Archive for July, 2006

Erroneous Managerial Conclusions

When you study management, you find that there are several ways to success and several ways to failure. When a manager tells me that a certain system has more advantages than the other system while it has some disadvantages, I say to myself “He knows about management”. However, many times I find people that think that there is one way to success or that certain way will lead to failure no matter what else you do. The reasons for the erroneous conclusions are:

  • I did it and succeeded so it is the only way to success, or it cannot lead to failure, or any other way will lead to failure. Well, you are a sample of one…is this a sample? Your case is just one case which can be used to make such conclusion. Even if you did it several times in few circumstances, you cannot make such judgment because simply may be you know how to successfully apply that system and you usually apply the strategies that make this system succeed.
  • I read this way in the book of the chairman or the CEO of the multinational great company, so this is the only way to succeed. Again, this chairman is telling you about his own experience which were applied in certain circumstances and he/she did other things to support that strategy or decision. Not every case will be like his/her case.
  • This strategy or policy is being applied in the most developed countries, thus every company needs to apply the same strategy to succeed. Assuming the previous statement is right, then what are other strategies that are applied there? what are there goals?, what is the work culture there?, what is the work environment?
  • All management practices that are applied in country X cannot succeed in country Y because people there are different. Ok, then people in country X cannot eat anything that people in country Y eat. People in country X cannot read in the same way they do on country Y. Yes, some practices succeed in country X but may not succeed in country Y; however, we cannot make a general conclusion that whatever succeed there cannot succeed here.

One of the valuable things you get from the research is that it tells you that based on a large sample of companies, it was found that so and so help companies improve their profitability, for example. It also tells you that it was found that certain strategies succeed in certain conditions. Based on those findings, you can analyze your case and find the best way to succeed in your own and may be unique case. So, the research gives you general guidelines which are better that those erroneous conclusions.

Leave a Comment

Bad Reputation at high cost

Some organizations try to improve part of this service dramatically but they forget to make sure that other parts of the service are good enough.

  • Recently a company announced in the major newspaper in Egypt about a certain service. The ad was one page of this daily newspaper for several days. I decided to call them one day and I heard a recorded message that tells me that no one is available to answer my call. I repeated the trial on the same day and in the next day and everytime I got the same reply. I was not even told to wait until someone is available. You may think I called after the working hour but I actually called during the hours they mentioned in their ad. They spent on the ad and did not spend on their sales persons? If the company cannot answer to your call when your are asking about their services, how will they respond to you after your purchase the service
  • A big store, that I visited several times, has high quality products, very good offers, and very bad customer service. The customer associates does not know how to deal with customer professionally, and the management of the store does not know how to train or motivate them. The result is that I hate that store

 High Quality is not measured with what you did or what you spent. If the customer is not satisfied then you have low quality. To improve the customer perception about your service then you need the customer to be satisfied with everything in your service. It is not enough to have very high quality goods, it is not enough to have a store in very good location, it is not enough to spend millions in ads. You need to have a good service which means you need  to have trained employees, short waiting time, quick response, good service environment, good after sales service besides the high quality goods. 

Leave a Comment