Managerial Know-how


People who bring capital, labor, and resources together to fashion them into a productive organization that must face the risks of an uncertain world, occupy strategic positions. Thus, given the same inputs, presumably a country with superior management will do better than one with weak management. The importance of managerial know-how can be illustrated by the airlines industry.

Obviously an explanation of world business involves many elements. But with a basic understanding of the few elements, comparative advantage and specialization.

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.

Strategic Reasons for Outsourcing


  1. Improve business focus: For many companies, the single most compelling reason for outsourcing is that several “how” issues are siphoning off huge amounts of management’s resources and attention.
  2. Access to World Class capabilities: By the very nature of their specialization, outsourcing providers bring extensive worldwide, world-class resources to meeting the needs of their customers. Partnering with an organization with world class capabilities can offer access to new technology, tools, and techniques that the organization may not currently possess, better career opportunities for personnel who transition to the outsourcing provider; more structured methodologies, procedures, and documentation; and competitive advantage through expanded skills.
  3. Accelerated Reengineering benefits: Outsourcing is often a byproduct of another powerful management tool—business process reengineering. It allows an organization to immediately realize the anticipated benefits of reengineering by having an outside organization—one that is already reengineered to world-class standards—take over the process.
  4. Shared risks: When companies outsource they become more flexible, more dynamic, and better able to adapt to changing opportunities.
  5. Free resources for other purposes: Outsourcing permits an organization to redirect its resources from noncore activities toward activities that have the greater return in serving the 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, and my Lectures.

 

Involving Employees


To be successful when facing multiple tasks, often on multiple projects, more employees at all levels will need to delegate some of their activities and responsibilities to other organizational members. This means that employees are going to have to be give certain amounts of authority to make decisions that directly effect their work. Even though delegation was once perceived as something that managers did with lower levels of management, delegation will be required at all levels of the organization—in essence, peer delegation, or using influence without authority.

In addition to being required to take on more responsibilities, employees will be expected to make decisions without the benefit of the tried-and-true decisions of the past. And because all these employees are part of the process today, there is more of a need for them to contribute to the decision-making process. In most organizations, the days of autocratic management are over. To facilitate customer demands and fulfill corporate expectations, today’s employees need to be more involved. Group decision-making enables these employees to have more input into the processes, and greater access to needed information. Such actions are also consistent with work environments that require increased creativity and innovation.

Another phenomenon of involving employees will be an emphasis on work teams. The bureaucratic structure of yesterday—where clear lines of authority existed and the chain of command was paramount—is not appropriate for many of today’s companies. Workers from different specializations in an organization are increasingly required to work together to successfully complete complex projects. As such traditional work areas have given way to more of a team effort, building and capitalizing on the various skills and backgrounds that each member brings to the team.

Involving employees allows them an opportunity to focus on the job goals. By giving them more freedom, employees are in a better position to develop the means to achieve the desired results.

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

Creativogenic Management Style


Management style can both impede innovations and facilitate them. The old firms—once dynamic and vibrant—today fail in terms of deficient management style and resulting ineffective culture and structure. Such firms are managed on machinistic lines, with strong belief in centralization and extreme specialization of functions. This means that coordination of interdepartmental activities is done mainly by the head of the concern. Strong departmental loyalties bred by lifelong career paths only within the functional department make interdepartmental collaboration very easy. Information flows mainly vertically rather than also diagnolly and horizontally. A strong hieracrch-bound operating culture saps initiative at lower levels. An organic mode of management is much more suitable in technological change-driven turbulent markets like electronics. In this mode, solving technical problems is the priority, not maintaining functional turfs, and so decisions emerge through interactions rather than being made by the formally designated bosses. Also, the expert in the situation—who could be quite a junior fellow—calls the shots rather than the formal boss. People interact disregarding departmental boundaries, picking brains and sharing information, and most decisions are taken—or rather, emerge—at middle and lower levels of management. Thus, a fluid, boundaryless, highly interactive, expertise-based management is more suitable for managing technological innovations than a mechanistic, bureaucratic, semi-feudal form.

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

The Era of Fragmentation


Driven by a combination of capital-intensive new technologies, newly emerged mass markets, and global trade based on national competitive advantage, in industrial era production was organized around the idea of division of labor instead of craft specialization. The work formerly done by one artisan was broken down into its component parts, which in turn were mechanized where possible, and semi-skilled workers were hired to do part of the job or to tend the machines. New roles, those of supervisor, middle manager, and production planner, were created to provide the oversight and coordination that were formerly the responsibility of individual journeymen or masters. In brief, authority over the content of jobs was given to people who, themselves, were not actually doing this work. The newly created managerial authority took “from workers the right to define their own job, their own skill level, and their own standards of quality.”

The division of labor, originally intended to create a rapid growth economy based on a low-skill work force, did help assimilate nineteenth century agricultural workers into industry. But once there, it imprisoned them.

Division of labor is an addictive practice. Work breakdown—promoted by those whose authority and careers tend to benefit from it—tends to beget more work breakdown, taking the pressure off the employer or the educational system to continually upgrade employee skills. Once started, the practice tends to be self-reinforcing, producing a de-skilled work force.

By the mid-twentieth century, most corporate organizations were based on the concept of functional specialization. Work that was once whole had become fragmented. The focused skill of an individual was diffused into the skill of an entire factory. The common view was that mechanics check their brains at the gate when they come to work.

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

Structure, Roles, and Rules


What sort of structure would help the team function innovatively? The purpose of any structure is to make sure that certain essential tasks, especially repetitive tasks, get done. Structure need not be incompatible with creativity if it realeases time and energy for creative work rather than blocking creativity with excessive rules, specialization, centralization, etc. What, therefore, needs to be done is to make an inventory of tasks that must be performed more or less repitively, and allocate these tasks to individuals within or outside the team.

 However, the roles of team members should not be defined only in terms of these tasks;  there are only minimum elements of their roles. It is important to define roles broadly and not too strictly. Some ambiguity helps interaction and role clarification, not by the leader but by the situation. Indeed, it heps to have versatile team members, i.e., persons who can double for others should the need arise. Periodic interchange of roles within the team can help develop this verstality. Researchers have indicated some specific roles in innovative teams beyond those for effective teams. The creative scientist/engineer/idea man is one role. The entrepreneur (vis-à-vis the outer world) and the intrapreneur (vis-à-vis the team members) are further roles. The entrepreneur seeks new missions for the group. The intrapreneur seeks new activities within the broad mission for group members. The protector-defender-sponsor is a fourth role, whose function is to get the team the resources it needs for innovative work from the larger system of which it may be a part, and also to defend the team from external pressures or attacks. The gatekeeper is a fifth role, that of bringing to the team essential market, technical, or political intelligence from outside that can become the basis for meaningful divergent thinking. These roles need not be played by different individuals. The important point is that they should get played.

 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

Change or Change Management?


Our ability to deal with mega theme dramatic change is the subject of the next trend. Perhaps the single most important indicator for corporate success in the near future is the attitude of the company culture about change. The willingness of a structure to set itself up for change, to regard itself as a testing ground with daily battles, not just those that occur every planning period, is one of the best litmus paper indicators of eventual success or failure.

Today’s information explosion is just beginning. The growing list of mergers, alliances and joint ventures and the rapid deployment of technology are producing change at a velocity that even the seasoned players in businesses can’t surmise. The challenge for businesses will not be in how we manufacture or market change but how we manage it.

The days of the large-scale, vertically integrated corporation are numbered. The trend is toward smaller enterprises with increasing specialization of products are services: the upcoming approach is 50 people are the maximum for the company; if the staff gets above 50 people the company will be cut in two. There is no place to hide in a firm of 50 people. These small companies know what’s happening in their marketplace and with their competitors—they’re not from the marketplace.

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

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