Management Contract


The Management Contract is an arrangement under which a company provides managerial know-how in some or all functional areas to another party for a fee that ranges from 2 to 5 percent of sales. International companies make such contracts with 1) firms in which they have no ownership, 2) joint venture partners, and 3) wholly owned subsidiaries. The last arrangement is made solely for the purpose of allowing the parent to siphon off some of subsidiary’s profits. This becomes extremely important when, as in many foreign exchange poor nations, the parent firm is limited in the amount of profits it can repatriate. Moreover, because the fee is an expense, the subsidiary receives a tax benefit.

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 Know-how


People who bring capital, labor, and resources together to fashion them into a productive organization that must face the risks of an uncertain world, occupy strategic positions. Thus, given the same inputs, presumably a country with superior management will do better than one with weak management. The importance of managerial know-how can be illustrated by the airlines industry.

Obviously an explanation of world business involves many elements. But with a basic understanding of the few elements, comparative advantage and specialization.

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.

The Follies of Losers


Losers lose out on repeat business. They use rather than value their existing customers. They haggle over prices and margins, and discourage ‘variations’ from standard offerings that might create ‘extra work’ and cause ‘systems problems.’ They do just enough to fulfill any contracts that are won. They don’t really care about their customers’ businesses and keep ‘outsiders’ at a distance to protect their ‘know-how.’

Losers do little to lock their customers in. they are reluctant to establish online links because of worries about importing viruses. Open book accounting and partnering relationships are also avoided. Not surprisingly, clients seeking a deeper and more intimate relationship look elsewhere.

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.

Fuse Knowledge to Power


Architects are concerned with flows. When designing a building, their paramount considerations are how occupants will move in it and how light and air will circulate around it. Equally important for organizational architects is how information, know-how, decisions, and careers will flow in the structure being shaped.

When the work of the corporation was primarily the organizing of manual labor, markets were local and slow to change, and the knowledge base upon which competitive success depended was stable, a unitary hierarchy of manager atop manager made a lot of sense. The information needed to run the business was limited and could be easily channeled in one upward or downward flow. Workers did the work, and managers did the thinking.

But this is a reality that has disappeared from most industries. Markets are dimensioned globally, rules change faster than some competitors can master them, and brainpower counts for much more than brawn. Most organizations, though, remain keyed to the old realities. Few hierarchies have even kept up with the need to build in change by linking each of their limited number of levels with the time horizons of greatest importance to the company.

A more serious problem, though, is the lack of rethinking about how a business needs to organize its intellectual capital, its knowledge workers. It is ironic, and wasteful, that while “knowledge workers” (technical professionals and other holders of graduate or postgraduate degrees) are making up an increasing proportion of the work force in many industries, the organization structures in which they work remain more the products of Industrial Revolution than of the information age.

Knowledge, especially which can affect the company’s future competitiveness, used to be confined to the research and development lab or to the strategic planning department. Now, as information systems-driven service industries assume a larger share of many economies, knowledge about the capabilities that provide competitive advantage is much more widely dispersed than was ever necessary in traditional manufacturing companies. No single information channel can contain it all. And even traditional product makers are changing. Fewer manufacturing jobs are directly involved in making something; more are concerned with planning what to make, how to make it, and how to keep customers happy after the product has been purchased. The intellectual demands on front-line workers have increased tremendously. The narrowly skilled assembly jobs have been replaced by the more knowledge-intensive positions of the factory automation technician.

Requirements for more intellectual value added have escalated up many organization hierarchies. Networked data bases, expert systems, and almost never-ending flow of new personal computer software have significantly expanded the scope and the nature of the contribution possible from many mid-level employees. This is not an unmitigated blessing, though. It has also seriously polluted the management role in many companies, making many into high-level doers instead of managers, increasing the role’s fragmentation, and making it brittle rather than strong and load-bearing.

This situation will only worsen as economic pressures lead to increased management delayering. Companies with eight to ten tiers of management will find it necessary to organize around four or five. The number of subordinates per manager will have to sharply increase. Middle managers will find themselves with less and less time to master these new white-collar productivity enhancers and to make the intellectual contribution their businesses increasingly need.

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

Transformation Checklist


  • Does your company have a vision of a flatter and more flexible form of organization?
  • Is there a corporate-wide transformation program in place to  bring it about?
  • Does it address winning business and the creation of value, ‘know-how,’ opportunities and new ventures?
  • Does the program embrace facilitating skills, enabling processes and supporting technology?
  • Is it designed to influence attitudes by changing behavior?
  • How disruptive will it be of short-term customer relationship?
  • What will be done to retain the commitment of those who may be disadvantaged at a particular stage in the change process?
  • How committed is top management to achieving the transformation?
  • How this commitment been communicated?
  • Do the managers of the organization, and particularly the senior managers, behave as role models?
  • Have all the requirements for a successful transformation been identified?
  • What ‘building blocks’ or ‘pieces of the jigsaw puzzle’ might be missing?
  • In particular, are the necessary enablers in place, and have skill requirements been addressed?
  • Is it clear to the people of the organization that the program has been thought through?
  • Is the reward system compatible with the changes that are being sought?
  • Have likely obstacles and barriers been identified, and are programs in place to deal with them?

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

Yoking Technology with Market Opportunities


Developing new products that cost less or perform better has always been crucial for any technically based company. In our increasingly turbulent business environment, developing the know-how to keep pace with or even ahead of technological developments and competitors’ moves is more important than ever for several reasons. First, exploding technology is spawning new products and processes at an accelerating rate that threatens almost every product and process in place. Second, competition continues to intensify from abroad and a plethora of new startups and many substitute technologies that encroach on established products and processes. Third, product innovations that result in superior performance or cost advantages are the best means of protecting or building market position without sacrificing profit margins. This is especially true in today’s world when many industrial markets are flat or slow growth and excess capacity is commonplace.

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

Information and Knowledge-based products


As the know how proportion of goods and services continues to rise, the economy is increasingly knowledge-based. Consider the opportunities open to you to make money by packaging and selling information and knowledge. Entrepreneurs need to understand how to access, share, work with and exploit information. Its use should result in the development and application of knowledge and understanding that creates intellectual capital and value for customers.

So much information is available in a variety of formats that busy people are overloaded. Much of it is dated and not relevant to contemporary priorities and concerns. There are therefore unprecedented opportunities to help people cope with the flow. Information needs to be sifted, screened and sorted — to be presented in ways that make it easier to absorb and understand. Increasingly, people demand tailored selections of information relevant to particular requirements, issues and decisions.

Emerging technologies represent additional channels of communication that can be very effective at reaching tightly defined target groups whose members are widely scattered. Enterprising individuals have already successfully launched many information and knowledge-based services.

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 Asif J. Mir.

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