Entrepreneur


Most businesses start as a dream in somebody’s mind. An entrepreneur is a person with an idea. He or she also is someone with the energy and drive to turn that idea into a business. An entrepreneur needs these characteristics because in a young firm he or she must often do everything at once—manufacture the product, sell it, find enough money to keep going, and manage few employees.

The entrepreneur must be willing to take great risks, too, for most new businesses fail within a year. The odds against success are stiff, partly because many business ideas simply are not very good. After all, whoever wanted to buy paper dresses or quadraphonic sound. Factors that create special risks for new businesses are those over which entrepreneurs have little control. Also, technology has become highly complex and many new products—a filter to remove the salt from sea water, for example, require many years and teams of scientists and engineers to develop. Then, too, a vast array of government regulations creates additional burdens of time, energy, and expenses for owners of new businesses.

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.

Managerial Accounting


Managerial accounting refers to the internal use of accounting statements by managers in planning and directing the organization’s activities. Perhaps management’s greatest single concern is cash flow, the movement of money through an organization over a daily, weekly, monthly, or yearly basis. Obviously, for any business to succeed, it needs to generate enough cash to pay its bills as they fall due. However, it is not at all unusual for highly successful and rapidly growing companies to struggle to make payments to employees, suppliers, and lenders because of an adequate cash flow. One common reason for a so-called “cash crunch” or short fall is poor managerial planning.

Managerial accounting is the backbone of an organization’s budget, an internal financial plan that forecasts expenses and income over a set period of time. It is not unusual for an organization to prepare separate daily, weekly, monthly, and yearly budgets. Think of a budget as a financial map, showing how the company expects to move from Point A to Point B over a specific period of time. While most companies prepare master budgets for the entire firm, many also prepare budgets for smaller segments of the organization such as divisions, departments, product lines, or projects. “Top-down” master budgets begin at the top and filter down to the individual department level, while “bottom-up” budgets start at the departments or project level and are combined at the chief executive’s office. Generally, the larger and more rapidly growing an organization, the greater will be the likelihood that it will build its master budget from the ground up.

Regardless of focus, the major value of a budget lies in its breakdown of cash inflows and outflows. Expected operating expenses (cash outflows such as wages, materials costs, and taxes) and operating revenues (cash inflows in the form of payments from customers and stock sales) over a set period of time are carefully forecast and subsequently compared with actual results. Deviations between the two serve as a “trip wire” or “feedback loop” to launch more detailed financial analysis in an effort to pinpoint trouble spots and opportunities.

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.

Drive


A person’s drive is not changeable. What drives him is decided by his mental filter, by the relative strength or weakness of the highways in his mind. His drives are, in fact, his striving talents.

Take the striving talent of competitiveness as an example. Some people have a four-lane highway for competition. Show them scores and they will instinctively try to use these scores to compare their performance with that of their peers. They love scores, because what you can measure you can compare, and if you can compare, you can compete.

However, people with a wasteland for competition will see the same scores and not feel any jolt of energy at all. Putting themselves on a level playing field, putting their best efforts against their peers, and winning means nothing to them. They rationalize their behavior by opining, “I don’t like competition; I prefer win-win scenarios,” or the classic, “I prefer to compete with myself.” But these comments are just signs that their filter is, understandably, trying to describe itself in the most positive light.

The truth is that they are not competitive. There is nothing good or bad about this. It is simply who they are. And there is not much that either they or you, their manager, can do about it.

Similarly some people have a four-lane highway for constant achievement, a striving talent we call achiever. They may not have to win, but they do feel a burning need to achieve something tangible every single day. And these kind of people mean, “every single day.” For them every day—workday, weekend, vacation—everyday starts at zero. They have to rack up some numbers by the end of the day in order to feel good about themselves. This burning flame may dwindle as evening comes, but the next morning it rekindles itself, spurring its host to look for new items to cross off his list. These people are the fabled “self-starters.”

Not all roles require employees to possess this striving talent of achiever. Nurses, for example, do not have to generate all of their drive from within. Instead they have to respond caringly and efficiently to the urgent needs that face them everyday—for nurses the altruistic striving talent mission is much more important than achiever. But if you manage roles that do require achiever—like an insurance agent, a pharmaceutical salesperson, or any role where the person must initiate rather than respond—then remember; You had better select for it. Because if a person does not feel this burning fire, you cannot light it for him.

The same applies to all striving talents: the need to be of service, the need to be on stage, the need to be seen as competent, the need to help others grow. All of these drives are talents, and therefore they have the same characteristics as other talents. Namely, they are part of each person’s mental filter. They are unique and enduring.

A manager can never breathe motivational life into someone else. All she can do is try to identify each employee’s striving four-lane highways and then, as far as is possible, cultivte them.

When describing human behavior, stick to the clarity of skills, knowledge, and talents. Tread carefully when using habits or competencies—they lump too much together rather haphazardly. Likewise, if you feel a need to use attitude or drive, be cautious. Remember that a person’s drive and his prevailing attitudes are talents, and as such, they are very hard to change. When you hear yourself berating the person to “get a better attitude,” watch out. You might be asking him to tackle the impossible.

None of this implies that a person cannot change. Everyone can change. Everyone can learn. Everyone can get a little better. The language of skills, knowledge, and talents simply helps a manager identify where radical change is possible and where it is not.

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

Devoting some thoughts to Attitude


Many managers say they select for attitude—a positive attitude, a team-focused attitude, a service-oriented attitude. They are right to do so, because a person’s prevailing attitudes are a part of his/her mental filter. They are created by the interplay of his/her unique pattern of highways and wastelands. His/her attitudes are talents.

He or she may be cynical or trusting. He or she may be an optimist or a malcontent. He or she may be experimental or conservative. None of these attitudes are necessarily better than any of the others. None of them will prevent a person from playing certain roles extremely well—for example the malcontent might be a powerful entrepreneur, driven by his/her dissatisfaction with the status quo. The cynic might fit right into a role in law, policing or investigative reporting, anywhere a healthy mistrust is a prerequisite.

But all of these attitudes from part of the person’s recurring patterns of thought, feeling or behavior. Managers may be able to change someone’s mood from one day to the next. However, managers will always struggle to change that person’s prevailing attitudes.

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