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.

 

Policies that Empower


Policies communicate guidelines to decisions. They are designed to control decisions while defining allowable discretion within which operational personnel can execute business activities. They do this in several ways:

  1. Policies establish indirect control over independent action by clearly stating how things are to be done now. By defining discretion, policies in effect control decisions yet empower employees to conduct activities without direct intervention by top management.
  2. Policies promote uniform handling of similar activities. This facilitates the coordination of work tasks and helps reduce friction arising from favoritism, discrimination, and the disparate handling of common functions—something that often hampers operating personnel.
  3. Policies ensure quicker decisions by standardizing other policies that otherwise would recur and pushed up the management hierarchy again and  again—something that required unnecessary levels of management between senior decision makers and field personnel.
  4. Policies institutionalize basic aspects of organizational behavior. This minimizes conflicting practices and establishes consistent patterns of action in attempts to make the strategy work—again, freeing operating personnel to act.
  5. Policies reduce uncertainty in repetitive and day-to-day decision making, thereby providing a necessary foundation for coordinated, efficient efforts and freeing operating personnel to act.
  6. Policies counteract resistance to or rejection of chosen strategies by organization members. When major strategic change is undertaken, unambiguous operating policies clarify what is expected and facilitate acceptance, particularly when operating managers participate in policy development.

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.

 

Public Relations (PR)


Public Relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance. In other words a good public relations program has three steps:

  1. Listen to the public: Public relations starts with good marketing research (evaluates public attitudes).
  2. Develops policies and procedures that are in the public interest: One does not earn understanding by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest.
  3. Inform people of the fact that you are being responsive to their needs: It is not enough to simply have programs that are in the public interest. You have to tell the public about those programs so that they know you are being responsive.

Publicity is one of the major functions of the public relations department. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media and that is not paid for, or controlled by, the sponsor.

Other activities include:

  • Establishing contact with civic groups, consumer organizations, and other concerned citizens to learn their views of the organization, to answer their questions, and to provide information (or education).
  • Opening lines of communication with customers, suppliers, distributors, retailers, stockholders, government agencies, educators, and community leaders.
  • Conducting studies to find the economic, environmental, and social consequences of organizational practices and to learn how to make a more positive contribution to customers, stakeholders, and society.
  • Providing any assistance needed to adjust the goals, policies, practices, personnel policies, products, and programs of the organization to meet the needs of changing markets.
  • Assisting all members of the firm in developing effective programs of consumer information and education.
  • Sending speakers to schools, clubs, and other such groups to maintain an open dialogue with students and other socially active members of society.
  • Creating incentives for employees to participate in public-affairs activities such as raising funds for charitable groups.
  • Answering consumer and other complaints promptly and correcting whatever it was that caused the complint.
  • Training employees or volunteers to provide prompt, friendly, courteous, and helpful service to anyone who contacts the organization in person, by phone, or written correspondence.
  • Demonstrating to society the organization is listening, reacting, adjusting, and progressing in its attempt to satisfy its diverse publics.
  • Opening two-way communications with employees to generate favorable employee opinion and to motivate employees to speak well of the organization to others.

This is an incomplete description of all the activities and responsibilities of the PR people, but it at least gives some feeling for what they do.

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.

 

Training and Community Colleges


The power of images and names deceives us into picturing big companies as big concentrations of people. They rarely are. Most of the work of any major organization goes on at a multiplicity of small to medium-sized shops, offices, or factories, often widely separated from one another as well as from the head office. Each work site may be no longer than an independent small or medium-sized enterprise in its neighborhood.

Since the operations performed at one work site may bear little resemblance to those at another in the same company, work sites may differ in their training needs as widely as they differ in geography. Accordingly, each work site normally administers most of its own training, with the exception of specifically managerial subjects or skills so company-specific, important, and widely needed that it is more cost effective to conduct them at a central location.

By the same token, each work site has finite resources of staff, space, equipment, and money available for training. One point it must therefore decide about any particular need is whether it is more cost-effective to conduct the training in-house or outside. More and more work sites have turned to community and junior colleges to run training programs for them. So community colleges have evolved various arrangements for working with employers. They have thus employed business-industry coordinators, who learn what services the employers need tell them what the colleges can do to help. Some colleges hire and train industry people to execute the colleges’ training assignments.

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.

Statistical Analyses


The role of database is to help select names for modeling, implement the results of the modeling process by scoring names and assigning them to the appropriate decile, and selecting names by decile and other criteria for marketing programs. Most companies use statistical analysis for two principal reasons: a) segmentation, and b) predictive modeling.

Segmentation techniques are used to identify and profile groups of customers whose characteristics are similar. If the objective is to segment customers based on their performance, then the procedure is to group people according to their performance characteristics and then develop profiles of each performance group. Typical segmentation variables are performance measures such as recency, frequency, and monetary value of purchases; types of products purchased; or types of promotions responded to.

By linking this data with customer performance data, marketers can analyze who buys what and use the profiles of customers in each segment as a means of finding other customers like them.

Once the segments have been created, individual customers will be assigned to segments and these assignments will be recorded in the database. This makes subsequent selection of individuals for promotion based on the segmentation criteria relatively simple.

Predictive Modeling, based on previous purchase history, based on recency, frequency, and monetary value, models can be developed to predict who is most likely and least likely to purchase at the next opportunity. This scoring model would be used to determine who should be promoted and what they should be promoted with.

Once scoring models have been executed and customers assigned to deciles, this information is recorded in the database so that subsequent selection of customers who have the highest probability of responding to a promotion is easily accomplished.

End users would use a selection menu in which they would indicate which scoring model they wish to use and either a specific cutoff score or a desired number of names to select. The database would then perform the selection and produce an output file to the specific medium. This would either be a file, a magnetic tape, or mailing labels. A file could either be used for further analysis, or in many cases, the file could be combined with a patterned letter file to produce personalized mailings.

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

Unrestrained Empowerment: Value Killer


A bank performs many different functions, but in the long run it has value for its customers only if it handles their money accurately and safely. Therefore the foundation of every role within the bank, whether it is trader, investment adviser, or teller, is the need to do it accurately and safely. To show employees exactly what it means to be “accurate” or “safe,” the banking industry has defined regulatory steps, and each bank has its own internal guidelines. The bank’s employees must adhere to these. This isn’t the only part of their job, but it is the foundational part. Any manager who forgets this, who gives his employees too much room to maneuver, runs the risk of destroying the bank’s value.

All roles demand some level of accuracy or safety, and therefore all roles require employees to execute some standardized steps. Great managers know that it is their responsibility to ensure that their employees know these steps and can execute them perfectly. If that flies in the face of individuality, so be it. Unrestrained empowerment can be a value killer.

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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