Economies of Scale


You get economies of scale when the unit cost falls as the number of units made increases. There are three reasons for the lower unit costs:

  • Fixed costs are spread over a larger number of units;
  • You can use more efficient processes, perhaps including more automation;
  • More experience with the product raises efficiency.

Economies of scale encourage you to concentrate operations and make as many units as possible in the same facilities. Another benefit from larger operations comes from the ‘learning curve.’ The more often you repeat something, the easier it becomes.

Obviously, you can’t expand facilities for ever, and there is no point in having more capacity than likely demand. More realistically, if you expand beyond a certain size the organization gets too complex – making communications, support functions and management more difficult. Beyond this point you get dis-economies of scale. You can see these in many large organizations, such as governments, which aim for the efficiencies that come from centralization, but actually get bogged down in bureaucracy and red tape.

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.

Commitment to Principles


We are increasingly convinced that there are several principles which tend to lead us to good process management. They are tough and often sacrificed.

Focus: In very competitive situations managers often go to focus; that is, they try to zero in on part of the playing field, part of the market, or part of the technology. Narrowing focus yields greater capability and a shared vision, like the power of a laser. However, in a reverse twist, focus always means we try to solve the customer’s whole problem, at least as much as we can. Ours is not a point solution. For example, product disposal is now getting attention in the design stage, and designers resist the rush to completion mentality of cycle time.

End User Drive: During technical development today, the end user’s problems are the top of every page. Technical development isn’t over until the customer agrees that we have solved the problems we began with.

Productivity: Everyone seems to agree that we must destroy oppressive bureaucracy in the new products operation. Any organization, however, even on a kid’s baseball diamond, needs some bureaucracy, and even ventures teams that have been spun out from their firms need a little. It is a glue, and its policies reduce the time spent on routine decisions.

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.

Market-driven Manager


  1. Creates customer focus throughout the business.
  2. Listens to the customer.
  3. Defines and nurtures his distinctive competence.
  4. Defines marketing as market intelligence.
  5. Targets customers precisely.
  6. Manages for profitability, not sales volume.
  7. Makes customer value the guiding star.
  8. Lets the customer define quality.
  9. Measures and manages customer expectations.
  10. Builds customer relationships and loyalty.
  11. Defines the business as a service business.
  12. Commits to continuous improvement.
  13. Manages culture along with strategy.
  14. Grows with partners and alliances.
  15. Destroys marketing bureaucracy.

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 Lacking Commitment


Why do so many senior people appear hesitant and half-hearted? Why are the communications concerning change programs so anemic, especially when coming from those who have little difficulty in putting their points across in other contexts?

We have to get at the roots of ambivalence. The reasons for concern, quiet dissent, and reluctance to commit need to be probed:

  • Apparent support may only mean that those concerned are crawlers, bootlickers and toadies. There is often reluctance to accept the reality that all manner of loathsome and self-serving creatures inhabit the corridors of corporate bureaucracy. Their wiles, and the games they play, which are so transparent to outsiders, and destructive of external relationships built upon mutual trust and respect, go unnoticed or are ignored within.
  • Those who appear difficult may be the individuals with intellectual reservations. These could relate to the application of a program in a particular area, or to an initiative as a whole. The objectors could be the ones who have thought it through and uncovered missing elements. An implementation process needs to incorporate a means of listening to, and learning from, those who have valid objections.
  • Also, not all customers have the same preferences. What is added value for one person may be regarded as an expensive luxury by other.

Bland ‘motherhood’ statements suggest people have not thought through what needs to be done. People judge by what they see rather than on the basis of what is said. The informal messages, the examples and the symbols, can undercut formal communications.

Too often the changes of attitudes that are sought are not reflected in the language used by managers, the anecdotes and war stories that make up the mythology of a company, in symbols such as the allocation of parking spaces or use of exercise facilities, and in how a myriad of day-to-day matters are handled. Changing structures and processes may not be followed by attitudes where managers themselves, and particularly senior managers, refuse to act as role models.

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.

Re-inventing the Corporation: Bureaucracy Smashers


Sometimes, just a few key steps can start breaking down the barriers to effective communication and action within a company.

The following policies are a list of bureaucracy smashers, simple but effective steps which help replace the industrial “us vs. them” mentality with the “we are all in this together” attitude needed to re-invent the corporation.

  1. Set up a system of reverse reviews. Everyone who is evaluated gets to evaluate the boss, too (assuming there are bosses).
  2. Call everyone by first name.
  3. Try out the rule: Use little paper; keep no files.
  4. Call people associates, partners, managers—or just plain people—instead of employees (or workers).
  5. Decentralize authority absolutely.
  6. Eliminate executive dinning rooms, executive restrooms, special parking spots, and the like.
  7. Insist everybody answer his or her own phone. Preferably type your own letters.
  8. Get people to manage themselves: to set and monitor their own goals, to manage their work load and set their own priorities.
  9. Take a deep breath and throw out the old organization chart.

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 Blue-sky Laws


Government regulation and intervention is very pervasive in our daily lives, especially in business activities. That intervention is both supportive and restrictive. Also, it is constantly changing. The intent of government is generally to provide justice, orderliness, and fairness. A realistic observer may also perceive a governmental desire to play Robin Hood. Some entrepreneurs will find themselves the objects of Robin’s beneficence. Most owner-managers see too much of his ever-present Merry Men.

Entrepreneurs usually don’t concern themselves much with the creation and enforcement of government regulations. Being realistic, they just want to know the rules. They ask how it works and then go on about the business of building their enterprise. Because entrepreneurs need all the help they can get, they will use the rules and regulations that can in any way help the business. If the rules are not helpful they will avoid getting into a position where the rules interfere with the progress of the business. The problem for entrepreneurs is that the regulatory bureaucracy is so massive and complex that they have trouble understanding the rules.

The specialists who devote their professional lives to understanding rules and providing guidance to the rest of us must concentrate on a small segment of the rules to be able to keep up with the changes and the latest nuances in interpretation. This results in the need for many specialists. Despite the burden on time and financial resources, however, it is most prudent to obtain sufficient advice and guidance at least to avoid the wrath and interference of the regulators.

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

Process Owner


The process owner, who is responsible for reengineering a specific process, should be a senior-level manager, usually with line responsibility, who cares prestige, credibility, and clout within the company. If the leader’s job is to make reengineering happen in the large, then the process owner’s job is to make it happen in the small, at the individual process level. It is the process owner’s reputation, bonus, and career that are on the line when his or her process is undergoing reengineering.

 Most companies lack process owners, because in traditional organizations people do not tend to think in process terms. Responsibility for processes is fragmented across organizational boundaries. That’s why identifying the company’s major processes is a crucial early step in reengineering.

 After identifying the processes, the leader designates the owners who will guide those processes through reengineering. Process owners are usually individuals who manage one of the functions involved in the process that will undergo reengineering. To do their reengineering jobs, they have to have the respect of their peers and a stomach for reengineering—they must be people who are comfortable with change, tolerant of ambiguity, and serence in adversity.

 An owner’s job is not to do reengineering but to see that it gets done. The owner must assemble a reengineering team and do whatever is required to enable the team to do its job. He or she obtains the resources that the team requires, runs interference with the bureaucracy, and works to gain the cooperation of other managers whose functional groups are involved in the process.

 Process owners also motivate, inspire, and advise their teams. They act as the team’s critic, spokesman, monitor, and liaison. When reengineering team members start to produce ideas that make coworkers in the organization unhappy, process owners shield them from the arrows that others will shoot their way. Process owners take the heat so that their teams can concentrate on making reengineering happen.

 The process owner’s job will not end when the reengineering project is completed. In a process-oriented company, process, not function or geography, will form the basis of organizational structure, so every process will continue to need an owner to attend to its performance.

 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

Previous Older Entries