Pulling in High Quality


Organizations pay a lot of attention to product quality. Thousands of companies advertise that they are “ISO 9000 registered,” and man have objectives of making ‘products of the highest quality.’ They emphasize quality for four reasons:

a.    Processes can now make products with guaranteed high quality;

b.    High quality gives a competitive advantage;

c.    Consumers have got used to high quality products, and won’t accept anything less;

d.    High quality reduces costs.

 

If you make poor quality products, your customers will simply move to a competitor. Although high quality won’t guarantee the success of your products, low quality will certainly guarantee their failure. So survival is one of the benefits of high quality, and others include:

a.    Competitive advantage coming from an enhanced reputation;

b.    Larger market share with less effort in marketing;

c.    Reduced liability for defects;

d.    Less waste and higher productivity;

e.    Lower costs and improved profitability;

f.     Enhanced motivation and morale of employees;

g.    Removal of hassle and irritants for managers.

 

Most of these are fairly obvious – if you increase the quality of your products, you expect people to switch from competitors. But the idea that higher quality can reduce costs is particularly interesting. This goes against the traditional view that higher quality automatically means higher cost. Gucci are well known for this combination, and say, ‘Quality is remembered long after the price is forgotten’

 

When you take a broader look at the costs, you can see that some of them really go down with higher quality. If you buy a washing machine with a faulty part, you complain and the manufacturer repairs the machine under its guarantee. The manufacturer could have saved money by finding that fault before the machine left the factory, and it could have saved even more by making a machine that did not have a fault in the first place.

 

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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Impact of Time-based Competition on Employees


The level of financial performance improvements achieved by companies as they become time-based competitors is difficult to match with conventional cost-cutting techniques. For example, the improvements are completely out of the range of what is achievable by the following methods:

  • Cutting direct labor wages through renegotiation or going offshore.
  • Reducing overheads by de-layering management structures and/or narrowing the line of products and services offered
  • Automation short of the
  • ‘people-less’ factory
  • Obtaining superior economies of scale.

The only way to achieve this degree of performance improvement is by transforming the company into a time-based competitor. Furthermore, the transformation must be made before a competitor makes it.

 

Probably as important, and maybe even more important than the profit improvements, though, are the intangible rewards to the organization of being a time-based competitor. People like to believe they are winners. Growth and improvements in financial indicators clearly tell an organization and the world that that they are winners.

 

Competitors of time-based competitors are often frustrated by their inability to match the growth and returns of their rivals. But they may misjudge the competitive factors contributing to their difficulties. Many complain that their industry is one where no one can make money because of cut-throat competition by companies that do not know how to make money. On two points they are correct: the competition is cut-throat and it is their throats that are being cut. This is the classic case of the retreating competition not understanding the strategy and capability of the advancing competitor.

 

Management should look to time-based competition not only as a source of above-average returns but also as opportunity to make their people feel like winners.

 

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

Avoiding Pitfalls in Case Analysis


Herebelow is the guide for evaluating analysis of cases:

1)      Inadequate definition of the problem. By far the most common error made in case analysis is attempting to recommend courses of action without first adequately defining or understanding the core problems. Whether presented orally or in a written report, a case analysis must begin with a focus on the central issues and problems represented in the case situation. Closely related is the error of analyzing symptoms without determining the root problem.

2)      To search for the “answer.” In case analysis, there are usually no clear-cut solutions. Keep in mind that the objective of case studies is learning through discussion and exploration. There is usually no one “official” or “correct” answer to a case. Rather, there are usually several reasonable alternative solutions.

3)      Not enough information. Analysts often complain there is not enough information in some cases to make a good decision. However, there is justification for not presenting all of the information in a case. As in real life, a marketing manager or consultant seldom has all the information necessary to make an optimal decision. This, reasonable assumptions have to be made, and the challenge is to find intelligent solutions in spite of the limited information.

4)      Use of generalities. In analyzing cases, specific recommendations are necessarily not generalities.

5)      A different situation. Considerable time and effort are sometimes exerted by analysts considering that “If the situation were different, I’d know what course of action to take” or “If the marketing manager hadn’t already found things up so badly, the firm wouldn’t have a problem.” Such reasoning ignores the fact that the events in the case have already happened and cannot be changed. Even though analysis or criticism of past events is necessary in diagnosing the problem, in the end, the present situation must be addressed and decisions must be made based on the given situations.

6)      Narrow vision analysis. Although cases are often labeled as a specific type of case, such as “pricing,” “product,” and so forth, this does not mean that other marketing variables should be ignored. Too often analysts ignore the effects that a change in one marketing element will have on the others.

7)      Realism. Too often analysts become so focused on solving a particular problem that their solutions become totally unrealistic.

8)      The marketing research solution. A quite common but unsatisfactory solution to case problem is marketing research. The firm should do this or that type of marketing research to find a solution to its problem. Although marketing research may be helpful as an intermediary step in some cases, marketing research does not solve problems or make decisions. In cases where marketing research does not solve problems or make decisions. In cases where marketing research is recommended, the cost and potential benefits should be fully specified in the case analysis.

9)      Rehashing the case material. Analysts sometimes spend considerable effort rewriting a two- or three-page history of the firm. This is unnecessary since the instructor and other analysis are already familiar with this information.

10)  Premature conclusions. Analysts sometimes jump to premature conclusions instead of waiting until their analysis is completed. Too many analysts jump to conclusions upon first reading the case and then proceed to interpret everything in the case as justifying their conclusions, even factors logically against it.

 

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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