Consumer Sovereignty


Mainstream economics uses some simple starting points; it believes that they are the best possible. First is that agents have more wants than they can attain, so that they feel scarcity; in fact, for practical purposes, wants are assumed to be endless. Second, third and fourth are that agents are self-interested, rational, and the best judges of their own well-being. These four assumptions are indeed usually good starting points, rather than starting by assuming that agents are completely fulfilled, altruistic, irrational, and not well-placed to evaluate their own situation. They are not equally good as finishing points. Sometimes good arguments exist for not accepting them.

An assumption that agents are the best judges of their own well being is less questionable for businesspeople and corporations, given the resources they have for analysis. Debate focuses more on consumers. The phrase consumer sovereignty is sometimes read descriptively, to mean that consumers are sovereign, in that procedures are induced via profit-seeking and competition  to provide what consumers want. Sometimes it is read normatively, to mean that consumers should be sovereign, their wishes should prevail concerning what is good for them. The normative claim can rest on three different bases: that consumers do make good choices; that the alternative stance is worse – to use someone else’s judgments and estimates of what is good for a person and how good it is; or quite differently, that people have the right to make their own choices and mistakes.

Consumers will not make good choices automatically and unconditionally. Our wants are not simple; for example, some are wants to not to have other wants (such as the desire to smoke or a compulsion to gamble). Establishing a mature balance between wants involves skills. Choice is also unlikely to bring satisfaction if taken on the basis of weak information. Markets often do not provide consumers with full and reliable information, for it is hard to exclude people from information and therefore to ensure payment for it, so its market supply is weakened. Instead, in a commerce-dominated society, one of the main types of information that adults get will be images that say the good life is obtained through high consumption of commodities; there is too little counteracting public information.

The issue of consumer sovereignty goes beyond whether choices are good for the chooser. Other people are affected. Some wants may thus be unacceptable, notably wants that bring harm to others, including even wants to harm others. Mainstream economists have unfortunately often taken a don’t-want-to-know approach to ethics in which they confuse acceptance of all wants with a value-neutral stance.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Boolean Logic


When conducting a search, you may end up with too many choices or the wrong results. Some search engines allow you to narrow your search by using Boolean Logic. Boolean Logic consists of three logical operators: AND, OR, and NOT.

AND requires all terms to appear in a record;

OR retrieves records with other term;

NOT excludes terms.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Losers’ Description of Capabilities


Corporate losers describe their capabilities in terms of the physical and financial resources they own and control and the individuals whom they employ and can manage. Their markets are places. Their people are more comfortable with tangible assets that can be seen, smelt and touched, and easily counted, measured and valued.

Because their activities depend on the availability of physical resources some losers can operate only in certain geographical areas. It may be difficult for people living elsewhere to access them and work with them. Buildings become prisons and those excluded from participation become outsiders.

In general, losers prefer more rather than less. Some consider the accumulation of resources as an end in itself. Recruiting more staff and moving to a larger property is viewed as evidence of progress. Losers focus upon the individual items of capital rather than their relevance use, and the flow of benefits that they provide. The more losers succeed in accumulating fixed overheads, the more vulnerable they become to economic forces, commercial constraints and financial pressures.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Full Warranty


A full warranty means:

  1. The warrantor will fix or replace any defective product, including removal and reinstallation if necessary, free of charge.
  2. It is not limited in time (say, to one or two years).
  3. It does not either exclude or limit payment for consequential damages unless the exclusion or limitation is printed conspicuously on the face of the written warranty.
  4. If the product cannot be repaired or has not been repaired after a reasonable number of efforts to repair it, the consumer may choose between a refund and a replacement.
  5. The warrantor cannot impose duties on the consumer except reasonable duties (the warranty cannot require the consumer to ship a piano to the factory) or a duty not to modify the product.
  6. The warrantor is not required to fulfill the warranty terms if the problem was caused by damage to the product through unreasonable use.

A full warranty does not have to cover the whole product. It may cover only part of the product, such as the picture tube of a television set. Also, anyone who owns the product during the warranty period may invoke or use the warranty.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Traditional Manager Vs. Customer-focused Manager


A traditional manager focuses on current goals. Their time and their energy is preoccupied with a series of probably corporate internally focused objectives – whether this is making a sales target, budget, profitability or some other goal, such as market share. On the other hand a customer-focused manager is led and empowered by a vision. A vision based on quality as well as quantity and results. A vision that inherently has a customer satisfaction measure and a vision that creates a feeling of pride and satisfaction in working in that way.

A traditional manager is largely reactive – making decisions, implementing plans based on the input of those above them, around them or in the external environment. ‘If it ain’t broke, don’t fix it,’ would be a common maxim. Today’s manager is largely proactive – ‘If it’s not broken, break it,’ because it’s going to be broken very soon. Today’s manager doesn’t wait for things to need a reason for change; they change things for the sake of it. Whether this is just simply the office layout, the times people take their lunch, company policies, prices, brochures, and markets – everything else has to be a proactive activity today. If you wait for the market to change you will probably always be one step behind. One step behind what the customers need and want and what your competitors are doing.

A traditional manager will often seek, either directly or indirectly, to limit other people’s participation. Typically, meetings between managers are excluded from input from other people, or they don’t involve other people perhaps as much as they should do – this is never seen as necessary. But today it is essential. Today’s manager has to promote involvement; they need opinions, thoughts, ideas, and feedback from all levels within the organization. The best way of achieving this is by one of two methods. The first is one we could loosely name ‘random communication,’ where just by simply creating the environment where people can mix and mingle, communicate, participate and share, ideas can be distributed. The other way is by doing something slightly more formal, by putting in place a series of waterfalls or communication falls where information and participation flows around the organization.

Traditional managers will probably reward people based on their qualifications or long service. A more customer-focused manager will reward and recognize people based on their ability to enhance customers and deliver excellence. For example, it is not uncommon for managers to regularly single out for some form of payment, or just simple recognition, those people in a customer service team who have gone beyond the normal levels and delivered something extraordinary during their job. Whether it was staying late sorting out a customer problem, coming up with an idea which helped the business move forward, making big improvements in their own work – these are the things that managers reward.

Another thing that has to change if you are going to move forward and lead successfully in a customer-focused organization is that you have to let go of solving problem yourself. One very successful manager who ran a very effective customer service team had a big sign on their wall. You can come in here with any problem at all, so long as you have one idea for a solution.

A traditional manager also sees their role as controlling information. They will keep their staff and other people on a ‘need to know’ basis. This is not how it works. Information should be shared, but not broadcast. A good manager will communicate actively and pro-actively to all concerned. He or she will keep them informed of the information they need to deliver the best possible service to the customer. This means the information is timely, relevant and understood.

Managing in today’s environment, with the pressures of working with ever demanding customers, will invariably result in matters of conflict and disagreement. Rather that patching these over, ignoring them, or letting them sort themselves out, as is perhaps more traditionally done by managers, these should now be sought out and moderated to a successful outcome.

A customer-focused manager ‘walks the talk’. He or she must act congruently and with the same values and honesty that they want their staff to deliver to their customers. That means they keep commitments, it means they under promise and over deliver, and they make everyone of their employees feel special and a valuable member of the team. Nobody just does a job and goes home, there is a purpose, a value and a mission.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Closed-loop Teams


For years, banks have taken several days, and even weeks and sometimes months to get a decision to a personal loan applicant. The application would be passed around the various departments, traveling at its own pace. A series of supervisors, clerks, and internal mailpeople handled it. Today, aggressive banks take the application directly into a focused, coordinated group—a credit analyst, a collateral appraiser, and a senior personal banker—who decide and respond to the customer sometimes in thirty minutes and always inside a day. This is a small closed-loop team.

 

A closed-loop team includes everyone who is necessary to make the deliverable flow. The team includes all the needed functional people and decision-makers and is self-scheduling. Everyone the team is working for the same objective—to provide the deliverable on time. The team is empowered to make decisions and to act. It has all functions inside it with short lines of communication. Its leader is responsible for its overall performance and for seeing that it gets all the capability, both technicall and human, it needs. All of these are essential to flexibility.

 

The old bank loan approval process was open loop. There was no continuity in the process, no visible standard, little learning between the principles, only occasional feedback on the process, and no one responsible for making it better.

 

In order for the loop to close on a process it must be tightly organized around the deliverable; the same core group must be involved in the process every day; and there must be a working leader on the team.

 

Small teams work better than large ones because large groups create communication problems of their own. It’s best to include only essential functions and to exclude people whose job is peripheral to the deliverable. For example, the bank loan team excludes accounting and records people. Teams have to be self-managing and empowered to act because referring decisions back up the line wastes time and often leads to poor decisions. So the team ioncludes a bank officer because if the officer were not on the team, he or she would be prone to second-guess the group’s decisions. Its better if all the questions are asked and answers are exchanged just once.

 

Closd-loop teams handle variety better than open-loop teams because they can create new information and flexibility.

 

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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