Personality Cults


In the absence of an agreed working culture the leaders of an organization will use their own personalities to dedicate the way relationships are handled in their own area of influence.

The relative power and influence of each member of the leadership team will determine the relative strength of their cultural influence. Whatever the relative balance, however, you can be absolutely certain that this will create confusion, waste and stress.

The result will be a cult personality with the more dominant leaders commanding more followers, resulting in a split working culture within the organization.

The effect of this can be seen in the way organizations respond differently to sales enquiries than to service enquiries.

How many times you  have been left to wonder alone in a shop because a sales assistant is suddenly needed elsewhere when they discover that you are only enquiring and not intending to buy then and there?

It is interesting to note that when individual people suffer from a split or multiple personality they are usually diagnosed as schizophrenic  and receive the benefit of medical help. When organizations suffer from a split or multiple culture, it is usually accepted as normal.

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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Business Goals


Business goals or objectives convert the organization’s mission into tangible actions and results that are to be achieved, often within a specific time frame. Goals or objectives divide into three major categories: production, financial, and marketing. Production goals or objectives apply to the use of manufacturing and service capacity and to product and service quality. Financial goals or objectives focus on return on investment, return on sales, profit, cash flow, and shareholder wealth. Marketing goals or objectives emphasize marketing share, marketing productivity, sales volume, profit, customer satisfaction, and customer value creation. When production, financial, and marketing goals or objectives are combined, they represent a  composite picture of organizational purpose within a specific time frame, accordingly, they must complement one another.

Goal and objective setting should be problem-centered and future-oriented. Because goals or objectives represent statements of what the organizations wishes to achieve in a specific time frame, they implicitly rise from an understanding of the current situation. Therefore, managers need an appraisal of operations or a situation analysis to determine reasons for the gap between what was or is expected and what has happened or will happen. If performance has met expectations, the question arises as to future directions. If performance has not met expectations, managers must diagnose the reasons for this difference and enact a remedial program.

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.

Sources of Conflict


Conflict flows from frustration and aggression. We feel concerned with conflict involving people who interact aggressively to achieve their goals, often at the perceived expense of others. The causes of conflict may be found in people, things, or conditions. It is important to diagnose as correctly as possible the underlying causes of conflicts, because sometimes they are not what they appear to be on the surface. For example, some conflicts between individuals are hastily diagnosed as mere personality conflicts, when in fact structural factors may be the basic cause.

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.

 

Expertise


Whaereas intelligence is a feature attributable to most people, expertise is a scarcer commodity. This scarcity gives expertise its value and makes attempting to capture expertise worthwhile. The skills needed to process a company’s payroll would not, for example, be considered expertise. Although it may make sense to program this task, the ability to process payroll is not rare. Certain areas of expertise have more practical value than others. For example, expertise in deciphering Egyptian hieroglyphics may be scarce but is of less practical value than expertise in strategic management or auditing.

 The difficulty in acquiring expertise is what usually contributes to its scarcity. Expertise must be obtained from some source (e.g., an expert). Most companies make use of expertise either by acquiring it temporarily in the form of consultants or by sending a seasoned employee from site to site.

 One of the problem in defining expertise is understanding exactly what knowledge the expert has acquired and how it can be used. Expertise can be the ability to interpet Egyptian hieroglyphics, diagnose certain diseases, or formulate a strategic plan. For computers to perform specific tasks, they must be programmed to stimulate features of expertise. The goal of an expert systems development poject is to understand and embed scarce expertise in the computer program and use it to solve specific problems.

 The first question that must be answered concerns where to find the required expertise. The time spent answering this question, acquiring the relevant knowledge, and then encoding it in a program constitutes the bulk of the development effort.

 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

Company Performance Appraisal


Company performance appraisal studies the trends of specific profitability and productivity ratios derived from financial statements for at least past three  periods (year, quarter, month). Its main purpose is to diagnose problem areas through establishing productivity indicators for continuous monitoring and control of the whole enterprise, in order to set up an appropriate productivity improvement programs.

 

In conducting company performance appraisal, two basic comparisons have to be made:

a.       Between current performance and a historical base performance;

b.       Between actual performance and the target.

 

The former indicates whether performance is improving or declining and at what rate. The latter requires that performance or productivity targets be set and matched against actual performance.

 

Using profitability along as the basis for evaluating the overall performance of an organization makes it difficult to identify the cause of profitability changes. Are they due to productivity or price-cost movement? The following demonstrates this relationship:

 

            Output value     =          Quantity sold     X          Unit price

 

 

             Profitability       =          Productivity       X          Price recovery

 

 

             Input value        =          Quantity used    X          Unit cost

 

Considering the relationships over time, profitability is defined as charge in output value compared with change in input value; productivity as the change between quantity of output and/or quantity in unit price, and change in unit cost.

 

In effect, what is computed are performance ratios classified into:

  • Change in profitability;
  • Change in productivity;
  • Change in price recovery.

 These performance ratios are then evaluated in relation to their effect on profits. In general, a drop in profitability, in productivity or in price recovery reduces profits. Lower productivity signals a need for further analysis and for correction action. However, increased productivity does not necessarily lead to profitability on a short-term basis. The effect of increased productivity will be realized only in terms of long-term profitability.

 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

Avoiding Pitfalls in Case Analysis


Herebelow is the guide for evaluating analysis of cases:

1)      Inadequate definition of the problem. By far the most common error made in case analysis is attempting to recommend courses of action without first adequately defining or understanding the core problems. Whether presented orally or in a written report, a case analysis must begin with a focus on the central issues and problems represented in the case situation. Closely related is the error of analyzing symptoms without determining the root problem.

2)      To search for the “answer.” In case analysis, there are usually no clear-cut solutions. Keep in mind that the objective of case studies is learning through discussion and exploration. There is usually no one “official” or “correct” answer to a case. Rather, there are usually several reasonable alternative solutions.

3)      Not enough information. Analysts often complain there is not enough information in some cases to make a good decision. However, there is justification for not presenting all of the information in a case. As in real life, a marketing manager or consultant seldom has all the information necessary to make an optimal decision. This, reasonable assumptions have to be made, and the challenge is to find intelligent solutions in spite of the limited information.

4)      Use of generalities. In analyzing cases, specific recommendations are necessarily not generalities.

5)      A different situation. Considerable time and effort are sometimes exerted by analysts considering that “If the situation were different, I’d know what course of action to take” or “If the marketing manager hadn’t already found things up so badly, the firm wouldn’t have a problem.” Such reasoning ignores the fact that the events in the case have already happened and cannot be changed. Even though analysis or criticism of past events is necessary in diagnosing the problem, in the end, the present situation must be addressed and decisions must be made based on the given situations.

6)      Narrow vision analysis. Although cases are often labeled as a specific type of case, such as “pricing,” “product,” and so forth, this does not mean that other marketing variables should be ignored. Too often analysts ignore the effects that a change in one marketing element will have on the others.

7)      Realism. Too often analysts become so focused on solving a particular problem that their solutions become totally unrealistic.

8)      The marketing research solution. A quite common but unsatisfactory solution to case problem is marketing research. The firm should do this or that type of marketing research to find a solution to its problem. Although marketing research may be helpful as an intermediary step in some cases, marketing research does not solve problems or make decisions. In cases where marketing research does not solve problems or make decisions. In cases where marketing research is recommended, the cost and potential benefits should be fully specified in the case analysis.

9)      Rehashing the case material. Analysts sometimes spend considerable effort rewriting a two- or three-page history of the firm. This is unnecessary since the instructor and other analysis are already familiar with this information.

10)  Premature conclusions. Analysts sometimes jump to premature conclusions instead of waiting until their analysis is completed. Too many analysts jump to conclusions upon first reading the case and then proceed to interpret everything in the case as justifying their conclusions, even factors logically against it.

 

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