Managerial Practices


  • One of the most important responsibilities of management is to lead the organization to develop a hierarchy of strategic intent that incorporates and mutually supportive set of vision, mission, goals, and objectives.
  • As a leader developing a vision, seek out the ideas and ideals that will inspire an organization and motivate its members to work toward greatness.
  • In developing a mission statement, remember that organization serve multiple stakeholder groups and identify how your organization will address the needs of its most important stakeholders.
  • Develop goals that support the organization’s mission, that address the need for balance among various stakeholder groups, and that “stretch” the organization.
  • In identifying objectives, develop measurable targets, but be mindful of the possible unintended consequences of such measurement.
  • Remember the difference between an intended strategy and a realized strategy and be careful not to confuse the two in your consideration and discussion of strategy.
  • Strategies for simple, stable business may be successfully implemented using strategic programming, while strategies for organizations facing complex and/or unpredictable situations will usually require organizational learning, and overwhelming complexity and dynamism may force adoption of an incrementalist approach.
  • Remember the key distinguishing feature between strategic programming and organizational learning: in strategic programming, the firm can realistically separate planning and doing, strategy formulation and implementation. In organizational learning, a firm assumes that it cannot realistically tell in advance how the future will unfold or what will work, and it therefore intertwines formulations and implementation, continually adjusting its strategy as it gains new insights through a trail-and-error process of learning by doing.
  • Do not assume that either a pure strategic programming approach or a pure organizational learning approach is right for your organization. Most organizations need a blend of the two and, consequently, managers need to understand both.
  • You should recognize that although there is nothing inherently wrong with strategic programming, the incidence of “mechanistic” organizations that can successfully depend on this approach is shrinking. Shifts in the nature of business have made it more important for organizations to become more “organic” and to place greater emphasis on organizational learning.
  • Remember the limitations of each of the three major perspectives on strategic management,: rational planning, incrementalism, and organizational learning. Develop a willingness to draw from all three perspectives to improve your effectiveness.

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.

Investing in Success


To get profit without risk, experience without danger, and reward without work is as impossible as it is to live without being born. Succinctly, there is no success without sacrifice. But is sacrifice bad? Like many words, the word “sacrifice” is misunderstood. To most people, sacrifice means giving up time or money, or enduring hardships, or doing something unpleasant. Now, it is true that sacrifice may mean those things. But that is only half the definition. The other part of the definition, the one that is almost always overlooked, is to gain something even more valuable.

The complete definition of sacrifice is give up something of value – money, time, or energy – to gain something of even more value – more money, a higher standard of living, better education for the kids, or other valuable considerations. Sacrifice means give up a little now to receive more later.

Sacrificing then means investing. We give up something today so we will have more of something tomorrow. Anyone who wants to achieve maximum success must be willing to sacrifice or invest now for reward later. To validate this point, consider the following:

  • A majority of people reaching age 65 have little savings, investments, or other valuables – this after spending 45 adult years in the richest society ever known. Had these people in poverty and near-poverty invested only ten percent of what they had earned in one of hundreds of “sure” investments, they would be very well off financially, and the social security system could be phased out completely.
  • Many young people feel that 35 0r 40 hours a week is all they should work. Being asked to work more than that is such a “big” sacrifice, many try to find another job.
  • Millions of people performing tasks that are rapidly being taken over by robots and computers think it’s too much of a sacrifice to learn new skills that are increasingly in demand.
  • Rather than invest part of what they earn, millions and millions of people give way to temptation and buy things on a certain plan.
  • And millions of students, rather than sacrifice and really learn a subject, use every conceivable technique to pass a course except to learn the material.

On the positive side, there are some people of all ages to be commended for their willingness – and good sense – to sacrifice. Sacrifice is an investment that means more than just money. Sacrifice means deep satisfaction in helping others to find joy in this world.

Happiness, achievement, money, promotion, reward, love, and anything else of value are gained only through sacrifice. Make sacrifices. They eventually lead to success.

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.

Risks: Building Blocks of Success


A person’s confidence is best measured by his or her willingness to take risks. Fear is best reflected by the degree to which a person seeks to avoid risk. The old saying, “Nothing ventured, nothing gained” will always be true. Risk, the possibility of loss, is a necessary to success as air is to life.

Imagine what would happen if everyone decided to try to live 100 percent risk-free:

  • No farmer would plant a crop because there might be too much rain or too little. Or the market price for the grain might collapse.
  • No one would start a business because comptition might cause it to fail.
  • No television programs would be produced because there might be too few viewers to attract advertisers.
  • Investors would not put money into new construction, into oil well exploration, and into new ventures.
  • Artists and authors would stop work because people might reject their activity,

To be completely secure, people would take their money out of banks (the banks may fail), hoard food (there may be an atomic war), refuse to drive cars (I may have an accident), and patients in hospitals would refuse blood transfusions (the blood may be contaminated). A goal of 100 percent security would almost overnight destroy our economy.

To avoid risk completely, no one would apply for a job (you may not get it), submit a poem to a literary journal (it may be rejected), speak up in a meeting (you may be laughed at), or ask for an order (the prospect may say No).

Here is an important point: Success-oriented people take risks and sometimes the risks turn out to be losses. Thirty-seven percent of today’s millionaires went broke after accumulating wealth. But they came back to win. No investor is always “right,” and people who build shopping centers, rersidential neighborhoods, and office buildings sometimes lose money. In the oil drilling business, a majority of wells turn out to be dry holes.

How we react to defeat is the key. You have heard people who have failed in a job or in a business of their own say, “I’ve had it. Never again!”

At times, we all feel like giving up. And if we’re not careful, we will give up. Pressure from peers to surrender can be powerful. They tell you, “Look, you tried. The plan didn’t work. Why beat your head against a wall? Don’t feel bad. Most people who try something new fail.”

These people – your peers and “friends” – are often glad to see you surrender. It’s disappointing but it’s true. They don’t have the courage to do something on their own. If they see you fail, they feel better about themselves; you are one of them – another mediocrity.

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

Hetrogeniety


Because services are performances, frequently produced by humans, no two services will be precisely alike. The employees delivering the service frequently are the service in the customer’s eyes, and people may differ in their performance from day to day or even hour to hour. Heterogeniety also results because no two customers are precisely alike; each will have unique demands ir experience the service in a unique way. Thus, the heterogeniety connected with services is largely the result of human interaction (between  and among employees and customers) and all of the vagaries that accompany it. For example, a tax accountant may provide a different service experience to two different customers on the same day depending on their individual needs and personalities and on whether the accountant is interviewing them when he or she is fresh in the morning or tired at the end of a long day of meetings.

Because services are heterogeneous across time, organizations, and people, ensuring consistent service quality is challenging. Quality actually depends on many factors that cannot be fully controlled by the service supplier, such as the ability of the consumer to articulate his or her needs, the ability and willingness of personnel to satisfy those needs, the presence (or absence) of other customers, and the level of demand for the service. Because of these complicating factors, the service manager cannot always  know for sure that the service is being delivered in a manner consistent with what was originally planned and promoted. Sometimes services may be provided by a third party, further increasing the potential heterogeniety of the offering. For example, a consulting organization may choose to subcontract certain elements of its total offering. From the customer’s perspective, these subcontractors still represent the consulting organization, even though their actions cannot be totally predicted or controlled by the contractor.

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

Facing the Harsh Facts


Many companies that have lost profits or market share have managers who are still waiting patiently for their business to “get back to normal.” Others are looking for government help for their declining market and profit positions. Neither of these approaches is a viable situation. What is needed is less wishful thinking and rhetoric and greater willingness to squarely face the true facts about their markets and competitive positions. The demand changes that have occurred in many markets are structural, not cyclical, and it is unrealistic to expect any kind of a dramatic recovery or turnaround that will restore demand to former levels.

It is extremely difficult for managers who have built their entire careers around specific products and technology to accept the fact that their former business base has now leveled out from prior peaks, or worse yet, become obsolete or irretrievably lost to new competitors or technology. Obviously, many old-line steel managers could not imagine today’s world of aluminum cans, plastic auto parts and bodies, or Japanese, Korean, and small regional producers who constantly “beat their pants off.” Nor could managers in the high flying semiconductor business foresee the situation where their markets have not only ceased to gallop ahead, but decline dramatically, and where foreign sources, including Brazil, Korea, and Taiwan, have captured the bulk of the remaining business. Unfortunately, these are the facts, and an equally discouraging set of forces applies in many other markets.

It is understandable that managers who have grown up and lived through the growth years in any of these industries find today’s conditions difficult to accept. But they must change their myopic or unrealistic views of their business so they can tackle the hard work required to regain a profitable competitive footing. Otherwise, their situations will not improve and will most likely deteriorate further.

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

Managing a Shortage


In the real world, equilibrium prices are always changing. A flood in Brazil may cause the price of coffee to rise; good farming weather in the Midwest will lead to a fall in the price of wheat; advancing technology steadily lowers the price of computers. If enough people are drastically affected by the price change the government may decide to do something about it—whether wisely or unwisely. Rising apartment rents will lead to pressure for rent control, falling wheat prices will lead to pressure for agricultural price supports, and so forth.

When the government controls the price of a good below the market-clearing level, there will be a “shortage.” A shortage is not the same as scarcity. Scarcity simply means that not all desires can be satisfied, and so scarcity is always present. Diamonds are scarce, but there is no shortage—anyone who can pay the price of a diamond can buy one. A shortage exists when goods are not just expensive but unavailable to some people—except perhaps by unlawful means. In a city with rent controls, newcomers may be unable to rent an apartment at all, regardless of their willingness to pay. Thus, faced with a supply shift or demand shift dictating a higher equilibrium price, consumers are bound to lose out one way or the other—either from the higher price if the market adjustment proceeds unimpeded, or from the “shortages” that follow when government interventions keep the price low.

Using the concepts of short-run and long-run supply, let us trace out the consequences of coping with upward pressures on price by imposing a “ceiling.” There are some less visible consequences of price ceiling. Unable to raise price openly, firms may use subtler strategies. They may eliminate discounts or seasonal sales, reduce quality or variety or convenience of their offerings, or concentrate production in product lines that happen to have received a better break from the price-control authorities. Supplies may be sold abroad, leaving even less available for domestic consumers. And of course black markets may arise, providing a wider scope for people specializing in illegal activity. In extreme cases, there may be a breakdown of legitimate trade. In this connection, we can learn much from a previous great inflationary episode associate with World War 11 and its aftermath.

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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