MANAGEMENT

 

PROFILE MUHAMMAD SAMIULLAH
COLUMN FOR THE RECORD
SOCIETY KARACHI: EASING PARKING MUDDLE
MANAGEMENT NEW MANAGEMENT MANTRAS
COMPANY PROFILE FLORAL DESIGN

 

NEW MANAGEMENT MANTRAS:

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Good-New-cheap -and -Fast:

 

By ALY KHAN
Dec 02 - 15, 2002
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It is first lesson in Customer Satisfaction: All business success stories necessarily begin with something( called sale) that links company to customer.

If we evaluate this concept on our profit making new car sale business, we find only good and new is relevant to them. Instead of cheap, they are expensive. One has to pay ON money to buy a new car from any dealer. ( if you don't believe it try one on Shahrah-e-Faisal, don't miss the one near the bridge ).Fast here means getting car within six months if you are lucky.

In real terms, Good meaning relationship with customer. Delivering "good" now implies that having the transaction place on time and hassle free to the customer's requested date 98 per cent of the time. It used to mean just doing what we promised 95 per cent of the time. New means Innovation, Cheap means price giving higher value for price. Fast means quick response, delivery, instantaneous.

This is new rule of thumb formula for satisfying customers. Customers these days expect their manufacturers to be perfect, offer customized (make to order) products, deliver immediately and still sell it cheap. Newness or product innovation is taken for granted these days.

One of the firm ABB Industrial Systems (not gone Bankrupt yet) observed: Rather than measuring customer satisfaction through a survey, we measure customer dissatisfaction...We analyze the customer complaint database for trends and systemic issues. If KESC starts doing the same for a change it will be new BILL order.

Siemens Automotive, a 1995 Best Plants winner, noted that daily customer contacts are maintained through resident engineers assigned to each of our major customers.

SIX SIGMA APPROACH:

Six sigma is a trademark of Motorola, where it originated over 12 years ago. People ask what is it?. An analytical method aimed at achieving NEAR PERFECT RESULTS on production line, service delivery, management and other business activities. In statistics, the Greek letter sigma denotes variation in a standard bell curve. One sigma equals 690,000 defects per one million. Most companies do no better than three sigma, or 66,000 errors per million. Six sigma reduces that count to 3.4 defects per million.That saves money by preventing waste.

For example Steel Mill here produces one million tonne of steel per year. According to six sigma the percentage of rejection should not be more than 3.4 tonne. If you call somebody in steel mill to check whether they are close to six sigma. The only reaction you will hear is Laughter.

How does it work? The tool achieves results by reducing errors. First, auditors DEFINE a process where results are sub par. Then they MEASURE the process to determine current performance. ANALYZE this information to pin-point where things are going wrong, and IMPROVE the process and eliminate the error. Last CONTROLS are set up to prevent future bugs.

Where can we use it in Pakistan?. Try Pakistan Steel where they say Quality is way of life( but people are still searching for it), PIA with Great people to fly with can be a good area to attempt six sigma deal. Pakistan Ordnance factory, Pakistan Railways, PTCL, WAPDA, KESC and similar white elephants can reap real advantage of this great concept.

CRUCIBLES OF LEADERSHIP:

'Most of us are fascinated with the notion of what makes a leader. Why is it that certain people seem to naturally inspire confidence, loyalty, and hard work, while others stumble again and again? According to a recent research one of the most reliable indicators and predictors of true leadership is an individual's ability to find meaning in negative events and to learn from even the most trying circumstances.

Everyone is tested by life, but only a few extract strength and wisdom from their most trying experiences. They're the ones we call leaders.

THINKING BEYOND PRODUCTS AND SERVICES:

Don't limit yourself to goods and services in your endeavour to uncover the next wave of human need says James Gilmore co author of the Experience Economy. The following questions can help stimulate your thought:

* What are your customers, suppliers, employees, or even your competitors' customers making themselves that they don't want to make?

* What are they doing for themselves that they don't want to do?
* What are they experiencing that they'd rather not endure?
* What do they dream about making, doing, or experiencing?
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If your customers are showing signs of fatigue, spice things up by playing to their desire for things that make other people envious.

LEARNING FROM WORDS OF WISDOM:

Quotes provide food for thought on what enlightened management entails. Some of them worth digestion are.

I am easily satisfied with the best. Winston Churchill
Good is not good where better is expected. Thomas Fuller
If you lead the people with correctness, who will dare not to be correct? Confucius
A man is known by the company he organizes. Anonymous.

ENJOYING HUMOUR:

In modern management mantra humour plays an important role sharing jokes help in removing stress.

One day a Government guy took some time out from his office job;
Later in the day, when he returned to his office, his boss asked him, Hey do you believe in life after death? An after life?
The guy was puzzled but managed to answer Yes... I suppose I do!"
The boss says '' Good, because your grand father was looking for you after you left for his funeral!