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Article Check - Business Logic; Bad Logic, Poor Business
As the dust settles on the glitz and glamour of the world’s most famous award ceremony, the Academy Awards, months of planning and preparation are over for another year. And whilst nothing is left to chance on the night of the Oscars, the same preparation needs to be made when entering your company, product or service for an award.Even though most business award ceremonies lack the same glamour as the Oscars, being nominated or even winning an award can propel your business in the most amazing ways.You will benefit from increased sales, wide spread credibility, extra valuab
The argument was that the lower sell out price would reduce profit whilst the lower volume from the single channel strategy was ignored. Only the informa
The senior manager of a large organization called me seeking help.‘We are stiff and bureaucratic,’ he said, ‘but we want to be more open. We are formal until it hurts but we’d like more innovation. Can you help us, Mr. Kaufman? Can you share a new perspective and bring some fresh ideas?’I accepted the assignment and found that what he said was true: they had an old culture of top-down control, suffocating authority, miles of red tape and rigid ways of working.With enthusiasm, I prepared a speech that opened many eyes. Laughter rolled through the audience, self-reflect
Fallacies in logic in a journal or newspaper or a conversation between people creates frustration and perhaps heated discussion. Fallacies in logic in business create a bad business.
A simple fallacy that occurs when market research is poorly interpreted is to argue from selected observation. Data from a handful of people is interpreted as being representative of a whole population. This happens frequently when the boss has a pet theory about the market, commissions some market research and concentrates their argument on the few pieces of data which support their argument.
The impact of business decisions being made from selected observations is to put the marketing campaign or the entire company at a risk equivalent to deciding by "gut feel". Some leaders have a great gut feel for their business and the businesses thrive on it. Most of us, however, actually need information to make logical decisions.
In one organisation I have seen good market research which was carried out annually for ten years demonstrating clearly that the single channel strategy of the organisation was causing a decline in volumes of an average of 7.5% per annum as other channels blossomed. It also contained some data which showed that the new channels had a lower sell out price.
The argument was that the lower sell out price would reduce profit whilst the lower volume from the single channel strategy was ignored. Only the informat
Aerospace machine shops produce complex machinery such as high precision satellites and scientific instruments. This machinery is used in various arenas of space research and other programs that use aerospace as their field of study and performance.These shops make use of highly advanced machinery such as computer numerical controlled machines and electric discharge machining equipment in the production of complex instruments. Computer aided manufacturing processes are generally used for production. The machinists working in these shops have to be proficient in the use of this com
A simple fallacy that occurs when market research is poorly interpreted is to argue from selected observation. Data from a handful of people is interpreted as being representative of a whole population. This happens frequently when the boss has a pet theory about the market, commissions some market research and concentrates their argument on the few pieces of data which support their argument.
The impact of business decisions being made from selected observations is to put the marketing campaign or the entire company at a risk equivalent to deciding by "gut feel". Some leaders have a great gut feel for their business and the businesses thrive on it. Most of us, however, actually need information to make logical decisions.
In one organisation I have seen good market research which was carried out annually for ten years demonstrating clearly that the single channel strategy of the organisation was causing a decline in volumes of an average of 7.5% per annum as other channels blossomed. It also contained some data which showed that the new channels had a lower sell out price.
The argument was that the lower sell out price would reduce profit whilst the lower volume from the single channel strategy was ignored. Only the informa
You have worked hard at finding your next job. You have come through many obstacles and have reached your career objective. You have received a job offer. You’re thrilled. Mission accomplished. After all, what else is left to do?A majority of job candidates do not negotiate their offer. They are happy just to have received it. They just want to start their new job and start getting paid again. Besides, there's a myth that the process of negotiating could turn the employer off and cause the offer to be rescinded? Does this kind of thinking sound familiar?Offer negoti
The impact of business decisions being made from selected observations is to put the marketing campaign or the entire company at a risk equivalent to deciding by "gut feel". Some leaders have a great gut feel for their business and the businesses thrive on it. Most of us, however, actually need information to make logical decisions.
In one organisation I have seen good market research which was carried out annually for ten years demonstrating clearly that the single channel strategy of the organisation was causing a decline in volumes of an average of 7.5% per annum as other channels blossomed. It also contained some data which showed that the new channels had a lower sell out price.
The argument was that the lower sell out price would reduce profit whilst the lower volume from the single channel strategy was ignored. Only the informa
I can’t stress how many job sites that are out there that specialize. There are so many. Anything and everything. From, physicians, medical, hospital jobs online, American Association of Blood Banks, for example. It just goes on and on and on and on. You have resources, insurance, IT, engineering, IT and software, landscaping and Trades, whatever job you’re looking for its out there.Whatever employee you’re looking for the net has a job site that specializes. Its all out there, there’s a job board that you can post your requirements and your job duty statement or ad. How do you
In one organisation I have seen good market research which was carried out annually for ten years demonstrating clearly that the single channel strategy of the organisation was causing a decline in volumes of an average of 7.5% per annum as other channels blossomed. It also contained some data which showed that the new channels had a lower sell out price.
The argument was that the lower sell out price would reduce profit whilst the lower volume from the single channel strategy was ignored. Only the informa
On Tuesday I walked into a store and was browsing around for a particular product. The store didn't have it. I approached a customer service representative and asked them where I could find the item. After receiving some blank stares, I was told that they didn't know where I could find the product.I went home and spent a couple of hours trying to track down the product. I eventually did and placed my order. This incident led me to ask, what is real customer service? Is real customer service providing value and service to paying customers only? Do you have an obligation to
The argument was that the lower sell out price would reduce profit whilst the lower volume from the single channel strategy was ignored. Only the information which justified the status quo was ever used out of the data.
Another fallacy common in business is internal contradiction. This clearly occurs with the topic of company values. That is, we have company values but leaders do not have to portray them. It also occurs with strategy and tactics.
For example, the statement, "Our strategy is to grow the market through an aggressive marketing and sales campaign and to dominate the new market we create" on page five of a corporate plan, followed on page ten with no increase in advertising costs, marketing costs or sales costs and no other plan to increase productivity of sales either. Growing the market aggressively without some increase in sales costs or sales productivity is not believable.
Another favourite of mine is argument by slogan. The most common one I hear is "best practice". The CEO announces "We are adopting best practice in the area of corporate governance; therefore we need to increase the remuneration of the directors". What in the world did that mean? There is no way to understand specifically what best practice means and whether it has any relevance to the director's remuneration.
Best practice is very hard to actually achieve. It is difficult between different organisations in different environments to define processes in a similar enough way to make it worthwhile to go the next step and define KPIs measured
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