Operating Leverage


It is a financial thought quite similar to break-even analysis. Both fixed and variable costs are used in the production and marketing of products. The higher the operating leverage, the faster the speed of increase of total profits after the sales crosses the break-even volume. Likewise, those firms with high operational leverage will suffer losses at a faster rate after the sales volume drops under the break-even point.

Organizations with high operating leverage gain more from sales from organizations that have low operating leverage. Organizations with high operating leverage are more responsive to drop in sales volume, losses will occur at a faster speed.

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.

Change and Gain


The best schedule for your business is likely to be very different from your current schedule. Innovative schedules that require major changes are the most likely to give the biggest benefits. On the other hand, the closer the new schedule is to the current schedule, the easier it is for workers to accept. Implementing a current modified schedule is easier but has a limited impact. In some companies even a relatively simple change—new shift start times, changing the direction of rotation, or a new vacation selection method—can create considerable controversy while not solving fundamental scheduling problems. Changing schedules is an emotional event for your employees, so you might as well tackle all of your scheduling problems at the same time.

Ask whether you want to make a small change or a big change. As a rule of thumb, aim for the greatest change possible, because you are not going to get all the way there anyway. Most organizations have a built-in inertia that limits change. On a scale from 0 to 10, with 0 being the current schedule and 100 being the perfect schedule, aim for 100, with the hope that your business will fall within the 80 to 90 range.

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.

Equality, Inequality


Some people don’t think of you as an equal. Before they can accord you with the honor of being treated as an equal, they feel you need to prove yourself. You’ve run into these people before – you can probably spot them right away. And, try as you might, you probably have a difficult time respecting them, because you know that, deep down, they don’t respect you.

By nature, we are organizers, and sometimes we fall into the trap of organizing people. One of the most persistent downfalls of human society has been the urge to rank people according to worth. Even today, many cultures that now enjoy political freedom are still tarnished with the vestiges of a class system – a declaration that people are inherently unequal.

On a social level, this tendency is nothing more than a reflection of how we often behave in our personal lives. For whatever reason, we conclude that some type of people is better than others, and we make decisions based on this conclusion. If you think about it, all complaints of discrimination are essentially protests against decisions based on the notion of inherent inequality.

Another brand of inequality that has plagued history is the inequality of opportunity. Some people have a head start over others. Some people have more opportunities open to them than others do. It’s easy to say that ‘achievers create their own opportunities,’ but the fact is, life isn’t fair. Some people do have an advantage when it comes to opportunity. in life, there are few level playing fields, and there is very little any of us can do to change this.

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.

Online Consumer Marketing


Just as e-commerce is a major function of the Internet, online marketing is an integral component of e-commerce. Online marketing is inherently interactive marketing. While it obviously expands the reach of marketers in connecting with customers, to be effective it must be part of an overall marketing strategy before it can create value for customers. A point to remember is that just as quickly as a firm can rise to become a star in cyberspace, if not launched properly and operated efficiently, it can just as quickly burn out.

Consumers who shop online can point to a number of advantages to online marketing. The benefits online shoppers obtain from Web purchases fall into three categories: lower prices, convenience, and personalization. Marketers should ensure their Web sites offer consumers these basic advantages over traditional shopping in retail stores, by telephone, and by mail. In addition, Websites should be easy to navigate, offer security and privacy, and provide information that consumers can use in making product comparisons and purchase decisions.

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.

Communicate and Reinforce Responsibilities


Once you have clearly defined in your own mind the responsibilities of a particular job, the next step is communicating them to the person. People must be told not once, not twice, but repeatedly.

If a person is conscientious and capable of performing the job, why must you remind him of his responsibilities? If he has to be told more than once, maybe he doesn’t belong in the position.

Reminding people of their responsibilities is similar to reminding them of the goals and objectives. Due to the complexity of jobs and companies today, people on all levels can easily become sidetracked.

It’s not unusual to see people, even at high levels, involved in activities that are not in fulfillment of their job responsibilities. Nor do these activities contribute to the goals and objectives of the department or company. This is one of the primary reasons why companies don’t reach their objectives: people concentrate their efforts on activities that seem like good ideas at the time but that don’t lead them to their desired objectives.

People also have a natural tendency to do the things they like to do. They gravitate to certain types of activities because they are good at them and enjoy them. The result? The responsibilities they don’t enjoy go unfulfilled because the people either consciously or unconsciously let them fall through the cracks.

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.

 

Unique Superior Product


It is not enough to have good strategy, good management preparation, and a good organization. These will permit good new products management, but too often it just doesn’t happen. Why? If there is one reason above all others, if there is one concept that should be the last one violated, it is the commitment to producing a unique, superior product. Obviously, if things are well organized, if there are capable people doing the work, and if good process is used it probably will happen. But research shows that more products are lost to this factor than any other.

Note the two words—unique and superior. That means no me-too products, unless there is important uniqueness in the augmentation circle, such as service or warranty. But the more critical term is superior, and that means superior in benefit to the end user. Some phrases used by managers on this point are: “meets customer needs better,” “solves problems customers have with competitive productive,” and “has better value-in-use.”

Products are thought to fall when end users lack the problem the product solves, or the product doesn’t solve it, or the marketing (communication) fails to get the message across. These are all measurable, in advance, by three key tests in the recommended process. We can learn, for sure, whether our new item is unique, and whether it offers a superior solution to a problem the end user has.  Whether we know the product is superior is not as important as whether the customer knows. Superior products can fail if communication fails, even when the item is a piece of medical equipment.

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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