Business Process Reengineering: Things to Remember


  • Do not undertake reengineering of all processes simultaneously. Select only those which meet the following criteria:
  1. Processes that require immediate attention;
  2. Processes that will have significant impact on customers;
  3. Processes which are most amenable to redesign.
  • Communicate intensely to persuade people to accept and not resist the proposed changes.
  • CEO must be seen to commit, at the minimum, 50 percent of his time.
  • Set aggressive reengineering performance targets; incremental improvement targets will not create either urgency or excitement.
  • Monitor progress and initiate corrective action.

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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The Chief Executive Officer


The chief executive officer (CEO) is the person ultimately responsible for setting organizational strategy and policy. Even though the CEO reports to the chair of the board (who has the most legal authority), in a real sense the CEO is the most powerful person in the corporation because he or she controls the allocation of resources. The board of directors gives the CEO the power to set the organization’s strategy and use its resources to create value. Often the same person is both chief executive officer and chair of the board. A person who occupies both positions wields considerable power and directly links the board to corporate management.

How does a CEO actually affect the way an organization operates? A CEO can influence organizational effectiveness and decision making in five principal ways:

  1. The CEO is responsible foe setting the organization’s goals and designing its structure.
  2. The CEO selects key executives to occupy the topmost levels of the managerial hierarchy.
  3.  The CEO determines top management’s rewards and incentives.
  4. The CEO controls the allocation of scarce resources such as money and decision making power among the organization’s functional areas or business divisions.
  5. The CEO’s actions and reputation have a major impact on inside and outside stakeholders’ views of the organization and affect the organization’s ability to attract resources from its environment.

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.

Growing up


Organizations are not conscious in the same way people are: they do not have their own memory and the future can be separated from the past more quickly and totally.

The way organizations learn, store and share knowledge becomes key, and any effective organization must encourage learning. It must always be able to learn and store the lessons of the past, but with people coming and going faster and faster, this is not always easy.

At the same time as learning fast and remembering important lessons, they must also be able to unlearn and break bad habits, which can be a more difficult task than effective learning.

Every new organizational generation must be given a fresh chance to prove itself. As chairmen and CEOs come and go, so the organizational slate can be wiped clean in the same way that the sins of the father should not be passed on to the son. Organizations need to choose wisely about what to hang on to and what to jettison.

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.

Levels of Management


Many organizations have multiple levels of management—top management, middle management, and first-line, or supervisory management. These levels form a pyramid. There are generally more middle managers than top managers, and still more first-line managers. Very small organizations may have only one manager (typically, the owner), who assumes the responsibilities of all three levels. Large businesses have many managers at each level to coordinate the use of the organization’s resources. Managers at all three levels perform all five management functions, but the amount of time they spend on each function varies.

Top Management: in business top managers include the president and other top executives, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the organization. Top managers spend most of their time planning. They make the organization’s strategic decisions, decisions that focus on an overall scheme or key idea for using resources to take advantage of opportunities. They decide whether to add products, acquire companies, sell unprofitable business segments, and move into foreign markets. Top managers also represent their company to the public and to government regulators.

Middle Management: Rather than making strategic decisions about the whole organization, middle managers are responsible for tactical planning that will implement the general guidelines established by top management. Thus, their responsibility is more narrowly focused than that of top managers. Middle managers are involved in the specific operations of the organization and spend more time organizing than other managers. In business, plant managers, division managers, and department managers make up middle management.

First-line Management: Most people get their first managerial experience in first-line managers, who supervise workers and the daily operations of the organization. They are responsible for implementing the plans established by middle management and directing workers’ daily performance on the job. They spend most of their time directing and controlling. Common titles for first-line management are foreman, supervisor, and office manager.

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 New Corporate Governance Structures


The most significant change in the restructuring is the heightened role of corporate internal auditors. Auditors have traditionally been viewed as performing a necessary but perfunctory function, namely to probe corporate financial records for unintentional or illicit misrepresentations. Although a majority of US corporations have longstanding traditions of reporting that their auditors operated independently of CFO approval and that they had direct access to the board, in practice, the auditors’ work usually traveled through the organization’s hierarchical chain of command.

In the past, internal auditors reviewed financial reports generated by other corporate accountants. The auditors considered professional accounting and financial practices, as well as, relevant aspects of corporate law, and then presented their findings to the chief financial officer (CFO). Historically, the CFO reviewed the audits and determined the financial data and information that was to be presented to top management, directors, and investors of the company.

Because CEOs and audit committees sign-off on financial results, auditors now routinely deal directly with top corporate officials. Approximately 75 percent of senior corporate auditors now report directly to the Board of Directors’ audit committee. Additionally, to eliminate the potential for accounting problems, companies are establishing direct lines of communication between top managers and the board and auditors that inform the CFO but that are not dependent on CFO approval or authorization.

The new structure also provides the CEO information provided directly by the company’s chief compliance and chief accounting officers. Consequently, the CFO, who is responsible for ultimately approving all company payments, is not empowered to be the sole provider of data for financial evaluations by the CEO and board.

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.

View from the Top


Consider the chief executive’s perspective. When a CEO looks at the company, several features stand out most sharply. These are the traditional components of corporate structure: divisions, functional departments, strategic business units, and subsidiaries. They are the activities over which the chief executive has responsibility. They form the mental model the top leadership has of the business. Most companies take these components for granted as their basic subunits.

Unfortunately, these components cloud more than clarify the perspective most essential to the intelligent resizing of a company’s work.

When changes are made in a company’s strategy, or when changes outside its control make readjustment or retrenchment necessary, the lines and boxes on the company’s organization chart are also frequently shifted. These moves usually seem to make good sense at the time—from just following function, after all—but as the retrospective research indicates, moving the boxes and redrawing the lines do not always pay off.

This happens because, frequently, the wrong question is being asked. The search is usually for the “best” organizational configuration: flat, functional, divisional, matrix, or some hybrid. This issue, which eventually does need to be addressed, is premature if it is the first thing that comes to mind when considering the company as a whole. It diverts attention from careful consideration of the “functionality” that the “form” is being adapted to. It also makes the company susceptible to the management fad of the moment, so that a means because the goal: how can we flatten our structure, use cross-departmental teams, or become an information-based organization? These are all potentially useful tactics, but for what end?

This type of organization, driven from the top down, is one that deals with the structures for doing things, rather than the things that need doing. Its view of the boxes on the organization chart too often goes no deeper than the head count the boxes contain. This perspective is troublesome and can be misleading, but even more dangerous is the viewpoint provided by some contemporary forms of strategic planning.

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.

Three Steps to the Accounting Process


Step one is to bring all the information about changes in the property owned by the business to one central location. That information is almost always on a little piece of paper. To ensure that it is included in the records it should always be on paper. Examples of the pieces of paper are invoices, bills, checks, payroll time cards, and contracts.

Step two is to put the information into a form that makes it easy to get it. It is hard to use the information when it is in a pile of paper. The little pieces of paper come in many sizes and shapes. It is not unusual to find that you have the fourth carbon copy and can hardly read it. This step is the process of taking the information from those little pieces of paper and making readable, chronological list of the things that have happened to change the property owned by the business.

Step three is to rearrange the chronological list into clusters of information that give management answers to its questions. For instance, management would like to separate out all the things that affected the equipment owned by the business. Or the CEO might like to know what things have happened that affect the cash in the bank.

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

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