Talking about Bookkeeping


Everyone knows intuitively, if not experientially, that good bookkeeping is good business. If you don’t keep track of your business’s money matters—what comes in and what goes out—you will be in the dark as to how well or poorly your business is doing, and hence how well or poorly you’re handling certain aspects of the business. After all numbers do not lie. If they indicate that all is well, you’ll be able to capitalize on your success by, if nothing else, continuing to do with confidence whatever you’re doing right. If the numbers reveal that all is not well, you will be able to take appropriate measures to solve problems which if left unchecked could land you in failure zone. Just as with certain physical diseases, early detection means early cure and increased chance of survival. Lastly, it goes without saying that slipshod recordkeeping can cost you time, anxiety and even money when tax time rolls around. In sum, while its understandable that people are inclined to avoid and neglect bookkeeping matters, its fundamentally inexcusable.

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.

Sales Forecasts


From a sales manager’s point of view, the importance of timely, accurate sales forecasts cannot be overstated. There is nothing quite as needlessly frustrating as being surprised at the month end sales results because the forecasts from the field were incorrect, untimely, or inadequate.

More than simply keeping sales managers up to date, accurate sales forecasting can have an important impact on other areas of the company as well. Sales forecasts give management the information that is necessary to implement a product plan that ensures that the right product is available for salespeople to sell.

It is true that a sales force automation system cannot compensate for poor forecasting skills of salespeople in the field. What a sales system can do, however, is to move the information from the field management instantly. Perhaps more important is the fact that an automated sales system can deliver the information in a format that allows the forecasts of several salespeople to be automatically rolled up into a consolidated regional report. Since the information is in a more usable format, it is more valuable to management. It is more likely to be useful in preventing end-of-the-month surprises.

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.

Push vs. Pull in Supply Chain


When designing pieces of the supply chain, managers must determine whether these pieces are part of the push or pull in the chain. Push systems generally require information in the form of elaborate material requirement planning systems to take the master production schedule and roll it back, creating schedules for suppliers with part types, quantities, and delivery dates. Pull systems require information on actual demand to be transmitted extremely quickly throughout the entire chain so that production and distribution of parts and products may accurately reflect the real demand.

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.

Company Demographics


For all customers or prospect records the following basic attributes will lay a solid foundation for numerous segmentations:

  1. Category code: A four-digit code is usually a sufficiently descriptive definition your market is concentrated in several Standard Industry Codes, then going to the six or eight digit level may be appropriate. Remember the SIC is currently undergoing revision, so be flexible with this field.
  2. Company size: There are two choices – sales volume or employee size. It is probably best to use employee size, as it is more easily obtained and more accurate than company revenue. Record employee numbers by site so that they can be rolled up to the corporate level.
  3. Site Type and Linkage: There are some standard definitions here such as branch, division and corporate headquarters. It is important that you take time to develop a site definition that fits your business as this might include plant, research center, etc. secondly, link the sites to a corporate structure, so that a roll-up to the enterprise level can be carried out to look at the customer picture.
  4. Financial year: For those selling situations that involve the customer needing to budget for your product or service, the knowledge of the fiscal year becomes critical, as this will drive the buying process and therefore your selling cycle. Most companies are on a calendar/fiscal year, but about 20 percent are on a different fiscal year basis. In the consumer market this might also be relevant – for example in acquiring expensive items.

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.

 

The Most Important Personal Asset


Obviously the real answer is common sense. But if you don’t have it already, you probably never will, and there’s nothing I can say here that’s going to change that.

Common sense aside, then, the most important asset in business is a sense of humor, an ability to laugh at yourself or the situation.

Laughter is the most potent, constructive force for diffusing business tension, and you want to be the one who controls it. If you can point out what is humorous or absurd about a situation or confrontation, can diffuse the tension by getting the other party to share your feeling, you will be guaranteed the upper hand. There are very few absolutes in business. This is one of them, and it will never fail.

A sense of humor creates one of the most favorable long-term impressions. A single humorous, self-effacing comment can immediately let someone know that you don’t take yourself too seriously, and that is the sort of thing that people remember.

It is also the best way to start a meeting. You don’t need to have them rolling in the aisles, but a mildly pleasant remark at the outset will create the right atmosphere for everything that follows. Humor is what brings back perspective, which, next to profits, is the easiest thing to lose in business.

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.

Product Development Process


The product development process involves analysis of the marketplace, the buyer, the company’s capabilities, and the economic potential of new product ideas. This process may be both expensive and time consuming. To accelerate the process, many companies create multidisciplinary teams so that manufacturing and marketing plans can be developed in tandem while the product is being designed.

  1. Generation and Screening of Ideas: The first step is to come up with ideas that will satisfy unmet needs. A producer may get new product ideas from its own employees or from external consultants, it may simply adapt a competitor’s idea, or it may buy the rights to someone else’s invention. Customers are often the best source of new product ideas.
  2. Business Analysis: A product idea that survives the screening stage is subjected to a business analysis. At this point the question is: Can the company make enough money on the product to justify the investment? To answer this question, companies forecast the probable sales of the product, assuming various pricing strategies. In addition, they estimate the costs associated with various levels of production. Given these projections, the company calculates the potential cash flow and return on investment that will be achieved if the product is introduced.
  3. Prototype Development: The next step is generally to create and test a few samples, or prototypes, of the product, including its packaging. During this stage, the various elements of the marketing mix are put together. In addition, the company evaluates the feasibility of large-scale production and specifies the resources required to bring the product to market.
  4. Product Testing: During the product testing stage, a small group of consumers actually use the product, often in comparison tests with existing products. If the results are good, the next step is test marketing, introducing the product in selected areas of the country and monitoring consumer reactions. Test marketing makes the most sense in cases where the cost of marketing a product far exceeds the cost of developing it.
  5. Commercialization: The final stage of development is commercialization, the large-scale production and distribution of those products that have survived the testing process. This phase requires the coordination of many activities—manufacturing, packaging, distribution, pricing and promotion. A classic mistake is letting marketing get out of phase with production so that the consumer is primed to buy the product before the company can supply it in adequate quantity. A mistake of this sort can be costly, because competitors may be able to jump in quickly. Many companies roll out their new products generally, going from one geographic area to the next. This enables them to spread the costs of launching the product over a longer period and to refine their strategy as the rollout proceeds.

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.

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

Eyesight, Mindsight, Winners, Losers, Dreams, and … Success


A great life always begins with a dream—a vision. Each person has two kinds of vision: Eyesight and mindsight. Eyesight tells us what objects are around us. Eyesight forms pictures of trees, people, buildings, mountains, water, stars, and other physical, tangible things. Eyesight is physical.

Mindset is different from eyesight. Mindset is the power to see not what is but what can be when human intelligence is applied. Mindset is the power to dream. Mindset forms pictures of the future – the home we want, the family relationship we desire, the income we will enjoy, vacations we want to take, or our wealth at some point in time.

Eyesight is strictly physical and sees only reality. Mindsight reveals what is not yet real nor tangible. How we choose to use our mindset to dream determines our success (achievement, influence, and satisfaction), our wealth (income, net worth, and physical well-being), and our happiness (respect, joy, and commitment).

People differ little in eyesight. At a very early age, all children using eyesight can clearly distinguish objects, such as people, buildings, stars, and water. But people differ enormously in mindsight or mental images of what is not yet real or tangible. A great majority of people see spending a life in a mediocre, modest-paying job. In the social department, their mindsight sees little joy but lots of boredom and big problems. And in the home department, they see, at best, only an ordinary, dull, problem-plagued existence.

On the other hand, a few success-directed dreamers see the future as filled with challenge. They see work as a road to advancement and prestige, and to large rewards. Creative dreamers see social relationships as encouraging, as stimulating, and as fun. In their home department, they see excitement, adventure, and happiness. They choose to dream of a good and great life.

Whether we spend life winning or losing depends on how we use our mindsight—what we choose to see or to dream. Each of us has the power to make this life a heaven or a hell, depending on how we choose to dream about it. Those who see life as heaven are the winners; those who view life as hell are losers.

Some believe luck or chance determines their destiny. These people think that fortunes, success, and the good life depend on the roll of the dice, on the spin of a wheel, or on a randomly selected number in a gamble.

Wishing is different from dreaming. Wishing is passive and inactive. Wishing is an idle pastime with no brains or effort behind it. But dreaming is backed up with an action plan to produce results. Anyone can wish. But a dreamer takes action on what he or she wants.

You can divide people you know into two categories: The winners and losers. Winners are active dreamers working to convert their dream into positive, tangible accomplishments. Losers are inactive faultfinders who believe the system is against them and luck or fate determines what will happen. Losers are cynical. Losers are pessimists. Losers are selfish—not my job; why should I help; nobody ever did anything for me. Losers want something for nothing.

Winners are people of good will. Winners are generous. Winners know “there’s no free lunch,” “Sacrifice means investing in the future.”

People who dream big think, “Regardless of how good or bad the situation is now, it will get even better. It always does. They bank on a great future.

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, Line of Sight