Carryover


Carryover refers to a situation where the effects obtained in one phase appear to carry over into the next phase. The term carryover is generally used in the context of  removal designs. Thus, if you attempted to remove a successful intervention to recreate a sound baseline to determine whether your intervention was actually affecting the problem, and the problem remained unchanged despite the removal, carryover effects would pertain. Carryover effects might also be produced by totally extraneous outside influences having some impact on the target problem.

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.

Advertisements

Flow of Communication Messages


  • Despite computer manufacturers’ promises of the paperless office,  shipments of office paper have risen 51 percent.
  • In less than 10 years, people in the US added almost 135 million information receivers—email addresses, cellular phones, fax machines, voice mailboxes, answering machines—up 265 percent.
  • In one year, 11.9 billion messages were left on voice mailboxes.
  • Even though people are clamoring  to get on the Internet, they are sending even more messages through the postal services, and they are talking on their telephones more than ever.

All companies can hold down costs and maximize the benefits of their communication activities if they just follow three simple guidelines:

  1. Reduce the number of messages;
  2. Speed up the preparation of messages;
  3. Train the writers and speakers.

Even though you may ultimately receive training on the job, you can start mastering business communication skills right now. Begin with an honest assessment of where you stand. In the next few days, watch how you handle the communication situations that arise. Then in the months ahead, try to focus on building your competence in areas where you need the most work.

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.

Pricing


Whether or not it is so recognized, pricing is one of the most crucial decision functions of a marketing manager. Pricing is an art, a game played for high stakes; for marketing strategists, it is the moment of truth. All of marketing comes to focus in the pricing decision. To a large extent, pricing decisions determine the types of customers and competitors an organization will attract. Likewise, a single pricing error can effectively nullify all other marketing-mix activities. Despite its importance, price rarely serves as the focus of marketing strategy, in part because it is the easiest marketing-mix activity for the competition to imitate.

It can be easily demonstrated that price is a direct determinant of profit (or loss). This fact is apparent from the fundamental relationship.

Profit = total revenue – total cost

Revenue is a direct result of unit price times quantity sold, and costs are indirectly influenced by quantity sold, which in turn is partially dependent on unit price. Hence, price simultaneously influences both revenues and costs.

Despite its importance, pricing remains on of the least understood marketing-mix activities.

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.

Bounded Rationality


Bounded rationality involves neuro-physiological limits on the one hand and language limits on the other. The physical limits take the form of rate and storage limits on the powers of individuals to receive, store, retrieve, and process information without error … Language limits refer to the inability of individuals to articulate their knowledge or feelings by use of words, numbers, or graphics in ways  which permit them to be understood by others. Despite their best efforts, parties may find that language fails them (possibly because they do not posses the requisite vocabulary or the necessary vocabulary has not been devised) and they resort to other means of communications instead. Demonstration, learning-by-doing, and the like may be the only means of achieving understanding when such language difficulties develop. (Williamson).

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.

 

Acute Corporate Stress


Acute corporate stress is the most easily diagnosed. Something is clearly wrong and this will be evident in its financial performance. In the worst cases, a type of organizational schizophrenia takes hold, with conflicting decision making criteria and behavior very much in evidence.

Many small organizations are run by two partners that hardly converse despite spitting distance of each other, both ordering the same people to do different things. There are also giant PLCs and governments where supposed colleagues direct whole divisions as if they were private armies in pursuit of incongruent goals.

The good news in these situations is that this type of crisis is hard to ignore, that there is little alternative to taking action and that there are several courses of action that are proven to help.

The bad news is that if action is not taken the organization is on a fast track of failure.

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.

 

Breaking through the Ceiling


‘Average thinking’ not only leads managers away from excellence and away from their top performers. There is one final, and perhaps most damaging, way in which it harms a manager’s best efforts. ‘Average thinking’ actively limits performance.

Great managers, with their unique talents and styles, will have devised their own routes to excellence. But despite their success, it is still a shame that they have had to waste so much creativity maneuvering around performance evaluation schemes that unwittingly place a ceiling on performance. It is still a shame that they have had to exert so much energy railing against ‘average thinking.’ This energy and creativity would be much more valuable in the unfettered pursuit of excellence.

However, if you face the same ‘average thinking,’ you should rail against it just as energetically. Define excellence vividly, quantitatively. Paint a picture for your most talented employees of what excellence looks like. Keep everyone pushing and pushing toward the right-hand edge of the bell curve. It’s fairer. It’s more productive. And, most of all, it’s much more fun.

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 Profit Economics


The following information is required, at a minimum, to understand the profit economics of a business:

  1. How many dollars of assets are committed in each stage of each product/market business (e.g., R&D, materials, plant and equipment, finished stock, post-sale support)?
  2. What is the fixed/variable cost relationship for each product/market business, that is, for each dollar of sales, how many cents are attributable to bedrock fixed costs, how many to structured or discretionary costs, and how many to out-of-pocket costs?
  3. How do costs and profit change with swings in volume?
  4. What is the break-even point at current volume and what actions could be taken to bring that break-even point down should volume potential decline?
  5. What is the rate of incremental profit on each added increment of volume? What are the volume points where new increments of structured cost must be added?

A net profit and loss statement (after all allocations) and a balance sheet for each product line are essential for generating answers to these questions. Despite their claim that “we know all that,” very few managers actually have this information readily available.

Actually, most accounting systems are not designed to provide these kinds of statements and the accountants will argue that you can’t get them because many products run over the same machines, a lot of indirect costs can’t be allocated, and so on. To which we say, baloney! Shared fixed and indirect charges often represent the most serious cost problems in business situations where a cost disadvantage exists. And they are impossible to attack in the aggregate. They must be broken down and assigned to a discrete business unit even if done arbitrarily. Then a manager with hands-on responsibility can argue about fairness and whether there is value received for the costs involved. Although this is obviously not a precise exercise, it is effective and essential. Without full cost profit and loss and balance sheet statements managers cannot really understand the profit economics of their business. Further, they can’t make the types of intelligent business decisions and plans so important in today’s 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, Lectures, Line of Sight

Previous Older Entries