Organization

Business Functions

Business Functions Jonathan Poland

Business functions are the activities that are essential to the operation and success of a business. These functions are typically organized into departments or teams and are responsible for managing specific areas of the business. There are several key business functions that are common to most organizations. These include:

  1. Marketing: The marketing function is responsible for promoting and selling the products or services of the organization. This may involve activities such as market research, advertising, and sales.
  2. Finance: The finance function is responsible for managing the financial resources of the organization. This may include tasks such as budgeting, financial planning, and financial reporting.
  3. Human resources: The human resources (HR) function is responsible for managing the people-related activities of the organization. This may include tasks such as recruiting, training, and employee development.
  4. Operations: The operations function is responsible for managing the production and delivery of the organization’s products or services. This may involve tasks such as production planning, inventory management, and logistics.
  5. Information technology: The information technology (IT) function is responsible for managing the organization’s information systems and technology infrastructure. This may include tasks such as system design, implementation, and maintenance.
  6. Governance: The direction and control of a firm. Manages the performance of management.
  7. Strategy: The development of strategy and implementation of change.
  8. Research & Development: The process of innovating including market research, business experimentation and product development.
  9. Customer Service: Managing relationships with customers and handling requests such as inquiries and returns.
  10. Production: Production such as the manufacturing of products or delivery of services.
  11. Distribution: The process of reaching the customer with your products and services.

Management Levels

Management Levels Jonathan Poland

A management level is a layer of accountability and responsibility in an organization. It is common for organizations to have up to three management levels. The levels are typically referred to as top-level management, middle-level management, and lower-level management.

  1. Top-level management: Top-level management, also known as strategic-level management or senior management, refers to the highest level of management in an organization. This level includes the chief executive officer (CEO), the chief financial officer (CFO), and other top executives. Top-level management is responsible for setting the overall strategy and direction of the organization and making high-level decisions.
  2. Middle-level management: Middle-level management, also known as operational-level management, refers to the level of management that is responsible for implementing the strategies and plans developed by top-level management. This level includes managers who are responsible for overseeing the day-to-day operations of the organization and making decisions that impact the immediate work environment.
  3. Lower-level management: Lower-level management, also known as front-line management, refers to the level of management that is responsible for supervising and coordinating the work of front-line employees. This level includes supervisors, team leaders, and other managers who are responsible for overseeing the work of individual employees and ensuring that tasks are completed efficiently and effectively.

Strategic Partnership

Strategic Partnership Jonathan Poland

A strategic partnership is a relationship between two or more organizations that is characterized by mutual cooperation and the sharing of resources in order to achieve common goals and objectives. Strategic partnerships are often formed in order to achieve competitive advantage, gain access to new markets or technologies, or share risk and cost.

There are several key factors that are important to consider when establishing a strategic partnership. These include:

  1. Alignment of goals and values: It is important that the goals and values of the partnering organizations are aligned in order to ensure that the partnership is successful. This may involve identifying shared goals and objectives, as well as identifying areas of potential collaboration and cooperation.
  2. Synergies: Strategic partnerships can be successful when the partnering organizations have complementary strengths and resources that can be leveraged to create value. For example, if one organization has strong marketing capabilities and another has a strong product development team, the two organizations may be able to work together to create innovative new products and bring them to market more effectively.
  3. Communication and transparency: Effective communication and transparency are critical to the success of a strategic partnership. It is important for the partnering organizations to be open and transparent with each other and to establish clear lines of communication in order to ensure that the partnership is effective.
  4. Governance: It is important to establish clear governance structures and processes in order to ensure that the strategic partnership is effective. This may involve establishing committees or other decision-making bodies, as well as defining roles and responsibilities within the partnership.

Overall, strategic partnerships can be an effective way for organizations to achieve common goals and objectives and create value. By considering these key factors and establishing strong governance structures and processes, organizations can ensure that their strategic partnerships are successful. The following are common types of strategic partnership.

Research & Development

Join programs of innovation and product development. For example, solar companies that invest in a development project for more durable solar cells that can be used as roads.

Design

Design partnerships such as a small design firm that partners with a large established manufacturer on a line of shoe designs. This gives the small firm access to efficient manufacturing and extensive marketing capabilities. The large firm benefits from fresh designs from a growing firm that has demonstrated its ability to design for certain target markets.

Supply

Suppliers such as a strategic supply of a material that is in high demand such that shortages are likely.

Outsourcing

Outsourcing non-core business activities in order to focus on areas of competitive advantage. For example, a real estate company that outsources its information technology functions.

Supply Chain

Supply chain partners such as a web based company that develops partners with supermarkets and convenience stores to act as pickup points for packages.

Distribution

Distribution agreements such as a retailer that agrees to sell your products in its stores.

Value Added Resellers

A partner that adds services or additional product features to your offerings before reselling them. For example, a partner that sells your software product as a service.

Promotion

Promotional partners such as a beverage company that partners with a summer music festival to promote its brand.

Branding

Brand partnerships such as a cobranded product.

Projects

Funding a shared program or project. For example, a partnership of IT firms that funds a new internet backbone that benefits both companies.

Sustainability

A commercial entity that partners with a non-profit to improve communities or the environment. For example, a fast food restaurant that funds an ocean plastic clean up initiative.

Organizational Structure

Organizational Structure Jonathan Poland

Organizational structure refers to the formal systems that define how an organization is governed, directed, operated, and controlled. It is an important aspect of organizational design, as it determines how authority and responsibility are distributed within the organization and how decisions are made.

There are several key elements of organizational structure that are important to understand. These include:

  1. Authority: Authority refers to the power and control that individuals or groups have within an organization. Authority is often depicted using an org chart, which maps out the authority of individual roles and shows how decisions are made within the organization.
  2. Responsibility: Responsibility refers to the duties and obligations that individuals or groups have within an organization. Responsibility is typically defined by an individual’s role or position within the organization and is enforced through processes such as performance management.
  3. Accountability: Accountability refers to the expectation that individuals or groups will be held accountable for their actions and decisions within an organization. This may involve establishing clear rules and expectations for individual and group behavior, as well as processes for evaluating and measuring performance.

Organizational structure is an important aspect of organizational design that defines how an organization is governed, directed, operated, and controlled. By understanding the authority, responsibility, and accountability of individual roles within the organization, individuals and organizations can work together effectively and achieve their goals. There are several common types of organizational structure that are used in businesses and other organizations. These include:

  1. Hierarchical structure: A hierarchical structure is a traditional organizational structure that is characterized by a clear chain of command and a pyramid-like hierarchy of authority. In this structure, decisions are made by higher levels of management and are then communicated down to lower levels of the organization.
  2. Flat structure: A flat structure, also known as a horizontal structure, is an organizational structure that has a relatively flat hierarchy and few or no layers of management. This structure allows for greater collaboration and flexibility, but may also be less efficient in terms of decision-making.
  3. Matrix structure: A matrix structure is an organizational structure that combines elements of both hierarchical and flat structures. In a matrix structure, individuals may report to multiple managers, and decisions are made through collaboration and coordination between different functional and business units.
  4. Divisional structure: A divisional structure is an organizational structure that is based on the division of the organization into smaller, autonomous units, each with its own set of goals and objectives. Each division may have its own hierarchical structure and may operate independently or in coordination with other divisions.
  5. Virtual structure: A virtual structure is an organizational structure that relies on technology and virtual communication to connect individuals and teams that are physically dispersed. This structure allows for greater flexibility and collaboration, but may also present challenges in terms of communication and coordination.

Data Security

Data Security Jonathan Poland

Data security is the practice of protecting data from unauthorized access, use, modification, destruction, or deletion. It is a key aspect of information security that is focused on protecting data stores, knowledge repositories, and documents from external threats and vulnerabilities.

There are several key aspects of data security that are important to understand. These include:

  1. Data protection: Data protection refers to the measures that are implemented to protect data from unauthorized access, use, or modification. This may include measures such as encryption, access controls, and authentication protocols.
  2. Data retention: Data retention refers to the practice of storing data for a specific period of time in order to meet legal, regulatory, or business requirements. Data retention policies can help to ensure that important data is not deleted or lost.
  3. Data backup: Data backup is the process of creating copies of data in order to protect against data loss due to hardware failure, software bugs, or other unforeseen events.
  4. Data recovery: Data recovery is the process of restoring data that has been lost, damaged, or corrupted. Data recovery is often necessary after a data breach or other security incident.

The following are common data security techniques and considerations.

  • Data Anonymization
  • Data Authentication
  • Data Backup
  • Data Breach
  • Data Control
  • Data In Rest
  • Data In Transit
  • Data In Use
  • Data Masking
  • Data Purging
  • Data Remanence
  • Data Room
  • Data Sovereignty
  • Data States
  • Data Subject
  • Data Wipe
  • Deep Magic
  • Degaussing
  • Self-Destruct Mechanism

Cyber Security

Cyber Security Jonathan Poland

Cybersecurity is the practice of protecting computing resources from unauthorized access, use, modification, misdirection, or disruption. It is a critical concern for individuals and organizations in today’s digital world, as the increasing reliance on technology has made it easier for cybercriminals to gain access to sensitive data and systems.

There are several key aspects of cybersecurity that are important to understand. These include:

  1. Threats: Cybersecurity threats are actions or events that have the potential to compromise the security of a computer or network. Examples of cybersecurity threats include malware, viruses, phishing attacks, and denial of service attacks.
  2. Vulnerabilities: Cybersecurity vulnerabilities are weaknesses in a computer or network that can be exploited by attackers. These vulnerabilities can include software vulnerabilities, configuration errors, and lack of security controls.
  3. Controls: Cybersecurity controls are measures that are implemented to prevent or mitigate cybersecurity threats and vulnerabilities. Examples of cybersecurity controls include firewalls, antivirus software, access controls, and encryption.
  4. Incidents: Cybersecurity incidents are events that compromise the security of a computer or network. These incidents can include data breaches, malware infections, and unauthorized access to systems.

Overall, cybersecurity is a critical concern for individuals and organizations in today’s digital world. By understanding the threats, vulnerabilities, and controls that are involved in cybersecurity, individuals and organizations can take steps to protect themselves and their computing resources from unauthorized access, use, modification, misdirection, or disruption.

Some examples of cybersecurity include: 

  1. Firewalls: Firewalls are network security systems that monitor and control incoming and outgoing network traffic based on predetermined security rules.
  2. Antivirus software: Antivirus software is designed to detect and prevent the execution of malware on a computer or network.
  3. Access controls: Access controls are security measures that are implemented to allow or deny access to specific resources or systems based on predetermined criteria.
  4. Encryption: Encryption is the process of encoding data in such a way that it can only be accessed by authorized parties with the necessary decryption key.
  5. Two-factor authentication: Two-factor authentication is a security process that requires users to provide two forms of authentication, such as a password and a fingerprint, to access a system or resource.
  6. Network segmentation: Network segmentation is the process of dividing a network into smaller, isolated segments in order to reduce the risk of data breaches and other security incidents.
  7. Virtual private networks (VPNs): VPNs are secure networks that are created over public networks, such as the internet, in order to provide secure remote access to resources.
  8. Secure sockets layer (SSL) certificates: SSL certificates are digital certificates that are used to establish a secure connection between a web server and a client.
  9. Security information and event management (SIEM) systems: SIEM systems are used to collect, analyze, and manage security-related data from a variety of sources in order to identify potential threats and vulnerabilities.
  10. Intrusion prevention systems (IPS): IPS are security systems that are designed to detect and prevent unauthorized access to computer systems and networks.

What is Air Gap?

What is Air Gap? Jonathan Poland

An air gap is a computer network that is physically isolated from other networks, including the internet. This isolation is designed to protect the network and the sensitive data it contains from external threats and vulnerabilities. Air gaps are commonly used in a variety of contexts to enhance information security, including in military systems, medical devices, secure facilities such as prisons, and critical infrastructure such as nuclear power plants.

For example, a military system might use an air gap to protect sensitive information from being accessed by external parties, such as foreign governments or cybercriminals. Similarly, a hospital might use an air gap to protect patient data and ensure the integrity and reliability of its medical devices. In these cases, the air gap helps to reduce the risk of information security breaches and ensure that the systems and data are protected from external threats.

Basically, air gaps are a basic and effective approach to protecting systems and information from external threats. By physically isolating networks from other networks, organizations can reduce the risk of information security breaches and protect sensitive data from external vulnerabilities. The following are illustrative examples of an air gap.

Standalone System

An air gap can be implemented as a standalone system with no networking capabilities whatsoever. For example, a medical device that contains a microcontroller but has no interface to connect to the outside world.

Offline Storage

Data storage devices that are only connected to computers that are offline. For example, a professional musician with a vault of unreleased material that is stored on encrypted data storage devices in a recording studio. Such devices are only connected to musical instruments and computing devices that have no connection to the internet or outside networks.

Stand-alone Network

A network that connects local devices without any physical way to connect to the internet or unsecured networks. For example, the human resources team of a small regional bank want to restrict confidential employee data to three machines that have no outside network connection. The three machines are networked together and attached to various data storage devices. The machines in the network and attached devices have no wireless networking capabilities and are not connected by wire to the internet or the office’s local area network.

Large Networks

An air gap network isn’t necessarily contained to one site and can be geographically distributed at a global, regional, city or campus scale. For example, a globally distributed control system for a pipeline that is completely isolated from unsecured networks. Large air gap networks are often challenging to physically secure. For example, wireless or wired communications running great distances may be intercepted or manipulated.

Physical Security

A hydroelectric dam maintains control systems that aren’t networked to the outside world. These systems are physically secured in a management office that can only be accessed by authorized individuals with a variety of security measures in place such as an access control system and security system.

Segregation Of Duties

A hedge fund is developing financial trading algorithms in a small room with no network connections out and advanced physical security measures such as a mantrap. They often use segregation of duties to ensure that no one person can remove or bring in data to the room. For example, any updates to the system involve multiple trusted people that have different roles such that no single person could install a malicious file.

Signal Blocking

A nuclear power station is completely unconnected to any networks. Efforts are made to block wireless networking signals in sensitive areas of the facility.

Hardware Validation

Modern hardware may contain networking capabilities that is not well documented. This may be done to implement functionality such as remote support or software updates. Alternatively, networking capabilities may be built into things for malicious purposes. As such, implementing a secure air gap network requires carefully reviewing any hardware that comes into contact with the system including external storage devices and peripherals such as a keyboard.

Updates

Air gap networks can only be updated by connecting outside data storage devices. This is a high risk operation and is a common way for air gapped systems to be compromised. Updates to air gap networks require a secure end-to-end procedure that includes a chain of trust for the files you are using and segregation of duties that ensure no single person can add malicious files. The security of updates are also completely reliant on the integrity of the data storage hardware used.

Backups

Air gap networks are commonly backed up locally on the air gap network itself. Implementation of secure offsite backups requires a process with all the same elements as an update process including hardware validation, chain of trust and segregation of duties. Physical security for data leaving a facility is also an important consideration.

Data Breach

Data Breach Jonathan Poland

A data breach is a security incident in which sensitive, protected, or confidential data is accessed, disclosed, or stolen. Data breaches can occur in a variety of ways, including through cyber attacks, physical theft, insider threats, or accidental disclosures. The consequences of a data breach can be significant, as it can lead to financial losses, reputational damage, and legal liabilities for the affected organization. It can also have serious consequences for the individuals whose data has been compromised, as it can lead to identity theft, financial fraud, and other forms of harm.

There are several steps that organizations can take to prevent and respond to data breaches. These include implementing strong security measures, such as firewalls, encryption, and authentication protocols, as well as establishing policies and procedures for handling sensitive data. It is also important for organizations to have a plan in place for responding to a data breach, including protocols for notification, investigation, and recovery. Overall, data breaches can have serious consequences for organizations and individuals. By implementing strong security measures and having a plan in place for responding to a data breach, organizations can minimize the risk of a data breach occurring and take steps to protect themselves and their customers.

The following are illustrative examples of a data breach.

  • Trade Secrets – An employee emails trade secrets to her friend who isn’t authorized to access it.
  • Contacts – A salesperson loses an folder filled with business cards of customers.
  • Financial Credentials – A retailer loses the financial credentials of millions of customers to an advanced persistent threat.
  • Authentication Credentials – An email service is hacked resulting in the loss of authentication credentials such as passwords.
  • Communications – A video chat app losses videos of millions of personal conversations due to a security flaw in its public API.
  • Medical Data – A doctor sends a patient someone else’s medical data.
  • Personal Data – A virus allows an individual to look at the files on a person’s mobile device including photos, contacts, communications and receipts of financial transactions.
  • Photos – A cloud storage app is hacked resulting in the publication of private photos to the public.
  • Employee Records – A technician loses a backup containing thousands of employee records including highly confidential details such as salary and medical insurance claims.
  • Designs – A computer is stolen from an office that contains the confidential product design of an upcoming mobile device.
  • Financial Data – An employee in accounting mistypes an email address and accidentally sends confidential information regarding a company’s quarterly financial results to an outside domain.

Operations Security

Operations Security Jonathan Poland

Operations security, also known as “opsec,” is the practice of protecting sensitive information in the context of day-to-day business activities. It involves identifying the information that needs to be protected, and implementing measures to ensure that this information is kept secure. This may include using tools and technologies to secure data, as well as establishing policies and procedures for handling sensitive information.

One key aspect of operations security is awareness of how seemingly harmless disclosures of information can be used by attackers. For example, an employee who posts on social media about an upcoming company event may not realize that they are providing valuable information to potential attackers who are trying to gain access to the company’s network or steal sensitive data. By being aware of the potential risks of sharing certain types of information, individuals and organizations can take steps to protect themselves and their data.

Overall, operations security is an important practice for protecting sensitive information and minimizing the risk of data breaches. By implementing effective opsec measures, organizations can ensure that their information is kept secure and that they are better prepared to prevent and respond to potential threats.

The following are examples of operations security.

  • Information Classification – A product development team that handles trade secrets develops a classification scheme for information and applies it to all documentation and communications.
  • Information Security Awareness Training – An organization requires all employees to take information security awareness training that examines memorable test cases whereby social processes allowed information to be disclosed that enabled security attacks.
  • Encryption – Encrypting all data in storage and transit on all devices.
  • Conversation Policies – Policies that prevent employees from discussing confidential business outside of secured locations.
  • Secure Locations – Mergers & acquisition talks that take place at a private location provided by advising banks. Talks may be confined to a single room with a focus on using paper documents that can’t be removed from the room.
  • Data Relationships – A customer is cautious about giving out their mobile phone number because they are aware that this can be used as a key to pull up data about them.
  • Legal – A bank considers privacy policies and information security capabilities in the selection of technologies and services.
  • Reputation – A customer considers the reputation of a telecom provider in protecting customer privacy.
  • Clean Desk – An organization requires employees to keep desks free of paper and lock up devices when they aren’t attended.
  • Tools – A small business runs untrusted programs and web browsers in a sandbox tool that confines information security attacks to a virtual environment.
  • Social Media – A bank advises customers to avoid disclosing information in social media that is commonly used in security checks to confirm identify.
  • Communications – A bank advises customers to contact them immediately if they do not receive bank statements in the mail.
  • Web Forgery – An insurance company asks clients to report websites that use similar web addresses and visual symbols of the company such as logos.
  • Internet of Things – A business avoids purchasing non-essential internet connected devices that contain sensors that may compromise security.
  • Devices – A confidential meeting conducted by a standards organization asks that participants leave devices that are internet connected such as watches outside the room.
  • Incident Reporting – A sales team is trained to immediately report potential security breaches such as loss of a mobile device or accidental click on a suspicious email link.
  • Regulations – A government establishes laws and regulations that prevent telecom companies from selling data about customers such as monitored communications, location and sensor data.

Performance Problems

Performance Problems Jonathan Poland

Performance problems are issues that arise in the workplace due to the inadequate or poor performance of an individual. These problems can be caused by a variety of factors, including an individual’s skill level, work ethic, or ability to work effectively with others. When performance problems are identified, it is typically necessary for management to take action in order to address the issue and improve the individual’s performance. This may involve implementing a performance improvement plan, taking disciplinary action, or even dismissing the individual if the problems cannot be resolved.

When assessing performance problems, it is important to consider the recent contributions of the individual in question and the nature of their role. For example, a salesperson who takes long lunch breaks might not be a problem if they are consistently meeting or exceeding their sales targets and fulfilling the other responsibilities of their role. On the other hand, if the same salesperson is consistently failing to meet their sales targets and is not following up with customers or performing other essential duties, this could be a performance problem that requires management intervention.

Overall, performance problems can be disruptive and damaging to an organization if they are not addressed in a timely and effective manner. By regularly monitoring employee performance and taking appropriate action when problems arise, organizations can maintain high standards of performance and contribute to the overall success of the team or organization.

The following are illustrative examples of performance problems.

  • Absenteeism
  • Authoritarianism
  • Avoids Accountability / Responsibility
  • Avoids Work / Action Items
  • Breaks Law
  • Brings Personal Problems to Work
  • Brings Politics / Ideology To Work
  • Bypasses Process & Procedures
  • Client Dissatisfaction
  • Compliance Violations
  • Defeatism
  • Derails Projects
  • Disconnect From Performance Reality (low performer demands constant recognition)
  • Discrimination & Biases
  • Dishonest
  • Disrespectful
  • Exceeds Authority
  • Excessive Breaks / Socializing
  • Extended Period of Generally Low Performance
  • Fails to Follow Direction
  • Failure to Achieve Objectives
  • Failure to Make Proper Notifications (e.g. for sick day)
  • Harassment
  • Health & Safety Hazards
  • Hostile to Customers
  • Hostile to Management
  • Hostile to Peers
  • Ignores Workplace Health & Safety Practices
  • Inaccurate
  • Inappropriate Communication (e.g. emails entire company about personal opinions)
  • Incivility
  • Information Security Lapses
  • Insubordination Intimidation
  • Lack of Candor
  • Lacks Objectivity
  • Lateness
  • Low Throughput
  • Malicious Compliance
  • Misses Deadlines
  • Misuse of Funds
  • Misuse of Time
  • Moody, Irritable or Overly Emotional
  • Negative Office Politics
  • Outrageous Behavior at Any Time that Damages Reputation of Employer
  • Overly Passive
  • Overreaction to Criticism
  • Passive Aggressive Behavior
  • Poor Attention to Detail
  • Poor Budget Control
  • Poor Listening Habits
  • Poor Work Quality
  • Resistance to Change
  • Resistance to Policy
  • Sabotage
  • Sidelines Management
  • Sidelines Stakeholders
  • Stakeholder Dissatisfaction
  • Submits Inaccurate Accusations
  • Substance Abuse
  • Subverts Internal Controls
  • Unauthorized Public Disclosures (violates policy or contract)
  • Unavailable During Core Working Hours
  • Unethical Behavior
  • Unprofessional Behavior
  • Unreasonable Complaints & Resentments
  • Wasted Resources / Cost
  • Workplace Bullying
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