Risking New Ideas


If we want people in the organization to start taking some risks, we need to replace no with yes and replace limits with encouragement. The key to the development of a risk-taking organizational climate lies in the ability of management to convey the attitude that new ideas are always a hot commodity. New ideas do not have to be perfect at birth. As the saying goes: “It doesn’t have to be right the first time. It just needs to be real.”

The best risk-takers are those who act without concentrating on all the jeopardies and instead work around the fears that hang up other people. That doesn’t mean that they don’t think before they act; it does mean that in this environment, they take some well-planned chances. I’ve watched associates get better month by month at learning how to make the right risks pay off for them, personally and professionally.

When we communicate that we expect mistakes to occur when people are putting out and working hard, we create an atmosphere of encouragement.  A lot of people in corporate life have made careers out of surviving rather than succeeding; they’ve had to cope with atmospheres laced with fear, suspicion, and blame. Get rid of the blame and start celebrating the efforts and new ideas. Plan to make mistakes and still make it through.

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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Employee Rights


This issue actually spans a wide range of controversies. For example, issues have surfaced regarding the individual’s right to smoke in the workplace. As more and more organizations limit or ban smoking, this issue will continue to be somewhat controversial. Broader controversies involve issues associated with job ownership and individual rights while at work. A popular (albeit not entirely correct) assumption about Japanese organizations is that their employees have lifetime job security/ to the extent that US firms adopt this practice, the question becomes one of due process and the right to appeal in instances of dismissal or reassignment.

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.

Reinforcement Theory and Learning


Reinforcement theory, also called operant conditioning, is generally associated with the work of B. F. Skinner. In its simplest form, reinforcement theory suggests that behavior is a function of its consequences. Thus, behavior that results in pleasant consequences is more likely to be repeated, and behavior that results in unpleasant consequences is less likely to be repeated.

Reinforcement theory further suggests that in any given situation, people will explore a variety of possible behaviors. Future behavioral choices are affected by the consequences of earlier behaviors. Cognitions also play an important role. Thus, rather than assuming a mechanical stimulus-response linkage suggested by the traditional classical view of learning, contemporary theorists believe that people consciously explore different behaviors and systematically choose those that result in the most desirable outcomes.

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.

Order Cost


Order cost includes all incremental costs associated with placing or receiving an extra order that are incurred regardless of the size of the order. Components of order cost include:

  • Buyer time: Buyer time is the incremental time of the buyer placing the extra order. This cost should be included only if the buyer is utilized fully. The incremental cost of getting an idle buyer to place an order is zero and does not add to the order cost. Electronic ordering can significantly reduce the buyer time to place an order by making order placement simpler and in some cases automatic.
  • Transportation costs: A fixed transportation cost is often incurred regardless of the size of the order.
  • Receiving costs: Some receiving costs are incurred regardless of the size of order. They include any administration work such as purchase order matching and any effort associated with updating inventory records. Receiving costs that are volume dependent should not be included.
  • Other costs: Each situation can have costs unique to it that should be considered if they are incurred for each order regardless of the quantity of that order.

The order cost is estimated as the sum of all its component costs. The order cost is often a step function; it is zero when the resource is not fully utilized, but takes on a large value when the resource is fully utilized. At that point the order cost is the cost of the additional resource required.

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.

Bid Decision-Making


Following tools and techniques are used:

  1. Risk Assessment: Sellers must identify, analyze, and prioritize the risks associated with a potential project. Many world-class companies have developed practical risk assessment tools—surveys, checklists, models, and reports-containing both qualitative and quantitative information. Software programs are increasingly being developed to help managers assess risks.
  2. Opportunity Assessment: Sellers must identify and analyze the opportunities that are potentially viable. Many successful companies have developed standard forms, surveys, checklists, or models to help managers assess opportunity.
  3. Risk Management Team Process: Sound business management requires a solid understanding of risks and the methods to identify, analyze, and mitigate them. Successful companies follow a designated risk management team process, not just a best guess individual assessment.

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.

Nourish your Dream Seed


Think some more about your tomato seed. It is an excellent seed, the soil is well prepared, and you have planted it. But to grow and pay off with good-tasting tomatoes, the seed needs nourishment – sunlight, fertilizers, and water.

Your dream seed also requires nutrition – imagination, encouragement, and ideas – to grow and make you prosper. In the US alone, some two million businesses are started each year but only a small fraction succeeds. In one way or another, neglect is the main reason.

Those who make their dream of financial independence and prosperity grow in a multi-level marketing business. The basic idea – the dream seed has all the potential you need. Other people make it work. People who aren’t any smarter or better than you are.

Once the dream is planted, feed it. Attend seminars. Go to school if necessary. Join trade associations. Talk to successful people. Read.

Let other success-minded people help you. Birds of flock together. That rule always stands. So, if you want to make a large income and accumulate wealth, affiliate with people who are comfortable earning large incomes and who are determined to acquire even more net worth. You become like the people you associate with every day. If your circle of friends is people who are resigned to mediocrity and the whatever-will-be-will be philosophy, in time you will be one of them. Your dream will die, your vision will shrink, and your spiritual death will come.

As you grow your dreams, surround yourself with people who are positive. Positive people want you to win, to achieve, to enjoy the good life, to find genuine satisfaction, and to make a contribution to others.

Negative people want you to accept life as it is, to be content with boredom and mediocrity, to be satisfied with a small income, and to miss out on the rewards that come from helping others.

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.

 

Post-sale Customer Loyalty


Maintaining the loyalty of major current customers can be crucial for improving a business’s profitability as its markets mature. Loyal customers become more profitable over time. The firm not only avoids the high costs associated with acquiring a new customer, but it typically  benefits because loyal customers a) tend to concentrate their purchases, thus leading to larger volumes and lower selling  and distribution costs, b) provide positive word-of-mouth and customer referrals, and c) may be willing to pay premium prices for the value they receive.

Periodic measurement of customer satisfaction is important, then, because a dissatisfied customer is unlikely to remain loyal to a company over time. Unfortunately, however, the corollary is not always true. Customers who describe themselves as satisfied are not necessarily loyal. Indeed, 60 to 80 percent of customer defectors in most businesses are “satisfied” or “very satisfied” before their defection. In the interim, perhaps, competitors improved their offerings, the customers requirements changed, or other environmental factors shifted. Businesses that measure customer satisfaction should be commended, but urged not to stop there. Satisfaction measures need to be supplemented with examinations of customer behavior, such as measures of the annual retention rate, frequency for purchases, and the percentage of a customer’s total purchases captured by the firm.

Defecting customers should be studied in detail to discover why the firm failed to provide sufficient value to retain their loyalty. Such failures often provide more valuable information than satisfaction measures because they stand out as a clear, understandable message  telling the organization exactly where improvements are needed..

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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