Discounted Cash Flow


It is a useful conception from Discounted Cash Flows that they are future cash flows expressed in terms of their present value. The discounted cash flow technique employs this reasoning by evaluating the present value of a business’s net cash flow (cash inflows minus cash outflows). A simplified view of cash flow is “cash flow from operations,” which is net income plus depreciation charges, because depreciation is a non-cash charge against sales to determine net income. The present value of a stream cash flows is obtained by selecting an interest or discount rate at which these flows are to be valued, or discounted, and the timing of each. The interest or discount rate is often defined by the opportunity cost of capital—the cost of earning opportunities forgone by investing in a business with its attendant risk as opposed to investing in risk free securities

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.

Inter-Cultural Communication


Companies face special challenges when they market their products and services to people in other countries and to people in their home countries who come from other cultures:

  • Companies have to make their communications understandable and clear to their target audiences. The company that does not modify its information risks offending its audience and losing the opportunity to do business.
  • Companies are ethically obligated not to reinforce patterns of discrimination in product information.
  • Companies are not obligated to challenge the prevailing prejudice directly. Organizations that actively oppose discrimination are acting admirably.

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.

Motivation Factors


Motivation factors, such as achievement and recognition, were often cited by people as primary causes of satisfaction and motivation. When present in a job, these factors apparently could cause satisfaction and motivation; when they were absent, the result was feelings of no satisfaction as opposed to dissatisfaction.

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.

 

Tacit Knowledge, Explicit Knowledge


One way to describe tacit knowledge is in terms of intuition. Tacit knowledge is personal, intuitive knowledge, whereas explicit knowledge is the kind of knowledge that can be learned from a book. There is a vast difference between book learning—explicit knowledge—and experience-based learning—tacit knowledge.

Intuition is defined in Webster’s New World Dictionary as “the immediate knowing of something without the conscious use of reasoning.” There are times when we know something to be true but we do not know why or how we arrived at the understanding. One form of intuition arises because we know something so well and so thoroughly that we do not have to reason things out again but we immediately know it. This is tacit knowledge, as opposed to explicit knowledge, which is “formal and systematic.” Tacit knowledge is “deeply rooted in an individual’s action and experience.” It is intuitive and subjective whereas explicit knowledge is scientific and objective.

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.

 

Distinguishing between Tasks and Responsibilities


Make sure people understand the difference between the responsibilities of their jobs and the tasks that must be performed in order to fulfill those responsibilities.

If a person receives a laundry list of tasks instead of a list of major responsibilities, he will have difficulty understanding how the job contributes to the accomplishment of the department and company goals. He may also restrict his activities to the list of tasks instead of the overall job to be accomplished.

A comprehensive list of responsibilities, as opposed to a detailed list of tasks, provides the person with a larger view of the job. It also gives people more freedom in deciding how to  go about fulfilling the responsibilities of the job and meeting the established goals and objectives.

This is not to say that the manager shouldn’t delegate tasks to the people who work for him. In some cases the manager should be quite specific as to what tasks should be performed in fulfilling the responsibilities. As a general rule, the more authority a person has and the greater the responsibility, the more freedom he should have in determining the tasks he will perform.

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

Logistics: Currency Rate of Exchange


Variations in the rate of exchange of the dollar against foreign currencies represent a difference of major importance in international logistics just as they do in any other facet of international operations. The design and operation of an international logistic system is based on a set of units of measure. Thus, as rates of exchange vary, so do the local costs associated with different local currencies; these include transportation, warehousing, inventorying, information processing, and other costs elements.

When variations in rates of exchange become substantial in magnitude, and significantly different between countries, it is usually necessary to re-evaluate the structure of the logistic system, to ensure that it is adjusted to keep it close to its optimal performance. By the same token, management reports must provide explicit identification of variations in costs due to variations in currency rates of exchange, as opposed to variations in performance.

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

Defeating Fear with Preparation


Preparation helps defeat fear. Winning prizefighters prepare for a bout by selecting a sparring partner who has a boxing style similar to their opponent.

A football coach helps defeat fear and builds team confidence through exhaustive preparation. Films of the other opposing team in action are reviewed, “special” plays are practiced over and over again, and restrictions are placed on players’ activities all because, in an even contest, confidence is the deciding factor and confidence comes from preparation.

People are afraid of selling more than any other occupation. And again, preparation is a key to overcoming the near paralysis people have in making a sales presentation. People fear looking stupid, hearing the prospect say “No,” being embarrassed, forgetting what they want to say about the product, asking for the order, and not making the sale.

The only way to gain the high level confidence needed to sell successfully is preparation. And preparation is knowledge—knowledge of what you sell, knowledge of how your product will help the prospect or client, and knowledge of the person you’re selling.

Know your product or service. Know exactly what it can do for the prospect. Be so well prepared you can answer any question that comes up. Know construction, desirability and guarantees. Know the limitations, when not to use the product.

Know how your product or service will help your prospect. Your customer is the law of self-interest in action. As a salesman makes a presentation, the customer is asking, “How does this relate to my problem? How would it benefit me?”

The third confidence builder is knowledge of the prospect. You don’t sell to machines, you sell only to people. Just as you feel confident and have no fear when you’re around people you know well, you’ll have confidence around prospects when you know more about their personal interests, personality, personal responsibilities, or responsibilities, and family.

To act confidently in a sales situation, prepare yourself with knowledge of what you sell, how it will benefit he prospect, and who the prospect is. But more than knowledge, practice is required to gain confidence needed in selling. Practice your presentation with people who act the role of a customer. Practice before a mirror, or better yet, film yourself on a video camera. Watch your mannerisms, list to your voice, and observe your expressions.

You’ll destroy fear and build confidence in selling through preparation. In any activity, confidence comes in direct proportion to preparation.

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

Call People by Name


President Reagan often is referred to as the greatest communicator ever to serve as President. And for good reasons. He used to speak slowly in a well-modulated voice, looks directly in the person or people he is speaking to, remains calm under pressure and uses simple, easy-to-understand words. Mr Reagan employs many subtle but persuasive techniques in dealing with public. Very importantly, at news conferences which are typically a very difficult presidential task, Mr. Reagan would address reporters by name when accepting a question rather than just indicating with a hand motion which reporter might speak nest. It may seem like a small point, but his method was conducive to help create good relations with the press. Why? Because people cooperate better when they are recognized by name. being addressed by name I a sincere and deeply appreciated compliment. It tells a person, “You are important to me.”

 Lyndon Johnson, the Great “Persuader,” practiced remembering names, and Lyndon Johnson was number one “persuader president” of modern times. He was enormously effective in bringing opposing factions together to get legislation passed.

 Why was President Johnson so effective as a human relations engineer? He worked at it! Long before he succeeded Mr. Kennedy as President, he developed and practiced his own ten rules to make himself more effective in working with people.

 President Johnson’s system for how-to-win-influence-over-people appears below:

  1. Learn to remember names. Inefficiency at this point may include that your interest is not sufficiently outgoing.
  2. Be a comfortable person so there is no strain in being with you. Be an old shoe, old hat kind of individual.
  3. Acquire the quality of relaxed easy-going so that things do not ruffle you.
  4. Don’t be egoistical. Guard against the impression that you know it all.
  5. Cultivate the quality of being interesting so people will get something of value from their association with you.
  6. Study to get the “scratchy” elements out of your personality.
  7. Sincerely attempt to heal every misunderstanding you have had or now have. Drain off your grievances.
  8. Practice liking people until you learn to do so genuinely.
  9. Never miss an opportunity to say a word of congratulation upon anyone’s achievement, or express synpathy in sorrow or disappointment.
  10. Give spiritual strength to people, and they will give genuine affection to you.

 Every person has a name and as Dale Carnegie observed, a person’s name is the sweetest word in our language. People feel bigger and better when called by name because it is their most valuable possession. It gives them a sense of individuality – a feeling of being unique.

Hereare five guidelines for calling people by their names to win their cooperation:

  1. Pronounce the other person’s name correctly.
  2. In conversation, use the other person’s name often.
  3. Use nicknames only when you know they are preferred by the person.
  4. Use a person’s last name until familiarity is established.
  5. Spell the other person’s name correctly.

 “Do you know who I am?” The law of self-interest—the tremendous craving for self-identity—comes through in many little ways.

 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

Organizational Compassion


Although little, if anything can be done to avoid certain disasters, fortunately, there is something that leaders and managers can do to help everyone involved return to business as usual. Specifically, company officials should create an environment in which people can express their emotions in which they can do something to alleviate their own and others’ suffering. In other words, they should express organizational compassion.

 

To be as compassionate as possible, organizational officials should pay attention to the four dimensions: greater scope, more generous scale, more rapid speed, and greater specialization of response are indications of an organization’ compassion competence. This is important insofar as it helps employees heal emotionally when times are tough. For example, an organization would show compassion when it (1) treats an ill employee by doing lots of things to help, such as sending flowers, delivering meals, providing financial support, helping with child care, and so on (broad scope); (2) does these things generously, such as providing the amount of help needed as opposed to only limited amounts (extensive scale); (3) acts quickly, such as by leaping into action to provide help right away (rapid speed); and (4) specializes its action, such as by catering to the unique needs of this particular sick individual instead of offering a fixed, standard package of benefits (greater 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, Line of Sight

Mobilizing Support


Mobilizing support for change requires a blend of logic, emotions, and values. The change managers should:

  1. Developing clarity about the target audience: in an effort to achieve acceptance of any change idea, it is very important to clearly understand who the relevant stakeholders are, what are their identities, their aspirations, their values, and their influence in the organization. The target audience is never homogeneous group. These would be people who may be ready to support the change ideas quickly, people who oppose change no matter how sensible the ideas are, and people who are willing to listen but should not be taken for granted. A change manager should identify the real interests of these sub-groups and should tailor the communication and persuasion effort accordingly. In other words, the change manager should be sensitive to the fact that there would be multiple views and perceptions in an organization and it is important to be clear as to what these are.
  2. Getting people involved: When a change manager begins the change campaign by making a strong presentation and supporting it with huge data, there is a danger that employees at the receiving end may become mere spectators and skeptics. At the same time, it is not realistic to expect that people would volunteer themselves to engage in defining a change initiative. What is most useful in such a situation is ‘foot in the door’ approach. This involves asking people to make a small initial commitment, which may be in the nature of asking their views on the present situation and discussing possible courses of action. Over a period of time, these small commitments could be extended to sustain larger change objectives. This approach is particularly useful to attract skeptics to the change program.
  3. Crafting the message: A primary process in the influence effort is not change in attitude towards an object, but change in definition and meaning of the object. Once meaning changes, attitudes change accordingly. A change manager should present the idea in such a manner that it evokes sufficient curiosity among members to explore it further. The message should be simple, but clear enough in its scope. Rather than a conclusive statement, it should invite people for a dialogue. People tend to be more attracted towards stories and symbols than hard numerical data. A change manager should be able to make use of these soft dimensions of relationships to gain attention to the change idea.
  4. Timing the campaign: Many ideas are rejected because they are presented at a wrong time. A change manager should first use informal meetings to generate the need for improving present levels of performance and make people receptive to new suggestions. Change ideas should be presented only when people are willing to engage in a dialogue process. This is very similar to a gardener first preparing the soil before sowing the seeds.
  5. Sustaining the momentum: Mobilizing support for change is never a one-time activity. It takes considerable amount of time to get people involved and committed to the change idea. It should be best for people with high expertise and credibility to lead the change. People listen to those who have expertise while framing their position. Then those people should be identified who favor the change idea and they should be helped to articulate their views in public. People tend to stick to their positions that are made in public

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