The Lacking Commitment


Why do so many senior people appear hesitant and half-hearted? Why are the communications concerning change programs so anemic, especially when coming from those who have little difficulty in putting their points across in other contexts?

We have to get at the roots of ambivalence. The reasons for concern, quiet dissent, and reluctance to commit need to be probed:

  • Apparent support may only mean that those concerned are crawlers, bootlickers and toadies. There is often reluctance to accept the reality that all manner of loathsome and self-serving creatures inhabit the corridors of corporate bureaucracy. Their wiles, and the games they play, which are so transparent to outsiders, and destructive of external relationships built upon mutual trust and respect, go unnoticed or are ignored within.
  • Those who appear difficult may be the individuals with intellectual reservations. These could relate to the application of a program in a particular area, or to an initiative as a whole. The objectors could be the ones who have thought it through and uncovered missing elements. An implementation process needs to incorporate a means of listening to, and learning from, those who have valid objections.
  • Also, not all customers have the same preferences. What is added value for one person may be regarded as an expensive luxury by other.

Bland ‘motherhood’ statements suggest people have not thought through what needs to be done. People judge by what they see rather than on the basis of what is said. The informal messages, the examples and the symbols, can undercut formal communications.

Too often the changes of attitudes that are sought are not reflected in the language used by managers, the anecdotes and war stories that make up the mythology of a company, in symbols such as the allocation of parking spaces or use of exercise facilities, and in how a myriad of day-to-day matters are handled. Changing structures and processes may not be followed by attitudes where managers themselves, and particularly senior managers, refuse to act as role models.

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.

Advertisements

The New Corporate Governance Structures


The most significant change in the restructuring is the heightened role of corporate internal auditors. Auditors have traditionally been viewed as performing a necessary but perfunctory function, namely to probe corporate financial records for unintentional or illicit misrepresentations. Although a majority of US corporations have longstanding traditions of reporting that their auditors operated independently of CFO approval and that they had direct access to the board, in practice, the auditors’ work usually traveled through the organization’s hierarchical chain of command.

In the past, internal auditors reviewed financial reports generated by other corporate accountants. The auditors considered professional accounting and financial practices, as well as, relevant aspects of corporate law, and then presented their findings to the chief financial officer (CFO). Historically, the CFO reviewed the audits and determined the financial data and information that was to be presented to top management, directors, and investors of the company.

Because CEOs and audit committees sign-off on financial results, auditors now routinely deal directly with top corporate officials. Approximately 75 percent of senior corporate auditors now report directly to the Board of Directors’ audit committee. Additionally, to eliminate the potential for accounting problems, companies are establishing direct lines of communication between top managers and the board and auditors that inform the CFO but that are not dependent on CFO approval or authorization.

The new structure also provides the CEO information provided directly by the company’s chief compliance and chief accounting officers. Consequently, the CFO, who is responsible for ultimately approving all company payments, is not empowered to be the sole provider of data for financial evaluations by the CEO and board.

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

The Management of Creativity


Creativity has been defined in dozens of ways, but essentially it means the process by which novel but situationally appropriate outcomes are brought about. The field of creativity is in full bloom. Thousands of pieces of research have probed creativity. These researches have x-rayed such opaque matters as what kind of people are creative individuals; what motivates them; how creative people go about identifying, defining, and solving problems; what efforts are creative; what constitutes creative thinking, what techniques aid creative problem solving; what sorts of environments foster creativity; the assessment of creativity and the level of creativity of human efforts; etc.

The management of creativity in organizational settings is relatively far less researched, but is of great importance in a world of huge collective challenges and fierce competition. It fuses two fields—management and creativity. Management can be defined in many different ways, but broadly it is an organized effort at improving the functioning of organizations through such processes as the fixing of goals, the development and implementation of a strategy for achieving goals, the control of operations to ensure that goals are being met, the coordination of interdependent activities, the creation of structures and systems, the management of human resources as well as of other stakeholders and so forth.

As a field, the management of creativity has some distinctive aspects that differentiates it from general creativity. The management of creativity involves various collectives: dyads, teams, departments and divisions, organizations, associations of organizations, even governance systems of communities and societies. Even when one is discussing managerial creativity (the creativity of individual managers), the focus is on creativity displayed in a collectivity and relating to the various tasks that need to be performed in that collectivity. The work-related context channels creativity in important ways—towards achieving the goals of the collectivity and in discharging various management functions. The focus is not ‘pure’ art or science, or individual self-actualization, but on creative behavior in an organizational setting in which the organization’s goals, policies, structures, systems and so forth call the shots. Although individuals working in organizations certainly attempt to pursue their own interests, they do so keeping in mind organizational requirements, and this feature strongly influences the form that creativity takes in organizational settings.

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

Commitment to Plan


Management commitment to plan is a difficult concept to define and probably the most difficult area to probe. At the same time, it is in many respects the most crucial area. A deep-rooted sense of commitment is why certain management teams are able to overcome all obstacles and still achieve planned results. It is the same ingredient that enables a team to win against tough competition even though their best players are injured or all the breaks in the game go against them.

Without attempting to be a psychologist, there are several things to look for to determine whether this sense of commitment exists. What has been the track record of those submitting the plan? It is a positive sign if they have a history of fulfilling commitments. Conversely, if the group has not met its commitments in the past, it is essential to find out what has changed to make their commitment to the current plan any more meaningful. Is this evidence that individuals understand how a failure to meet their personal or functional commitments would jeoperdize the ability of the whole group to accomplish its plan? Is there any indication that anyone in the group feels that function has overcommitted or that they have been pressured into making commitments that are unrealistic?

 It is unikely that anyone will admit they are not committed to a plan they developed and recommend. But questions directed to each functional area about the certainty or difficulty of achieving their part of the plan help everyone see what musdt be done to successfully implement the plan. Such questioning helps to establish the importance of each individual’s personal commitments not only to the plan but to the rest of the organization. In a sense, it helps to develop a form of peer pressure, which is just as important in the execution of the business plan as it is in other walks of life. No one enjoys being in the position of having let teammates down.

 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

Customer Retention Program


To develop an effective customer retention (CR) program, organization can follow this five-step process:

  1. Determine your current CR rate. It is surprising how few companies know the percentage of customers that leave (the defection rate) or the percentage of customers that they are able to retain annually (the retention rate). There are many ways to measure customer retention. Choosing an appropriate measure provides a starting point for assessing a firm’s success in keeping customers.
  2. Analyze the defection problem. This is a three-pronged attack. First, we must identify disloyal customers. Second we need to understand why they left. There are six types of defectors. Customers go elsewhere because of lower price, superior products, better service, alternative technologies, market changes (they move or go bankrupt), and “political” considerations; (switching motives) can also provide insight here. Third, strategies must be developed to overcome the non-loyal purchasing behavior.
  3. Establish a new CR objective. Let’s assume that your company is currently retaining 75% of its customers. A realistic goal may be to improve client retention annually by at least 5%, to 80%, and to keep 90% of your clients within 5 years. Customer-retention objectives should be based on organizational cabalities (strengths, weaknesses, resources, etc.), customer and competitive analyses, and benchmarking with the industry or sector, comparable firms, and high performing units in your company.
  4. Invest in targeted CR plan to enhance customer loyalty. The cost (potential lifetime value) of a single lost customer can be substantial. This is magnified exponentially when we realize the overall annual cost of lost business.
  5. Evaluate the success of the CR program. As an iterative process, the final phase in designing a solid customer retention plan is to ensure that it is working. Careful scrutiny is required to assess the program’s impact on keeping existing customers. Upgrading current customer relationships may be a secondary business objective. At this point, we gather new information to learn to what extent our CR rate improved. We may need to revisit our benchmarks and further probe isolated causes of defection. CR strategies and tactics will be closely analyzed to determine which methods worked best and those that had little or no impact on keeping customers.

 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