segment already knows us, so we can focus more on selling specific features of a new service to them.

How can you achieve success at work?

Hard work

You can lose with hard work, but you cannot win without it. If you can find a way to become successful without hard work and a strong work ethic, I would love to learn it from you. Here is what the legendary basket player Larry Bird, the great American author Napoleon Hill who wrote one of my favorite books of all time “Think and Grow Rich,” and Abraham Lincoln, the 16th president of the United States of America think about hard work:

  • I have got a theory that if you give 100 percent all of the time, somehow things will work out in the end. (Larry Bird)
  • Effort only fully releases its reward after a person refuses to quit. (Napoleon Hill)
  • Things may come to those who wait. But only the things left by those who hustle. (Abraham Lincoln)

Here is my advice to you about hard work:

  1. Choose the right job:
    You cannot work hard unless you are passionate about your job and care about fulfilling your key job responsibilities. Somebody once said, “chose the job you like, you never have to work again.”
  2. Set up a disciplined process:
    Hard work is even harder without a disciplined plan. The process and plan that work for others might not work for you. You should try to establish some type of work routine that is compatible with your personality.
  3. Make the right choice:
    Hard work is hard. You must ask yourself whether you are willing to give 100% to become successful. Then, make the right choice, and stick to your decision.

Identify the right Sales Channels for your company

Choosing the right sales channel is one of the hardest, and most important, business decisions you will ever make. Getting it right increases your chances of success substantially.

Here are different sales channel you can use for your company:

Company Owned:

  1. Tele Sales force
  2. Direct Sales Force
  3. Web sales
  4. Own stores


  1. Selling through VAR
  2. Partner stores
  3. Wholesaler

You should find the right mix of channels to meet your sales goal. At our company at NetCom Information Technology (, we are using primary Tele sales force, direct sales force and web sales channel.

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How to develop value propositions to target customers

Companies use value propositions to target customers who will benefit most from using the company’s products. The value proposition is the reason why customers turn to one company over another.

It’s important when developing your value proposition that it be clear and concise. It’s best to start by brainstorming and focusing on what needs your target demographic group have in common.

Problems with most companies:

  • Company has not identified a value proposition
  • Company does not clearly express its value proposition
  • Company is not testing or measuring its value proposition


Strong value propositions deliver tangible results like:

  • Increased revenues
  • Decreased cost
  • Decreased Risk
  • Improved performance
  • Improved operational efficiency
  • Increased market share
  • Faster time to market
  • Decreased employee turnover
  • Improved customer retention levels
  • Customization flexibility
  • Convenience
  • Accessibility
  • Newness

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