Quality Insulation and Business Storms


Many companies are facing storms because they still have not learned the lesson. For these slow learners quality is regarded as something they can add to a badly designed, poorly made product to help hold it together until the buyer gets its home. However the key to survival in today’s competitive climate is real quality through every step of production and service. It is essential to the work by the lowest paid individual on the payroll or the chairman of the board. Without quality, things don’t get sent out properly or on time, and huge service departments are working flat out to repair flaws that should never have been allowed into the products in the first place.

 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.

Marketing Eras


  • Production Era:  Prior to 1925, most firms operating in highly developed economies focused narrowly on production. Manufacturers stressed production of quality products and then looked for people to purchase them.  The production era did not reach its peak until the early part of 20th century.
  • Sales Era: Manufacturers began to increase their emphasis on effective sales forces to find customers for their output. Firms attempted to match their output to the potential number of customers who would want it. Companies with a sales orientation assume that customers will resist purchasing products and services not deemed essential and that the task of personal selling and advertising is to convince them to buy. Although marketing departments began to emerge from shadows of production, finance, and engineering during the sales era, marketing dominated sales and other areas. Selling is thus a component of marketing.
  • Marketing: Personal incomes and consumer demand for products and services dropped rapidly thrusting marketing into a more important role. Organizational survival dictated that managers pay close attention to the markets for their goods and services. The trend ended with the outbreak of World War 11, when rationing and shortages of consumer goods became commonplace. The war years created only a pause in an emerging trend in business: a shift in the focus from products and sales to satisfying customer needs.
  • Relationship: It emerged during the 90s. Organizations carried the marketing era’s customer orientation one step further by focusing on establishing and maintaining relationships. This effort represented a major shift from the traditional concept of marketing as a simple exchange between buyer and seller. Relationship marketing by contrast, involves long-term, value-added relationships developed over time, strategic alliances and partnerships retailers play major roles in relationship marketing.

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.

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.

Efficiency versus Competition


Is big business efficiency more important than preventing competition? Many big companies claim that their large size makes possible many operating economies.  Today’s complex technology, far-flung markets, complicated financial systems, and transnational competition make bigness essential for survival and efficient operation. Placing restrictions on today’s corporate growth just to preserve a competitive ideal formed during the eighteenth and nineteenth centuries seems to make little economic sense. On the other hand, others point out that competition stands at the heart of private enterprise ideology and that small businesses, consumers, and workers should be protected against big business expansion even though it may mean a loss of efficiency.

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.

Organization Health


Implicit is a concept towards organizations that needs to be made explicit; namely, that we are viewing organizations as dynamic cooperative systems. Their survival involves change and adaption, as well as, economic performance and the distribution of  incentives to members.

The presentation is organized to help the exercise understand the dimensions of his job in contributing to organizational survival. We hold that the manager should have awareness of how organizations in general function, as well as, an understanding of the character of his specific organization. The organization is thus seen as a system with needs for its own security, stability, and continuity. Managers perform the functions of organizing, directing, and controlling within the system.

The criteria for judging managers (i.e., organizational health or effectiveness) are not measures such as performance, morale, lack of conflict, or profit per se. These are important but insufficient criteria. Rather, we have to evaluate managers in terms of the total dynamic system represented by the organization. In this framework, it is more important to judge managerial effectiveness upon the basis of how the organization handles its problems (i.e., adapts and changes to pressures), rather than whether or not it has problems.

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.

Learning from Market Leaders


  • Customer Market: We believe our first responsibility is to the doctors, nurses, and patients, to mothers, and all others who use our products and services. (Johnson & Johnson)
  • Product Service: AMAX’s principle products are molybdenum, coal, iron ore, lead, zinc, petroleum and natural gas, potash, phosphate, nickel, tungsten, silver, gold, and magnesium (AMAX)
  • Geographic Domain: We are dedicated to total success of Corning Glass Works as a worldwide competitor (Coming Glass)
  • Technology: Control Data is in the business of applying micro-electronics and computer technology in two general areas: computer-related hardware and computing-enhancing services, which include computation, information, education, and finance. (Control Data)
  • Concern for Survival: In this respect, the company will conduct its operation prudently, and will provide the profits and growth which will assure Hoover’s ultimate success. (Hoover Universal)
  • Philosophy: We are committed to improve health care throughout the world. (Baxter Travenol)
  • Self Concept: Hoover’s universal  is a diversified, multi-industry corporation with strong manufacturing capabilities, entrepreneurial policies, and individual business unit autonomy. (Hoover Universal)
  • Concern for Public Image: Also, we must be responsive to the broader concerns of the public, including especially the general desire for improvement in the quality of life, equal opportunity for all, and the constructive use of natural resources. (Sun Company)

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.

Defining Norms


A norm is a standard against which the appropriateness of a behavior is judged. Thus, a norm is the expected behavior or behavioral pattern in a certain situation. Group norms usually are established during the second stage of group development (communication and decision making) and carried forward into the maturity stage. People often have expectations about the behavior of others. By providing a basis for predicting others’ behaviors, norms enable people to formulate response behaviors. Without norms, the activities within a group would be chaotic. Norms serve four purposes:

  1. Norms help the group survive. Groups tend to reject deviant behavior that does not contribute to accomplishing group goals or to the survival of the group if it is threatened. Accordingly, a successful group that is not under threat may be more tolerant or deviant behavior.
  2. Norms simplify and make more predictable the behaviors expected of group members. Norms mean that members do not have to analyze each behavior and decide on a response. Members can anticipate the actions of others on the basis of group norms. When members do what is expected of them, the group is more likely to be productive and to reach its goals.
  3. Norms help the group avoid embarrassing situations. Group members often want to avoid damaging other members’ self-images and are likely to avoid certain subjects that might hurt a member’s feelings.
  4. Norms express the central values of the group and identify the group to others. Certain clothes, mannerisms, or behaviors in particular situations may be a rallying point for members and may signify to others the nature of the group.

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.

 

Power


Power is what everyone wants and no one seems to have enough of. The desire for power is inherent in our very nature and fundamental to our survival.

Nowhere is the pursuit of power more evident than in today’s workplace. Managers are constantly striving to increase their arsenal of power, which is how it should be. Some may use power for selfish gain; others may use it to benefit the company. Regardless of how managers use power, the fact remains that without it they are incapable of achieving anything of significance for themselves, other people, the company, or society at large.

Power operates under the same principle as love: the more one gives to others, the more one receives in return. Unfortunately, many managers assume that there is a limited supply of power.

Most people contribute only a small fraction of their full capabilities, simply because they don’t feel a sense of personal power. They are bound by a bureaucratic management system that does little to encourage initiative and high performance. Almost all the power within the organization rests with those at the very top. Powerless in their ability to achieve results, most people eventually lose interest and settle for mediocrity.

The secret of achieving success as a manager and as a company lies in learning how to release the hidden potential of people. It lies in helping workers on all levels, from floor sweeper to executive, experience a sense of their own power. There are no success limits for the managers who master this art. Likewise, the company that rewards managers for successfully employing this art dramatically increases its ability to achieve its objectives.

If you want to achieve ultimate power for yourself you must get out of your own way. Instead of focusing your energies on the acquisition of power for yourself, focus them on how you can empower the people who work for you. If you are successful in giving your people power, they will surely lift you on their shoulders to heights of power and success you never dreamed possible.

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.

Measuring Productivity


You are likely to be judged – at least to some extent – by your financial performance. But financial measures such as profitability and return on investment are really indirect measures of the operations, good financial performance comes from good operations. You can measure the operations more directly using measures such as productivity, utilization and efficiency.

Productivity is the most common measure of operations. It shows the amount of output that you create for each unit of resource used. You might, for example, measure the number of units made per employee, sales per square meter, or deliveries per vehicle.

Your competitors are always trying to gain an advantage, and an effective way of doing this is by increasing their productivity. You then have to match their improvement simply to stay in business. So the benefits of higher productivity include:

  • Long-term survival;
  • Lower costs;
  • Less waste of resources;
  • Higher profits, wages, real income, etc;
  • Targets for continually improving operations;
  • Comparisons between operations;
  • Measures of management competence.

These are good reasons for improving productivity. But how can you do it? At the very worst, you simply make people work harder – problem solved. In reality there are four ways of increasing productivity:

  1. Improve effectiveness – with better decisions;
  2. Improve efficiency – with a process that gives more output for the same inputs;
  3. Improve the process – getting higher quality, fewer accidents, or less disruption;
  4. Improve motivation – getting better results from the workforce.

One of the problems with improving productivity is that employees see it as an excuse for sacking them. Productivity is really a measure of improvement performance, and it has very little to do with the old-fashioned idea of getting people to work harder. An enthusiastic person digging a hole with a spade can work very hard, and still be far less productive than a  lazy person with a bulldozer. Typically, 85 percent of productivity is set by the process which is designed by managers and only 15 percent is due to the individual workers.

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 Decisions


There are three central characteristics of strategic decision making:

  1. Strategic decisions that affect the very survival of the firm;
  2. The effects of a decision last a long time, perhaps five to ten years;
  3. The long range effects of a decision are very hard to forecast.

Actually, the first characteristic is really the definition of a strategic decision. The other two characteristics follow from it. If we could correct a bad decision of any size within a year or two, then it would be less likely to harm the firm permanently. And it should be clear that any decision whose effects last for many years will be extremely difficult to forecast.

Difficulties of long-range forecasting include:

  1. Long-range forecasts are usually ill-structured; that is, it is impossible to make a really good mathematical model of what is being forecasted.
  2. Forecasting accuracy drops off rapidly as one looks further into the future. This is essentially because unforeseeable change accumulate as we peer further and further ahead.
  3. Forecasts need to mix subjective and objective information, since different kinds of information are being captured.
  4. The longer the horizon, the less objective information is available, the worse models will be, and the more we must rely on subjective forecasts.

Given that huge financial stakes are involved and that strategic decisions have a long horizon with poor forecasts available, it is hardly surprising that most Operations Management texts do not delve deeply into this problem. Many methods which are in practical use are not deeply quantitive, and are, in any event, difficult to describe and justify. Nevertheless, manufacturing executives do not have the luxury of ignoring strategic decision making and must be careful consumers of the best available methods.

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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