Economic Truths


Although there are few truisms that apply universally in the business world, there are four related economic truths that are valid in every business situation:

  1. Over the long term, it is absolutely essential to be a lower cost supplier or profit margins will erode.
  2. To stay competitive, inflation-adjusted costs of  producing and supplying any product or service must continuously trend downward.
  3. The true cost and profit picture for each discrete product/market segment is often obscured by traditional accounting practice.
  4. Real business winners concentrate as much or more on cash flow and balance sheet strength as they do on reported profits.

These points have always been valid, but they are far more serious today because there is much less margin for error in our more turbulent environment.

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.

Basic Thinking Patterns


Teamwork can be managed into existence by teaching people to use consciously and cooperatively four basic  patterns of thinking they already use unconsciously and individually. These four basic patterns of thinking are reflected in the four kinds of questions managers ask every day:

  1. What’s going on? It begs for clarification. It asks for a sorting out, a breaking down, a key to the map of current events, a means of achieving and maintaining control. It reflects the pattern of thinking that enables us to impose order where all had been disorder, uncertainty, or confusion. It enables us to establish priorities and decide when and how to take actions that make good sense and produce good results.
  2. Why did this happen? This indicates the need for cause and effect thinking. It is the pattern that enables us to move from observing the effect of a problem to understanding the cause so that we can take appropriate actions to correct the problem or lessen its effects.
  3. Which course of action should we take? This implies that some choice must be made. This basic pattern of thinking enables us to decide on the course of action most likely to accomplish a particular goal.
  4. What lies ahead? This pattern looks into the future. This is used for thinking when we attempt to assess the problem that might happen, the decision that might be necessary next month, next year, or in five years.

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.