Corporate Ghettos


When the personality of an organization breaks up, individuals develop their own cult following. A reaction common to many organizations is the establishment of corporate ghettos, where individuals gather together in the absence of proper leadership to form informal but fiercely defensive groups.

These separate ghettos become the mainstay of internal communication and loyalty switches from the organization to the ghetto. All socializing and as much working contact as possible is restricted to other members of the ghetto.

Ghettos can have amazing influence on the lives of all concerned and in time come to dominate the entire culture and effectiveness of an organization.

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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When Marketing doesn’t Work


Marketing has not measured up to expectations in many companies because management has concentrated on the trappings rather than the substance. When most executives talk about what their companies have done to become more marketing oriented, they usually point to such actions as:

  • Declarations of support from top management in the form of speeches, annual reports, or talks to the investment community.
  • Creation of a marketing organization, including appointment of a marketing head and product or market managers, transfer to marketing of the product development and service functions, establishment of a market research function, salespeople reassigned around markets, advertising function strengthened.
  • Adoption of new administrative mechanisms, such as formal marketing planning approaches, more and better sales information, and revised information systems structured around markets rather than products.
  • Increased marketing expenditures for staffing, training and development, advertising, marketing, research.

The point is not that these actions are useless, but that by themselves they are no guarantee of marketing success. Effective marketing requires a fundamental shift in attitude and values throughout the company so that everyone in every functional area places paramount importance on being responsive to market needs. The steps taken in most companies are not useful because they fail to accomplish this crucial shift in attitude. And without this shift in attitude, the most highly developed marketing operation cannot produce any real results.

Why have so few companies gone beyond the trappings to achieve the change in attitude that ensures substantive marketing? Frequently, one or more of these situations exist:

  • In a surprising number of cases, management does not fully understand the marketing concept as it applies in its situation.
  • In many other cases, management understands the implications of the marketing concept but has not committed itself to the actions and decisions needed to reinforce it.
  • In almost every case, management has failed to install the administrative mechanisms necessary for effective implementation of the concept, especially into the non-marketing function.

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.

 

Approaches to Change


Axelrod discusses in his book titled: Terms of Engagement, four approaches to change: i) Leader-driven approach, ii) Process-driven approach, iii) Team-driven approach, and iv) Change Management approach.

Leader-driven change is more suitable for small and medium enterprises with owner-managers. This approach works well when the manager or leader has all the necessary information and knowledge. Leader-driven changes tend to be directive and non-participative. Therefore this approach is less suitable when: a) the workforce is young and/or highly skilled, b) the business environment is complex and dynamic, and c) successful change requires active involvement of a number of people in the organization.

Process-driven changes are led by experts or outside consultants and supported by the leader; these changes are more common in large, bureaucratic organizations. This approach works well when the change requires technical or specialized expertise. Also being directive and non-participative, as in the case of leader-driven approach, this approach is therefore less suitable when: a) the workforce is young and/or highly skilled, b) the business environment is complex and dynamic, and c) successful change requires active involvement of a number of people in the organization.

Team-driven approaches are most common in large, manufacturing enterprises that have skilled and educated employees. Change management strategies—such as TQM, Quality Circles, and Six Sigma—exemplify this approach. These are highly participative change efforts that empower employees and provide them with involvement, participation and ownership of change. Team-based approaches that are properly executed can unleash enormous levels of employee energy and motivation. This can, in turn, lead to innovation and productivity gains. However, using this approach can also cause some discomfort for managers in an organization because they may not be used to sharing their power and authority with workers. Moreover, this approach requires managers to shift from a directive, authoritarian style based on power and expertise to a participative style based on persuasion, coaching and helping. More importantly, the team-based approach to execute change requires the establishment of a ‘parallel organization.’

The fourth approach to change is called the Change Management approach. This is a combination of expert-driven and team-driven approaches. Whereas the former provides a business and technical focus to change, the latter generates ownership, involvement and commitment. So as to gain this commitment, most specialists, experts and change management consultants have incorporated the parallel organization concept in their process-driven approach. The Change Management paradigm is the approach to change that most organizations use today. Although it seemingly seeks to integrate ownership of change with practical business focus, the Change Management approach has shortcomings. Instead of involvement and commitment, this approach breeds cynicism, bureaucracy and resistance. It actually disempowers employees, by reinforcing hierarchical top-down management.

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

Doing Foreign Business for Wrong Reasons


The wrong reasons for entering a market include; large population, cheap labor, and “Everyone else is going there.” Population does not necessarily mean consumers or a skilled work force, and even a large consumer base does not mean there is an established market. A terrific investment in education and the establishment of an infrastructure for the conduct of business, whether manufacturing or marketing, may be necessary.

Some markets may be too small to support the cost of doing business. It is critical to enter only these markets where you can serve customers to their satisfaction. An inadequate understanding of products due to degree of technical sophistication and language barriers may require special attention to adapt documentation, training and support to the market and customer. Many apparently small markets can be surprisingly active.

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

Advertising and Advertisements


Advertising today is a worldwide phenomenon. It is important to recognize that many advertisers use advertisements for many purposes with many different possible effects. For example, within a given country it is common to find what might be considered highly fanciful advertising for consumer goods such as toothpaste, detergents, or soft drinks, and highly technical messages dealing with construction equipment, medical supplies, or computer services. The advertisers themselves can include huge multinational firms, special interest groups, local shopkeepers, and individuals. Their intents can range from altering behavior to affecting the way people think about a particular social or economic position. The results of their efforts can range from enormously influential to a waste of the advertiser’s money. It is not, then, a subject that lends itself to oversimplification.

 

When you think about “advertising,” you probably think in terms of specific advertisements. To begin there, then, advertisements can be recognized as paid, non-personal communication forms used with persuasive intent by identified sources through various media.

 

As paid communication forms they are different from common varieties of publicity (e.g., a press release) or “public relations” e.g., a news conference), which are often covered by the media without charge. By non-personal they are distinguished from forms of personal salesmanship occurring in business establishments or door-to-door. The advertiser is identified, which again sets this form of persuasive communication apart from various types of promotion and publicity in the form of “news” or “feature” material often carried by the media, but supplied by a particular source whose intent is often persuasive.

 

Advertisements are most commonly associated with the mass media of newspapers, magazines, cinema, television, and radio, although they frequently flourish in other forms such as billboards, posters, and direct mail as well. And, finally, advertisements are overwhelmingly used with persuasive intent. That is, the advertisers are striving to alter our behavior and/or levels of awareness, knowledge, attitude, and so on in a manner that would be beneficial to them.

 

These are some of the most obvious characteristics of advertisements, the end product of much that is advertising.

 

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

Psychology of Entrepreneurs


Some people are more likely to become successful entrepreneurs because of their mental attitudes. Intensive desire for independence, or its converse, high dissatisfaction with operating under the direction of others. Such an urge frequently derives from an authoritarian father, whom the entrepreneur struggles to dominate and surpass. An ironly they point out is that when an entrepreneur finally achieves establishment of an independent firm, the sought-for autonomy may turn out to be a miraj, because the company is still subjected to whims of customers, employees, governmental agencies, financial backers, and others who can ‘boss around’ the entrepreneurs anyway.

Other drives proposed to explain entrepreneurial behavior unclude an urge for power, the will to conquer, and the joy of creating. Most commonly accepted as dominant, however, is ‘Need for Achievement.’ Symptoms of this need are 1) desire to take personal responsibility for decisions, 2) preference for decisions involving risk that is neither very high nor very low, but rather moderate, 3) interest in concrete results from their decisions, tendency to work harder at tasks requiring mental manipulation, 5) not working harder because of financial incentive, 6) tending to think ahead, and 7) preferring to work with experts rather than personal friends.

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 http://www.asifjmir.com