Hypergrowth in Companies


Hypergrowth is not just a feature of private companies with a profit motive. The public sector can also undergo hypergrowth, often providing growth opportunities for private companies. In the main, however, the days of big government appear to be over. Current trends for the state to be less of an actual provider of services and more a facilitator and purchaser of them from the private sector.

Companies and corporations welcome hypergrowth because of the perception that they will make more profit and thus be more attractive to investors. This is a reasonable perception provided that the hypergrowth is managed efficiently. If, however, it is poorly managed the company may well end up in trouble despite rapid growth.

It is also true that the larger an organization is the more power it can wield and the more it can dictate to its suppliers in order to obtain the discounts the economies of scale can offer. If a company buys 9 percent of one supplier’s product, the company is highly dependent on that supplier to deliver on time. If it buys 90 percent, it can dictate the terms because of it withdraws its business then the supplier will have a major problem. Many suppliers often express delight at gaining a huge contract with a large corporation only to be dismayed later on as that corporation begins to drive down the price. No organization should ever be completely dependent on another.

Just occasionally there are companies that do not want to grow – their owners are happy with them as they are. The danger is not growing, however, is being a target for acquisition by those who are. Hypergrowth is normally presented as a positive thing. For the individual who has not considered its implications it can be threatening. In a hypergrowth situation, change can occur rapidly and change is often uncomfortable. Senior managers should be aware that hypergrowth may produce fear in employees as well as pleasure and pride.

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

Advertisements

Mobilizing Support for Change Managers


Despite using the principles of influence, social networks and negotiation, change efforts in an organization can falter for different reasons. There has been a great deal of interest in finding out why people are so unwilling to stop out of their comfort zones and accept change. Some of the major  impediments to change are:

  • People believing that the change effort is yet another fad: Over a period, many employees have come to perceive different change programs as fads because they associate these with previously failed initiatives. As a result, they do not pay attention to the merits of the arguments. Change induces dissonance, and people often reduce the resulting stress by reverting to previously held assumptions, beliefs, and behaviors.
  • People who believe that change agents are not credible: Employees tend to view the strength of the change idea by associating it with the person who advocates that position. In other words, if the change manager is credible, the idea is seen as convincing. On the other hand, when the manager is perceived as untrustworthy, people tend to reject the change ideas.
  • People who have difficulty unlearning old ideas and approaches: Most often, people do not know how to stop what they have already been doing. When they are faced with uncertainty and ambiguity, they feel a sense of loss of control and this leads them to persist with their existing methods and approaches.
  • People who have difficulty learning new patterns of behavior: When people face unfamiliar situations, they often fail to comprehend the complexities of the situation. They may also feel apprehensive that if they try out new behaviors and fail, they would attract criticism. Faced with a fear of failure and believing that change would make little difference, they may refuse to invest in learning new methods and approaches.
  • People who feel that change threatens their identity: When faced with crises or threats, people tend to uphold their pride rather than appreciating the learning challenge that it offers. There is great comfort in existing belief structures, as these constitute one’s personal identity. Any attempt to change behavior may be seen as a challenge to that identity. As a result, it generates resistance to change.

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

Competitive Forces


Competitive strategy has become an area of specialty among management researchers and consultants. These specialists find that the competition within an industry is constrained by an underlying structure consisting of five powerful driving forces:

a)    Rivalry among existing firms in the industry

b)   The threat of new firms entering the industry

c)    The bargaining power of suppliers to the industry

d)   The bargaining power of the buyers from the industry

e)    The threat of substitute products or services

The underlying forces determine the profit margins that are characteristic of the industry. They limit the prospects for greater than normal profit margins. They influence the intensity of the competition and the long-term probable outcome of the competition. To entrepreneurs who are not familiar with these forces represent fate.

We often attribute the success of an entrepreneurial venture to its entrepreneur. We shouldn’t detract from the importance of the leader in a new venture, but it is very important to recognize that there are other forces that contribute to the success. A super individual with a good product entering an industry with an adverse underlying structure may have little success. A lessor individual entering an industry with a more favorable structure may succeed despite mistakes and misjudgments.

There may be many factors that influence a business firm’s performance in the short term. These factors are transient such as economic conditions, material shortages or strikes. In the long term, however, the five underlying structural forces determine the potential returns achievable by the industry. The various firms competing within an industry are thereby limited in their potential profit margins and returns on investment.

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

Political Aspects of Organizational Change


There is a large number of individuals who are undecided about change—they need to be influenced or persuaded to support the change. How can a manager motivate employees to change? Most of the change management literature overlooks the fact that people are largely motivated by self interest. In the 90s, popular writing in Change Management exhorted managers to develop ‘vision’ statements to appeal to people’s hearts. While there is some merit in this proposal, change managers who ignore people’s minds (and by that I mean self-interests) will find it quite difficult to garner support for their change efforts. Individuals are not solely drive by self-interests but these interests are important. In some instances, change may involve relinquishing one’s self-interest. The first thing people are likely to ask when informed about change is: what is in it for me?

There had to be a number of decisions to be made at every stage of the project involving large financial outlays—quickly and without political or bureaucratic interference. The decision-making process ensure this. Public support is critical for land acquisition and later for smooth execution. A number of contractors would be involved, and their effectiveness had to be ensured for the corporation to be effective. The community would be concerned about possible environmental degradation. Though the project would ultimately benefit the community, no cost could be unilaterally imposed on any stakeholder. The project owes its success to effectively managing such political aspects too.

If the organization’s change agenda matches self-interests of employees and other stakeholders, it has little problem in gathering support. On the other hand, if the change agenda requires employees to give up at least some of their interests, then mobilizing support is a more difficult task. More importantly, even if the change agenda is aligned with employees’ self-interests, they have to be convinced that participating in change will advance their self interests. Therefore, mobilising support is largely about influencing people to change despite—or because of—their self-interests. This aspect of influencing people’s self-interest is what makes change management ‘political’; it requires close attention to the science and art of persuasion. In other words, we need to understand the psychology of persuasion before we can devise effective ways of influencing people.

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

Interactive Media Marketing


If you think, or are led to believe that the Internet, WAP technology or interactive television is about to make traditional advertising and marketing redundant you are likely to be disappointed. Despite new technology, television, magazines and posters are still perfect for the passive, one-to-many, one way awareness messages of mass marketing. However, they are making, and will increasing make, a major impact in the area of ‘interactive marketing.’

Interactive media is fast becoming the new tool of customer-focused direct marketing. Consider what interactive really means—two-away. It is advertising you respond to – just like direct mail, coupon print ads, even direct response television commercials on a many-to-many format. It is likely that new interactive media will eventually revolutionize direct marketing, mor than mass marketing.

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

Same-day Delivery


Same-day delivery, or same-day service, is an excellent promotional scheme for increasing sales at very little additional cost. As the economy becomes increasingly attuned to a “buy it now, have it now” attitude, we become more and more frustrated with waiting days (or often weeks) for purchased products to arrive or for service to be performed. Companies willing to guarantee same-day delivery have found this to be an extraordinarily effective sales tactic that practically ensures a competing edge.

 

Despite the fact that most people regard time as a valuable commodity, few businesses pay any attention to rapid service. Manufacturing, retailers, and service forms want their bills paid on time, but all too often, they do not reciprocate.

 

Although sales tactics that promise and then fulfill same-day delivery within a specific area must always bring in new customers, for some businesses, same-day delivery is impossible.

 

Doing what you say you are going to do when you promise you will do it will inevitably increase service sales as effectively as rapid delivery does in product businesses. It is simply good public relations. Turning it around, when a plumber, electrician, or furnace repairperson promises to take care of your service problems tomorrow and actually does so, the chances are very good that you will call that person again when the service is needed.

 

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

How good managers find talent?


Even if you know how to select for talent, it is not always easy to identify those who have it. At the first place, many people don’t know what their true talents are. They may be experts in their chosen field, but when it comes to listing their unique set of talents, they are stumped.

 

Your own skills and knowledge are already easy to identify. You had to inquire them, and therefore they are apart, distinct. They are “not You.” But your talents? Your talents are simply your recurring patterns of behavior. They are your very essence. It takes a rare objectivity to be able to stand back from yourself and pick out the unique patterns that make you You.

 

Then, when someone applies for a job, he naturally wants to impress. Therefore, those few recurring behaviors of which he is aware will be painted in as rosy a hue as possible. In the job interview he labels himself assertive, not aggressive. He describes himself as ambitious rather than pushy. More often than not these are not deliberate misrepresentations. They are genuine attempts to describe himself to you positively. But whatever his true motivations, his instinct to try to impress you makes your job—the talent scout—that much more difficult.

 

These barriers to talent scouting are a fact of life. Human nature being what it is, people will always struggle to know themselves, and they will always sell themselves in job interviews. Despite these barriers, good managers still do much better than their colleagues at selecting people with the right talents for the role. They have discovered some simple techniques to cut through the barriers and so find the match between the person and the role.

 

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

Next Newer Entries