Rolling out the Red Carpet

I welcome you to my blog and hope that you will like the tour. Please leave your footmarks with comments and feedback. This will through and through enhance my knowledge and profundity of thought. Enjoy! Asif J. Mir
Showing posts with label marketing. Show all posts
Showing posts with label marketing. Show all posts

Thursday, March 19, 2009

Slave Drivers and Street Vendors

While driving through Empress Road a petrifying scene attracted my attention that compelled me to pull up and watch over. It was really shocking. In a ding-dong fight the City officials were veritably frittering away the victuals and seizing the pushcarts of the luckless vendors. Under the supervision of a petty official behaving like a dummy god of the City government, the economic and physical assault of the vendors, destroyed their dignity and conviction only for being unlicensed.

The view reminded me of such instances as hackneyed during apartheid or colonial regimes. It clinched an argument that the same Pakistan that is earnestly engaged in war against terrorism, at street level follows Machiavelli.

City officials regularly quell vendors to mental and physical pressures. At times this has led to riotous situations, loss of property, and monetary damage. A major problem is that master plans prepared for our cities do not collocate space to vendors. The planners blindly imitate the western concept of marketing, ignoring our traditions and the needs of the unemployed youth, particularly in the wake of rising crime and terrorism. No wonder, weekly markets struggle to survive; natural markets are ignored. The policy statements of the local, provincial and federal development authorities talk of making provision for trading and commercial activities, which unfortunately is interpreted as doing so for rich traders and big businesses.

We have taken no notice of the ignorance of City workers, their misuse of authority and inadequacy. Consequently, their treachery, lust, covetousness, and every kind of inhumanity and cruelty, continue unabated.

Street vendors are those millions who come to cities as economic refugees hoping to provide basic necessities for their families. They provide a wide array of commodities to the urban populace at reasonable prices. They can be divided into two major categories—(a) mobile vendors who own pushcarts or simply move around with their goods in hand and (b) stallholders who set up khokhas in public places on a more or less regular basis.

The variety seen in the goods and, yes, the services provided by these innovative professionals is staggering. It is difficult not to associate these people with the culture and traditions of the city.

The type of goods they sell makes an interesting study – from daily needs like vegetable, fruits, fish, meat and snacks to occasional needs like ready-to-eat food, toys, and used garments. It would be hard to find an urbanite that doesn’t purchase something from these vendors. The middle and lower class consumer specifically prefers to purchase from them, though even well heeled citizens purchase many commodities given reasonable prices.

Vending has been a profession since time immemorial, with street vendors an integral part of our urban history and culture. Shopping and marketing, in a traditional sense, has primarily been informal. Social interaction is integral to our markets in contrast to the mechanized and sterile concept of shopping favored by modern market and super market structures.

Street vendors exhibit remarkable entrepreneurial skills. Purchasing of commodities is no easy task with constant market fluctuations. Merchandise has to be in sync with both consumer tastes and paying capacity. As most vendors deal in perishables, the goods have to be sold at the right time.

The municipal corporation laws, based on 19th century British rule, are outdated and detrimental to the peaceful conduct of business by vendors. Instead of regulating vendors, city governments treat them as a nuisance; their policies and actions are aimed more at removing and harassing them rather than at regulation. The rich traders have encroached sidewalks, footpaths and even roads, which the same authorities ignore. Why? The law only seems for the poor who are unable to grease the palms of the incompetent functionaries.

Every government in Pakistan comes with tall claims for poverty alleviation but unemployment continues to exist. Street or sidewalk vending provides self-employment and small business ownership opportunities to the downtrodden. Entrepreneurship is an exciting opportunity for the poor to realize their full potential while becoming financially self-supporting. Our planners remain oblivious to the role of vendors who are victimized, harassed, marginalized and deprived.

The city has today become an engine of growth, the main job provider. Just the same, they remain ill prepared to address the problems of poverty. Planning and governance continues to be the preserve of the politician-mafia-bureaucrat nexus. Poorly tailored policies if at all exist are badly implemented. Instead of creating an enabling environment, government policies are wrecking the livelihoods of these people, depressing their incomes and thwarting their entrepreneurial potential.

There is unabated official and social hostility towards the informal sector of street vending, even though the formal sector has ceased to grow, having reached saturation point. As the cost of creating jobs in this sector is very low, it needs to be integrated into the context of the overall macro-economy. However, we must first remove the obstacles in its functioning.

There is no institutionalization of a process to enable vendors to sell their commodities peacefully. A holistic approach targeting all the stakeholders demands changes in anti-vendor laws, a pro-vendor policy, creation of institutions to enable participation of vendors in urban governance, changing the mindset of the planners, the police and the society at large, and building the capacity of the vendors.

Pakistan’s social system must cater to the needs of its members to enable them to survive; it must have effective means of allocating and distributing resources. The government should thus formulate a policy by (a) giving vendors legal status and issuing licenses at nominal yearly fee, (b) setting up of mobile teams for spot licensing (c) promoting and developing the natural market system, (d) making street vendors a special component of the plans for urban development by treating them as an integral part of the urban distribution system, (e) setting up appropriate, participative, non-formal mechanisms with representation from street vendors, NGOs, local authorities, the police and others. Asif J. Mir, Organizational Transformation

Friday, January 2, 2009

21st Century Companies

growth, Organizational leaders agree that versatility and the ability to envision possibilities set a plan of action in the midst of chaos are qualities, which produce success. Organizations need more than members who adapt to changes. More importantly, they need members who can produce changes within the organization. Organizations of 21st century need leaders.

Successful companies have figured out the secret to success in the 21st century - that of process excellence. Future success seems will come to those companies that figure out functional management innovations in the 20th century augmented with process excellence, which places more emphasis on end-customer satisfaction than optimal utilization of company resources.

The 20th century saw organizations embrace functional management concepts that divide the company into functional silos such as product design and management, order management, manufacturing, finance, sales/marketing, warehousing/logistics and customer service/support. This approach saw the growth of many large companies. Functional management concepts help streamline an otherwise chaotic set of activities into logical groups and helped large organizations function effectively. They helped organizations make the transition from an agricultural age to an industrial age.

Since the last decades of the 20th century, computer technology and communications have become cheaper and more powerful by orders of magnitude, in the rendering many of these 20th century functional management approaches obsolete. The 21st century demands a transition from an industrial age to an information age, and a process-excellence approach is the alternative that will augment a functional management approach for optimal organizational performance.

Organizations have started talking about order to cash cycles, viewing the end-to-end demand chain and supply chain from customers’ point of view rather than functional silos such as finance, sales and marketing and manufacturing.

This process excellence view has evolved from companies’ realization that it is an unfair burden on the end customer to have to deal with the companies’ functional silos when doing so adds no additional value to the products or services they buy from the organization. Functional silos are for internal efficiencies of a company. A number of trends dictate that only process excellence combined with functional management will work in the future.

The 21st century has starting out with computers and communications enabling order of magnitude and faster, cheaper execution of business processes, often spanning multiple organizations and even multiple continents. Dell, UPS and FedEx have computer systems that any organization can seamlessly integrate with and provide visibility of processes to end-customers. Here, the emphasis seems to have shifted considerably to one of process excellence rather than functional excellence. In fact, UPS formerly picked up Toshiba laptops that customers want to send back to the company for Warranty repairs. Now UPS finds it can deliver a more efficient and effective process by also doing the repairs in their delivery center.

If I am an end customer of a company that sells me goods or services, I am more impressed by efficient and effective processes that benefit me, rather than how well the functional silos if they perform internally. Process excellence is one of whether the end customer’s expectations are met faster, cheaper and more effectively. Many organizations have started asking the question regarding any activity within a company: why should the customer care? This brings up a process orientation to most activities even if different functional silos within a company perform parts of processes. If an activity does not directly add value to the end customer, process excellence demands that you try to eliminate it or at least make it faster.

Many organizations are starting to make available single points of contact for customers, especially their valued ones. These single points of contact or account managers navigate the internal processes with the functional silos of the company on behalf of the customer within the organization and get things done. After all, why should the customer care about billing and provisioning departments of a telecommunications company? They have placed an order for a new landline and it is the telecom company's responsibility to take the order and deliver the landline. Process excellence is the key here.

Those that have slower process cycles do not stand a chance of competing very effectively in the longer run with nimbler online alternatives. A very heavy process orientation and excellence is the only way the older ways of doing business can right themselves and prepare for the 21st century.

With digitization and automated workflow, people within the company or an outsourcing vendor can perform the same business process without concern about physical location! Digitization and automated workflow have enabled process excellence to be realized at levels not possible before.

Companies such as UPS and FedEx already make it possible for any company's computers integrate with their internal systems effortlessly, eliminating unnecessary and inefficient manual steps between companies. For example, once an order is picked and packed at a company warehouse, the company computers can talk to UPS or FedEx computers and create a delivery order and a tracking number. UPS or FedEx employees will not have to key in all these details again.

General Electric and Motorola have popularized Six Sigma approaches to quality management. Six Sigma and Lean Six Sigma impose a process discipline when applied. These are increasingly being applied outside of manufacturing, where they originated, and being applied to all kinds of business processes like product service and support, healthcare and so on.

The last century contributed functional management as a way to do things more efficiently and effectively within organizations. However advances in technology and innovative new companies have brought process-oriented approaches to doing things that make it easy for an end customer to do business with them. A process orientation and process excellence that augments functional management seems to be the secret to success in the 21st century. Organizations that leverage the latest technological advances and trends in a relentless quest to make business processes more efficient and effective will be the only ones that survive. (www.asifjmir.com)