When Marketing doesn’t Work


Marketing has not measured up to expectations in many companies because management has concentrated on the trappings rather than the substance. When most executives talk about what their companies have done to become more marketing oriented, they usually point to such actions as:

  • Declarations of support from top management in the form of speeches, annual reports, or talks to the investment community.
  • Creation of a marketing organization, including appointment of a marketing head and product or market managers, transfer to marketing of the product development and service functions, establishment of a market research function, salespeople reassigned around markets, advertising function strengthened.
  • Adoption of new administrative mechanisms, such as formal marketing planning approaches, more and better sales information, and revised information systems structured around markets rather than products.
  • Increased marketing expenditures for staffing, training and development, advertising, marketing, research.

The point is not that these actions are useless, but that by themselves they are no guarantee of marketing success. Effective marketing requires a fundamental shift in attitude and values throughout the company so that everyone in every functional area places paramount importance on being responsive to market needs. The steps taken in most companies are not useful because they fail to accomplish this crucial shift in attitude. And without this shift in attitude, the most highly developed marketing operation cannot produce any real results.

Why have so few companies gone beyond the trappings to achieve the change in attitude that ensures substantive marketing? Frequently, one or more of these situations exist:

  • In a surprising number of cases, management does not fully understand the marketing concept as it applies in its situation.
  • In many other cases, management understands the implications of the marketing concept but has not committed itself to the actions and decisions needed to reinforce it.
  • In almost every case, management has failed to install the administrative mechanisms necessary for effective implementation of the concept, especially into the non-marketing function.

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.

 

The Transformation Process


At the heart of operations management is the transformation process through which inputs (resources such as labor, money, materials, and energy) are converted into outputs (goods, services, and ideas). The transformation process combines inputs in predetermined ways using different equipment, administrative procedures, and technology to create a product. To ensure that this process generates quality products efficiently, operations managers control the process by taking measurements (feedback) at various points in the transformation process and comparing them to previously established standards. If there is any deviation between the actual and desired outputs, the manager may take some sort of corrective action.

Transformation may take place through one or more processes. In a business that manufactures oak furniture, for example, inputs pass through several processes before being turned into the final outputs—furniture that has been designed to meet the desires of customers. The furniture maker must first strip the oak trees of their bark and saw them into appropriate sizes—one step in the transformation process. Next, the firm dries the strips of oak lumber, a second form of transformation. Third, the dried wood is routed into its appropriate shape and made smooth. Fourth, workers, assemble and treat the wood pieces, then stain or varnish the piece of assembled furniture. Finally, the completed piece of furniture is stored until it can be shipped to customers at the appropriate time.

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.

Principals for Defining Privacy Policy


Companies wishing to enact an internal privacy policy or code should consider as a starting point the three concepts that help define information privacy: data collection, data accuracy, and data confidentiality.

Data Collection: the following principles should be adhered to:

  • Data should be collected on individuals only to accomplish a legitimate business objective.
  • Data should be adequate, relevant, and not excessive in relation to the business objective.
  • Data should be obtained in a lawful manner.
  • Individuals must give their consent before data pertaining to them can be gathered. Such consent may be implied from the individual’s actions (e.g., when they apply for credit, insurance, or employment).

Data accuracy: to ensure that misleading information will not be distributed, the following principles apply:

  • Sensitive data gathered on individuals should be verified before it is entered in database.
  • Data should be accurate and, when necessary, kept up to date.
  • The file should be made available so the individual can ensure that the data is correct.
  • If there is disagreement about the accuracy of the data, the individual’s version should be noted and included in any disclosures of the file.

Data Confidentiality: the privacy policy should ensure confidentiality as follows:

  • Computer security procedures should be implemented to provide reasonable assurance against the unauthorized disclosure of data. These procedures should include physical, technical, and administrative security measures.
  • Third parties should not be given access to data without the individual’s knowledge or permission, except as required by law.
  • Disclosures of data, other than the most routine, should be noted and maintained for as long as the data is maintained.
  • Data should not be disclosed for reasons incompatible with the business objective for which it was collected.

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.

Using Administrative Skills


  • Identify the three to five critical success factors that you and your group must accomplish to achieve your goals. Then develop plans to achieve them.
  • Set aside “quiet time” each day for reviewing plans and updating planning activities.
  • To balance attention to detail with broader planning, ask for feedback to ensure that you are not stressing on area over the other.
  • Build your annual department goals and objectives around the strategic plan. Then develop monthly, weekly, and daily plans to accomplish your strategic goals and objectives.
  • Have employees submit an annual work plan for your review. Ask them to include specific objectives, priorities, and time tables. Seek opportunities for assignments, requiring strategic planning.
  • Study the long-range plan for your company or division and  consider its implications for your department.
  • Break large projects into several smaller steps, with deadlines for each step. Ask for feedback regarding the adequacy of your project plan.
  • Set definite deadlines with your manager when taking on tasks.
  • Add more details to your plans.
  • Ask your manager to let you know of instances when your planning could be more effective.
  • Request assignments that require careful planning and attention to detail.
  • After your plan is developed, ask others to identify potential problems. Then determine your contingency plans.
  • Make it a habit to do an environmental scan when doing strategic planning.
  • If your specialty is strategy, use your team and peers to help develop tactics.

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.

Direct and Indirect Costs


In manufacturing, “direct costs” refer to costs that are readily traceable to products—for example, direct material and direct labor. The term is also used to identify costs that are traced as incurred to specific functions, to distinguish them from allocated or transferred costs. In distribution the classification of costs as direct or indirect depends on the segment. The more general the segment (sales division in sales territory), the greater the portion of costs directly traceable to it, the more specific the segment (products, customers), the greater the proportion of indirect costs. Direct costs are those costs that can be traced to a business segment. If that segment were eliminated, the costs no longer would be incurred.

Indirect costs, costs such as general administrative expenses, are often allocated  to segments, but this process is arbitrary at best and should be avoided.

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

Public-private partnership


In this era of modernization in many aspects of public administration, most developing countries continue to follow century-old concepts and structures. They seriously need structural adjustment thereby launching legislative and administrative reforms, which stress a reconsideration of the role of the public administration in the conditions of democratization and market-economy. A greater emphasis needs to be placed on effectiveness of the public administration. The practice and legislation of such countries should affect patterns of the role of public sector and influence fundamental features of the system of governance. A common goal should be to introduce a more contractual, participative, discretionary style of relationship: between different levels and agencies in administrative apparatus; between the decision-making authorities and operating units; and between administrative agencies and producing units, public or private.

A major reform objective in public sector management should be to increase, within the framework of democratic accountability, cost effectiveness in the public provision of goods and services. Both citizens and public administration accept the need for improved quality in the public sector.

They need to hold high the aim of structuring an effective mechanism for achieving policy objectives, determined at central, provincial and local levels for increasing efficiency, effectiveness and accountability in providing public services.

The legality and the efficiency of providing such public services are of great concern. Local authorities are empowered to do something that is intended to assist the carrying out any role.

Outsourcing is a way of contracting out one or more functions to specialist companies. This allows the public entity to concentrate on its core activities. There are three primary reasons for the public administration to outsource. The first is to achieve cost-effective provision of services. The second is to provide a choice for the citizens of producing and supplying public services of different qualities and kinds. The third is simply because there is no alternative due to a lack of staff with the requisite skills; need of relaxing the administrative burden, which somebody other could deal with even better and concentrating the attention on the core administrative matters; short deadlines for implementation. This last reason for outsourcing is to meet the needs, which exceed the capability of the public administration staff, because of a shortage of either staff or skills, or which give added flexibility to the administrative organization.

Thus, the outsourcing can be seen as a process through which relationships are managed and adjusted according to arrangements specified and conditions planned by the administrative authority in the contract documentation. The focus here is not on the legal issues of the contract rather than on the quality of contracting as a mechanism for achieving policy objectives determined at all levels of government for increasing efficiency, effectiveness and accountability. From this perspective the outsourcing by public administration can be considered as a joint commitment to partnership between public and private sector operating as a co-operative device for providing public goods and services.

The trend towards greater satisfaction of public needs and consumer empowerment underlies the role of outsourcing by public administration. The outsourcing is encouraged to secure higher quality of public works and services, whereby contracting managers are located closer to the consumer and so are better able to respond to their needs in actual delivery. The role of consumers and end-clients with respect to outsourcing can thus be increased. The strategies of improving responsiveness through outsourcing on the one hand, and hierarchical distribution of the administrative functions on the other, can be combined in a successful model of public service delivery. The administrative authorities – at federal, provincial and local levels – might participate in the specification of services and in the determination of contractual standards and terms of agreement.

As part of administrative reform outsourcing by public administration should be a high priority. The corresponding legislation should be based on three main principles—transparency, non-discrimination involving open selection criteria and open standards, specifications and standards regulated by law; and open competition.

The framework agreements are significant for ensuring the execution of the administrative power intent of the outsourced functions. The federal, provincial or local governments can use outsourcing as a tool for providing public services when carrying out their functions. They use outsourcing to get public results, which should be achieved when the governments exercise their administrative powers.

The outsourcing in some way can replace the direct administrative action. Such outsourcing has the compulsory nature same as this of the executive action which it replaces. The administration can use administrative or seek lawmaking authority to bring about the result it desires, if it is nonetheless outsourcing. A realistic view is that the process of deciding to outsource as well as the very process of outsourcing is a valid exercise of administrative power. The offered and agreed terms of the contract are also exercising of the administrative power. Once the contract signed, however, the particular relationships issued by outsourcing are moved under the regulations of the private law.

The government functioning can be improved by redefining its role: Policy-making instead of operative decision-making. It should stimulate tools for establishment of working, efficient, rational and fair practice, design of efficient allocation of financial and administrative wherewithal; transparency and control. The government must also realize that developing a training strategy for skills and incentives is badly needed.

The overall proportion of outsourcing in the field of public administration is generally expected to growing. Demand will increase for a variety of reasons.

Successful outsourcing, however, presupposes the existence of an efficient market. In

Pakistan the market for some categories of public goods and services is deficient of professionalism, integrity, and fair play. Such situation is creating conditions for corruption.

From another side, outsourcing itself contributes to developing the market.

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 contact www.asifjmir.com, Line of Sight

Innovation Defined


Innovation is the use of new knowledge to offer a new product or service that customers want. It is invention together with commercialization. It is a new way of doing things (termed invention by some) that is commercialized. The process of innovation cannot be separated from a firm’s strategic and competitive context. The new knowledge can be technological or market related. Technological knowledge is knowledge of components, linkages between components, methods, processes, and techniques that go into a product or service. Market knowledge is knowledge of distribution channels, product applications, and customer expectations, preferences, needs, and wants. The product or service is new in that its cost is lower, its attributes are improved, it now has new attributes, it never had before, or it never existed in that market before. Often the new product or service itself is called an innovation, reflecting the fact that it is the creation of new technological or market knowledge.

Innovation has also been defined as the adoption of ideas that are new to the organization. Generating good ideas or adopting a new one, in and of itself, is only a start. To be an innovation, an idea must be converted into a product or service that customers want. Coming up with the idea or prototype—invention—is one thing. Championing it, shepherding it, and nurturing it into a product or service that customers want is another. Innovation entails both invention and commercialization.

A distinction has also been made between technical and administrative innovation. Technical innovation is about improved products, services, or processes or completely new ones. This contrasts with administrative innovation, which pertains to organizational structure and administrative processes and may or may not affect technical innovation. Technical innovation may or may not require administrative innovation. A technical innovation can be a product or a process.

Product innovations are new products or services introduced to meet an external and market need whereas process innovations are new elements introduced into an organization’s production or service operations—input materials, task specifications, work and information flow mechanisms, and equipment used to produce a product or render a service.

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 contact www.asifjmir.com, Line of Sight