Inflation and the Rule of 72


No formula is more useful for understanding inflation than the rule of 72. Basically, the idea is to compute quickly how long it takes the cost of goods and services to double at various compounded rates of growth. For example, if houses were increasing in cost at 9 percent a year, how long would it take for the price of a home to double? The answer is easy to calculate. Simply divide the annual increase (9 percent) into 72 and you get a number of years it takes to double the price (eight years). If houses go up in price by 12 percent, it only takes six years to double in price (72 divided by 12 = 6), and so on. Of course, the same calculation can be used to predict how high food prices or car prices will be 10 years from now.

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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Writing Business Summaries


Businesspeople are bombardedwith masses of information, and at one time or another, everyone in business relies on someone else’s summary of a situation, publication, or document. To write a summary, gather the information (whether by reading, talking with others, or observing circumstances), organize that information, and then present it in your own words. Although many pople assume that summarizing is a simple skill, it’s actually more complex than it appears. A well written summary has at least three characteristics..

First, as in writing any business document, be sure the content is accurate. If you’re summarizing a report or a group of reports, make sure you present the information without error. Check your references, and then check for typos.

Second, make your summary comprehensive and balanced. The purpose of writing your summary is usually to help colleagues or supervisors make a decision, so include all the information necessary for your readers to understand the situation, problem, or proposal. If the issue you’re summarizing has more than one side, present all sides fairly and equitably. Make sure you include all the information necessary. Even though summaries are intended to be as brief as possible, your readers need a minimum amount of information to grasp the issue being presented.

Third, make your sentence structure clear, and include good transitions. The only way your summary will save anyone’s time is if your sentences are uncluttered, use well-chosen words, and proceed logically. Then, to help your readers move from one point to the next, your transitions must be just as clear and logical. Basically, when writing your summary be sure to cut through the clutter. Identify those ideas that belong together, and organize them in a way that’s easy to understand.

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, Lectures, Line of Sight

Customer Service: Interpreting Perceptions


Once we’ve made our perceptions, we need to evaluate them. For example, is a customer nervously looking around because the customer is impatient and wants to be served, hyperactive, or a potential shoplifter? By evaluating customer behavior against the following factors, you can then determine a course of action.

  • Past experiences you’ve had in similar situations. If it is 90 degrees outside and the nervous customer has on a long winter coat, you may be justified in being suspicious.
  • Beliefs about human behavior. Personal beliefs that people are basically decent or evil, pessimistic or optimistic, happy or sad, can influence the way you interact with others.
  • Awareness of information about a person that can impact your reactions. For example, if you know one customer enjoys talking in detail about features and warranties of a product while another only wants the features highlighted, you may structure information accordingly.
  • Expectations of the outcome of an interaction. For example, if you are optimistic about making a sale, you may subconsciously send nonverbal messages that positively influence customers or encourage them to do business with you.

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

The Planning Process


There is nothing mysterious about the planning process, since planning is something we all do everyday, often without even knowing it. The planning process parallels the decision-making process; this makes sense, since developing plans involves deciding today what you’ll do tomorrow. Both involve establishing objectives on criteria, developing and analyzing alternatives based on information you obtain, evaluating the alternatives, and then making a choice.

The planning process is basically the same when managers plan for their companies, but there are two added complications. First, there’s usually a hierarchical aspect to management planning. Top manager approves a long-term plan first; then each department creates its own budgets and other plans to show how it will contribute to the company’s long-term plan.

Second—and especially in big companies—the planning process may be quite formal and involve much interaction and give-and-take between departments and a group we might call “corporate central.” In other words, in many firms plans are bounced back and forth between the departments and a centralized planning staff, whose main purpose is to review and help define the plans of each department.

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

Hiring Happy Employees


With all the apptitudes, skills, and traits for which managers can test applicants, there is still one thing that’s usually not tested for but that perhaps should be—at least if some recent research findings are valid. Particularly in companies being rocked by downsizings and competitive pressures, there’s something to be said about hiring people who are inclined to remain happy even in the face of unhappy events.

Basically, happiness seems to be largely determined by the person’s genetic makeup—that, in other words, some people are simply born to somewhat happier than others. The theory, in nutshell, says that people have a sort of “set point” for happiness, a genetically determined happiness level to which the person quickly tends to gravitate, no matter what failures or successes he or she experiences. So confront a high-happiness-set-point person with the prospect of a demotion or an unattractive leteral transfer, and he or she will soon return to being relatively happy once the short blip of disappointment has dissipated. On the other hand, send an inherently low-set-point, unhappy person off on a two-week vacation or give him or her a sizable raise or a new computer, and chances are he or she will soon be as unhappy as before the reward.

Like testing employees for any traits, coming up with a set of tests or interview questions to identify happier, high-set-point people requires careful consideration and probably the help of a qualified psychologist. However, the following might provide some insight into the tendency to be relatively happy:

Indicate how strongly (high, medium, low) you agree with the following statements:

  • “When good things happen to me, it strongly affects me.”
  • “I will often do things for no other reason than they might be fun.”
  • “When I get something I want, I feel excited and energized.”
  • “When I am doing well at something, I love to keep at it.”

Agreeing with more statements and agreeing with them more strongly may correlate with a higher happiness-set-point.

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