Are we asking the wrong question?

One of the mistakes that happen, sometimes, in workplace, research and in life is asking the wrong question and spending time to solve it. What does that mean? Read the following examples:

  • The solution of a certain problem is not known. Then someone suggests a model that is very difficult to solve. Then researchers spend years trying to suggest a solution to that model. But we forget to find another model that can be easily solved
  • Someone suggests an IT system then the IT people of the company are busy trying to decide how to build the system and whether it should be built in-house or outsourced. But the important question “do we really need this system?” is not asked
  • A manager is happy with the results of his subordinates but he never asks if he was using the right measures or performance
  • A quality manager is very proud of the quality of the company’s products or services but he forgets to ensure that this quality improvement is perceived by customers
  • A manger says that he does not need to apply any new management practices because he was doing the same work for decades and it has been successful. But he forgot for decades to ask himself “How are we doing compared with others?”
  • A training manager and a CEO are celebrating the company’s successful training activities. But they forgot to ask are those training activities improving the performance and are we training people on what they need
  • A manager asks for a presentation everyday but he never asks “do we need a presentation?”
  • A CEO visits a company that applies JIT then he decides to apply JIT. Then he gets to hear about Lean so he decides to apply “Lean”. Then he attends a seminar about six sigma so he decides to apply six sigma. Then someone tells him about Kaizen so he decides to apply Kaizen. But he never asks “Do we really need this initiative? Is it applicable for us? Is it different from what we have?”
  • People tend to try to achieve what others like to achieve. So, someone will kill himself working for decades to end up as a CEO. But he forgets to ask “Is that what makes me happy?”. The other works very hard to have millions of dollars but he forgets to ask “do I need more to be happier?”

When taking managerial decision don’t forget to ask yourself: Is this the right question? Do we need this? Are we eliminating the results of the problem and not asking about the root? Are these activities really improving our performance?

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Chain of Actions

Many people or most people think that what they do will affect them only, however; what you do or say leads to a long list of actions. Think about this example:

someone lies….he may get what he does not deserve…since he lied once, it is easy for him to lie again….since he can lie and he knows that lying is very bad, then he can do other bad things….other people know that he was lying….Some of them may disrespect him…some of them will have less negative reaction to lying since it is becoming more common…some of them will start lying….someone will lie to you…he may get from you what he does not deserve…since he lied to you, you are more willing to lie…you may hate him…we lose trust…we don’t want to cooperate..we don’t want to interact…we don’t want to invest together….job opportunities are less…more people are willing to lie to get job opportunity…people lose trust in the CV…it becomes easy for people to do bad things becasue when asked about it they can lie………it becomes terrible and ugly

Another example
Someone says: “I know this is bad but given the circumstances…and …then for me it may not be so bad to do…”….Since he did it once then it easy for him to make any argument to make anything that is very bad seems right….he loses the limits between bad and good….other people follow the same behavior…the bad things become very common…the evil arguments that changes bad to good become very common….New arguments that changes good to bad appears….right and wrong lose their meanings……..it becomes very terrible and ugly

Another example
some companies give false promises to customers while doing marketing research….other companies follow the same behavior…people become reluctant to participate in marketing research….compnaies do not know the real customers’ needs….products does not suit customers…business go down…lack of job opportunities…more umemployed people…social problems…umenployed people having difficulty starting new projects because they cannot contact customers……..

Doing a bad thing is not a single action but it may lead to a long chain of bad actions. We should not accept bad behavior or try to imitate it because it will result in a terrible world. On the other hand, you may do a good thing that leads to a long chain of good things.

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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.

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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. 

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Challenges for Strategic Planning in Developing Countries

There are several challenges for strategic management in developing countries (based on my experience and knowledge):

  • Data: finding data is a real challenge becasue there is available statistics are far below those available in developing countries. Most companies try to keep any financial information and consider them secrets. It is not possible to know the demand in last year of a certain product or service. People are not used to market research and they don’t want to talk to the marketing people
  • Employees: most employees and managers are not aware about the value of strategic planning and they may consider it waste of time and something that is applicable in developed countries
  • Owners: Many owners of successful companies believe they don’t need to do strategic planning and they do not know that their success will go one day when there are more competitors or there are changes in the market.
  • Managers’ selection: Most company’s managers in developing countries are experts in the technical process of the organization but they are not well educated in management and thus they want to focus on what they know and neglect what they do not know. Accordingly, strategic management does not fall in their area of interest
  • Qualitative Analysis: Strategic planning needs a lot of forecasting and qualitative analysis besides the quantitative analysis. Many technical managers are not used to neither the qualitative analysis nor the forecasting.
  • “I am the manager”: The strategy shows a guide for decisions,so, an employee may, sometimes, tell the senior manager that his decision is against the company strategy. Thus the manager avoid having a strategy to keep his freedom to decide whatever he likes
  • “Analysis” versus “Intuition”: Most people do not think that a manager should do analysis or have done for him they think that some people are talented to take the right decision without doing many calculations or having subordinates make a study for them.
  • Implementation: To get every manager follow the same strategy is not an easy task
  • Investors: Having a clear strategic plan and clear goals for the future (other than increasing sales of the current products) does not affect the stock price because most of the investors do not care about those issues
  • Security: Most managers feel that everything is  a
    secret and obviously they think that no one else should know the
    strategy and thus no one else should make a study for our strategic
    plan….and there is no strategy

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Organizational Structure

As you may know, there are three main types of organizational structure: functional structure, Divisional structure and Matrix structure. Each structure has its own strong and weak points.

Organization Structure.jpg

In the functional structure, above, the employees are working in departments based on what they are doing i.e. we have engineering department, maintenance department, finanance department, research department, Warehouse department, purchasing department. This structure enhances the experience of each function. For example, all the maintenance engineers are working in the same department and thus they will exchange knowledge and support each other. This structure saves us money because of the economies of scale. This structure makes the coordination between different department more difficult than other structures. It also does not allow for flexibility becasue of the centralization.

Organization Structure2.jpg

Divisional structure divides, shown above, the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, warehouse, maintnenace..etc. Accordingly, this structures is a decentralized structure and thus allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. On the other hand, this struture results in duplication of resources becasue, for ex., we need to have warehouse for each division. Obviuosly, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions.

Organization Structure3.jpg

Matrix structure, shown above, combines both structures. For example, we can have a functional structure and then assign a manager for each product. Some employees will have two managers: functional manager and product manager. This type of structure tries to get the benefits of functional structure and also of divisional structure; however, it is not easy to implement becasue of the dual authority. This struture is vey useful for multinational companies.

It is important to keep in mind that each managerial decision has its pros and cons. Sometimes, writers will convinve you that divisional or matrix structure are the recent trends and that you need to reengineer your structure tomorrow morning. Obviuosly, this is not true. Many organizations still has functional structure and is doing very well. It is very important to select the structure that best service your condition. What is your strategy? How many products do you have? What type of technology are you using? How big is your company/organization?

Management should take necessary actions to decrease the disadvantages of the chosen structure and to enhance its the positive effects. For example, if we think the divisional structure is the best type for our condition then we should have tools to exchange knowledge between engineers working in different divisions. These tools can include forums on the LAN and conferences to exchange knowledge. Conversely, if we adopt functional struture, we can form teams from different functions to solve problems and develop our products.

Developing countries suffer from the lack of research. Most of research on organization structure based on studying Japanes, American and European compoanies but it is rare to find a research based on a sample of african companies. That is a challenge for managers working in developing countries because the research does not really tell them what to do and what to expect. The differences in cultures can affect the results of adopting certain structure in certain part of the world. Sometimes, you deal with the same organization in different parts of the world and get very different standard of service. This shows that this multinational organization failed to reach the same results in the developing country.

Management should not think they are going to double their profits because they adopted flat structure (less number of management layers). If this structure reengineering is not part of a certain strategy, it will not work. For example, if we adopt flat structure and then transfer the authorities of the middle management to the top management then we are increasing centralization and decreasing our flexibility. Similarly, if we adopt functional structure and allow for the duplication of resources, then we will get the disadvantages of the functional structure and will lose one of its main advantages which is economies of scale.

Many companies have combination between functional, divisional and matrix structure. Many of the decentralized companies will have one or two department centralized such as human resources or marketing.

Whatever structure you have, the results are the most important. The results are not your perception that you are the best. Measure yourself compared with similar companies. Do you need one week to take a decision that they make in one hour? Are your employees motivated more than those in other companies? Are you devloping new products and services faster than other companies? Are you achieving your main strategy?

Read Also:

Advices for new employees

Management in Developing Countries

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CV writing Styles in different parts of the world

While most countries share similar CV (resume) writing styles, there are some differences. In the USA and Canada, you are supposed not to write any personal information except name, address, e-mail. In other countries such as New Zealand, it is optional to write your birth date. In the UK, you write date of birth but you may not write marital status and you should not write your gender and religion. In other countries such as France, Japan, Russia, Poland, Egypt, KSA, and UAE, the CV must contain these personal information. In France and Japan, in most cases you have to include a photo while in the USA it is not included.

In the USA, you are supposed to write an objective at the top of the CV. The objective describes your career objectives in one sentence. In the UK, you are supposed to write your profile instead of the objective. The profile is a short paragraph that describes  your skills and capabilities. In many other parts of the world, you write neither objective nor profile.

In the USA, the cover letter is very important and should explain why this applicant is a good choice for this position. In France, the cover letter should be handwritten and your handwriting may be analyzed. In Egypt, the cover letter purpose is to show the position the applicant is applying for and it is usually short.

Below are some sites that gives some guidance for writing CV in certain countries

Finland   France   UK    UK   Japan   Russia   New Zealand    New Zealand   USA   USA

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Cost of Lying

Some people think that the consequences of lying will affect few number of people. Have you ever tried to estimate the cost of lying? what is the effect of lying on the business processes and organization's performance?

Let's assume three cases: Case One: few people in the organization/society may lie (say 10%), Case Two: Many people may lie (Say 50%), and Case three: Many people can lie and may cooperate in their lying.

In the first case, one will find that the cost of not trusting people is very high compared with the cost of trusting people because the probability of being cheated is very low. You'll trust your boss, your subordinates, your mechanic and your doctor.

In the second case, you'll will have to pay for either the cost of being cheated or the cost of not trusting anyone. Obviously, you will not trust the advice of your doctor or your mechanic and will check with another mechanic and another doctor. A boss will not trust his subordinates and thus will have many employees just checking other employees' work: X person is doing the work and Y is checking X and Z is checking X and Y and the boss is checking all of them….waste of time…waste of money… Subordinates will not trust the management and thus will not be motivated enough by the management promises…will not believe the CEO when he says that there will not be layoffs because of the new technology and consequently will not support new technologies.

In the third case, No one believes anyone or any group of people and then we are wasting a lot of resources.

An organization performance will be affected by the lying behavior because the cost of controlling is very high. The business process that can be done in one day will take several days because too many people have to approve anything…Forget about decentralization or delegation….Don't think about flexibility…Don't try to apply Just In Time because you cannot trust the technicians….Don't think about flat organization…..Expect to see very complicated rules…. Don't ever think about long term relationship with suppliers…Don't expect successful business alliance…You'll not be able to measure your performance or trust any reports…

Honesty is win-win-win..s situation where we all win. I believe management should not tolerate any dishonesty behavior or any false information because the consequences on the long run will be very bad.

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MBA Teaching

Two years ago Lally school of RPI made radical changes to the core courses of the MBA program. Instead of studying 10 separate courses in the first years, students now are studying 5 courses – called streams of knowledge. Each of the five courses discusses several basic MBA classes in a business case context. So, instead of studying finance class, marketing class, operations class,…etc, students study how to establish a new company, how to design and introduce new products.

Few years ago, I attended this program. At that time, the curriculum was similar to other schools except one course which included: Marketing, Operations, Accounting, Industrial Design, New product development. At the beginning, I didn't understand the idea of this class but as we went through the 2nd semester, I started enjoying the experience. The main activity in this class was a big project of designing a new product, preparing business plan of the company that will produce that product and introducing the product to market. The course and the project were supervised by 5 professors. The good point in such a project is that you put the students in, almost, a real business environment where they have to make good product, good marketing while keeping in mind the financial statements. When designing the product we were considering the customer needs and the cost of material and manufacturing. We had to make the good matching between the manufacturing, marketing, design and accounting.

It is early to expect whether this approach will be a new trend in the MBA programs. From my experience, I think it is very useful way of teaching but it needs qualified cooperative faculty and very good design of the courses. I wonder if the same approach can be used in teaching science or engineering.

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Don’t send the wrong message to subordinates

Are you sending the right message to your subordinates when

  • you ignore reading their reports or their suggestions
  • you say “Safety First” and then do not attend a meeting to discuss a safety issue because you are busy
  • you cancel training courses for subordinates because they have a lot of work
  • you send subordinates for training courses that will not add value to their performance
  • you discuss too many ideas and then implement nothing
  • you don’t have time to listen to them
  • you spend hours and hours in useless meetings
  • you don’t care about their needs
  • you lie to your boss
  • you avoid taking decisions
  • you do not evaluate them based on their skills and performance
  • you stop learning
  • you set up impossible targets
  • you want to be the best in Quality, Price, Flexibility, Control
  • you don't cooperate with other managers
  • you never appreciate the subordinates work
  • you let some subordinates know that their job is not so important
  • you do all the above

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