Posts Tagged ‘Business Lessons’

Guest post contributed by Sarah Carling, on behalf of Injury-lawyers.net.au.

 

Today’s businesses have used Change Management and Risk Management with varying degrees of success. While these strategies can help companies prepare for an unknown future, they fall just short of accomplishing the strategic goals that 21st century companies need if they are to keep pace with rapidly changing market conditions. What will it take to fill the gaps in these two theories? Surprise Management.

 

Background

 

We all know how disconcerting change can be. And when we add surprise to the equation, we face a huge organizational challenge. Uncertainty, unpredictability, and our all-too-human inability to dictate outcomes are facts of life that organizations must address if they are to thrive.

 

The natural fear of uncertainty often leads organizations to implement uncertainty-reduction (or risk-management) measures—and hence the development of Risk Management theory. Many have tried to eliminate “the surprise factor”—with varying degrees of success. One method that’s been suggested for eliminating surprise is to anticipate surprises before they happen and take appropriate steps to minimize their occurrence—certainly a commendable goal. Yet, a surprise by its very nature cannot be foreseen. (Otherwise it wouldn’t be a surprise.)

 

A more realistic way of phrasing the above goal might be to say that reducing surprise involves an attempt to predict what could go wrong (i.e. to project risk) and put in place preventive measures against these potential problem occurrences—measures which not only minimize the overall number of occurrences but also reduce the number that are actually surprises. It is only in this sense that Risk Management can “eliminate the surprise factor.” While it would be impossible to anticipate the surprises themselves, this thorough projection of future possibilities would undoubtedly help eliminate some surprises, simply because the organization would now be aware that these eventualities could potentially occur. Yet, the success of this approach in managing surprise is limited.

 

In contrast, Change Management, by providing both managers and workers with the tools they need to handle the reality of change across a rapidly evolving business landscape—and perhaps equipping them for various specific future eventualities—can at least help an organization prepare for surprises, if not reduce the frequency of their occurrence.

 

Surprise Management: A More Comprehensive and More Flexible Approach

 

Surprise Management—a concept which is thoroughly analyzed in a 2005 article in the British Journal of Management, “Surprises in Management and Organization: Concept, Sources and A Typology”—presents the rationale for addressing unwelcome (and perhaps even welcome) surprises through the concept of diversification (despite the authors’ non-use of that specific term).

 

The authors define surprise as “any event that happens unexpectedly, or any expected event that takes an unexpected turn.” The main point of the piece may be distilled into the following brief summary: Because unpredictable events and unexpected turns of events (aka, surprises) cannot be precisely controlled, a more diversified and more flexible approach is needed for an effective response.

 

As the authors state, “Surprises can potentially result in organizational catastrophes (e.g., Shrivastava, 1992),” and they therefore conclude that “rather than merely insisting on the prediction of surprises, organizational researchers should investigate how organizations might develop the resilience and mindfulness necessary to deal with unanticipated events.”

 

Surprise Management Tools

 

A few surprise-management strategies the authors recommend for developing such mindful resilience follow:

 

• Bricolage (constructing a solution from whatever diverse resources may be at hand)

 

• Improvization (“the ability to access creativity in the moment and under pressure, to resolve or direct the resolution of a situation to meet [company] objectives…”)

 

• Distributed decision-making (a decision-making process [that is] distributed across multiple participants, each of whom contributes to the final decision by performing one or more tasks)

 

• Minimal structuring (implementing “a set of consensual guidelines[,] agreements, [and] co-ordination devices that attempt to focus the activities of people around a common set of goals and deadlines without limiting their discretion to best decide how to reach these goals)

 

• Dynamic adaptive capabilities (“the capacity of…institutional approaches to permit actions that are effective ‘adaptive’ responses to changing environmental circumstances”)

 

The above approaches combine to provide the diversified organizational response that today’s enterprises need to skillfully manage the surprises that might otherwise prove catastrophic to their successful operation—helping them not just survive, but thrive.

 

 

The Entrepreneur Spotlight for May 2012 is on Gauri Kulkarni who crafts beautiful soapy creations under the brand name “Parisa Creations”.  In a market that is facing a blitzkrieg of soaps, handmade soaps are all the rage now and Gauri’s beautifully scented creations indeed stand out in the crowd.  Here is a look at her story…

 

NAME OF THE VENTURE:PARISA CREATIONS

 

PERSONAL PROFILE OF FOUNDER

 

Ms Gauri Kulkarni, 29 holds a degree in Home Science and has been running her own soap business for over a year now.  Gauri is a first generation entrepreneur who did not have any prior exposure to business before she struck out on her own.  Parisa Creations is a sole proprietorship which was established on 21^st July, 2010 and operates from A – 13,Kaustubh Society, Opposite Mangla High School, Kopri, Thane East, Mumbai 400603.  Gauri only sells her soaps online through facebook, Shop and some other online ventures.

 

 

How Did You Get The Idea To Begin This Venture ?

 

I started making soaps buying a hobby kit from Hobby Ideas…I made soaps and gave to my friends and family…And getting a good response from them,I started thinking of making it into a business.I found out places of getting the raw materials and did some research on internet and read some books for herbs and thereby started selling it online and also supply to exhibitions.

 

 What were the supporting/motivating factors in setting up this business?

 

Family & Friends

 

What is your USP (unique selling proposition)?

The USP for Parisa creations soaps is that all my soaps are completely natural and hand made. Also they come in unique shapes a factor which attracts most of my clients.

 

What is your vision for the venture?

 

Someday when I have lot of time and money, I plan to expand the business and even open a small scale workshop in some village. I want to employ the local people and have my own website too.

 

What Sort Of Growth Strategy Did You Follow?

I started selling soaps from home to my friends…I opened a facebook page and it started reaching across to people…I started putting small exhibitions throughout Mumbai,so I get to know the response of people using my soaps.

 

Then I came across “Shopo” website and it helped me reach out to lot of people.My soaps were marketed from the website and I was given an individual shop to display my products.I am also featured on “Unwrapindia” and “Snapdeal” websites.

 

Any steps that you are taking to help society in general & people in particular?

­

I am a very social person.I like to do lot of things for the society and am an animal lover. I have worked with lot of NGO’s like Akanshaa, Ahimsaa, SOS and have done my little bit from teaching underprivileged kids to volunteering for feeding stray animals to finding foster homes for cats to planting trees for global warming. I wish to do a lot for the society in future.

 

What are the problems that you are facing?

 

MARKETING

 

BRIEF DESCRIPTION OF NATURE OF PROBLEM: I have good product with me, but I don’t know how to market it so it reaches out to a wider audience…I had tried to contact some spas and beauty parlour thru email to display my products but I didn’t get any response.-

 

FUTURE PROSPECTS:

 

WHERE DO YOU SEE YOURSELF?

 

a) FIVE YEARS FROM NOW: Five years from now, I will have more and more varieties of soaps and my own website and maybe a small scale workshop/initiative in some place apart from the city.-

b) TEN YEARS FROM NOW-Ten years from now I see my business to have grown and running on its own and added more varieties like body gels,shower gels etc-

c) TWENTY YEARS FROM NOW: Twenty years from now I see myself retiring to a farmhouse and growing my own vegetables and have a beautiful garden of flowers along with my family and of course pets-

 

Any Plans Of Expanding The Business: YES

 

If Yes, How? Branches/franchise – As already mentioned above, I plan to expand it by getting into retail industry and also increasing my online sales by tying up with different websites.

 

How much use of technology is made to promote business?

1. SMS/mobile advertising
2. online store
3. social networking sites like Facebook

 

ANECDOTES/EXPERIENCES (GOOD )

 

My experience of online selling has been really good with websites like “Shopo” and “Unwrapindia”….online selling/shopping is catching up slowly and I see it as a future of retail industry. I plan to tie up with lot of other websites and also have a website of my own soon

 

Any advice for future entrepreneurs?

Just believe in your passion and keep going.Though as much efforts are required along with money investment,the most important thing these days is marketing and publiscing your product.—

 

 

What are your strengths, weaknesses, opportunities and threats?

 

STRENGTHS: Belief in myself/my passion–

WEAKNESSES:- Lack of time management -

OPPORTUNITIES: -Loads-

THREATS: -None…I don’t see any threat if you love to do what you are doing–

 

What innovative ways of doing business are you using?

–Researching through internet…using microwave to save time to melt raw material…growing my own herbs at home,trying new varieties and clicking photos at home for display—

 

What are your views on customer relationship management?  How do you approach it?

 

As the old saying goes ‘ a customer is always right’…As much as I have never had problems with my product anytime or any complaint yet so far, people write to me asking for solutions on skin problems and if my product is suitable for particular allergies etc and I honestly try to answer them as much knowledge I have. I don’t try to fool people ,just because they buy my product as I myself wouldn’t like anyone doing that to me. I try to maintain honesty and transparency.

 

WHAT MAKES YOU DIFFERENT FROM YOUR COMPETITORS?

The product completely!!! Use it and you will know it!!!

 

This is a guest post by Kate Croston

You have your own company and you have just enough employee help to keep your head above water and be successful. But there are a few tasks here and there that if you are able to go outside of your four walls, you should, here are a few times you should hire a professional:

Photography: Whether you need shots of your products, employees or office. Hire a professional. You may think your nifty new iPhone is pretty cool, but you are professional so get shots like one. Best thing to do is to search in your area for a photographer that has shot commercially before and you can hire by the hour. You can find overpriced photographers all day long, but a secret tip? Call your local art school and ask about photography majors. You would be surprised how great their work is.

Web Design: Hiring a web designer can be very expensive but definitely worth the price tag. For how much the world is online your online presence is highly important. Getting a web designer will be a long term investment for you and your company. Ask your staff, friends or former colleagues if they know anyone. Someone always knows someone.

Social Media Manager: Depending on your product and business you may or may not need this. But chances are you are trying to get online and keep the company up to date. Don’t allow your company to become socially awkward. If you are spending your time online updating status and downloading photos or tweeting, hire someone to do so. Again check with your local college for a marketing major. These kids spend 95% of their life connected to the internet. Find an upper level student that has the maturity to be professional.

IT: Don’t rely on the new receptionist to figure out how to set up Outlook or to fix a computer. An IT person can really save you lots of money and most importantly frustration. Find a friendly IT person that is on call, most charge per hour.

Bookkeeper: Unless you have exceptional organizational skills and a love for number crunching, hire a bookkeeper to help with you. Bookkeepers handle any transaction that happens in your business. Great thing about bookkeepers, you can hire them part time to come into the office 2 days a week. You will thank me later come tax season.

So before you try on taking on these tasks do not be afraid to do your homework and search for a better option. You will save yourself so much time and help your business grow if you hire a professional. You will be happy that you did!

 

 

Author Bio:

Kate Croston is a freelance writer, holds a bachelors degree in Journalism and Mass Communication. She writes guest posts for different sites and loves contributing   internet service related topics. Questions or comments can be sent to:  katecroston.croston09 @ gmail.com.