Incremental Change Analysis


Most business focuses on the current situation, with changes defined on an iterative, cumulative basis. In this context, issues represent problems or opportunities for change from the current situation. The gaps represent ways that a company may achieve or enhance a competitive edge.

The most common way to define issues is to assess the changes that are expected t occur. These are derived from either internal or external changes, intended by management or occurring as a result of uncontrolled forces (as in workforce changes). Issues are identified in the way that people normally think—incrementally from the present toward future.

In this process, managers identify and evaluate human resource issues by sorting through available strategic planning, competitive, and environmental information for evidence of changes having human resource implications and then define human resource issues that may be addressed. Such analysis may examine employee productivity issues, service quality, staffing surpluses or shortfalls, succession needs, skill requirements, utilization, costs, turnover/retention patterns, or employee attitudes.

Managers also obtain and consider perspectives of relevant constituents, such as other managers and employees, vendors, suppliers, and customers. Companies solicit inputs from managers at various levels through their participation in the planning process or through interviews, focus groups, or surveys with key managers. Many companies survey employees, either specifically for planning inputs or more broadly as an assessment of organizational climate and human resource practices. Companies may involve employees through interviews or focus groups to help define issues and alternative strategies. Some also interview or survey customers, contractors, and other business partners regarding human resource issues to be addressed.

Environmental scanning is used to identify prospective human resource issues deriving from changing external conditions. Scanning the many changes occurring in social, political, legislative, demographic, economic, technological and other areas yields a wide array of issues that may be considered.

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.

Communications: Compliance


Compliance results through a power relationship between the participants in the communications process. That is, a receiver complies with persuasive efforts of the source because the source has the power, legitimate or otherwise, to administrator rewards or punishments.

Because the powerful source controls rewards and punishments, he or she can often induce compliance to his or her advocated position. However, compliance is relatively superficial in the sense that a compliant individual does what he or she is forced to do and does not necessarily adopt the complied-to position as a matter of personal desire or preference.

Sales representatives sometimes possesses a degree of power over buyers, especially in a seller’s market where demand exceeds supply and buyers are dependent on their vendors for supplies of raw materials, parts, or merchandise. Purchasing personnel may feel that if they do not comply with a sales representative’s requests, their orders may be delayed or cut off completely.

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.

Beyond Customer Satisfaction


Satisfying the customer is no longer the ultimate business virtue. Companies need to look for ways to create and increase customer loyalty. The key to this new loyalty-centered approach to customer relationships is creating and managing the customer value package – the combination of factors (price, product quality, innovation, and company image) that creates what the customer perceives as superior value. Five steps are recommended:

  1. Clearly define and communicate your objectives. The company needs to make sure that every stakeholder clearly understands the importance of  creating and delivering customer loyalty and knows how to make it possible.
  2. Let customers define, in their own words, their criteria for quality, price, image, and value. The company needs to distinguish between basic requirements and loyalty builders. Meeting the basic requirements will get the company on the approved vendor list, but generating loyalty will encourage a customer to stick with the company during difficult times.
  3. Conduct a critical need and value assessment. The company must set priorities among important customer requirements and determine the relative importance of these aspects of the customer value package.
  4. Develop an action plan and move to implementation. This turns management of customer loyalty into a way of doing business. The company must make sure that the voice of the customer becomes the principle around which the business processes are organized.
  5. Monitor the marketplace and organization results. Managing customer value is not a one-time effort, so all the loyalty-building components of customer value have to be monitored regularly with a focus on the relationship between customer value, customer loyalty, and financial performance.

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.

 

Production Management


Production is the use of people and machines to convert materials into finished products and supply these products to customers. Production includes three key stages: product development, purchasing, and manufacturing.

The development of a new product involves six steps: idea generation, screening, business analysis, product development, test marketing, and commercialization. Roughly, one in 58 new product ideas becomes a commercial success.

When the product development department designs a new product, a make-buy decision determines which components will be bought from outside suppliers and which will be made by the firm itself.

The six steps in purchasing raw materials and semi-finished and finished parts are 1) recognizing what is needed, 2) developing specifications, 3) requesting bids and selecting a vendor, 4) following up with the vendor, 5) receiving the order, and 6) evaluating the vendor.

Mass production and automation have revolutionized manufacturing methods and have made higher quality, standardized products available at lower prices.

The three classifications of manufacturing operations are standard versus custom manufacture, continuous versus batch process, and analytic versus synthetic process.

Once final products are assembled, the transportation section must ship them to customers on time and in good condition. The managers here use one of the five modes of transportation: highway, rail, air, water, and pipeline. Developments such as piggyback service and containerization allow a business to use two or more transportation modes to move shipment over long distances.

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.

Stumbling on Leadership


Using today’s methods of managing the technical development process, the most important decision top management makes on a new product is the selection of the group leader. The second most important decision is to stay out of the way and let the leader lead.

But who is a leader? Or, better, who will develop into a leader? The person has a non-authoritative position; that is, a leader has no line authority over such co-workers as peers, peers’ subordinates, temporary employees, vendors (subcontractors, suppliers), customers, and bosses. The leader leads in a milieu that can change from supportive to hostile overnight, with parameters that are almost completely unknown (e.g., competitive reactions), and with a new and even more inexperienced team of people.

Yet that person can overcome virtually every obstacle. That person alone can enthuse and motivate a group of people to do what seems impossible. Fortunately there is lots of this leadership around, managers with successful track records in this work and many managers who are as yet undiscovered. Unfortunately, it is almost impossible to pick out the undiscovered.

Compounding all of this is the conviction of some firms that a new products project actually needs two leaders, a creative, inspiring type for early on, and a tough disciplinarian for the later stages. Very rarely do we find people who can do both.

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.

Stakeholder Involvement


If we are to develop a new product that meets the goals for it (sales, profits, whatever), it must be acceptable to the end user. Therefore, a new product process should have end-user involvement. But, the buying/using decision is often a complex one, where advisors, resellers (and even vendors) play roles, and hence they are stakeholders. And, because it rather defeats the purpose of working for a year or so and eventually they don’t like it, the stakeholders should be involved from the very beginning, and often. And not just surveyed once or twice, involvement of stakeholders must be continuous.

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

Connoting Business Opportunity


What is being offered with businesses is usually an idea which may work, depending on your business or sales abilities. It is up to you to establish an area or your clientele. You are usually provided with the tools, such as the vending machines, the inventory, or the samples and the business opportunity. For this, you will pay a price—the rest is up to you.

Many of the businesses will present you with an idea that is made to sound so exciting and profitable, you can’t wait to sink your teeth into it. Caution! Do not proceed or pass go without sound, professional accounting advice. Remember: you are usually buying an unestablished business using someone else’s ideas, for which you may be paying too much. You are starting from scratch, and those promises of big money usually don’t pan out. Warning! You must be especially diligent about so-called business opportunities that offer huge, quick returns. There are people who are ready to take your money and run, or sell you a business that is either non-profitable, not quite legal, or makes money for no one but the vendors. You have to reach not only the market, but the business, the business owners, and the history of the products they are selling. Before making any final decisions, consult with a lawyer and have an appropriate agreement for sale drawn up. If problems arise between you and the vendor your agreement will become a valuable document in court.

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