Not-for-Profit Marketing


Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

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.

Tangible and Intangible Property


Tangible property has a physical existence; land, buildings, and furniture are examples. Property that has no physical existence is called intangible property; patent rights, easements, and bonds are intangible property. The distinction between tangible and intangible property is important primarily for tax and estate planning purposes. Generally, tangible property is subject to tax in the state/province in which it is located, whereas intangible property is usually taxable in the state where its owner lives.

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.

Fundamental Change


There is an evident and strong desire for corporate transformation. With all the smoke there has to be some fire. Against the background of multiple and profound changes and challenges in the business environment, management accepts that incremental is no longer enough.

How fundamental the transformation should be will depend upon the situation and circumstances of the individual company. There are easier ways of getting directorial and managerial kicks.

Circumstances might allow a gradual transition and incremental adjustment. Managers need to understand the profound nature of the distinction between evolutionary and revolutionary change, and the requirements for beginning about a revolution in thought. They must learn from radicals rather than administrators.

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 Right Thing for your Company


Make sure that the outcomes you define for your people are in line with your company’s current strategy. With the dizzying pace of change in today’s business world, it is sometimes hard for managers to keep track. The key distinction is between mission and strategy. A company’s mission should remain constant, providing meaning and focus for generations of employees. A company’s strategy is simply the most effective way to execute that mission. It should change according to the demands of the contemporary business climate.

Although the constant reassessment of strategy is vital to the health of the company, it does place managers in a rather difficult position. They are the intermediaries, charged with explaining the new strategy to the employees and then translating it into clearly defined performance outcomes.

Often this can be as simple as telling your salespeople that with the new company strategy focused on growing market share rather than profit, each salesperson will now be encouraged to focus on the outcome, ‘sales volume,’ rather than the outcome ‘profit margin per sale.’

However, sometimes the changes in strategy are more radical and the pressures on managers to refocus employees on different outcomes are more acute. For example, the most effective strategy for many high-tech companies used to be innovation. Hence the large R&D budgets, the hordes of dishelved but creative software designers, and the unpredictable, slightly unfocused work environments. For the major players who dominate the marketplace, critical mass—getting your product to be accepted as the standard—is now more important than innovation. Innovation can be brought from the smaller boutique houses. Thus these larger companies need to change the way they operate to ensure that virtually everyone’s efforts are focused on spreading the new language/platform/product into the marketplace. This means that managers in these companies will have to hustle to redefine the desired outcomes and find new definitions of success. Number of users, for example, may now be more important than revenue per user.

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.

 

Defining Knowledge Management


Where is the wisdom we have lost in knowledge?

Where is the knowledge we have lost in information?

— T. S. Eliot

It is important that we have a clear understanding of what we mean by knowledge and not confuse it with information. In the information age the focus was on the processing of data into information and the control of the flow of information, but in the knowledge era there is a shift in focus to knowledge because of the recognition that knowledge is now the primary source of wealth. Given the importance of this shift it is essential to understand the distinction between information and knowledge, which are often confused for each other. It is also useful to understand the way in which they relate to data and wisdom, therefore the following definitions of these terms:

  • Data are the pure and simple facts without any particular structure or organization, the basic atoms of information,
  • Information is structured data, which adds meaning to the data and gives it context and significance,
  • Knowledge is the ability to use information strategically to achieve one’s objectives, and
  • Wisdom is the capacity to choose objectives consistent with one’s values and within a larger social context.

These definitions lead to the definition of knowledge management:

Knowledge management is the collaborative organizational activity of creating the environment, both attitudinally and technologically, so that knowledge can be assessed, shared and created within an organization in a way that all the experiences and knowledge within the enterprise, including that of all its staff, customers, suppliers and business partners, can be organized to achieve the enterprise’s objectives and reinforce its values.

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.

 

Problem-solving at the Upper Management Level


Full step-by-step application of the process, documented on chartpad or notepad, is required most often for concrete problems whose identity can be directly observed or easily visualized. These largely are mechanical, tangible situations.

At the upper management level, however, application of the process often consists of use of the ideas of the process. This includes discussion of a situation in al l its dimensions rather than formulation of hypotheses based on experience; attention to distinctions of identity, location, timing and magnitude rather than informed speculation alone; and testing of possible causes against the facts surrounding a situation rather than immediate action directed at the cause suggested by informed speculation. Data may be recorded and notes taken, but use of the process at upper levels of management is usually observable in the character of the questioning and the nature of the investigation. We observe people using the common language of Problem Analysis to organize their information, communicate it, and put it in perspective. They are sharing information through the channels of a systematic process. They are using words that will clarify each individual’s contributions.

Busy managers are not avoiding responsibility when they tell subordinates, “I want you to solve your own problems.” They have neither the time nor the specific skills to personally guide their subordinates’ problem-solving efforts. The truth of the matter is that managers who become directly involved in problem solving are subject to criticism for failing to set priorities on their own time or to delegate appropriately—in short, for failing to manage their operations. Managers need not have all the right answers. What is required of them are the ability and willingness to ask the right questions. The kind of questioning we use in specifying, in identifying distinctions and change, and in testing possible causes lends itself well to the process of assessing the logic and the work that other people have contributed to resolving a 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.

Product Classification


Different kinds of products are marketed in different ways. How products are classified tells us a lot about how they can be marketed. Product classification recognizes that people buy a product for various reasons. This is why it is said that a product is more than the sum of its physical attributes. A product classification also involves consideration of servicing, warranties, and delivery terms, as well as, the important image attributes of prestige, reputation, and perceived quality. In a product classification, buyer perceptions are just as important as the manufacturer’s specifications.

The most basic distinction is between consumer products and industrial products, because they are marketed in different ways.

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.

Formal Authority


Formal authority can be thought of as the right to command or compel another person to perform a certain act. Power is the ability to influence or cause a person to perform an act. It is possible for a manager to have formal authority without power, just as it is possible for a subordinate to have power without formal authority. The distinction between these terms may be significant for the manager, who may assume that his formal authority automatically gives him power but overlook the fact that his subordinates also have power, at times greater than his own. The manager in such a situation can encounter difficult and frustrating experiences without knowing why.

If formal authority were dependent upon physical power only, life would be even more difficult than it is. Ultimately, formal authority is dependent upon the law, but most frequently it results from a  shared perception that those with formal authority have rights that ought to be acknowledged. This “ought” is so widely believed that those with formal authority may very frequently have real power as a result.

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.

Characteristics of Analysis


Analysis uses scientific methodology: a systematic, rational, critical appraisal of the phenomenon under investigation based on emperical facts. Analysis in the social sciences is different in some respects from analysis in the natural sciences, which take a much narrower view of what can be measured and known. However, the basic motivation—to understand and to establish control over the environment—is the same, as are the essential methods. The distinction between analysis in the natural and social sciences lies in the kinds of questions explored.

The intellectual activities of analysis are directed toward practice issues and practical application. Assessment of the data and the search for relevant research and theoratical constructs are part of a progression toward action. The goal is to enable the change agent to make informed choices.

In addition, analysis is carried out within a social context and involves subjective judgments, preferences, and values. Naturality and disinterested inquiry are not characteristics of social science analysis. Ideologies, beliefs, and assumptions affect both the perception and the interpretation of imperical data.

The purpose of analysis in the planned change process is to facilitate decision-making. Analysis clarifies the nature and dynamics of the change opportunity and the relevance of possible responses. However, it is not realistic to expect analysis to provide “the answer.”

Different planners can assess the same situation and produce quite different analyses insofar as each shapes the problem in terms of his background, training, experience, and values. The reality of competing views of human service conditions, problems, needs, issues, and change opportunities in no way lessens the importance of analysis.

Analysis, then, may be expected to clarify options, trace implications, and provide grounding for judgments. Useful analysis will be critical, thorough, and systematic and will be oriented toward practical application.

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

Fixed and Variabl Costs


The study of cost behavior in physical distribution is quite similar to that in manufacturing because most of the activities are repetitive in nature. Under such conditions physical measurements such as man-hours, units handled, and orders processed can be used to measure the activity. Changes in the level of cost incurred usually are caused by changes in the level of activity experienced.

The first step in understanding the cost behavior of physical distribution activities is to establish the relationship between the amount of each cost and an appropriate measurement of the level of activity. Variable costs are those costs that change in proportion to changes in volume and fixed costs. Examples of variable costs include the handling charges in a public warehouse and the cost of packing material used in a shipping department. Fixed costs include depreciation, security costs and taxes on company-owned warehouses, and the salary of transportation manager.

Some costs are mixed, that is, they contain both a fixed and a variable component. An example might be a warehouse labor. A basic crew of three may be required to cover the normal range of activity. However, if the volume of activity exceeds a certain amount, overtime or part-time employees may be necessary.

In some cases costs may be fixed over a relevant range but may increase in steps. These costs may be referred to as step variable cost or step fixed costs. The major distinction is the size of the steps. For example, in an order-processing department of twenty people labor may be considered a variable cost without making a serious error. This is because a relatively small percentage change in the number of orders could result in a change in the number of employees. However, in a department of three people the cost should be considered a fixed cost since a large percentage change in the number of orders processed usually would be required in order to eliminate an employee. Other examples of step fixed costs include the costs of management salaries, depreciation, and taxes associated with each warehouse that the company owns and operate.

Effective planning and control require that the total costs be separated into the fixed and variable components.

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

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