Inflation and Disinflation


Fiscal policy is related to inflation, which occurs when the prices of goods and services rise steadily throughout the economy. Although many factors (such as increases in the prices of imported goods) contribute to inflation, government borrowing is major factor. When the government borrows great sums of money to bolster the economy, the total amount of money circulating tends to increase. With more money chasing the same quantity of goods and services, inflation increases too.

Theoretically, the government is supposed to pay back its debt during inflationary times, thereby taking some of the excess money out of the economy and slowing inflation to moderate level. This system worked throughout 1950s and 1960s, but during the 1970s, inflation kept building. By the end of the decade, prices were increasing by almost 14 percent a year.

Inflation of this magnitude brings an unproductive mind-set. People become motivated to buy “before the prices goes up,” even if they have to borrow money to do it. With greater competition for available money, interest rates increase to a level that makes business borrowing riskier and business expansion slower. Businesses and individuals alike begin spending on short-term items instead of investing in things like new factories and children’s education, which are more valuable to the nation’s economy in the long run.

Because of the peculiar psychology that accompanies high inflation, slowing it has always been difficult. In addition, the causes of inflation are complex, and the remedies can be painful. Nevertheless, several factors conspired to bring about a period of disinflation, a moderation in the inflation rate, during the 1980s.

Whether inflation will remain under control is debatable. The country is still vulnerable to outside shock. Bad weather could jack up food prices, and political upheavals could limit the supply and boost the price of vital raw materials. Also, government efforts to stimulate the economy could rekindle inflation. When the economy slumps, the government is inclined to increase the money supply, which tends to drive prices up.

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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Shifting Attitudes


One of the most difficult issues facing many high-tech and industrial companies is how to overcome the lack of strategic thinking about market segments that has historically been a serious deficiency. For years, and in many cases generations, the management of these companies has looked for ways to strengthen R&D, sales, and/or production activities without a clear focus on defined market needs. Now these same managers must reorient their thinking first to define specific segments and then to determine what it takes to serve these segments more effectively than the competition. This attitudinal shift is much more fundamental than it sounds. For the many executives who have talked a good game of marketing without doing much different must now provide the leadership and direction to ensure that R&D, production, and sales activities are specifically geared to the requirements of selected market segments.

To change the corporation’s mind-set to strategic market segmentation, multiple-level and intensive management development programs are usually necessary. When managers have typically advanced through engineering and manufacturing or “operations,” a strategic market segment orientation is even more needed. These managers must learn that market segmentation and market selection are the starting points for all decisions and action programs.

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

Barriers to Team Progress


  • Insufficient training. Teams cannot be expected to perform unless they are trained in problem-solving techniques, group dynamics, and communication skills.
  • Incompatible rewards and compensation. In general, organizations make little effort to reward team performance. Because of a strong focus on individual rewards it is difficult for individuals to buy into the team concept. Similarly, performance appraisals do not accept input from peers or team members.
  • First-line supervisor resistance. Supervisors are reluctant to give up power, confident that they can do the work better and faster, are concerned about job security, and are ultimately held responsible.
  • Lack of planning. A lack of common direction or alignment on the use of collaborative efforts, internal competition, redundancy, and fragmented work processes all prevent team progress.
  • Lack of management support. Management must provide the resources and “buy into” the quality council/sponsor system.
  • Access to information systems. Teams need access to organizational information such as business performance, competitive performance, financial data, and so forth.
  • Lack of union support. Organizations need union support for the team to be successful.
  • Project scope too large. The team and organization are not clear on what is reasonable, or management is abdicating its responsibility to guide the team.
  • Project objectives are not significant. Management has not defined what role the team will play in the organization.
  • No clear measures of success. The team is not clear about its charter and goals.
  • No time to do improvement work. Values and beliefs of the organization are not compatible with the team’s work. Individual departmental politics interfere with the team’s progress. Management has not given the team proper resources.
  • Team is too large. The organization lacks methods for involving people in ways other than team membership.
  • Trapped in groupthink. Team members all have a mind-set that no actions are taken until everyone agrees with every decision.

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

Everything is Tentative


It’s easy to imagine that building a new product is like building a house—first the foundation, then the frame, then the first floor, and so on. Unfortunately, product aspects are rarely locked in that way. Occasionally they are, as when a technical process dominates development, or when a semifinished product is acquired from someone else, or when legal or industry requirements exist.

We usually assume everything is tentative, even up through marketing. Form can usually be changed, and so can costs, packaging, positioning, and service contracts. So can the marketing date and the reactions of government regulators. So can customer attitudes, as companies with long development times have discovered.

This means two long-held beliefs in new product work are actually untrue. One is that everything should be keyed to a single Go/No Go decision. Granted, one decision can be

Decisive—at times, for example, when a firm must invest millions of dollars in one large facility or when a firm acquires a license that commits it to major financial outlays. But many firms are finding ways to avoid such commitments, for example, by having another supplier produce the product for a while before making a facilities commitment, or by negotiating a tentative license, or by asking probable customers to join a consortium to ensure the volume needed to build the facility.

The other untrue truism is that financial analysis should be done as early as possible to avoid wasting money on poor projects. This philosophy leads firms to make complex financial analyses shortly after early concept testing, although the numbers are inadequate.

Still another tentative matter is the marketing date. Marketing actually begins very early in the development process—for example, when purchasing agents are asked in a concept test whether they think their firm would be interested in a new item. Rollouts are now so common it is hard to tell when all-out marketing begins.

Often no one pulls a switch and marketing instantly begins. We more often sneak up on it, which clearly affects the evaluation system.

What results in some cases is a sort of a rolling evaluation. The project is being assessed continuously, figures are penciled in, premature closure is avoided, and participants avoid mind-sets of good and bad.

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

Riding theWaves of Change


Knowing the rules for riding the waves in the ocean can teach us how to ride the waves of change whether they are rolling into New York, Paris, or Baghdad. The future is coming toward us like enormous waves of change. Set after set after set they are getting bigger and coming faster. The surf is up from California to Bangkok to Vienna to Karachi. But how do we respond is a matter of choice. We can stay on the beach or get into the water.

 The future belongs to those who decide to ride; to those who have the courage to paddle out where the big ones are breaking; to those who welcome the unexpected. Enable yourself to embrace the waves of change, seeing them as exciting and challenging rather than intimidating and threatening. Learn unconventional rules for breaking out of old modes and mind-sets so that we can take effective risks, constantly innovate and continually be on our edge. Follow simple yet effective unconventional wisdom will make your work and your life richer, more rewarding and fulfilling. You’ll find that riding the wave of change is the most exciting and exhilarating way to your life. Ride this wave.

 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

Training and Development


Mr. President, and Director Training:

Spring has arrived with flowers. The buds have reappeared on bare branches again. Indeed! The March winds are the morning yawn of the year.

All and every little thing tell us
That once again ’tis Spring

Please accept my best wishes for a bright and beautiful season.

 

This time spring has brought along the advent of cricket season. And the current cricket series with India has caused a sort of fever to cricket lovers. Today is a crucial day for all of us. An important and decisive match between traditional rival teams is about to start and we are here participating in a learning exercise. You are not alone missing the glimpses of the match. My heart also joins the curious thumping of your heartbeat.

 

I have the opportunity to talk to you, the learned managers under the new system of local government, and I will avail it with honor talking relevant or maybe some irrelevant things.

 

Overtly or covertly, the district government system is new and complex. Its managers face requirements that are different from their federal, provincial, or private sector counterparts. Because of the complexity and range of those requirements, it is important for DDOs to understand the requirements specific to the district.

 

Friends! We use management and professional development to refer to those processes directed towards equipping professional managers with the skills, knowledge and attitudes necessary to achieve administrative objectives both now and in the future.

 

Any human development must be aligned with the entity’s mission and strategic goals in order that, through enhancing the skills, knowledge, learning ability and enthusiasm of people at every level, there will be continuous organizational and individual growth.

 

The perspectives of management and professional development are interpreted here as including the terms education, learning, training, and development which are seen as an integral part of the wider professional development framework.

 

I have the reason to believe, my dear officers, that if the training and development of managers of any department is not accorded high priority, if training is not seen as a vital component in the realization of government policies, then it is hard to accept that we have committed ourselves to management and professional development.

 

Those departments where there is a chronic under-investment in management and professional development that is the prime reason for the poor performance of the financial management or economy at large. The critique that can be constructed is disturbingly pervasive. At the macro level the education and training infrastructure, particularly when subjected to international comparisons is the major basis for consistently failing to address the needs of economic development. Training initiatives failing to provide consistent direction; concentrating on the certainties of vocational relevance rather than longer-term knowledge demands relevant to an imperfect future, and, simply, a lack of overall investment.

 

At the micro level, despite the relevance placed on bureaucratic system by successive governments, the practice of individual departments is similarly disturbing. Under-investment in management and professional development, whether measured in terms of budgets or training days, is regularly reported. All too frequently management and professional development fails to be regarded as a managerial priority or something that should be fully integrated through a learning culture into everyday practice. The traditional practice of public service, dominance of accountancy traditions and short-term-ism that characterize our bureaucratic inheritance arguably provide infertile conditions for what is essentially a long-term commitment.

 

While acknowledging the pessimistic construction that I have made, I would argue that investment in management and professional development could play a key role in initiating and facilitating change. You can thus adapt to whatever comes along and to take advantage of it, turning threats into challenges, and rising to these challenges in ways that produce increased benefit to the government and employees.

 

If I were to prescribe one process in the training of men, which is fundamental to success in any direction, it would be thoroughgoing training in the habit of accurate observation. It is a habit which every one of us should be seeking ever more to perfect.

 

All organizations, entities, and departments require some form of organizational structure to implement their strategies. Principally, structures are changed when they no longer provide the coordination, control, and direction managers, and entities require implementing strategies successfully. The ineffectiveness of structure typically results from increases in department’s revenues and levels of diversification. In particular, the formulation of strategies involving greater levels of diversification demands structural change to match each strategy. Some strategies require elaborate structures and strategic control, while others focus on financial control.

 

Allow me to briefly converse about strategic leadership. If you are a strategic leader, you have the ability to anticipate, maintain flexibility, and empower others to create strategic change as necessary. Multifunctional in nature, strategic leadership involves managing through others, managing an organization rather than a functional subunit, and coping with change that seems to be increasing exponentially in the current administrative landscape. Because of the complexity and global nature of this landscape, as a strategic leader, you must learn how to influence human behavior effectively in an uncertain environment. By word or by personal example, and through your ability to envision the future, as effective strategic leader you can meaningfully influence the behaviors, thoughts, and feelings of those with whom you work. The ability to manage human capital may be the most critical of your leadership skills.

 

From now on, in the 21st century, many managers working in government across country will be challenged to alter their mind-sets to cope with the rapid and complex changes occurring in the global economy.

 

A managerial mind-set is the set of assumptions, premises, and accepted wisdom that bounds—or frames—a manager’s understanding of the department and the core competencies it uses in the pursuit of strategic role. Your continuous success depends on your willingness to challenge continually your managerial frames.

 

Today competition means not product versus product, company versus company, or department versus department. It is a case of mindset versus mindset, managerial frame versus managerial frame. Competing on the basis of mindsets demands that strategic leaders learn how to deal with diverse and cognitively complex situations. One of the most challenging changes is overcoming your own successful mindset.

 

As effective leaders you should always be willing to make candid and courageous, yet pragmatic decisions—decisions that may be difficult, but necessary in light of internal and external conditions. You should solicit corrective feedback from peers, superiors, and employees about the value of your difficult decisions. Unwillingness to accept feedback may be key reason talented executives fail. This highlights the need for you to solicit feedback consistently from those affected by your decisions.

 

Because strategic leadership is a requirement of strategic success, and because departments may be poorly led and over-managed, working in the 21st century competitive landscape you are challenged to develop effective strategic leaders.

 

At district level you are the top administrative managers. And top-level mangers are an important resource for departments seeking to formulate and implement strategies effectively. A key reason for this is that the strategic decisions made by top managers influence how the department is designed and whether goals will be achieved. Thus, a critical element of your organizational success is having a team with superior managerial skills.

 

You often use your discretion (or latitude for action) when making strategic decisions, including those concerned with the effective implementation of strategies. You must therefore be action oriented: thus, the decisions that you make should spur the department to action.

 

Since you are top executives, you have a major effect on your department’s culture. Your values are critical in shaping your department’s cultural values. Accordingly, you have an important effect on organizational activities and performance. The significance of this effect should not be underestimated. Permit me to remind you that acquiring of culture is the development of an avid hunger for knowledge and beauty.

 

 

Add innovation and creativity in all your endeavors. It will certainly pay off. Effective leaders focus their work on the key issues that ultimately shape department’s ability to perform effectively.

 

And in the words of Charles de Gaulle, “Every man of action has a strong dose of egotism, pride, hardness, and cunning. But all those things will be forgiving him, indeed, they will be regarded as high qualities, if he can make them the means to achieve great ends.” To get others to come into your ways of thinking, you must go over to theirs; and it is necessary to follow, in order to lead.

 

While concluding, let me ask: do you know how do geniuses come up with ideas? What is common to the thinking style that produced “Mona Lisa,” as well as the one that spawned the theory of relativity? What characterizes the thinking strategies of the Einsteins, Edisons, da Vincis, Darwins, Picassos, Michelangelos, Galileos, Freuds, and Mozarts of history? What can we learn from them?

 

“Much learning does not teach man to have intelligence.”

This is the quotation from the philosopher Heraclitus, who spanned the fifth and fourth centuries BC. Twenty-five hundred years later, he’s still right. You might spend most of your life going to school, reading, looking up facts, acquiring information, and memorizing it. But, although you’ll become more informed, in the end it won’t make you any smarter. Is a reference library smart? Is a computer with a vast storehouse of voluminous data smart? Is the simple act of digesting and then disgorging information either smart or impressive? My answer is simple: “No.”

 

Anyway, I hereby formally inaugurate this training course.

Thank you for your time and patience.

Thank you for listening.

God bless you!

 

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