How does golf maths work? I was musing on this matter the other day with my professional mentor the Resources Director. I think his name is Roger. He introduced me to the SouthWest One analogy to explain handicapping. In my favourite game each player, depending on skill, is given a certain number of strokes that they can take off their score. In addition, each hole on the golf course has a number of strokes that the average player should use to make it to the goal. At the end of the game, each of the golf players take their raw score, or the number of actually shots, and then subtract the number of allowed strokes to obtain their net score. As you would expect golf handicaps are second nature to me, but the handicap system in the business world is decidedly more complex as Roger explained: “Each member of the Joint Venture Partnership has an agreed number of procurement transactions depending on size and other factors. If, however, during the game any member chooses to reduce the procurement total then there are financial penalties levied by IBM.” Once Roger had explained what IBM was he patiently sat with me in the canteen using golf tees as counters to help me understand what really happens. Now I am in the picture and regard myself as something of an expert. What it means is that when we cut procurement back – and, by golly, we will – there will be a hefty fine unless we can attract new customers to join the club. I meant to ask Roger why he hadn't forseen this problem when he originally signed the contract but I forgot. So come on Cornwall. Join us in this exciting corporate venture. Sign up to SouthWest One and Somerset will save a few bob. I think that’s right, isn’t it Roger?
Tuesday, 8 September 2009
A financial handicap
How does golf maths work? I was musing on this matter the other day with my professional mentor the Resources Director. I think his name is Roger. He introduced me to the SouthWest One analogy to explain handicapping. In my favourite game each player, depending on skill, is given a certain number of strokes that they can take off their score. In addition, each hole on the golf course has a number of strokes that the average player should use to make it to the goal. At the end of the game, each of the golf players take their raw score, or the number of actually shots, and then subtract the number of allowed strokes to obtain their net score. As you would expect golf handicaps are second nature to me, but the handicap system in the business world is decidedly more complex as Roger explained: “Each member of the Joint Venture Partnership has an agreed number of procurement transactions depending on size and other factors. If, however, during the game any member chooses to reduce the procurement total then there are financial penalties levied by IBM.” Once Roger had explained what IBM was he patiently sat with me in the canteen using golf tees as counters to help me understand what really happens. Now I am in the picture and regard myself as something of an expert. What it means is that when we cut procurement back – and, by golly, we will – there will be a hefty fine unless we can attract new customers to join the club. I meant to ask Roger why he hadn't forseen this problem when he originally signed the contract but I forgot. So come on Cornwall. Join us in this exciting corporate venture. Sign up to SouthWest One and Somerset will save a few bob. I think that’s right, isn’t it Roger?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment