Creative Management Operations


Operations management was a major area of organizational creativity in the era of scientific management during the late 19th and early 20th centuries. It got a recharge in the 1950s and 1960s when mathematics and computer science were utilized through operations research models to schedule production, arrive at optimal inventory levels, and so forth. The superior productivity and quality of Japanese manufacturing induced a further revolution in operations management in the 1970s and 1980s, and management vocabulary was enriched by Just-in-time (JIT), Kanban, Total Quality Management (TQM), quality circles, continuous improvement, and so forth. And yet there is much scope for operations-related creativity.

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.

 

Negotiating for Change


Occasionally, in any change effort a manager may run into another kind of roadblock: he/she may require the cooperation and support of managers in other departments and divisions, but may have no formal authority over them. Attempts to influence or persuade them  to support change may fail because the change may involve a perceived loss for the other managers, this could be loss in status, power, authority, prestige or prerequisites. Under these circumstances, it is not in the self-interest of those managers to support the change. Situations like these make the management of change explicitly political because, in order to gain their support, the manager may have to do some bargaining. In other words, when influence and persuasion fail, a manager may need to mobilize support through negotiation. Many managers, particularly those with technical backgrounds, find this process distasteful because it seems irrational. However, there is little that is irrational in these situations and they arise out of calculated self-interest. Just as there are sound scientific principles to influence and persuade people, negotiation and bargaining can also be based on logic and science. While part of negotiation—like management—is art, most of it is amenable of scientific analysis.

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.

Translating Information into Action


Information must be actionable, if it is to be of value to you. That means it must include a customer profile (most often consisting of demographics and buying behavior—psycho-graphics—that enables you to assign all of your customers to one or another of your defined segments. Unless you’re both ready and able to use the results of all this effort to alter your marketing strategy, your money is probably better spent elsewhere. Segmentation only pays off if you use it to fine tune your marketing program.

If you have computed the lifetime value for each segment, you can now make a very scientific assignment of resources to customer groups. You can be selective in this process. If you choose, focusing on just a few segments—or even one. In fact, that may be a good way to validate your ideas before you institute any large-scale changes in your marketing strategy. The important thing is that you use the information to adapt marketing into a more customer-focused and less product-centered approach.

Often you can finance new marketing initiatives by re-deploying the budgets previously spent in pursuit of unprofitable business, because you can now recognize it for what it is. Screening out can be as important as targeting.

You can then assign an appropriate percentage of your marketing budget to each segment which merits pursuit, echoing the percentage of profits that segment has the potential to generate. Consider members with lower grades within a well-defined, profitable segment as areas of opportunity. You know that companies with a given cluster of needs and buying behaviors can be profitably attracted to your offerings and way of doing business. All that remains is to focus on expanding penetration there.

Put your marketing imagination to work. Because you now understand the priorities of each segment so well, you’ll also know how to determine the most potent messages for each, and the media mix that can best deliver it. In addition, because the economics of each segment are clear, you can develop a plan that matches communications alternatives to allotted budget on a cost-per-contract basis.

As a result, most of your money will be invested where the profit potential for developing loyal customers is the greatest. Whilst this strategy appears to be self-evident, it too seldom happens in real life decision-making, since quantification of potential profitability by market segment is sadly lacking.

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.

Conceptual Skills


Conceptual skills, the ability to think in abstract skills, the ability to see how parts fit together to form the whole, are needed by all managers, but particularly top level managers. Top management must be able to evaluate continually where the company will be in the future. Conceptual skills also involve the ability to think creatively. Recent scientific research has revealed that creative thinking, which is behind the development of many innovative products and ideas, including fiber optics and compact discs, can be learned.

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.

Scientific Method and Marketing Research


Scientific method is a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them. With the scientific method, managers don’t just assume that their intuition is correct. Instead, they use their intuition and observations to develop hypotheses—educated guesses about the relationships between things or about what will happen in the future. Then they test their hypotheses before making final decisions.

A manager who relies only on intuition might introduce a new product without testing consumer response. But a manager who uses the scientific method might say, “I think (hypotheses) that consumers currently using the most popular brand will prefer our new product. Let’s run some consumer tests. If at least 60 percent of the consumers prefer our product, we can introduce it in a regional test market. If it doesn’t pass the consumer test there, we can make some changes and try again.”

The scientific method focuses an orderly research process. Some managers don’t carefully specify what information they need. They blindly move ahead—hoping that research will provide “the answer.” Other managers may have a clearly defined problem or question but lose their way after that. These hit-or-miss approaches waste both time and money.

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.

Message Content in Marketing Communications


Message content deals with what is said in a message and how it is said. There are five common content topics that have great relevance for marketing practitioners: 1) fear appeals; 2) the use of humor; 3) the role of music; 4) sex appeals; and 5) subliminal messages. Advertisers, salespersons, public relations spokespersons, and other marketing communicators use all of these message styles to varying degrees in hopes of gaining attention, achieving impact, and ultimately producing sales.

Fear Appeals: Companies sometimes use fear appeals in attempting to motivate customers to action. The underlying logic when using fear appeals is that fear will stimulate audience involvement with a message and thereby promote acceptance of message arguments. The appeals may take the form of social disapproval or physical danger aside from the basic ethical issue of whether fear should be used at all, the fundamental issue for marketing communicators is determining how intense the fear presentation should be. Numerous fear-appeal studies have been performed by psychologists and marketing researchers, but the fact remains that there still is no consensus on the “optimum” level of fear. Some Neither extremely strong nor very weak fear appeals are maximally effective. It seems that appeals at a somewhat moderate level of fear are best.

Humor: Politicians, actors and actresses, after-dinner speakers, professors, and indeed all of us at one time or another use humor to create a desired reaction. Salespeople and advertisers also turn to humor in the hopes of achieving various communication objectives. Whether humor is effective and what kinds of humor are most successful are matters of some debate among marketing communications practitioners and scholars.

Despite the frequent use of humor in advertising, relatively little is known in a definitive scientific sense about its effects on customer behavior. However there are some generalizations:

  • Humorous messages attract attention.
  • Humor can inhibit consumers’ understanding of the intended meaning of a message.
  • Because humor is a pleasant form of distraction, it can produce an increase in persuasion by effectively “disarming” receivers’ natural selective perception and reducing their tendencies toward counter arguing with persuasive selling claims.
  • Humor tends to enhance source credibility, thereby improving the persuasive impact of an ad message.
  • A humorous context may increase liking for the source and create a positive mood, thereby enhancing the persuasive effect of the message.
  • To the extent that a humorous context functions as a positive reinforce, a persuasive communication placed in such a context may be more effective.
  • The effects of humor can differ due to differences in audience characteristics. Advertisers must use humor carefully since consumers display a variety of tastes in what is humorous and what is not.

Music: celebrated musicians, as well as, non-vocal accompaniment and unknown vocalists are used extensively in promoting everything. Music performs useful communication functions such as attracting attention, putting consumers in a positive mood, and making them more respective to message arguments. Although music’s role in marketing is an increasingly understand subject, a few recent studies have begun to demonstrate the roles that music performs. Music is an unconditional stimulus in an effort to influence experimental subjects’ preference.

Sex Appeals: Sex appeals in advertising are often explicit. The use of explicit sex was unthinkable just a few years ago, it now represents part of a new trend toward more sexually explicit advertising. Sexual explicitness is prevalent and overt in some countries. Whether such advertising is effective and under what conditions it may be effective remain largely unexplored issues. Complicating the matter is the fact that sex in advertising actually takes two forms: nudity and suggestiveness. It is uncertain which form is more effective. There are several potential roles. First, sexual material in advertising acts as an initial attentional lure and also holds attention for a longer period, given that the models are attractive or the scene is pleasant. This is called the “stopping power” role of sex. A second potential role is to enhance recall. Sexual content or symbolism will enhance recall only if it is appropriate to the product category and the creative advertising execution. Sexual appeals produce significantly better recall only if the advertising execution has an appropriate relationship with the advertised product. A third role performed by sexual content in advertising is to evoke emotional response such as feelings of attraction or even lust.

Subliminal Messages: the word subliminal refers to the presentation of stimuli at a rate or level that is below the conscious threshold of awareness. Stimuli that cannot be perceived by the conscious senses may nonetheless be perceived subconsciously. This possibility has generated considerable concern from advertising critics and has fostered much speculation from researchers.

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.

Sources of Innovation


The environment constitutes a very important source of innovations. Since tacit technological and market knowledge is best transferred by personal interaction, local environments that are good sources of innovation can make it easier for local firms to recognize the potential of an innovation. Take the presence of related industries. Being close to the supplier or complementary innovators increase the chances of a firm’s being able to pick up useful ideas from them.

Being close to universities or other research institutions helps in two ways. First, these institutions train personnel that can go on to work for firms or found their own companies. The knowledge that they acquire gives them the absorptive capacity to be able to assimilate new ideas from competitors and related industries. Second, scientific publications from the basic research often act as catalyst for investment by firms in applied research.

Finally, governments play a critical role in the ability of firms to recognize the potential of innovations. Their role can be direct or indirect. The direct role may be in the sponsoring of research. The indirect role is in regulation and taxation: lower capital gains taxes or other regulations that allow firms to keep more of what they make can allow them to spend more on innovation.

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.

Intellectual Property


The most valuable resource in the modern economy is the human mind. The ideas, concepts, and other symbolic creations of the human mind are referred to as intellectual property. Intellectual property is protected through a number of special laws and public policies including copyright, patent, and trademark laws. These laws rest on two essential premises:

  • The creator, be it a person or an organization, of an idea or invention should be entitled to the benefits that flow from that original creation if it can be proved that the creation came from that person or organization.
  • The right to get special economic advantage from such inventions should not exist forever. At some point, ideas enter the public domain and can be used by others.

In today’s global economy, many temptations can arise for businesses and individuals to use other people’s ideas without permission. Patents, copyrights, and other intellectual property are sometimes infringed, or wrongfully used, by those who see an opportunity for quick profit, a practice known as commercial piracy.

A great deal of pirating occurs in industries such as computer software and hardware, industrial machinery, printing and publishing, and designer clothing. Because some governments do not curb such practices, businesses that create ideas are injured.

In coming decades, many new ideas will be developed and commercially exploited in such fields as bioengineering, computer software, fiber optics, and medicine, to name a few. In a global economy, these forms of intellectual property are economically valuable. A society that is scientifically and artistically creative has a big stake in laws that protect the companies that create new ideas. The employees who work for those companies have an important stake in the fair use of intellectual property, as do customers who license the technology or buy the products. A growing challenge for public policy and international trade negotiations is how to coordinate national laws protecting intellectual property rights.

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.

Characteristics of Analysis


Analysis uses scientific methodology: a systematic, rational, critical appraisal of the phenomenon under investigation based on emperical facts. Analysis in the social sciences is different in some respects from analysis in the natural sciences, which take a much narrower view of what can be measured and known. However, the basic motivation—to understand and to establish control over the environment—is the same, as are the essential methods. The distinction between analysis in the natural and social sciences lies in the kinds of questions explored.

The intellectual activities of analysis are directed toward practice issues and practical application. Assessment of the data and the search for relevant research and theoratical constructs are part of a progression toward action. The goal is to enable the change agent to make informed choices.

In addition, analysis is carried out within a social context and involves subjective judgments, preferences, and values. Naturality and disinterested inquiry are not characteristics of social science analysis. Ideologies, beliefs, and assumptions affect both the perception and the interpretation of imperical data.

The purpose of analysis in the planned change process is to facilitate decision-making. Analysis clarifies the nature and dynamics of the change opportunity and the relevance of possible responses. However, it is not realistic to expect analysis to provide “the answer.”

Different planners can assess the same situation and produce quite different analyses insofar as each shapes the problem in terms of his background, training, experience, and values. The reality of competing views of human service conditions, problems, needs, issues, and change opportunities in no way lessens the importance of analysis.

Analysis, then, may be expected to clarify options, trace implications, and provide grounding for judgments. Useful analysis will be critical, thorough, and systematic and will be oriented toward practical application.

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

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