Preparing Salespeople


A new product is an intrusion. It takes time. It disrupts schedules. It involves change and risk. Salespeople are known for wanting new items to sell, but there are still negatives. Salespeople are not usually given reduced territories when asked to sell a new product.

 

It is important (1) to investigate in advance any possible reasons why salespeople might object to the new product, (2) to give them all the training and materials they need to be effective, and (3) to make sure the product is available, in their territories, when they start writing orders for it.

 

The key is to do your job such that they can do their job. That means to have a product that customers will understand to try, and to train the sales force to understand and communicate the story. This training should use the latest technologies

 

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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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

Innovation Defined


Innovation is the use of new knowledge to offer a new product or service that customers want. It is invention together with commercialization. It is a new way of doing things (termed invention by some) that is commercialized. The process of innovation cannot be separated from a firm’s strategic and competitive context. The new knowledge can be technological or market related. Technological knowledge is knowledge of components, linkages between components, methods, processes, and techniques that go into a product or service. Market knowledge is knowledge of distribution channels, product applications, and customer expectations, preferences, needs, and wants. The product or service is new in that its cost is lower, its attributes are improved, it now has new attributes, it never had before, or it never existed in that market before. Often the new product or service itself is called an innovation, reflecting the fact that it is the creation of new technological or market knowledge.

Innovation has also been defined as the adoption of ideas that are new to the organization. Generating good ideas or adopting a new one, in and of itself, is only a start. To be an innovation, an idea must be converted into a product or service that customers want. Coming up with the idea or prototype—invention—is one thing. Championing it, shepherding it, and nurturing it into a product or service that customers want is another. Innovation entails both invention and commercialization.

A distinction has also been made between technical and administrative innovation. Technical innovation is about improved products, services, or processes or completely new ones. This contrasts with administrative innovation, which pertains to organizational structure and administrative processes and may or may not affect technical innovation. Technical innovation may or may not require administrative innovation. A technical innovation can be a product or a process.

Product innovations are new products or services introduced to meet an external and market need whereas process innovations are new elements introduced into an organization’s production or service operations—input materials, task specifications, work and information flow mechanisms, and equipment used to produce a product or render a service.

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

Functions of Marketing Channel


The role of the marketing channel is to interpret the demand of the customers, stocks the goods and the customers want, when they want them, and in the way they want them. This includes having the right assortments at the time customers are ready to buy.

Marketing channel has following functions:

  1. Offering manpower and physical facilities that enable producers/manufacturers to have many points of contact with consumers close to their places of residence;
  2. Providing personal selling, advertising, and display to aid in selling suppliers’ products;
  3. Interpreting consumer demand and relying this information back through the channel;
  4. Dividing large quantities into consumer-sized lots, thereby providing economies of scale to the supplier and convenience to the customer;
  5. Offering storage so that suppliers can have widely dispersed inventories of their products at low cost and customers are enabled to have access to the products of producers;
  6. Removing substantial risk from the manufacturer by ordering and accepting delivery in advance of the season.

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

Usage Analysis and Customer Retention


Segmenting markets by consumption patterns can be quite insightful for understanding your customer mix. Differentiated marketing strategies are needed for the various user groups—first-time users, repeat customers, heavy users, and former users. By classifying customer accounts based on usage frequency and variety, companies can develop effective strategies to retain and upgrade customers. There are many highly informative, low-cost applications of usage analysis that should be considered by management.

By classifying customers into usage categories, management can design appropriate strategies for each market segment. The objective is to move customers up the ladder, where possible. The implication of usage analysis is that all customers are not equal; some (the heavy users) are clearly more important than other categories.

The Pareto principle, or 80/20 rule, is insightful in the context. In a typical business, approximately 80% of sales comes from about 20% of customers (also, note that generally about 80% of your sales comes from 20% of your goods or services). It is important to defend this core business, as heavy users are primary attraction targets to key competitors. These highly valued customers require frequent advertising, promotions, and sales calls and ongoing communication efforts.

By knowing who better customers are—through geographic, demographic, psychographic, and benefit research—we have a solid profile of “typical users.” This information is very helpful in playing subsequent customer attraction/conquest marketing efforts. Realize that the marketing information system, the database, plays a key role in customer analysis and decision making.

For unprofitable customers, the company often needs to find new ways to serve them more effectively. Technology such as ATM machines, ICT, can be used in this regard. Quarterly contact through a newsletter and direct mail or access options such as toll-free telephone numbers and websites maintain adequate communication with low-volume users. In some cases, it may even be desirable to sever the relationship with certain unprofitable customers.

A good understanding of our customers’ purchasing patterns helps us keep our customers and gain a larger share of their business. Share of customer (customer retention focus) has supplanted market share (customer attraction focus) as a relevant business performance dimension in many markets. Share of customer is adapted by industry and goes by such names as share of care (health care), share of stomach (fast food), and share of wallet (financial services). If a company can increase a customer’s share of business from 20 to 30 percent, this will have a dramatic impact on market share and profitability.

Recency, frequency, and monetary value (RFM) analysis is a helpful tool in evaluation customer usage and loyalty patterns. Recency refers to the last service encounter/transaction, frequency assesses how often these customer-company experiences occur, and monetary value probes the amount that is spent, invested, or committed by customers for the firm’s products and services.

A more effective strategy is to classify customers via usage analysis and design differentiated marketing approaches for each target market. In sum, usage analysis can greatly assist us in our customer retention activities. Think about how to “hold” heavy users and key accounts, upgrade light and medium users, build customer loyalty, understand buying motives to meet or exceed expectations, use appropriate selling strategies for each targeted usage group, win back “lost” customers, and learn why nonusers are not responding to your value proposition.

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

Managing Supply Chain


Your organization must have an efficient flow of materials, people and information to support your processes. If you are a manufacturer, you bring in raw materials, information and services—and then deliver finished goods to customers; hospitals move patients, materials and other services. Logistics is the management function that is responsible for these movements.

The final product of one organization becomes the raw material of another, so your process forms one part of the complete supply chain. The Institute of Logistics recognizes this by defining logistics as ‘the time-related positioning of resources or the strategic management of the total supply chain.’ They also emphasize the focus on customers by saying, ‘The supply chain is a sequence of events intended to satisfy a customer.’ In common with most interest groups, the Institute likes to emphasize its strategic role, but in reality it involves a whole range of decisions that are vital to the success of your organization.

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

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