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

Guerrilla Marketing


Guerrilla mrketing is the type of all-out marketing necessary for entrepreneurial success. It is virtually unknown to the large corporations. And thank heavens it is. After all, the large corporations have the benefit of big bucks. You don’t. so you’ve got to rely on guerrilla marketing.

 Your size is an ally when it comes to marketing. If you are a small company, a new venture, or a single individual, you can utilize the tactics of guerrilla marketing to their fullest. You’ve got the ability to be fast on your feet, to employ a vast array of marketing tools, to gain access to the biggest marketing brains and get them at bargain-basement prices. Now you may not need to use every weapon in your potential marketing arsenal, but you’re sure going to need some of them. So you’d best know how to use tham all.

 It may be that you will require no advertising at all. But you will require marketing. It may be that word of mouth is so favorable, and spreads so rapidly, that your venture can reap a fortune just because of it. If so, you can be sure that the word of mouth was motivated by effective marketing in the first place.

 In fact, a strong word of mouth campaign is part of marketing, and so are business cards, stationery, matchbooks, the clothes you wear. And certainly your location is important in marketing. Every component that helps you sell what you are selling is part of the marketing process. No detail is insignificant to be included. The more you realize that the better your marketing will be. Its not about sales, its about profits—the dear old bottom line.

 That’s the good news. Here’s the bad: One of these days, you’re going to be an entrepreneur no longer. If you successfully put into practice the principles of guerrila marketing, you’ll become fat and rich and famous and will no longer have the lean, hungry mentality of the entrepreneur.

 Once you’re reached that stage, you wll have to resort to the textbook forms of marketing, for you’ll be too encumbered with employees, traditions, paperwork, management levels, and necessary bureaucracy to be flexible enough for gurella marketing.

 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

Corporate Structure in the Global Economy


Corporate structures will be increasingly expected to deal with tension-producing forces, as well as compressive ones. Among them is the tendency for companies to become increasingly spread thin as they respond to an expanding multitude of masters. And it is likely that both employees and their governments will take their turn demanding greater attention to their particular needs and requirements. On top of these whiplash-inducing pressures will be the ongoing operational tensions arising from the continuing use of speed as a competitive weapon.

 

As if these ongoing pushes and pulls will not be enough of a challenge, most businesses will also face the requirement to be more flexible than ever in deploying and redeploying resources to mact the moving targets provided by customers’ requirements and competitors’ advances. The globalizing marketplace tends to be unforgiving when corporate inertia or bureaucracy limits flexibility. This degree of organizational elasticity—stretching to accommodate special situations, then returning to the original shape to meet regular demands—is already a necessity in many industries. Soon it will be mandatory in most.

 

A measure of plasticity will be needed, as well. The ability to change an organization’s shape, to adapt to new markets or to reconfigure around emerging capabilities, will be another dynamic quality in the repertoire of the new corporation. This attribute—the ability to reorganize completely every several years without succumbing to terminal brittleness—is a rarity in most companies today. But it will be common among those that thrive into this 21st Century.

 

Just as architects have never found a single, always appropriate building block for every structure, organization designers are also unlikely to find one. But the old building blocks of narrowly defined jobs used in tandem with traditional supervision are not working. Perhaps the lead of the architect can be followed, and companies can learn to select organizational building blocks that can be adjusted to cope with the forces they face at a particular time. In keeping with what has worked for the architect, organization planners can:

  • Reinforce jobs to ensure they have the strength to resist the tensions and compressions they must increasingly cope with.
  • Use the organizational equivalent of composites—teams—when job reinforcement alone is insufficient to provide the company with an appropriate degree of flexibility.
  • Make sure that the company’s managers are in load-bearing roles—ones vital to the organization’s structural integrity—and act as drivers of the business’s ongoing adaptability, rather than mere definers of unneeded internal walls.

 Reinforced jobs, composite teams, and load-bearing managers—these may well be the most useful raw materials from which the structure of the corporation is shaped.

 

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

Public Management


There will be absolutely changed conditions under which public managers will operate in the future, some of the areas of knowledge, skills, and attitudes that they will be required to possess, and some of the pathways public managers might explore in order to move toward the future.

There will be an extraordinary explosion of new knowledge and technological innovations, especially in the areas of information sciences, genetics, materials, instrumentation, automation, and space. Our public managers will wade into an age of extraordinary technological change and have to accommodate themselves and the institutions to dramatically different bodies of knowledge and technological innovations.

They will not only have to cope with and employ their expanded knowledge and technological capacity, they will have to learn to use this knowledge and technological capacity for the benefit of society. In the technological world of the future, there will be even greater temptations for them to be captured by technology, to fall prey to “technological imperative,” and to allow rational technical interests to supercede human concerns and those of values. Finding ways of employing advanced technologies so as to enhance rather than restrict their capacity for leadership, creativity, and personal responsibility will be a serious challenge.

In the future, knowledge and information will prevail. And if information is power, then those who have information will indeed have power. But who will have information? Information will be increasingly centralized, controlled and marketed through traditional economic and political processes. It will be widely distributed throughout society, so that increasing rather than decreasing numbers of people will have information and in turn have power. Such a possibility will lead to “the twilight of hierarchy,” to be inevitable.

Combining these issues, we can safely predict that the knowledge or information that our public managers will be able to access will be tremendous, to the point that the quantity of information will no longer be the most important issue. Rather the key question will be how to organize this information for human purposes. This means that public administration will have to learn to organize information in a fashion that will facilitate the pursuit of important public purposes. The great challenge will be to organize information so that we can enhance the process of democratic decision-making, of consensus building, and of dialogue and deliberation.

There’s no question that we will have the capacity to organize information for dramatic new public purposes, to restructure our structures of governance in dramatic ways. But what will our choices be? Imagine a computer in Islamabad that could reach out into every home, so that on any occasion that a major policy decision was required, an appropriate message could go out to all the citizens and their answers could guide public policy – a process that would approximate pure democracy.

The globalization of society is obvious today, though in twenty-five years or so, we may experience trans-globalization or beyond, as the frontiers of the oceans and space are extended even further. Already we are thinking more in global terms. However, our managers are still thinking in terms of traditional institutions operating in a new global context. They are not yet asking how they reconfigure businesses and governments so as to carry out a global vision. How do they encourage businesses and governments to assume global responsibilities rather than those defined in terms of one’s own self interest? For example, how can developing countries move toward sustainable development and environmental justice on a global basis?

One obvious casualty of the global age may be the nation-state, replaced not necessarily by a new global or interplanetary federation but possibly by new forms of governance far beyond those we can imagine today.

In future our public administration should know the importance of “responsibilities” rather than “functions” of government. While a large part of the current worldwide debate over privatization or outsourcing speaks to the question of which “functions” belong where, the new debate will necessarily focus on public responsibilities and speak in a language of ethics, citizenship and the public interest.

In reinvented government or the new public management, customers shall replace citizens – or, to put it differently, the integrative role of citizenship has been reduced to the narrow self-interest of customership – in government as in business.

Indeed, we think the job of all public managers will increasingly be more than directing or managing our public organizations. It will be not merely “steering” or “rowing” but “building the boat.” The new public manager will construct networks of varied interests that can work effectively to solve public problems. In doing so, it will be the job of the public administrator to promote pluralism, to create opportunities for constructive dissent, to preserve that which is distinctive about individuals and groups, and to provide an opportunity for diverse groups to share in establishing future directions for the community. The administrator will play a substantial role in diminishing polarization, teaching diversity and respect, building coalitions, resolving disputes, negotiating and mediating. The work of the top public managers will thus be – to build community.

There are two broad areas that public managers will need to explore in order to fashion a response to the trends. These emerging trends will turn public management both “inside-out” and “upside-down.” Public management will be turned “inside-out” as the largely internal focus of management in the past is replaced by an external focus, specifically a focus on citizens and citizenship. Public management will be turned “upside-down” as the traditional top-down orientation of the field is replaced – not necessarily by a bottom-up approach, but by a system of shared leadership.

In the past public administration has been largely focused on what happens within the public bureaucracy. The future will require that it dramatically refocus its attention on the world outside, particularly the world of citizens and citizenship.

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

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