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.

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

Change and Leadership


Change is nothing new to leaders or to their organizations. Around 500BC, the Greek philosopher Heraclitus noted that: “You cannot step twice into the same river, for other waters are continually flowing on.” He was one of the first Western philosophers to address the idea that the universe is in a constant state of flux.

As we move further from the “stable state,” effective change leadership has become a challenging calling. Today in the language of business, organizations, academia, and consultancy, the word “change” has come to mean different things to different people. We need to define “change leadership” in a way that establishes a congruence between leadership and the benefits of the change being implemented; and articulate it properly. Change can refer to any of the following and more:

  • External changes in the market/industry, technology, customers, competitors, social, political and natural environment;
  • Internal changes that determine how the organization reacts and adapts to the external changes at great speed;
  • Top-down programs such as business process reengineering, restructuring, cultural change, for example, and
  • Business transformation programs which can be described as comprehensive organizational initiatives.

It can also be a combination of all the above.

Major change is those situations in which corporate performance requires most people throughout the organization to learn new behaviors and skills. These new skills must add up to a competitive advantage for the enterprise, allowing it to produce better and better performance in shorter and shorter time frames.

Change leadership can be defined as altering groups to the need for changes in the way things are done; mobilizing and energizing groups; and tapping fully into the potential and the capacity of the organization. It involves taking the responsibility to champion the change initiative and effort through building and maintaining commitment and support. The situation determines who emerges as the leader and what style of  leadership he or she has to adopt. The situation will also determine the core skills needed to lead in that particular situation. Therefore, one can no longer discuss leadership in general terms.

The leader and the style of leadership required in a stable organization will differ from that which is required in an organization under threat. This is because leadership styles and behaviors are likely to be critical in times of threats.

The qualities, characteristics, and skills required in a leader are determined to a large extent by the demands of the situation in which he or she is to function as a leader.

In any major change program, there are many leaders because there are many people at many levels in the hierarchy who play different critical roles during the change process, including the CEO. In modern complex organizations, the notion of an ill-seeing, all knowing leader is unrealistic. Instead, different individuals assume leadership in situations where they have a unique competence or accountability. All the non-CEO change leaders are every bit as essential to creating high-performing organizations as are the more visible and dynamic executive leaders. In essence, the change leader could be the CEO, a line leader, internal network, or a change community.

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 Changing World of Business


The poor performance of star companies in the 1980s and 90s, both MNCs and domestic, has amply demonstrated their susceptibility to under-perform in the face of rapid and marked changes in technology, competition and customer expectations. It is not that all these companies lacked resources, capabilities or competent managers to anticipate and assess the impending changes and initiate proactive action; what they lacked was concern on the part of their managers to enhance the shareholder value of their respective firms on a sustained basis. As a result, this value got diverted to the customers, employees, competitors and suppliers of the company. While it is well known that a firm needs to develop distinctive capabilities and also build a strong network with its key stakeholders to enhance its value creating potential and appropriation of value this created, what really happened in case of most of these unsuccessful firms was that one or more of the stakeholders gained at the expense of the shareholders. The proponsity of managers to take operating, investment and financial decisions without any concern as to how such decisions can affect their shareholders led them to pursue strategies and investments that were ill-conceived and poorly executed, thereby systematically destroying the capabilities and equity developed over the years.

We should argue how the outcome of such a tendency can be detrimental to not only the firms but also to the job and career of the managers, particularly in the light of the various new developments—such as economic liberalization and opening up of most economies to domestic and global competition, greater freedom to access and move capital, emergence of the market for corporate control, and rising shareholder, activism—which have brought the issue of enhancing shareholders’ wealth to the forefront.

It is clear that managers will need to take a fresh guard and revisit their strategies, business processes and organization in order to face this complex set of challenges and retain their firm’s ability to enhance wealth of their shareholders. Thanks to the contribution made by the academia and practising executives, managers now have access to various concepts based on experiences when it comes to facing such challenges. However, it must be stressed that the need of the hour is not another set of concepts and framework; rather what is required is a new “philosophy of business” that draws the attention of every employee of an organization, starting with the CEO, to the importance of creating, enhancing and sustaining shareholder value in everything that the company does—be it strategic, tactical or even routine matters. Needless to say, the employees will also need guidelines on how to operationalize this new philosophy and what actions are needed to sustain the same.

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

Managing Diversity


Managing Diversity meanstaking steps to maximize diversity’s potential advantages while minimizing the potential barriers—such as prejudice and bias—that can undermine the functioning pf a diverse workforce.

 In practice, diversity management involves both compulsory and voluntary management actions. First, there are are laws requiring that employers minimize discrimination at work. But while such compulsory actions can reduce the more blatant diversity barriers, blending a diverse workforce into a close-knit and thriving community also requiresvoluntary steps. Five sets of voluntary organizational activities are at the heart of any diversity management progra,. They are:

a)    Provide strong leadership. Chief executives who champion diversity typically have companies with exemplary reputations in managing diversity. Leadership here means, for instance, taking a strong personal stand on the need for change and becoming a role model for the behaviors required for the change. Some firms are more proactive than others.

b)   Assess he situation. The company must assess the current state of affairs with respect to diversity to delivery management. This might entail administering surveys to measure current attitudes and perceptions towards different cultural groups within the company. Tools for measuring diversity include equal employment hiring and retention metrics, employee attitude surveys, management and employee evaluations, and focus groups.

c)    Provide diversity training and education. The most commonly utilized starting point for … managing diversity is some type of the employee education program.

d)   Change culture and management systems. Change the performance appraisal criteria to measure supervisors based partly on their success in reducing intergroup conflicts.

e)    Evaluate the managing diversity program. Do the employee attitude surveys now indicate any improvement in attitudes towards diversity?

 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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