Organization’s Specific Capabilities


Successful projects are associated with quality performance (proficiency) by one or more key players in the new products operation. A firm’s key players will vary some, depending on strategy, but we usually see the same bunch. First on most lists is technology. But technology does not mean just in research labs. A technology is a system or set of people and things that permit work. A soft drink bottling system is a technology.

In a virtual tie with technology is a bundle of skills in marketing. The needs and desires of the marketplace are an essential input to product innovation. And the end product must be presented to the end user in a way that stimulates trial and adoption. Just as some marketing firms have lacked technical skills, some technical firms have lacked marketing skills.

A new member of the triad is operations/manufacturing—maybe a factory, a laboratory, a set of carpet cleaning franchisees, an actuarial department in an insurance company, or even the legislature in a government. It is where the good or service is prepared or offered. It could be the classroom where this subject is discussed tomorrow. No matter how well designed or marketed, if the organization cannot deliver on the promised product, success cannot be assured. In the best firms today, manufacturing capability begins its development at the very start of the project, and may even be decided in the strategy if that is where the technology strength is located.

There are some other capabilities needed today, though the list is industry dependent. Two skills are moving up the list—human resource management (HRM) and technology (IT). They both relate to how new product projects are being managed today. HRM people are apparently critical in building the inventory of potential team leaders, and in training those selected for this most difficult task. IT people hold the answer to collocation, the physical grouping of teams that contribute so much to a new product project. Their answer: digital collocation, or the virtual collocated team. On a slightly broader plain, IT also permits effective networking, something we will see actually makes the “company within a company: that new products projects become.

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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Revisiting Leadership


Human beings are designed for learning. Unfortunately, the primary institutions of a society are oriented predominantly toward controlling rather than learning, rewarding individuals for performing for others rather than for cultivating their natural curiosity and impulse to learn. The young child entering school discovers quickly that the name of the game is getting the right answer and avoiding mistakes—a mandate no less compelling to the aspiring managers.

 

Our prevailing system of management has destroyed our people. People are born with intrinsic motivation, self-esteem, dignity, curiosity to learn, joy in learning. The forces of destruction begin with toddlers—grades in school, gold stars, and on up through the university. On the job, people, teams, divisions are ranked—reward for the one at the top, punishment at the bottom. Incentive pay, business plans, put together separately, division by division, cause further loss, unknown and unknowable.

 

Ironically, by focusing on performing for someone else’s approval, corporations create the very conditions that predestine them to mediocre performance. Over the long run, superior performance depends on superior learning. A full one-third of the Fortune 500 industrials listed in 1970 had vanished by 1983.

 

Today, the average lifetime of the largest industrial enterprises is probably less than half the average lifetime of a person in an industrial society. On the other hand, a small number of companies that survived for seventy-five years or longer. Interestingly, the key to their survival is the ability to run experiments in the margin to continually explore new business and organizational opportunities that create potential new sources of growth.

 

If anything, the need for understanding how organizations learn and accelerating that learning is greater today than ever before. In an increasingly dynamic, interdependent, and unpredictable world, it is simply no longer possible for anyone to figure it all out at the top. The old model, the top thinks and the local acts, must now give way to integrating thinking and acting at all levels.

 

While the challenge is great, so is the potential payoff. The person who figures out how to harness the collective genius of the people in his/her organization is going to blow the competition way.

 

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

Financial Engineering


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

Project financing is about the circumstances in which project financing might be beneficial to a firm’s stakeholders, and has emphasized that a project financing must be designed to serve a community of interests among several parties to a project. Consequently, no single rationale can completely explain why firms employ project financing. Clever corporate financial engineers will continue to find new applications of project financing. As the financial environment continues to evolve, project financing will enjoy a prominent place among leading successful financial techniques.

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