Channel Evaluation


Channel evaluation is a multidimensional construct and includes both performance measures of the channel and measures of contribution to consumers by th channel. These measures of channel performance have been grouped under three main dimensions also known as 3Es, i.e., Effectiveness, Efficiency, and Equity. Effectiveness is further subdivided into delivery and stimulation.

  • Delivery is defined as a short term measure of how well the channel meets the demand for service outputs placed on it by the consumption sector.
  • Stimulation is defined as a long term, goal oriented measure of how well the channel member stimulate latent demand to reach optimum levels of demand.

Efficiency is further subdivided into productivity and profitability:

  • Productivity is defined as the efficiency with which output is generated from resources and inputs used. In essence, productivity is a measure of physical efficiency.
  • Profitability is a general measure of financial efficiency of channel member, in terms of return on investment, liquidity, leverage, growth patterns in sales and profits, growth potential in sales and profits, market share, average inventory maintained, etc.

Equity is the extent to which marketing channels serve problem-ridden markets and market segments, such a disadvantaged or geographically isolated consumers.

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

Doughnut Structure


Although most organization charts are constructed in the shape of a pyramid, extending downward from the board of directors or president, some firms have doughnut structure—an organization chart made up of concentric circles that represent top management, staff personnel, and functional areas and that reflect a more flexible structure—people see themselves working in a circle as if around one table. One of the positions is designated chief executive officer, because somebody has to make all those tactical decisions that enable an organization to keep working. The doughnut design is made up of concentric circles, in which the center ring consists of top management. The second ring is composed of important staff personnel, such as legal, personnel, research and development, and electronic data processing, whose services are used by all departments. The third ring consists of managers of functional areas, while remaining rings comprise department and other supervisory managers

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.

Constructing an Employment Ad


Experienced advertisers use a four-point guide called AIDA (attention, interest, desire, action) to construct ads. You must, of course, attract attention to the ad, or readers may just miss or ignore it. Develop interest in the job. You can create interest by the nature of  the job itself. You can also use other aspects of the job, such as location, to create interest, create desire by spotlighting the job’s interest factors with words such as travel or challenge. Keep your target audience in mind.  Make sure the ad prompts action with a statement like “call today,” or “write today for more information.”

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.

Attitudes and Behaviors


Currently, there is considerable disagreement over the relationship between attitudes such as job satisfaction and behaviors like performance, turnover, and absenteeism. However, carefully constructed analyses yield promising insights into these relationships.

In particular, it can be argued that it is inappropriate to investigate relationships between a general attitude such as job satisfaction and specific behaviors such as productivity. Alternatively, logical relationships might exist between a specific attitude, such employee’s attitude toward working hard on a given day, and the actual behavior reflected by work produced on that day. In other words, specific attitudes toward certain behaviors are more likely to be associated with the entire set of behaviors rather than with individual ones. Hence, it is important to keep the attitude and behavior properly focused in terms of their relative specificity.

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.

Attitude


Attitudes are hypothetical constructs, they cannot be seen, touched, heard, or smelled. Because attitudes cannot be observed, a variety of perspectives have developed over the years in attempting to describe what they are. Fortunately, there is now widespread agreement that the term attitude should be used to refer to a general and enduring positive  or negative feeling  about some person, object, or issue.

The effective component  is what is generally  being referred to when people use the word “attitude.” However, attitude theorists recognize two additional components, cognitive and conative. The cognitive component refers to a person’s beliefs (knowledge and thoughts, which sometimes are erroneous) about an object or issue (e.g., “Reebok shoes are more stylish  that Nike;” “Nike Air Jordans are high-quality basketball shoes”).

The conative component represents one’s behavioral tendency toward an object. In consumer-behavior terms, the conative component represents a consumer’s intention to purchase a specific item.

Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way.

An attitude is characterized by progressing from “thinking” (cognitive), to “feeling” (affective), to “behaving” (conative).

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.

 

Identifying Company Weaknesses and Resource Deficiencies


A weakness is something a company lacks or does poorly or a condition that puts it at a disadvantage. A company’s internal weaknesses can relate to a) deficiencies in competitively important skills or expertise, b) a lack of competitively important physical, human, organizational, or intangible assets, or c) missing or weak competitive capabilities in key areas. Internal weaknesses are thus shortcomings in a company’s compliment of resources. A weakness may or may not make a company competitively vulnerable, depending on how much the weakness matters in the market place and whether it can be overcome by the resources and strengths in the company’s possession.

Sizing up a company’s resource capabilities and deficiencies is akin to constructing a strategic balance sheet where resource strengths represent competitive assets and resource weaknesses represent competitive liabilities. Obviously, the ideal condition is for the company’s strengths/competitive assets to outweigh its weaknesses/competitive liabilities by an ample margin—50-50 balance is definitely not the desired condition.

Once managers identify a company’s resource strengths and weaknesses, the two compilations need to be carefully evaluated for their competitive and strategy-making implications. Some strengths are more competitively important than others because they matter more in forming a powerful strategy, in contributing to a strong market position, and in determining profitability. Likewise, some weaknesses can prove fatal if not remedied, while others are inconsequential, easily corrected, or offset by company strengths. A company’s resource weaknesses suggest a need to review its resource base: What existing resource deficiencies need to be remedied? Does the company have important resource gaps that need to be filled? What needs to be done to augment the company’s future resource base?

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.

Characteristics of Analysis


Analysis uses scientific methodology: a systematic, rational, critical appraisal of the phenomenon under investigation based on emperical facts. Analysis in the social sciences is different in some respects from analysis in the natural sciences, which take a much narrower view of what can be measured and known. However, the basic motivation—to understand and to establish control over the environment—is the same, as are the essential methods. The distinction between analysis in the natural and social sciences lies in the kinds of questions explored.

The intellectual activities of analysis are directed toward practice issues and practical application. Assessment of the data and the search for relevant research and theoratical constructs are part of a progression toward action. The goal is to enable the change agent to make informed choices.

In addition, analysis is carried out within a social context and involves subjective judgments, preferences, and values. Naturality and disinterested inquiry are not characteristics of social science analysis. Ideologies, beliefs, and assumptions affect both the perception and the interpretation of imperical data.

The purpose of analysis in the planned change process is to facilitate decision-making. Analysis clarifies the nature and dynamics of the change opportunity and the relevance of possible responses. However, it is not realistic to expect analysis to provide “the answer.”

Different planners can assess the same situation and produce quite different analyses insofar as each shapes the problem in terms of his background, training, experience, and values. The reality of competing views of human service conditions, problems, needs, issues, and change opportunities in no way lessens the importance of analysis.

Analysis, then, may be expected to clarify options, trace implications, and provide grounding for judgments. Useful analysis will be critical, thorough, and systematic and will be oriented toward practical application.

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

Training and Development


Mr. President, and Director Training:

Spring has arrived with flowers. The buds have reappeared on bare branches again. Indeed! The March winds are the morning yawn of the year.

All and every little thing tell us
That once again ’tis Spring

Please accept my best wishes for a bright and beautiful season.

 

This time spring has brought along the advent of cricket season. And the current cricket series with India has caused a sort of fever to cricket lovers. Today is a crucial day for all of us. An important and decisive match between traditional rival teams is about to start and we are here participating in a learning exercise. You are not alone missing the glimpses of the match. My heart also joins the curious thumping of your heartbeat.

 

I have the opportunity to talk to you, the learned managers under the new system of local government, and I will avail it with honor talking relevant or maybe some irrelevant things.

 

Overtly or covertly, the district government system is new and complex. Its managers face requirements that are different from their federal, provincial, or private sector counterparts. Because of the complexity and range of those requirements, it is important for DDOs to understand the requirements specific to the district.

 

Friends! We use management and professional development to refer to those processes directed towards equipping professional managers with the skills, knowledge and attitudes necessary to achieve administrative objectives both now and in the future.

 

Any human development must be aligned with the entity’s mission and strategic goals in order that, through enhancing the skills, knowledge, learning ability and enthusiasm of people at every level, there will be continuous organizational and individual growth.

 

The perspectives of management and professional development are interpreted here as including the terms education, learning, training, and development which are seen as an integral part of the wider professional development framework.

 

I have the reason to believe, my dear officers, that if the training and development of managers of any department is not accorded high priority, if training is not seen as a vital component in the realization of government policies, then it is hard to accept that we have committed ourselves to management and professional development.

 

Those departments where there is a chronic under-investment in management and professional development that is the prime reason for the poor performance of the financial management or economy at large. The critique that can be constructed is disturbingly pervasive. At the macro level the education and training infrastructure, particularly when subjected to international comparisons is the major basis for consistently failing to address the needs of economic development. Training initiatives failing to provide consistent direction; concentrating on the certainties of vocational relevance rather than longer-term knowledge demands relevant to an imperfect future, and, simply, a lack of overall investment.

 

At the micro level, despite the relevance placed on bureaucratic system by successive governments, the practice of individual departments is similarly disturbing. Under-investment in management and professional development, whether measured in terms of budgets or training days, is regularly reported. All too frequently management and professional development fails to be regarded as a managerial priority or something that should be fully integrated through a learning culture into everyday practice. The traditional practice of public service, dominance of accountancy traditions and short-term-ism that characterize our bureaucratic inheritance arguably provide infertile conditions for what is essentially a long-term commitment.

 

While acknowledging the pessimistic construction that I have made, I would argue that investment in management and professional development could play a key role in initiating and facilitating change. You can thus adapt to whatever comes along and to take advantage of it, turning threats into challenges, and rising to these challenges in ways that produce increased benefit to the government and employees.

 

If I were to prescribe one process in the training of men, which is fundamental to success in any direction, it would be thoroughgoing training in the habit of accurate observation. It is a habit which every one of us should be seeking ever more to perfect.

 

All organizations, entities, and departments require some form of organizational structure to implement their strategies. Principally, structures are changed when they no longer provide the coordination, control, and direction managers, and entities require implementing strategies successfully. The ineffectiveness of structure typically results from increases in department’s revenues and levels of diversification. In particular, the formulation of strategies involving greater levels of diversification demands structural change to match each strategy. Some strategies require elaborate structures and strategic control, while others focus on financial control.

 

Allow me to briefly converse about strategic leadership. If you are a strategic leader, you have the ability to anticipate, maintain flexibility, and empower others to create strategic change as necessary. Multifunctional in nature, strategic leadership involves managing through others, managing an organization rather than a functional subunit, and coping with change that seems to be increasing exponentially in the current administrative landscape. Because of the complexity and global nature of this landscape, as a strategic leader, you must learn how to influence human behavior effectively in an uncertain environment. By word or by personal example, and through your ability to envision the future, as effective strategic leader you can meaningfully influence the behaviors, thoughts, and feelings of those with whom you work. The ability to manage human capital may be the most critical of your leadership skills.

 

From now on, in the 21st century, many managers working in government across country will be challenged to alter their mind-sets to cope with the rapid and complex changes occurring in the global economy.

 

A managerial mind-set is the set of assumptions, premises, and accepted wisdom that bounds—or frames—a manager’s understanding of the department and the core competencies it uses in the pursuit of strategic role. Your continuous success depends on your willingness to challenge continually your managerial frames.

 

Today competition means not product versus product, company versus company, or department versus department. It is a case of mindset versus mindset, managerial frame versus managerial frame. Competing on the basis of mindsets demands that strategic leaders learn how to deal with diverse and cognitively complex situations. One of the most challenging changes is overcoming your own successful mindset.

 

As effective leaders you should always be willing to make candid and courageous, yet pragmatic decisions—decisions that may be difficult, but necessary in light of internal and external conditions. You should solicit corrective feedback from peers, superiors, and employees about the value of your difficult decisions. Unwillingness to accept feedback may be key reason talented executives fail. This highlights the need for you to solicit feedback consistently from those affected by your decisions.

 

Because strategic leadership is a requirement of strategic success, and because departments may be poorly led and over-managed, working in the 21st century competitive landscape you are challenged to develop effective strategic leaders.

 

At district level you are the top administrative managers. And top-level mangers are an important resource for departments seeking to formulate and implement strategies effectively. A key reason for this is that the strategic decisions made by top managers influence how the department is designed and whether goals will be achieved. Thus, a critical element of your organizational success is having a team with superior managerial skills.

 

You often use your discretion (or latitude for action) when making strategic decisions, including those concerned with the effective implementation of strategies. You must therefore be action oriented: thus, the decisions that you make should spur the department to action.

 

Since you are top executives, you have a major effect on your department’s culture. Your values are critical in shaping your department’s cultural values. Accordingly, you have an important effect on organizational activities and performance. The significance of this effect should not be underestimated. Permit me to remind you that acquiring of culture is the development of an avid hunger for knowledge and beauty.

 

 

Add innovation and creativity in all your endeavors. It will certainly pay off. Effective leaders focus their work on the key issues that ultimately shape department’s ability to perform effectively.

 

And in the words of Charles de Gaulle, “Every man of action has a strong dose of egotism, pride, hardness, and cunning. But all those things will be forgiving him, indeed, they will be regarded as high qualities, if he can make them the means to achieve great ends.” To get others to come into your ways of thinking, you must go over to theirs; and it is necessary to follow, in order to lead.

 

While concluding, let me ask: do you know how do geniuses come up with ideas? What is common to the thinking style that produced “Mona Lisa,” as well as the one that spawned the theory of relativity? What characterizes the thinking strategies of the Einsteins, Edisons, da Vincis, Darwins, Picassos, Michelangelos, Galileos, Freuds, and Mozarts of history? What can we learn from them?

 

“Much learning does not teach man to have intelligence.”

This is the quotation from the philosopher Heraclitus, who spanned the fifth and fourth centuries BC. Twenty-five hundred years later, he’s still right. You might spend most of your life going to school, reading, looking up facts, acquiring information, and memorizing it. But, although you’ll become more informed, in the end it won’t make you any smarter. Is a reference library smart? Is a computer with a vast storehouse of voluminous data smart? Is the simple act of digesting and then disgorging information either smart or impressive? My answer is simple: “No.”

 

Anyway, I hereby formally inaugurate this training course.

Thank you for your time and patience.

Thank you for listening.

God bless you!

 

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

Project Financing


Project Financing (PF) has emerged as an innovative and timely financing technique and is being used in many high-profile infrastructure projects. Employing a carefully engineered financing mix, it is used to fund large-scale projects, from communications, to telecommunications, and power to energy projects. It is a preferred alternative today. It will be foremost option of future.

PF holds great promise, which is just beginning to be realized as a means of financing projects designed to help meet the enormous infrastructure needs that exist in a developing countries.

Most infrastructure projects in developing countries are being funded by exchequer and thus in nearly all cases the construction of much desired projects are delayed due to lacking funds and deficient resources. Particularly when local governments are functioning full swing developing countries need to consider PF as a preferred choice.

PF can be arranged when a particular facility or a related set of assets is capable of functioning profitably as an independent economic unit. City governments (sponsors) of such a unit may find it advantageous to form a new legal entity to construct, own, and operate the project. If sufficient profit is predicted, the project organization can finance construction of the project on a project basis, which involves the issuance of equity securities (generally to the sponsors of the project) and of debt securities that are designed to be spell-liquidating from the revenues derived from project operations.

The intricacies of PF are formidable, and can easily be misunderstood and consequently, misused. While PF structures share certain common features, by necessity, they require tailoring the package to the particular circumstances of the project. That is where both the benefits and the challenges lie.

What distinguishes PF from conventional direct financing is that in PF, the project is a “distinct legal entity” and the financing is tailored to the cash flow characteristics of the project assets. Such a structure can yield a more efficient allocation of risks and returns than conventional financing, but careful financial engineering is critical.

It is a form of asset-based financial engineering. It is asset-based because each financing is tailored around a specific asset or related pool of assets. It involves financial engineering because, in so many cases, the financing structure cannot simply be copied from some other project. Rather, it must be crafted specifically for the project at hand.

PF is the raising of funds to finance an economically separable capital investment project in which the providers of the funds look primarily to the cash flow from the project at the source of funds to service their loans and provide the return and a return on their equity invested in the project. The terms of the debt and equity securities are tailored to the cash flow characteristics of the project. For their security, the project debt securities depend, at least partly, on the profitability of the project and on the collateral value of the project’s assets.

PF is not a means of raising funds to finance a project that is so weak economically that it may not be able to service its debt or provide an acceptable rate of return to equity investors. In other words, it is not a means of financing a project that cannot be financed on a conventional basis.

At the center is a discrete asset, a separate facility, or a related set of assets that has a specific purpose. This can include trash collecting trucks, toll roads, water supply and sewer projects, or some other item of infrastructure. This facility or group of assets must be capable of standing alone as an independent economic unit. The operations, supported by a variety of contractual agreements, must be organized so that the project has the unquestioned ability to generate sufficient cash flow to repay its debts.

PF can be advantageous to Pakistan when it has a valuable resource deposit, other responsible parties would like to develop the deposit, and it lacks the financial resources to proceed with the project on its own.

Commercial banks and life insurance companies have traditionally been the principal sources of debt for large projects. In the typical financing structure, commercial banks would provide construction financing on a floating rate basis, and life insurance companies would then provide “permanent financing” on a fixed rate basis by refinancing the bank loans following project completion. For infrastructure projects have become a high priority, commercial banks, having adjusted to the tighter capital standards, have expanded their role in PF. They advise as well as lend.

Multilateral agencies, such as the World Bank and IDB, and various agencies, such as Eximbank and OPIC, have also stepped up their funding of private infrastructure projects. Developing countries’ capital markets can also be a useful source of funds. Raising funds locally can reduce a project’s political risk exposure.

Most recently, through the financing of hundreds of independent power projects, it has become evident that PF is suitable for relatively low-risk projects that involve standardized nonproprietary technology.

PF has attracted growing interest as a means of obtaining capital. Its potential is perhaps greatest for the many large infrastructure capital investment projects that are on the drawing boards of many local governments. The projects are large and expensive, and the risks are great. But the potential benefits are enormous. Project financing could be the answer to the financial needs of such local governments.

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