Setting up a small Business

When you plan to setup your own business, many questions will come up.

  • How to do the planning?
  • How much can I charge to the customer?
  • How many orders do I need?
  • What are the risks involved?

In this presentation we will answer these questions using the key ratios we have introduced before. With a simple flow diagram the planning process is explained step by step.

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Writing E-mails

© zettberlin,

Extract from my book “Technical Writing Skills for Engineers; A practical guide for students, engineers and other professionals writing or reviewing technical documents“, Chapter VII. Tips and More; © Klaus D. Goepel, 2006 – Picture: © zettberlin,

E-mails are probably the most often utilized, but informal written documents. In today’s information age they are used extensively for all kinds of communications. As they are much more informal, spelling, grammar, punctuation and wording are not as important as in formal documents. Nevertheless, many of the principles described in the previous sections should be applied to e-mails. How you use e-mails is a question of politeness, and it will show your respect for your e-mail addressee.

Continue reading Writing E-mails

My AHP Video got more than 10000 viewers

Thanks to all visitors and viewers of my AHP video. Views exceeded 10000, quite a lot for such a special topic. I hope, you all enjoyed and could take something usefull out of it.

Here the Youtube link to this AHP video

Another practical application for ANP is in preparation: The Marketing Mix. Will still take some more time, as ANP is more complex than AHP.

More interesting things to come!

Currently I am working on the leadership topic, still trying to get more people to try out the personal inventory.

You will receive a full report free of charge when sending the file back to me. (bpmsg at bpmsg dot com)

For those, interested in nature: have a look at my sunbird video, its in HD and some of the shots are really nice in quality.

Operating Expenses

The operating expenses of a company have a high impact, not only on the company’s result, but also on other parameters, like profit per costs and minimum order income to be achieved. Even the same operating result and profitability of two companies could be of a different quality, because of different relations in fixed and variable expenses. In this presentation two performance indicators will be developed to monitor these important differences.

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Analytic Hierarchy Process (AHP)

AHP stands for Analytic Hierarchy Process. It is a multi-criteria decision making method, originally developed by Prof. Thomas L. Saaty. AHP derives ratio scales from paired comparisons of criteria, and allows for some small inconsistencies in judgments.

Inputs can be actual measurements, but also subjective opinions. As a result, ratio scales (weightings) and a consistency index will be calculated. For decision making with multiple inputs from different stakeholders, the geometric mean of individual inputs is used.

Mathematically the method is based on the solution of an Eigen value problem. The results of the pair-wise comparisons are arranged in a matrix. The first normalized Eigenvector of the matrix gives the ratio scale (weighting), the largest Eigenvalue determines the consistency ratio.

An explanation of the method can be found in my video on Youtube.

An Excel sheet, doing the calculation for up to 10 criteria, can be found in the download area. Download AHP slides.

AHP can be applied in many fields:

  • Evaluation of product features,
  • Cost-Benefit Analysis,
  • Strategy development,
  • Selection of Key Performance Indicators,
  • Deriving weights for a combined performance index,
  • Deriving a consolidated scale of importance from different inputs.

We used AHP for the evaluation of weights for the combined service index and  the hotline performance index. We also applied the method to evaluate the importance of different strategies, using multiple inputs from different colleagues, and to find the ranking of financial key performance indicators for the operational performance assessment of our companies.

Comments and feedback welcome!

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