Managerial Efficiency


Managerial efficiency is essential. A business may produce a good or service that satisfies customers and earns some profit. But unless it is as efficient as its major competitors, these aggressive rivals will serve customers better, make more profit, and eventually drive it out of business.

A good location, large size, quality people, and other factors like luck help a business remain efficient. But the most important component of efficiency is good management. So an effective management must:

o     Set realistic goals for the firm.

o     Identify the key markets and types of customers for its main production and marketing efforts.

o     Use the resources of a business (its men, and women, materials, machinery, and money) efficiently.

o     Adapt to outside factors, such as government regulations, ethical standards, and economic and technological trends.

In short, management must direct the resources of the business toward realizable objectives. In the process, management must consider both (1) the firm’s own strengths and weaknesses and (2) the opportunities and threats posed by outside factors in determining what the business actually can achieve.

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.

 

Corporate Political Strategy


Corporate political strategy refers to those activities taken by organizations to acquire, develop, and use of power to obtain an advantage (a particular allocation of resources or no change in the allocation) in a situation of conflict. This definition assumes that the many interests in a society will produce conflict about what to do and how to do it. Whether the issue is as broad as global warming or as specific as the risk posed by dioxin in a particular neighborhood, government is the place where such conflicts are resolved. A corporate political strategy is an approach to such relationships in a way that will enable the company to acquire power, use it, and obtain an advantage from it whenever such conflicts affect the firm or its business activities.

The company has a clear and vital business interest in a wide range of political issues. Companies are likely to be engaged in trying to influence what government does in such areas because of their stake in the outcome. They are, in other words, stakeholders of the public policy process and the political system.

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.

 

Coping with Red Tape


No business operates in a vacuum or under a glass dome. New businesses are subject to the pressures and requirements of society’s legal and regulatory system. If you need a trademark, a company brand, or a patent, or if you’re thinking of becoming incorporated, you will definitely need legal help. Many other situations require the help of a lawyer too.

Likewise, you’ll be coping with government regulations, many of which were written with larger businesses in mind are applied to SMEs anyway. Disposing off hazardous wastes, for example, may be difficult for small companies, which typically lack their own water-treatment facilities. Similarly, small businesses may have problems complying with disabilities laws, designed to ensure that disabled consumers receive the same level of services as other customers. Thus SMEs may be required to make costly modifications to their facilities or prove that doing so would pose an economic hardship.

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.

Decision-making in Crisis Situations


Corporate transformation often occur in situations of crisis. Classic studies of crisis decision making have highlighted the tendency to focus on the short term, and to concentrate upon fewer options, when the ‘going gets tough.’ There is a danger that a sense of balance and perspective might be lost just when it is most needed.

Members of board can experience a tension between the requirement to become more deeply involved in order to demonstrate commitment, and the desirability of maintaining a distance in order to preserve a degree of independence and objectivity. A corporate change program can increase this schizophrenic pressure upon the individual director.

In situations of crisis there is a tendency to cut out information and individuals who do not fit, and to concentrate power in the hands of a smaller group of people. This prospect can pose problems for directors who have genuinely reservations which they feel duly bound to express.

A chairman should think twice before ‘wielding the knife’. It is important to probe the reasons for hesitency. Enthusiasm could be the product of sycophancy, and caution the result of thought. Team players are not those who just go along without thinking. Some colleagues are cautious. They are not obstructive. They are realistic.

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

Threat of Entry


New entrants to an industry bring new capacity, the desire to gain market share, and often substantial resources. Companies diversifying through acquisition into the industry from other markets often leverage their resources to cause a shake-up.

The seriousness of the threat of entry depends on the barriers present and on the reaction from existing competitors that the entrant can expect. If barriers to entry are high and a newcomer can expect sharp retaliation from the entrenched competitors, he or she obviously will not pose a serious threat of entering.

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

Is this Meeting Genuinely Necessary?


A “maybe” response indicates only limited need for the meeting and shows that further thought is required. Only a “yes” is a positive justification for calling a meeting.

 

The same question needs to be asked before attending a meeting. If the meeting is not necessary and you can avoid it, do so. If you have to attend, try to use the time to shorten your workload to compensate for the lost hours.

 

Many managers find it hard to judge if a meeting is needed or superfluous. There are some guidelines:

1.    Is the meeting being called to exchange information or viewpoints?

a.       If the meeting is to discuss viewpoints, it is probably a necessary conference. If the meeting is strictly to distribute information, the meeting is probably unnecessary. Meetings are most effective when used to find solutions or resolutions to conflicts. A meeting held for the sole purpose of imparting information had better have some pretty spectacular revelations. This in all likelihood should be classed as an inspirational conference, because important news is seldom passed along without editorializing or explanations. Inspirational meetings are difficult to conduct, because they are based on emotion, but there are times when the troops need boosting or, conversely, deflating.

b.      Training meetings appear to be an exception to the don’t-meet-to-exchange-information concept. They are not. Distributing information in advance allows the meeting to be used for developing concepts and testing individual understanding. This is a better use of everyone’s time. This is not to downplay the importance of instructional sessions. It is just to set this category of communications apart from other meetings.

c.       Information, facts, figures, sales data, market intelligence, production numbers, personnel reviews, and more, can be disseminated more effectively by memo than meeting. Chances are, the memo is going to be written anyway passed out at the meeting. Distributing a memo is okay if there is other business on hand, but calling a meeting solely as a means of handing paper to other managers is inappropriate.

d.      Meetings are at their best when used to generate expressions of viewpoints or concepts, or to develop a policy.

e.       Meetings are at their worst when used to check individual progress on various projects. There are few more mind-dulling experiences than to sit at a conference table and hear about the status of tasks that are not even remotely connected with yours. These sections often turn into excuse contests with rambling dissertations on the reasons behind delays or problems.

f.        Meetings are generally not an efficient way to dispense information. If this is the primary reason for the gathering, then rethink the need for convening.

2.    Can one-on-one conversations or even one-on-two conversations accomplish what needs to be done? Or is a larger group necessary?

a.       There’s a difference between a meeting and a conversation between two or three people. A conversation is relaxed, informal, and rarely has the time constraints posed by a meeting. Those present sense the difference.

b.      Decisions are rarely made in conversations. In fact, some managers and executives become agitated when two or three members of a committee converse and come to a consensus without the others present. This nervousness is not assuaged by a follow-up memo which details the conversation or even by the fact that the decision may be nothing more than a unified front, in no way binding upon the group.

c.       If conversation will suffice to avoid another meeting, then have the talk. Inform the other committee members or interested parties. Those smart enough to advance in management will welcome one less meeting on their schedule.

3.    Is this meeting being called because someone or some group doesn’t have enough to do? It happens all the time. Workloads in an organization can be unbalanced. This week, Production has more than it can handle, while Sales is costing. One way to fill the day for Sales is to call a meeting. This is more common than anyone dares admit.

4.    Is the agenda for the called-meeting vague? Or worse, is there no agenda at all?

a.       As a basic rule of meeting skill, do not go to a meeting where there is no agenda. If you have to attend, go prepared for the worst.

b.      If a manager cannot express on paper what the meeting is about, there probably shouldn’t be a meeting at all.

c.       If you are asked to a meeting and no agenda is given to you in advance, find the person who called the meeting and ask for one. If it is verbal, take notes.

d.      Many times, the person discovers he or she has vague ideas about why the meeting is needed. This experience can benefit both of you.

5.    Is there any reason to meet other than the fact that your group has a set, regular, once-a-week mandatory meeting? Top management often wants certain employees to get together each and every week, to discuss items of importance, or to match timing, balance workloads, and do ongoing, necessary house-keeping.

a.       After a few sessions, these meetings fall into a routine and small talk dominates.

b.      The day before, the manager should do a little checking. Is there actually a need to convene? Could a more limited gathering accomplish the same thing? Would a memo suffice? Could matters be handled by a phone call? If the answer is yes, skip the meeting.

 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