WhitePaperBuildingHappyCompany

Copyright © Oleg Cheremnykh, 2015. All Rights Reserved
ALL RIGHTS RESERVED. This white paper contains material protected under International and Federal
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The cover page photo was provided by Jill Wellington – a portrait photographer in Michigan, United
States.

How to Transform Your Business into a Happy Organization
Oleg Cheremnykh (Lions) 3
Executive Summary....................................................................................................................................4
What Exactly Is a ‘Happy Organization’? ..................................................................................................5
A Quantum Leap to Corporate Happiness...............................................................................................6
Why You Want, Can, Must and Will Build a Happy Organization..........................................................6
Three Stages in Your Quantum Leap Project ..........................................................................................7
How to Transform Your Business into a Happy Organization ..............................................................8
HOW TO OPTIMIZE YOUR CORPORATE STRUCTURE ..........................................................................................8
HOW TO MAXIMIZE YOUR CORPORATE PERFORMANCE...................................................................................11
HOW TO MAKE YOUR STAKEHOLDERS HAPPY................................................................................................11
HOW TO GET THE MOST OUT OF YOUR STAKEHOLDERS..................................................................................11
Detailed Description of a Happy Company............................................................................................14
Seminar “How to Transform Your Business into a Happy Organization” ..........................................22
Corporate Happiness and Strategic Management Consulting............................................................23
About the Author......................................................................................................................................24

Executive Summary
1. A happy business entity is the one that (a) has an optimal (‘lean’) corporate structure; (b)
operates at its maximum performance measured by corporate KPI; (c) makes all its
corporate stakeholders happy; and (d) gets the most out of its stakeholders in terms of
aggregate value (financial, functional and emotional)
2. Therefore, to transform your business into a happy company, you must (a) optimize your
corporate structure; (b) maximize the performance of your company; (c) make your
stakeholders happy; and (d) get the most out of your stakeholders
3. To make it happen, your company must make a quantum leap in all these four areas by (1)
conducting a comprehensive business analysis; (2) performing a strategic corporate
reengineering and (3) developing and deploying a comprehensive continuous performance
improvement system (‘kaizen’)
4. You want, can, must and will make this quantum leap to corporate happiness; and this
white paper will provide you with the necessary know-how, ‘road map’ and inspiration
5. To optimize your corporate structure and make it lean, you must (a) identify and visualize all
corporate objects; (b) eliminate redundant objects - ‘cut fat’; (c) add missing objects - ‘add
limbs’; and (d) integrate your objects in the most efficient & natural way
6. To accomplish these four objectives, you will use comprehensive corporate object maps –
the Key Business Management Diagram and its decomposition diagrams
7. To maximize your aggregate corporate performance, you must maximize the performance
of your corporate objects (products, brands, assets, etc.) and your corporate processes
8. To maximize performance of corporate objects, you must optimize values of their KPI; to
maximize performance of corporate processes, you must also perform reengineering of
these processes
9. To make your stakeholders happy, you must (a) identify all of them; (b) identify all their
needs and desires – financial, functional, emotional and spiritual; (c) create high
expectations; (d) satisfy these needs and desires – exceeding their expectations; and (e)
make sure that their perceptions of your company match the reality
10. To get the most out of your stakeholders, you must (a) identify the aggregate (FFES) needs
of your company; (b) identify stakeholders’ decisions and actions (‘services’) needed to
satisfy these needs; (c) identify their ‘buttons’; and (d) make your stakeholders make the
decisions and perform actions that will satisfy these needs
11. This quantum leap to corporate happiness is your most profitable investment project by far
with a sky-high ROI and, therefore, must be commenced right away

What Exactly Is a ‘Happy Organization’?
A happy organization (business, government entity, non-profit, etc.) is the one that (1) has an
optimal (‘lean’) corporate structure; (2) operates at maximum performance measured by corporate
KPI; (3) makes all its corporate stakeholders happy; and (4) gets the most out of its stakeholders in
terms of aggregate value (financial, functional and emotional).
Why these three distinctive features? Because of indisputable facts, solid logic and good old
common sense.
Let’s start with a lean organization. Why a happy organization must be a lean one? By definition,
a lean organization is the one that contains only those objects (employees, departments, products,
brands, assets, etc.) absolutely necessary and sufficient to operate at its maximum performance.
A business with redundant objects (‘fat’) and the one with the missing objects (‘limbs’) are very
uncomfortable in the ‘corporate jungle’ because they are not ‘fit’ enough for the ‘survival of the
fittest’. Therefore, only a perfectly lean organization can be considered truly happy.
Performance maximization. Why a happy company must operate at its maximum performance?
Obviously, an individual is happy only when he/she is the best one can be (see Maslow’s hierarchy
of human needs). Which requires operating at one’s maximum performance in your occupation.
The same is true for any organization. An organization can be considered happy only when it
operates at its maximum possible performance. Waste (of time, money and other resources) and
happiness are not compatible. Period.
Happy stakeholders. Obviously, an organization can be considered happy only if it makes happy
all of its stakeholders – both internal (owners, managers and employees) and external (clients,
suppliers, partners, government entities, etc.).
To make your stakeholders happy, you must identify and satisfy – with your products and services –
their aggregate (financial, functional, emotional and spiritual - FFES) needs and desires.
Unfortunately, you will have to identify and satisfy both.
But this is not enough. To make your stakeholders happy, you must also make sure that (1) their
perceptions of your company match the reality; (2) they have high expectations of your company –
in terms of satisfaction of their needs and desires; and (3) these expectations are always exceeded.
Getting the most out of your stakeholders means that your company must make sure that your
stakeholders satisfy the FFES needs of your company as well (i.e. create the maximum possible
amount of aggregate value for your company).
Therefore, a happy company is a lean, performance-focused, stakeholders-focused and aggregate
value-focused organization. And, obviously, a powerful money-making machine. You can find a
detailed profile (vision) of a happy company in a corresponding section of this white paper.

A Quantum Leap to Corporate Happiness
The truth is that there are still very few genuinely happy companies out there (I will explain a bit
later why). Most (if not practically all) organizations have a corporate structure which is far from
optimal; operate at 10-15% (if that) of their true potential; and their stakeholders are not nearly as
happy as they could (and should) be. And your company is (most likely) no exception.
The right way to look at it, however, is to view it as an enormous opportunity. An opportunity to
make a genuine quantum leap in all three abovementioned areas. Optimize your corporate
structure; maximize your corporate performance and make your stakeholders genuinely happy.
This quantum leap project is unquestionably the most attractive and the most profitable investment
project (with the highest ROI by far) that you can ever undertake. To make this project a success,
however, you will need the know-how, tools and inspiration.
This white paper is, obviously, not a comprehensive source of the first two (although it might very
well provide enough inspiration – which is probably the #1 objective of this paper). However, it
does provide enough know-how and tools for you to make your company significantly happier.
And, therefore, to get a very healthy return on your time invested into reading this free paper.
If you want to make a truly quantum leap (and I certainly hope you do), you can obtain the
necessary knowledge and tools by attending my two-day course How to Transform Your Business
into a Happy Organization.
Why You Want, Can, Must and Will Build a Happy Organization
Why would you want to transform your company into a happy organization? I have already
mentioned one compelling reason – to make a lot of money from this investment project. However,
there are several other – and no less – compelling reasons for you to undertake this project.
First, happiness is a fundamental and a very powerful human need and desire (and a fundamental
right according to the U.S. Constitution). All individuals need and want to be happy at home, at
work and in all relationships with other individuals and organizations. All decision-makers in all
organizations want to be happy themselves and to own, lead and manage happy organizations.
And you are no exception.
Second, according to Maslow’s hierarchy of human needs, every human being wants and needs
self-actualization. For an entrepreneur, CEO and other corporate top-managers, it means both
being the best one can be and making one’s business the best it can be. Which means a happy
lean organization operating at its maximum performance and making all its stakeholders happy.
I have already explained why you can make this quantum leap. Because there is an ample room for
it – in corporate structure optimization, corporate performance optimization and in your potential
for stakeholder happiness. A lot of room for a genuine quantum leap.

Now why you must make this quantum leap. To put it simply, because of competition. Increasingly
global and increasingly intense competition. For customers’ wallets and checkbooks and for human
resources as well. And how businesses compete nowadays? On their structure, performance and
their ability to make their stakeholders happy. And on getting the most out of the latter, of course.
Therefore, businesses (and your company is no exception) are under a tremendous external
pressure to optimize their corporate structures, maximize their performance, make their
stakeholders happy and get the most of the latter. In other words, to make a quantum leap in all
these four areas. Make it happen – or go out of business. Cut and dry, plain and simple.
Therefore, I am confident that you will make this quantum leap. As soon as you obtain the right
tools and technologies. Which – until very recently – simply were not available. Now they have
finally arrived.
And because these tools have finally arrived, corporate happiness revolution is inevitable and
imminent. The revolution that will affect everyone. Every single business (and every organization) in
every country. Everyone will either become happy or stay unhappy, will be either a winner or a
loser, either an insider or an outsider; either the leader or the outcast. The choice is yours.
Three Stages in Your Quantum Leap Project
To transform your company into a happy organization and to keep it happy, you will have to (1)
conduct a comprehensive business analysis - CBA; (2) perform a strategic corporate reengineering –
SCR; and (3) develop and deploy a continuous improvement system - ‘kaizen’.
Obviously, you must begin your project with a thorough and diligent assessment of your current
(‘AS IS’) situation with your corporate structure, your corporate performance and the happiness of
your stakeholders. This is what comprehensive business analysis is all about. It generates a
detailed description of your company (‘business system’) and the ‘ACRC’ – analysis, conclusions
recommendations and comments on the best way to make a quantum leap in four key areas.
To make a successful quantum leap, you must have a very good understanding where you are
jumping to. In other words, you must develop a detailed vision (‘TO BE’) of the company that you
want to build. Then you will need to figure out how to get there. In other words, to develop
financial and operational plans for this quantum leap. And, finally, to execute these plans, making
an actual quantum leap. These three activities constitute the second stage of your quantum leap
project – a strategic corporate reengineering.
To make sure that your company stays happy at all times – maintains a lean corporate structure,
operates at its maximum performance and keeps all its stakeholders happy – you will have to
develop and deploy a continuous improvement system often referred to as ‘kaizen’. This system
must not only make the necessary marginal improvements, but trigger another quantum leap
project when changes in your corporate environment make it necessary.

This section is one of the most important ones of the whole white paper. It contains the practical
knowledge that you will need to make the quantum leap – optimize your corporate structure,
maximize your corporate performance, make your corporate stakeholders happy and get the most
out of the latter. And thus to transform your business into a happy organization.
How to Optimize Your Corporate Structure
Your corporate structure is all about corporate objects. Products, brands, assets, functional units
(departments), SBU, regional branches, employees, etc. A lean organization must have no
redundant objects (‘no fat’) and no missing objects (all ‘limbs’ must be in place).
Therefore, you will optimize your corporate structure and make it lean in four steps:
1. Identify and visualize all your corporate objects (it is a comprehensive analysis)
2. Identify & eliminate redundant objects (‘cut fat’)
3. Identify & add missing objects (‘add limbs’)
4. Integrate your objects in the most efficient & natural way
In order to identify missing and redundant objects, you will need some kind of a yardstick, a
benchmark, a template, a blueprint, a ‘map’ to compare your corporate structure to. You must
always remember that in order to build a truly lean organization, you must develop, analyze and
optimize the truly comprehensive corporate structure that includes all corporate objects in your
company – and not just functional units and personnel that the ‘classic’ organization chart does.
Fortunately, such map exists. It is called a Comprehensive Corporate Objects Map (see Figure 1).
It visualizes and integrates in a natural, easy-to-understand and easy-to-use way all you key
corporate objects – both simple objects (e.g. corporate financial plan), composite objects (e.g. SBU
or regional branches) and object portfolios (e.g. brands or products). No wonder it is also called the
‘Key Business Management Diagram’ (KBMD).
To analyze in detail a composite object or an object portfolio, you will need a corresponding
decomposition diagram. An example of such diagram is presented in Figure 2.
Using KBMD and its decomposition diagrams as a reference, you develop the comprehensive
corporate objects map for your company. Which will immediately visualize (1) the missing objects
that you must add to your corporate structure; (2) redundant objects that you must remove and (3)
the right way to structure your business entity.

Figure 1. Comprehensive Corporate Objects Map (Key Business Management Diagram)
Key External Factors
Mission Statement
Vision Statement
Corporate Strategies
Operational Infrastructure
Business Units
Corporate
Organizational
Structure
Core
Competencies
Competitive
Advantages
Target
Markets
Brands
Services
Unique Value Propositions
Key Aggregate Value Generators
Corporate
Communication
System
Declaration of Corporate Identity
Corporate
Tools
Strategic Objectives
Strategic Plans
Financial Plan
Operational Plan
Workgroups
Knowledge
Management
System
Corporate
Stakeholders
Consumers
Suppliers
Corporate History
Business Plan
Owners
Partners
Gov’t
Other
NGO
Corporate Web Site
Functional Units
Knowledge
Base
Hardware
Software
Financial
Management
Regional Branches
Corporate
Projects
Corporate
Processes
Social Networks
Code of Conduct
Motivation
Products
Accounting
Systems
Tax
Influencers
Creditors
Cost
Media
Financial
Markets
Key Performance IndicatorsBusiness System
Competition
Intranet
Twitter
Campaigns
Corporate Blogs
Mobile Applications
Internal Value Centers
Human
Capital
Retail Locations
Legal Entities
Corporate Culture
Employees
Financial KPI
Balance Sheet
Profit & Loss
Cash Flows
Ratios
Corporate Governance
Corporate
Budgeting
Retained Earnings
IT Solutions
Intrapreneurship
Risk
Management
System
Documents

Figure 2. Object Portfolio Decomposition Diagram (for products portfolio)
IT Company
Products Portfolio
OS
SoftwareHardware
Servers
Office SuitesDesktop
SupportNotebook
Tablet Enterprise
Services
Tools
Integration
Consulting

How to Maximize Your Corporate Performance
To maximize your aggregate corporate performance, you must maximize the performance of both
your corporate objects and your corporate processes. Both are measured by the corresponding key
performance indicators (KPI). There is a major difference in performance maximization, however,
between corporate objects and corporate processes.
To maximize the performance of a corporate process, you usually have to perform a
reengineering of the corporate process in question (which usually automatically yields the optimal
values of process-related KPI). You seldom have to reengineer a corporate object (with the
exception of composite objects). Therefore, to maximize its performance, you will have to analyze
historic values of object-related KPI (benchmark, planned and actual) and develop and execute
plans for optimizing KPI values and thus maximizing the performance of the object in question.
To reengineer a business process, you must first visualize it (‘develop a visual model’). To do that,
you will need the right methodology (usually IDEF0), tools and technologies. Figure 3 presents an
example of an IDEF0 visual diagram for a corporate process.
How to Make Your Stakeholders Happy
To make your stakeholders happy, you will need to first identify all your key stakeholders. Then,
you must make sure that you have a comprehensive but lean portfolio of your stakeholders. In
other words, that there are no missing relationships (which you should have but do not) and no
redundant relationships that you should not have, but do. All identified missing relationships must
be established and all redundant must be terminated.
Then you must identify aggregate (FFES) needs and wants of each stakeholder (develop
comprehensive stakeholder profiles). As well as individual ‘buttons’ that need to be pushed to
make each stakeholder do what you want him or her to do (you will need it in the next section).
Then you must (1) create high expectations of your company – using the proper corporate
communication tools; (2) satisfy the needs and desires of your stakeholders, making sure that you
exceed their expectations; and (3) make sure that their expectations match the reality.
How to Get the Most Out of Your Stakeholders
To get the most out of your stakeholders (you must do it to ensure corporate harmony), you must
(1) identify the aggregate (FFES) needs of your company; (2) identify stakeholders’ decisions and
actions (‘services’) needed to satisfy these needs; and (3) make your stakeholders make the
decisions and perform actions that will satisfy these needs (you will need their ‘buttons’ for that).
To make it happen, you will need your stakeholders’ map (presented in Figure 4).

Figure 3. Example of a visual diagram for a business process (IDEF0)
Subprocess
(Job/Activity) 1
Subprocess
(Job/Activity) 2
Subprocess
(Job/Activity) 4
Subprocess
(Job/Activity) 3
Subprocess
(Job/Activity) 5
Subprocess
(Job/Activity) 6
Controls
Outputs/
Controls
Inputs
Inputs
Inputs
Outputs/Inputs
Outputs
Outputs
Outputs
Outputs/Inputs
Outputs/Inputs
Outputs/Personnel
Outputs/Tools
Personnel
Personnel
Personnel
Personnel
Personnel
Tools
Tools
Tools
Tools
Tools
Controls
Controls
Controls
Controls

Figure 4. Corporate Stakeholders Map Example
Corporate
Stakeholders
Primary Operational
Active
Shareholders
Passive
Shareholders
Consumers
Partners
Distributors
Dealers
Retailers
Suppliers
Creditors
Collaborators
Other
Government
Entities
Local
Int’l
State
Federal
Environment
Media
Other
Non-Profits
Financial
Markets
Investors
Traders
Analysts
Brokers
Other
Other
Media
Influencers
Bloggers
Civic
Leaders
Journalists
Educators
Other
Consultants

Detailed Description of a Happy Company
Obviously, you must begin your quantum leap project with a detailed vision of a happy
organization that you want to transform your business into. This section will provide you with a
basic vision (‘blueprint’) that you can customize to fit the specifics of your business.
This basic vision of a happy company is based (not surprisingly) on a Key Business Management
Diagram that I have already mentioned before. For your convenience, it is broken down into nine
sections:
1. Strategic Section
2. Financial Section
3. Organization Structure
4. Stakeholders Section
5. Marketing Section
6. Operations Section
7. Communications Section
8. Knowledge Management Section
9. Human Capital Section
Strategic Section
A happy company has an optimal structure of its business system – both comprehensive and
lean. Which means that (a) all of its objects – documents, brands, products, etc. - are both
necessary and sufficient for your company operations; (b) each object operates at the highest
possible performance and (c) all objects are in a perfect synergy with each other.
A happy company has an optimal structure of its KPI system – also both comprehensive and lean
and accessible to all of its managers and professionals on a ‘need-to-know’ basis. This KPI system
allows to see the comprehensive corporate performance picture at all times.
A happy company develops a comprehensive list of all relevant key external factors (economic,
political, legal, technology, etc.) and makes sure that (1) these factors are properly and efficiently
monitored for value-generation opportunities; and (2) these opportunities are vigorously pursued
and generate the maximum amount of aggregate value (financial, functional and emotional).
A happy company has a comprehensive, well-structured, accurate and up-to-date description of its
corporate history which is well-integrated into its corporate management system. And ensures
the perfect harmony between corporate past, present and future.

A happy company has the optimal and highly efficient corporate governance system as well as
the optimal and highly efficient corporate decision-making procedures. Which ensure that
corporate managers make the best possible decisions that are executed in the most efficient way
possible.
A happy company has the comprehensive (but lean!), logically sound and emotionally inspiring
declaration of corporate identity (DCI). Which becomes a rock-solid foundation for the whole
business system, its mission and vision statements and for the corporate culture.
A happy company develops and implements a comprehensive (but lean!), challenging, logically
sound and emotionally inspiring mission and vision statements that match the corporate key
external factors (KEF), corporate history and its DCI.
A happy company develops and implements a comprehensive set of corporate strategies
(general, marketing, financial, IT, etc.) for implementing its corporate vision. These strategies have a
perfect synergy between themselves and perfectly match the corporate KEF, corporate history and
the DCI.
A happy company develops a comprehensive set of strategic corporate objectives – financial
(revenues, profits, free cash flow, financial value) and non-financial (market share, customer
satisfaction, etc.). These strategies have an optimal “stretch”; a perfect synergy between
themselves and a perfect match with the corporate KEF, vision and corporate strategies (as well as
with corporate DCI and corporate mission statement).
To achieve its strategic objectives, a happy company develops and implements strategic corporate
plans – financial and operational – with detailed comments and explanations (typically referred to
as a business plan). These plans also have an optimal “stretch”; a perfect synergy between
themselves and a perfect match with KEF, DCI, corporate vision and mission statements and
corporate strategies of a happy company.
Financial Section
Financial section includes strategic financial plan, corporate budgeting system, a system of financial
valuation models, financial KPI – both financial statements items and financial ratios, and corporate
accounting systems for financial, cost and tax accounting.
Financial management system in a happy company is based on a rock-solid financial strategy,
tightly integrated with all other corporate strategies. Financial strategy in a happy company,
obviously perfectly matches its KEF, DCI, your corporate vision and mission statements.
In a happy company, a strategic financial plan is a financial valuation model for the entire
business entity. It is based on a rock-solid financial valuation methodology (DCF) and shows in
financial terms how the company will achieve its strategic financial objectives. First and foremost,
generate the maximum amount of financial value.

In a happy company, every corporate object (brand, product, target market, corporate tool, etc.),
process and project has its very own financial valuation model. It is based on a rock-solid financial
valuation methodology (Discounted Cash Flows - DCF) and shows in financial terms how the object
in question generates the maximum amount of financial value.
In a happy company, corporate budgeting system is based on financial valuation models for the
whole company, corporate objects and processes. And thus presents a complementary view of how
exactly financial value is generated in a business entity.
A happy company achieves optimal values of its key financial performance indicators (KPI) – on
balance sheet, income statement, statement of retained earnings, and statement of cash flows – as
well as financial ratios. These values are optimized in such a way that the financial value of a happy
company is maximized.
A happy company develops and deploys a highly efficient financial accounting system based on
the chosen accounting standards – GAAP or IFRS. However, the financial accounting system in a
happy company makes the necessary adjustments to make sure that its corporate accounting
generates totally accurate and reliable financial data, eliminating the ‘BAAP effect’ (‘barely
acceptable accounting principles’).
A happy company develops and deploys a highly efficient cost accounting system based on
appropriate methodologies. This system ensures that corporate costs are allocated to corporate
objects and processes in a correct and natural way.
A happy company develops and deploys a highly efficient tax accounting system that ensures that
the company minimizes its tax burden (and, therefore, maximizes its financial value) at the same
time staying out of legal trouble with tax authorities.
Organization Structure
A happy company develops and deploys a comprehensive (but lean!) and well-structures system of
[strategic] business units, regional branches, retail locations, internal value centers, functional units,
workgroups and legal entities.
Each of these components of corporate organization structure operates at the maximum possible
performance generating the maximum amount of financial and aggregate value.
Stakeholders Section
A happy company has a highly efficient stakeholders’ relationships management (SRM) system. So
efficient, in fact, that it can be rightfully called a shareholders focused organization.
To maximize its performance and financial value, a happy company satisfies all aggregate needs –
financial, functional and emotional [and spiritual] – of its stakeholders. To the fullest possible
extent – and definitely better than any of its competitors.

In other words, it creates the maximum amount of aggregate value - financial, functional and
emotional – for its stakeholders. Which means that it can be rightfully called an aggregate value
focused organization.
However, this aggregate value thing goes both ways. Which means that the stakeholders of a
happy company create the maximum amount of aggregate value for this company as well. Which
ensures the external corporate harmony. In other words, a happy company gets the most out of its
stakeholders.
Therefore, a happy company (a) assembles the optimal portfolio of corporate stakeholders; (b)
identifies all needs and desires of these stakeholders; (c) satisfy the aggregate needs of its
stakeholders to the highest possible extent – and definitely better than its competition and (d)
makes sure that its stakeholders satisfy its aggregate needs.
And – as perception is the only reality – it makes sure that it properly communicates superior value
of its unique aggregate value to its stakeholders.
A very important SRM component is careful expectations management. Which means that a happy
company (a) creates high aggregate value expectations in its stakeholders; and (b) always slightly
(or not so slightly) exceeds these expectations.
Marketing Section
The marketing management system in a happy company is based on a rock solid and emotionally
inspiring marketing strategy, tightly integrated with all other corporate strategies. Obviously, the
marketing strategy in a happy company perfectly match its KEF, its DCI, and its corporate vision and
mission statements.
A happy company develops and implements an optimal portfolio of its target markets and
maximizes free cash flow from these markets. Which means that it develops and maintains – at all
times – a comprehensive knowledge base on these target markets. Target markets of a happy
company exhibit a perfect synergy between themselves and a perfect match with corporate KEF,
corporate vision, corporate strategies, strategic objectives and strategic plans
A happy company is always better than its competitors – both direct and indirect. Which means
that is (a) develops and maintains – at all times – a comprehensive knowledge base on its
competitors and (b) makes sure that it is better than each of its competitors in the eyes of its
clients/customers/consumers in each target market
‘To be better than its competitors’ means that a happy company offers each of its corporate
stakeholders (clients, suppliers, partners, etc.) a unique value proposition (UVP) which is more
valuable than those of its competition. More valuable in terms of aggregate value – financial,
functional and emotional (and – where applicable - spiritual).

To be superior to its competition, UVP in a happy company satisfies the aggregate needs of its
stakeholders – financial, functional and emotional – better than its competition. Naturally, UVP in a
happy company matches its KEF, DCI, corporate vision, corporate strategies, strategic objectives
and strategic plans.
To satisfy the aggregate needs of your stakeholders, a happy company possesses, develops or
acquires a comprehensive set of core competencies. These competencies exhibit the maximum
synergy between themselves and a perfect match to key success factors in target markets, its KEF,
DCI, corporate vision, corporate strategies, strategic objectives, strategic plans and UVP.
To be better than its competitors, a happy company possesses, develops or acquires a
comprehensive set of competitive advantages. These competencies exhibit the highest possible
synergy between themselves and a perfect match to key success factors in target markets,
corporate KEF, DCI, corporate vision, corporate strategies, strategic objectives, strategic plans, key
competencies and UVP.
Revenues, profits, free cash flows and stakeholders’ value in a business entity are all ultimately
created by clients purchasing its products and services. Therefore, a happy company maximizes
financial value of each product, service and of the whole portfolio of its products and services.
Naturally, every product in a happy company exhibits the highest possible synergy with other
products and a perfect match to key success factors in target markets, corporate KEF, DCI,
corporate vision, corporate strategies, strategic objectives, strategic plans, key competencies,
competitive advantages, UVP and corporate brands.
In our highly imperfect world where ‘image is everything’, more and more revenues, profits, free
cash flows and stakeholders’ value in a business entity are generated by corporate brands. In some
cases, more than 90% of financial value of a company is represented by aggregate financial value
of its brand portfolio.
Therefore, a happy company maximizes the financial value of each of its corporate brands (bringing
it of the level of ‘corporate religion’) and of its whole brand portfolio. Naturally, brands in a happy
company exhibit the highest possible synergy between themselves, and a perfect match to key
success factors in target markets, corporate KEF, DCI, corporate vision, corporate strategies,
strategic objectives, strategic plans, key competencies, competitive advantages and UVP.
Operations Section
Key components of corporate operational infrastructure are: corporate projects, corporate
processes, corporate tools and corporate risks management system.
Each operational component of a happy company is based on a rock solid operational strategy,
tightly integrated with all other corporate strategies. Obviously, the operational strategy in a happy
company perfectly matches its KEF, its DCI, and its corporate vision and mission statements.

A happy company builds and maintains an optimal portfolio of corporate projects using the
optimal project initiation, evaluation, acceptance and execution methodology and procedure.
Which ensure that each project and the whole portfolio generate the maximum amount of
financial and aggregate value for the company.
A happy company designs and implements an optimal system of corporate processes using the
optimal business process modeling (visualization), engineering and management methodology.
Which ensures that this system generates the maximum amount of financial and aggregate value
for the company.
A happy company builds and maintains an optimal portfolio of corporate tools (assets) using the
optimal methodology and procedure for tool identification, selection, acquisition, deployment,
integration (into the whole business system), operation and liquidation. Which ensure that this
portfolio generates the maximum amount of financial and aggregate value for the company.
A happy company designs, implements and maintains an optimal risk management system based
on a rock-solid corporate risk management methodology. This methodology ensures the optimal
level of corporate risks and financial losses that maximizes the amount of generated financial and
aggregate value.
Communications Section
Communications system of a business entity (or any other organization, for that matter) includes all
key corporate communications channels (internal and external): corporate Web site, corporate
presence in all major social networks and in Twitter, corporate communications campaigns,
corporate blogs and mobile applications.
Communications system in a happy company is based on a rock solid corporate communications
strategy, tightly integrated with all other corporate strategies. Obviously, the communications
strategy in a happy company perfectly matches its KEF, its DCI, and its corporate vision and mission
statements.
In a happy company, all these communication channels make corporate stakeholders make and
execute decisions that will generate the maximum possible amount of financial and aggregate
value for the company. In particular, create and irresistible desire (an ‘itch’) to purchase the
maximum amount of corporate products and services.

Knowledge Management Section
Corporate knowledge management system includes the comprehensive corporate knowledge base
(CKB), corporate cockpit interface into this CKB, computer hardware and software, corporate
Intranet, corporate documents management system, and a very important CKB component – best
management practices.
Knowledge management component of a happy company is based on a rock solid corporate
information & knowledge management strategy, tightly integrated with all other corporate
strategies. Obviously, this strategy in a happy company perfectly matches its KEF, its DCI, and its
corporate vision and mission statements.
A happy company designs, builds and maintains a truly comprehensive (but lean!) corporate
knowledge base. Comprehensive in a sense that it contains all data and information that can be
transformed into all knowledge that company managers and professionals need to make the best
decisions and execute them in a most efficient way (and thus to maximize the corporate
performance and aggregate value).
Corporate cockpit in a happy company provides a uniform and easy-to-use interface into the CKB
and knowledge mining tools that make it possible to access this knowledge – either via links to
documents or using queries.
A crucial component of the CKB in a happy company is the database of best management
practices (BMP) supported by the proper methodology and procedure of identification,
dissemination and adoption (through training, coaching, self-education, etc.) of these practices by
corporate managers and specialists.
A happy company deploys an optimal, well-integrated and high-synergy system of software
products. This system creates the maximum amount of financial and aggregate value by efficiently
automating key business processes and knowledge management activities.
A happy company utilizes highly efficient software deployment, training and coaching system to
ensure that corporate managers and specialists (a) use all valuable software features and (b) use
them in the most efficient way, thus getting the most out of every software product in terms of
aggregate value.
A happy company deploys an optimal, tightly integrated and high-synergy system of computer
hardware items (‘hardware platform’) that provides highly efficient support for comprehensive
corporate knowledge base and the corporate software system.
A happy company deploys an optimal, tightly integrated and high-synergy Intranet system that
maximizes the efficiency of (a) horizontal and vertical collaboration in the company on generating
financial and aggregate value; and (b) overall utilization of its human capital (ROI into its human
capital).

Human Capital Section
Human capital of a business entity includes the following components: human capital proper (its
employees or workforce), its human capital management system, its corporate culture and
corporate code of conduct, its motivation system and intrapreneurship support system.
Human capital component of a happy company is based on a rock solid human capital
management strategy, tightly integrated with all other corporate strategies. Obviously, this strategy
in a happy company perfectly matches its KEF, its DCI, and its corporate vision and mission
statements.
A happy company assembles and keeps a lean, competent, experienced, efficient and highly
motivated workforce; both necessary and sufficient for maximizing the aggregate value of a
business entity.
Workforce, where knowledge and experience of every manager and professional perfectly matches
their corporate responsibilities. Workforce, expertly supported by highly efficient employee training,
coaching and overall development programs.
A happy company builds and maintains optimal corporate culture and code of conduct focused
on maximizing financial and aggregate value of the company; satisfying aggregate needs –
financial, functional and emotional – of all corporate stakeholders; mutual respect, trust,
cooperation and collaboration – vertical and horizontal, external and internal; intrapreneurship (in
broad terms); kaizen – continuous maximization of individual, workgroup and corporate
productivity; and overall ‘corporate happiness’.
A happy company develops and implements a perfectly personalized and customized employee
motivation system (including both financial and non-financial components). This system
stimulates employees to maximize their individual value-generating performance and the efficiency
of their collaboration in groups and in the whole company.
A happy company develops and implements a highly efficient (in terms of financial value
generation) intrapreneurship support system. Including motivation; idea generation, description
and structuring; evaluation and execution.
All of this is made possible by a highly efficient human capital management system. The system
that includes highly efficient methodologies and processes for locating, hiring, adapting, utilizing,
evaluating, training and terminating corporate employees. The system that maintains a perfect
balance between full-time, part-time and contract employees.

Seminar “How to Transform Your Business into a Happy Organization”

Corporate Happiness and Strategic Management Consulting

About the Author
I graduated summa cum laude from a combined B.Sc./M.Sc. program in theoretical nuclear physics
from Moscow Engineering & Physics Institute (at the time one of the best ‘hard sciences’ schools).
However, one master’s degree was not enough for me, so I obtained the second one – an MBA in
Information Systems from the University of Texas at Arlington. Which allowed me to land a much-
coveted job of a corporate analyst in the corporate financial department of Vienna-based
Creditanstalt Investment Bank – at the time rated the best in Central and Eastern Europe.
I worked both on M&A deals and private placements (sell side mostly); but in all cases I essentially
conducted a comprehensive business analysis and was actively involved in strategic corporate
reengineering projects aimed at making a quantum leap in financial value and corporate
performance of the business entity in question.
To maximize financial value and aggregate performance of the business in question, I needed the
right (i.e. the most efficient) management tools and technologies. Unfortunately, all those available
suffered from very serious deficiencies. Not only were they not capable of a truly comprehensive
and uniform business analysis, but they did not even provide a genuine and natural fundamental
business management objective!
I spent quite a few years developing these tools and technologies, finally coming up with what I
called Organization Description Language – ODL, and ODL-based software (Quantum Leap Workbench).
Its ‘lite’ version – CBA Toolbox – is one of the handouts of my course on corporate happiness.
In the process of this R&D, I came to a firm conclusion that the genuine and natural objective of
managing a business is corporate happiness. In other words, building a happy business (if your
company is still a startup) or transforming your business into a happy organization (and making it stay
that way!) if your company is already an established business entity.
I published 50+ articles and a book on strategic management. I have just completed another book -
Blueprint for a Quantum Leap: A Comprehensive Business Analysis Guide and currently I am
working on still another book – How to Transform Your Business into a Happy Organization.
Contact Information:
I want you to be happy and successful. I want you to transform your business into a happy
organization; to optimize your corporate structure, to maximize your corporate performance, to
make your stakeholders very, very happy and to get the most out of them.
Oleg Cheremnykh (Lions)

WhitePaperBuildingHappyCompany

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