Management Responses to Inflation


Businesspeople must deal with the rising price spiral. Higher costs must be absorbed or passed on to the consumer in the form of higher prices. Management needs to adopt innovative responses to the problems of inflation and tight budgets. Inflation does not have a negative impact on all firms. Consumers are adapting to inflation, and businesses must make similar adaptations to remain in operation.

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.

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Imperative Focus


Developing the right working culture and becoming tightly focused should be priority areas for an organization but, in order to make right decisions, there are some things we need to know.

  • Do differences in the way organizations are owned influence the way they should be run?
  • Where do organizations stand in regard to morality and can an organization be immoral?
  • Is the concept of service important to an organization’s success?
  • How should we deal with the issue of job-hopping?
  • Should we avoid personality cults?
  • What happened to good old-fashioned leadership?
  • Are the employees revolting?

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.

Fit for Purpose


In the context of organizations, being good or moral is not always the most profitable way forward. Organizations can succeed by short-circuiting the road to morally attuned relationship effectiveness.

People may never get a second chance to make a first impression, but this is not the case for organizations. Organizations can reinvent themselves repeatedly in a way that people can’t legally get away with.

People are for life, organizations are for as long as need be. Organizations that over-engineer their working culture fail just as fast and just as surely as those that cut too many corners. Organizations can only afford to be fit for the purpose they are designed for—no better no worse. Choosing the right working culture is therefore the big issue for organizations.

But when it comes to being focused, the picture is slightly different. While there isn’t an automatic choice in terms of working culture, there is a natural choice when it comes to focus – being more focused reduces waste and increases profit.

If developing the right working culture is the big issue for organizations, being tightly focused is the big task.

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.

 

Fit for Purpose


In the context of organizations, being good or moral is not always the most profitable way forward. Organizations can succeed by short-circuiting the road to morally attuned relationship effectiveness.

People may never get a second chance to make a first impression, but this is not the case for organizations. Organizations can reinvent themselves repeatedly in a way that people can’t legally get away with.

People are for life, organizations are for as long as need be. Organizations that over-engineer their working culture fail just as fast and just as surely as those that cut too many corners. Organizations can only afford to be fit for the purpose they are designed for—no better no worse. Choosing the right working culture is therefore the big issue for organizations.

But when it comes to being focused, the picture is slightly different. While there isn’t an automatic choice in terms of working culture, there is a natural choice when it comes to focus – being more focused reduces waste and increases profit.

If developing the right working culture is the big issue for organizations, being tightly focused is the big task.

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 Spectrum of Success


Does success means the same to every organization?

Are all working cultures equal or are some more equal than others?

Is it time for organizations to start making life choices, as people do?

To answer these questions we need to understand exactly what success means to different organizations and what effect an organization’s situation has on its attitude to success.

This is more about the spirit of theory than the exact science of it. It is not meant to baffle but simply illustrate some key facts of organizational life. The theory is built around two principles:

  • Required organizational performance – designed to help to illustrate the level of performance that an organization will be required to deliver in order to successfully achieve its stated goals, in any given market, at any given time; and
  • Actual organizational performance – designed to help to illustrate how effective and tightly focused an organization must be to ensure that it closely matches the performance required to achieve stated goals, with the minimum of waste and unnecessary effort.

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.

Organizational Mandates


The formal and informal mandates placed on an organization consist of the various “musts” that it confronts. Actually, it is surprising how few organizations know precisely what they are (and are not) formally mandated to do. Typically, few members of any organization have ever read, for example, the relevant legislation, ordinances, charters, articles, and contracts that outline the organization’s formal mandates. Many organizational members also do not clearly understand what informal mandates—typically political in the broadest sense—their organization faces. It may not be surprising, then, that most organizations make one or all of the following three fundamental mistakes. First, not knowing what they must do, they are unlikely to do it. Second, they may believe they are more tightly constrained in their actions than they actually are. Third, they may assume that if they are not explicitly told to do something, they are not allowed to do it.

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

Cost Productivity Allocation


Most organizations pay close attention only to costs. They track them, control them, and keep them at rock-bottom levels. This could be a mistake for two reasons: First, cost should not be detached from performance. Driving costs down for its own sake inevitably drives performance down. This causes productivity to drop in the long run. Second, there are many times when costs must be allowed to go up in order to achieve an important performance target.

 

The key question is where the money will come from if budgets are tight. Cost-productivity allocation is a technique for the reallocation of money to improve productivity. It works against the traditional, across-the-board percentage cuts, which remove the good with the bad. The proposed technique permits the identification of cost items that are critical and finds the small outlay of money needed to improve productivity.

 

The theoretical background of this technique is the analysis and reallocation of the following four cost categories:

1)      Cost avoidance – removing or eliminating a cost item that is anticipated and budgeted for but not expended.

2)      Cost reduction – reducing or decreasing the amount of a cost item that has been budgeted for and is a process of expenditure.

3)      Cost control – spending, but keeping the amount of a cost item within the budget standard.

4)      Cost effectiveness – increasing the spending allocated in a budget because it will improve performance or reduce costs in the long run.

 

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