Best Practices of Winning Companies


Winning companies realize the strategic value of building successful partnerships. While all companies experience periods of highs, lows, and transitions in their respective performance and in stock prices, truly successful companies build lasting partnerships that sustain and provide long term value to all partners, employees, and shareholders.

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.

Incorporated Business


When you incorporate, your business becomes its own separate legal entity. The business consists of shareholders who purchase shares in the business and who are responsible for its operation. You can incorporate a one-owner business and own all the shares of that company. The company has a president, and if more than one person is involved, a secretary-treasurer and directors. Stricter control can be maintained with a board of directors, who can make decisions. Outrageous suggestions by one person can be blocked if company policy stipulates that any significant changes must be approved by the 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.

Disharmony in Top Teams


Enormous animosity and rampant, mutual dislike exist in management teams charged with cooperating together for the good of an organization. No one can choose their own family and you don’t always get the opportunity to choose your colleagues, but when you accept a job within a team you have a responsibility to put personal animosity to one side for the good of the organization.

In some organizations, personal vendettas are allowed to bubble to the surface non-stop and the amount of both personal effort and organizational resource that is wasted as a result can be frightening.

The issue with many of these managers is of course that the memory they are wasting is not their own: it belongs to shareholders or comes as a grant from some government pot or other. If it were their own money they might not behave in quite the same way, even in owner-run organizations where pretty bizarre and wasteful behavior can be found.

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.

Business Goals


Business goals or objectives convert the organization’s mission into tangible actions and results that are to be achieved, often within a specific time frame. Goals or objectives divide into three major categories: production, financial, and marketing. Production goals or objectives apply to the use of manufacturing and service capacity and to product and service quality. Financial goals or objectives focus on return on investment, return on sales, profit, cash flow, and shareholder wealth. Marketing goals or objectives emphasize marketing share, marketing productivity, sales volume, profit, customer satisfaction, and customer value creation. When production, financial, and marketing goals or objectives are combined, they represent a  composite picture of organizational purpose within a specific time frame, accordingly, they must complement one another.

Goal and objective setting should be problem-centered and future-oriented. Because goals or objectives represent statements of what the organizations wishes to achieve in a specific time frame, they implicitly rise from an understanding of the current situation. Therefore, managers need an appraisal of operations or a situation analysis to determine reasons for the gap between what was or is expected and what has happened or will happen. If performance has met expectations, the question arises as to future directions. If performance has not met expectations, managers must diagnose the reasons for this difference and enact a remedial program.

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.

National Sovereignty and Corporate Power


Multinational corporations present real challenges to a nation’s sovereignty and independence. The national sovereignty principle holds that a nation is a sovereign state whose laws, customs, and regulations must be respected. It means that a national government has the right, power, and authority to create laws, rules, and regulations regarding business conducted within its borders.

The second principle that shapes business-government relations in most countries is the business legitimacy principle. This principle holds that a company’s behavior is legitimate if it complies with the laws of the nation and responds to the expectations of its stakeholders. In theory, the principles of national sovereignty and business legitimacy are not in conflict.

As multinational corporations reach across national borders, their global operations may exceed the regulatory influence of national governments. This has raised concerns about the emergence of stateless corporation. These corporations have facilities, shareholders, and customers everywhere. Therefore, they seem to owe loyalty to no single nation and are able to organize and recognize around the globe. There are economic and political advantages to being, or appearing to be, stateless.

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.

Designing Strategies


Corporate strategy shows how a complex organization achieves its mission, while the business strategy shows how each business within the corporation contributes to the corporate strategy. These strategies typically include decisions about shared values and beliefs; industries to work in; amount of diversification; businesses to start, acquire, close or sell; type of products to make; organizational structure; relations with customers, suppliers, shareholders and other stakeholders; geographical locations, and targets for long-term profitability, productivity, market share, etc.

Consider three factors while designing strategies:

  1. The mission, which gives the overall aims and context for other decisions.
  2. The business environment, which includes all factors that affect an organization but which it cannot control, such as:
    1. Customers—their expectations and attitudes;
    2. Market—size, location, and stability;
    3. Competitors—the number, ease of entry to the market, their strengths;
    4. Technology—currently available and likely developments;
    5. Shareholders—their objectives, returns on investment, profit levels;
    6. Other stakeholders—their objectives and amount of support;
    7. Legal restraints—trade restrictions, liability and employment laws;
    8. Political, economic and social conditions—including stability, rate of growth, inflation, etc.

The business environment is similar for all competing organizations, so to be successful you need a distinctive competence.

  1. The distinctive competence, which includes the factors that set your organization apart from the competitors. If you can design new products very quickly, innovation is a part of your distinctive competence. A distinctive competence comes from your organization’s assets, which include:
    1. Customers—their demands, loyalty;
    2. Employees—skills, expertise, loyalty;
    3. Finances—capital, debt, cash flow;
    4. Products—quality, reputation, innovations;
    5. Facilities—capacity, age, value;
    6. Technology—currently used, planned;
    7. Suppliers—reliability, service;
    8. Marketing—experience, reputation;
    9. Resources—patents, ownership.

The strategic plans show how the organization can achieve the mission.

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.

Designing Strategies


Corporate strategy shows how a complex organization achieves its mission, while the business strategy shows how each business within the corporation contributes to the corporate strategy. These strategies typically include decisions about shared values and beliefs; industries to work in; amount of diversification; businesses to start, acquire, close or sell; type of products to make; organizational structure; relations with customers, suppliers, shareholders and other stakeholders; geographical locations, and targets for long-term profitability, productivity, market share, etc.

Consider three factors while designing strategies:

  1. The mission, which gives the overall aims and context for other decisions.
  2. The business environment, which includes all factors that affect an organization but which it cannot control, such as:
    1. Customers—their expectations and attitudes;
    2. Market—size, location, and stability;
    3. Competitors—the number, ease of entry to the market, their strengths;
    4. Technology—currently available and likely developments;
    5. Shareholders—their objectives, returns on investment, profit levels;
    6. Other stakeholders—their objectives and amount of support;
    7. Legal restraints—trade restrictions, liability and employment laws;
    8. Political, economic and social conditions—including stability, rate of growth, inflation, etc.

The business environment is similar for all competing organizations, so to be successful you need a distinctive competence.

  1. The distinctive competence, which includes the factors that set your organization apart from the competitors. If you can design new products very quickly, innovation is a part of your distinctive competence. A distinctive competence comes from your organization’s assets, which include:
    1. Customers—their demands, loyalty;
    2. Employees—skills, expertise, loyalty;
    3. Finances—capital, debt, cash flow;
    4. Products—quality, reputation, innovations;
    5. Facilities—capacity, age, value;
    6. Technology—currently used, planned;
    7. Suppliers—reliability, service;
    8. Marketing—experience, reputation;
    9. Resources—patents, ownership.

The strategic plans show how the organization can achieve the mission.

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.

Principles of Crisis Management


What does one do when a crisis comes? There are some principles, not rules that can be useful to managers facing a crisis:

Define the real problem: Crises tend to face managers to think short term and focus on the narrow problem at hand. The crisis management team should ask several reflective questions: What would constitute a good job in managing this crisis? What can we accomplish? What is impossible?

Set Goals and Define the Crisis Strategy in Light of Those Goals: The urge to act first, think later is hand to resist when facing a crisis. The better the course is to have some managers actively thinking about the goals—What do we want to accomplish? How do we want to be perceived by the media? By our shareholders? By our employees and customers?

Manage the flow of Information: Experts advise managers to tell the story their way, consistently, and frequently. Because electronic media repeat crisis stories quite frequently in a typical news day, managers have an opportunity to correct errors and should not permit an erroneous statement to stand unchallenged.

Adopt a Team Approach: It is important to have one spokesperson designated at the outset and available to act on the company’s behalf immediately. Successful companies have thought in advance about the skills each crisis team should possess. Legal, media, and government relations skills are essential in many crisis situations.

Plan for the worst case: A crisis always has the potential to worsen, and managers need to anticipate the worst case possibility. It is tempting to assume a crisis will pass and the world will return to normal. It is wise to prepare for the worst.

Plan on the Situation Getting Worse: By doing so, an organization can begin to see ahead and create contingency plans for communicating with key stakeholders, deploying resources, and organizing other companies and people for action.

Follow up after the Crisis is Over: Many contacts with stakeholders occur during a crisis. A company can restore its image and reputation by dedicated follow-up to stakeholders.

Use Technology: Information technology can be a powerful aid to a company facing a crisis and needing to communicate with stakeholders. A company should measure the effectiveness of communication message through polling, surveys, and focus-group interviews.

Don’t Give up: As bad as it can be for an organization, a crisis rarely destroys a well-managed business. Leadership is vital if an organization’s internal and external stakeholders are to believe that there is a bright future beyond the crisis.

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.

Disambiguating the Role of Managers


Managers are the employees who are responsible for coordinating organizational resources and ensuring that an organization’s goals are successfully met. Top managers are responsible for investing shareholder money in resources in order to maximize the future output of goods and services. Managers are, in effect, the agents or employees of shareholders and are appointed indirectly by shareholders through an organization’s board of directors to manage the organization’s business.

Managers’ contributions are the skills they use to direct the organization’s response to pressures from within and outside the organization. For example, a manager’s skills at opening up global markets, identifying new product markets, or solving transaction-cost and technological problems can greatly facilitate the achievements of the organization/s goals.

Various types of rewards induce managers to perform their activities well: monetary compensation (in the form of salaries, bonuses, and stock options) and the psychological satisfaction they get from controlling the corporation, exercising power, or taking risks with other people’s money. Managers who do not believe that the inducements meet or exceed their contributions are likely to withdraw their support by leaving the organization.

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.

Property Rights


The values in an organization’s culture reflect the ethics of individuals in the organization, of professional groups, and of the society in which the organization exists.the values in an organization’s culture also stem from how the organization distributes property rights—the rights that an organization gives to its members to receive and use organizational resources. Property rights define the rights and responsibilities of each inside stakeholder group and cause the development of different norms, values, and attitudes toward the organization.

Shareholders have the strongest property rights of all stakeholder groups because they own the resources of the company and share in its profits. Top managers often have strong property rights because they are given large amounts of organizational resources, such as high salaries, the rights to large stock options, or golden parachutes, which guarantee them large sums of money if they are fired when their company is taken over. Top managers’ rights to use organizational resources are reflected in their authority to make decisions and control organizational resources. Managers are usually given strong rights because if they do not share in the value that the organization creates, they are unlikely to be motivated to work hard on behalf of the organization and its stakeholders.

An organization’s workforce may be given strong property rights, such as guarantee of lifetime employment and involvement in an employee stock-ownership plan (ESOP) or in a profit-sharing plan. Most workers, however, are not given very strong property rights. Few are given lifetime employment or involved in ESOPs, though they may be guaranteed long-term employment or be eligible for bonuses. Often workers’ property rights are simply the wages they earn and the health and pension benefits they receive. Workers’ rights to use organizational resources are reflected in their responsibilities in the level of control they have over their tasks.

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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