Focusing on Customers


Without customers you have no sales, no income, no profit, no business—and soon no organization. Unfortunately, when you meet other managers they often seem to forget this, and talk about profits, productivity, return on investment, data ratios and personnel problems. Sometimes customers are clearly an irritant, getting in the way of smooth operations, asking awkward questions and making unreasonable demands.

The purpose of your organization is to supply a product that satisfies customer demand. This should be the focus of the whole organization. To sustain competitive advantage requires a total commitment to your customer. If it is good for your customers, do it! The dollars will follow.

This consideration on customers involves:

  • Finding out exactly what customers want;
  • Designing products to meet these demands;
  • Doing research and development so that your product range responds to changing demands;
  • Aiming for complete customer satisfaction;
  • Getting a reputation for outstanding quality and value;
  • Doing after-sales checks to make sure that customers remain satisfied;
  • Looking outwards so that you are always in touch with customers, potential customers, competitors, alternative products, etc.
  • Allowing customers easy access to your organization and making them welcome;
  • Discussing customer service widely, so that everyone knows your aims, and shares thoughts on customer satisfaction.

Some say that you should go further than merely satisfying customers, and should exceed their expectations – delighting or crossing them. Whatever you call it, you depend on satisfied customers coming back with repeat business. It typically costs five times as much to attract a new customer as it does to retain an existing one – and someone who gets good service will recommend you to four or five other people, while someone who gets poor service will warn a dozen potential customers to go somewhere else.

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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Good Management


Good planning and good management are probably the best protection against most of the other risks. Price fluctuations of any normal retail inventory may be upward or downward. Good management will keep itself informed of price trends. Study of population trends and business activity will warn merchants early if their location is losing its value. Good accounting records and study of operations against a budget will warn of any developing adverse trends.

 To handle the risks of dishonest employees, good management will provide devices such as internal security guards and signal systems for detecting pilferers. A reputation for prosecuting pilferers and training all employees to be alert to the problem will help to reduce pilferage. Tags in merchandise which act of alarms at the entrance unless removed by the sales person are now common. These methods are often expensive but necessary. Personnel policies will provide means of checking employees whose honesty is questioned. Inspection of employees of checkout time is being used by manufacturing firms, some airlines, and other type of firms. It is recommended for wholsalers and retailers when losses in this area are deemed a high risk. Fidelty bonds may be purchased to protect the firm from losses by dishonest employees.

 The risk of financial hardship can best be coped with by proper financial planning and financial management. This common risk has caused the downfall of many firms which otherwise had a most profitable future. Over and above good planning along the lines, watching the key financial ratios in the financial statements, the cash adequacy rule, and investment in receivables, and having a cash flow statement are devices to protect against this risk. Having a good performance record for honesty and fair dealing will help the business secure financial help when it is needed.

 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

Employing Too Many People


This seems obvious; employing too many people to do the work is clearly a waste on money. Unfortunately, there is a natural tendency for organiations to expand – largely because it is easy to employ an extra person, but difficult to sack one.  This growth is particularly obvious at the top.

Most organizations are overstaffed. When someone is overworked they can resign, share the work with a colleague, or demand another two assistants.

When there is not enough work to keep everyone occupied, there is plenty of time to worry, gossip and play politics. This by itself can be disruptive, but there are more problems when you try to trim the costs. Your best people will read the signs and start looking around for another job; the less good will keep their heads down and avoid any controversy, risks or mistakes. No one performs at their best when they spend their time applying for other jobs or trying to look invisible.

Remember that those who are in danger of losing their jobs deserve the longest warning that you can give. It isn’t their fault that the organization is having problems, and they have to plan for a difficult and uncertain future. Many managers delay these decisions, giving different reasons why they shouldn’t say anything until the last possible moment. This leaves everyone worried. It is far better to sort things out early, so that those remaining can concentrate on their work, and those leaving can help for the future.

Overstaffing has more widespread effects than simply wasting money, and you should avoid it by controlling recruitment and promotions.

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