Vision and Decision


This phase is really a process of moving from awareness to commitment, especially among the key managers who must prepare to drive the rest of the organization. The aim here is to convince key people that a great opportunity—or looming problems—lies ahead and that radical thinking around a new paradigm is necessary to make real progress. All the work a company does during this phase—reckoning where it stands competitively on time-based performance, building a vision, and deciding how to proceed—is preparation for the big moves to follow. Some changes in how the company works occur naturally in this phase—good analysis always produces some early obvious action steps. But the real purpose of this phase is to build commitment to a new way of looking at the competitive game and how the managers must play it.

 

Reckoning where the company stands includes looking hard at its own current performance and direction in relation to what the best companies are doing and what the near future will surely bring. So the process has both an internal and an external analytic component. The internal part involves putting together moving pictures of how the company actually works in time—how it processes information, manages projects, moves materials, engages customers, and so on, and how all this is influenced by the firm’s briefs, practices, policies, and systems. The external part involves describing what customers what now and how they would be served ideally, and pacing together moving pictures of how the best time-based competitors operate. Together these two parts allow management to self-discover in concrete fashion the new time-based paradigm and the capabilities the company must build to gain control of it.

 

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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Motivating Sales People


A new product is an intrusion. It takes time. It disrupts schedules. It involves change and risk. Salespeople are known for wanting new items to sell, but there are still negatives. Salespeople are not usually given reduced territories when asked to sell a new product. So, it is important a) to investigate in advance any possible reasons why salespeople might object to the new product, b) to give them all the training and materials they need to be effective, and c) to make sure the product is available, in their territories, when they start writing orders for it.

The key is to do your job such that they can do their job. That means to have a product that customers will understand and want to try, and to train the sales force to understand and communicate the story. This training should use the latest technologies.

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

Disambiguating Cash Budget


Most people plan expenditures for food, clothing, and other needs on the basis of expected income. Along with these short-term plans, many individuals and families use income estimates to plan for long-term activities, such as college expenses, the purchase of a house or car. This process of planning for the financial needs of the future is called budgeting. A budget, whether formal or informal, is a plan for utilization of anticipated resources.

The budget of a business serves much the same function as an individual or family budget. Like a personal or family budget, a business budget plans the expenditure of anticipated funds for immediate and long-term goals.

One budget common to both large and small businesses is called the cash budget. The cash budget is a detailed plan showing how cash resources will be acquired and used over a specific time period. For many companies, this time period is monthly for the first three months of the budget period, then quarterly for the remainder of the year. A typical cash budget is composed of four major sections:

  1. The receipts section. This section consists of the sum of the opening cash balance and estimated cash receipts for the budget period. For many firms, the major source of cash receipts is sales.
  2. The disbursement section. This section consists of all estimated cash payments for the budget period. Examples are payments for labor and materials, taxes, equipment purchases, and advertising.
  3. The cash excess or cash deficiency section. The entries in this section represent the difference between the totals of the receipts section and the disbursements section. If receipts are greater than disbursements, there is an excess of cash. If receipts are less than disbursements, there is a cash deficiency.
  4. The financing section. This section gives an account of any borrowing or loan repayments projected to take place during the budget period.

While the cash budget is useful to all companies, it is especially helpful to small firms because management can exercise more control in matching income with disbursements, in negotiating loans with the most favorable interest rates and terms, and in planning investments when there is an excess of cash.

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

Managing Supply Chain


Your organization must have an efficient flow of materials, people and information to support your processes. If you are a manufacturer, you bring in raw materials, information and services—and then deliver finished goods to customers; hospitals move patients, materials and other services. Logistics is the management function that is responsible for these movements.

The final product of one organization becomes the raw material of another, so your process forms one part of the complete supply chain. The Institute of Logistics recognizes this by defining logistics as ‘the time-related positioning of resources or the strategic management of the total supply chain.’ They also emphasize the focus on customers by saying, ‘The supply chain is a sequence of events intended to satisfy a customer.’ In common with most interest groups, the Institute likes to emphasize its strategic role, but in reality it involves a whole range of decisions that are vital to the success of your organization.

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