Incremental Change Analysis


Most business focuses on the current situation, with changes defined on an iterative, cumulative basis. In this context, issues represent problems or opportunities for change from the current situation. The gaps represent ways that a company may achieve or enhance a competitive edge.

The most common way to define issues is to assess the changes that are expected t occur. These are derived from either internal or external changes, intended by management or occurring as a result of uncontrolled forces (as in workforce changes). Issues are identified in the way that people normally think—incrementally from the present toward future.

In this process, managers identify and evaluate human resource issues by sorting through available strategic planning, competitive, and environmental information for evidence of changes having human resource implications and then define human resource issues that may be addressed. Such analysis may examine employee productivity issues, service quality, staffing surpluses or shortfalls, succession needs, skill requirements, utilization, costs, turnover/retention patterns, or employee attitudes.

Managers also obtain and consider perspectives of relevant constituents, such as other managers and employees, vendors, suppliers, and customers. Companies solicit inputs from managers at various levels through their participation in the planning process or through interviews, focus groups, or surveys with key managers. Many companies survey employees, either specifically for planning inputs or more broadly as an assessment of organizational climate and human resource practices. Companies may involve employees through interviews or focus groups to help define issues and alternative strategies. Some also interview or survey customers, contractors, and other business partners regarding human resource issues to be addressed.

Environmental scanning is used to identify prospective human resource issues deriving from changing external conditions. Scanning the many changes occurring in social, political, legislative, demographic, economic, technological and other areas yields a wide array of issues that may be considered.

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.

Measuring Productivity


You are likely to be judged – at least to some extent – by your financial performance. But financial measures such as profitability and return on investment are really indirect measures of the operations, good financial performance comes from good operations. You can measure the operations more directly using measures such as productivity, utilization and efficiency.

Productivity is the most common measure of operations. It shows the amount of output that you create for each unit of resource used. You might, for example, measure the number of units made per employee, sales per square meter, or deliveries per vehicle.

Your competitors are always trying to gain an advantage, and an effective way of doing this is by increasing their productivity. You then have to match their improvement simply to stay in business. So the benefits of higher productivity include:

  • Long-term survival;
  • Lower costs;
  • Less waste of resources;
  • Higher profits, wages, real income, etc;
  • Targets for continually improving operations;
  • Comparisons between operations;
  • Measures of management competence.

These are good reasons for improving productivity. But how can you do it? At the very worst, you simply make people work harder – problem solved. In reality there are four ways of increasing productivity:

  1. Improve effectiveness – with better decisions;
  2. Improve efficiency – with a process that gives more output for the same inputs;
  3. Improve the process – getting higher quality, fewer accidents, or less disruption;
  4. Improve motivation – getting better results from the workforce.

One of the problems with improving productivity is that employees see it as an excuse for sacking them. Productivity is really a measure of improvement performance, and it has very little to do with the old-fashioned idea of getting people to work harder. An enthusiastic person digging a hole with a spade can work very hard, and still be far less productive than a  lazy person with a bulldozer. Typically, 85 percent of productivity is set by the process which is designed by managers and only 15 percent is due to the individual workers.

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.

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