Some key themes in this course

These are times of tremendous change and

therefore tremendous opportunity

The traditional boundaries between the for-

profits and nonproftis are changing

Given the complexities of nonprofit

leadership, strategic discipline is essential

Overview of Nonprofit
Organizations
Nonprofit Organizations

Organizations which enjoy tax exempt

status as a result of being organized to
serve a broad public interest.
Nonprofits and profits
■ Nonprofit organizations are permitted to generate
a profit

■ However, nonprofits may not distribute their

profits to their staff or directors - nondistribution
constraint

Surplus must be used to further the mission of

the organization

Why do we have nonprofits?

(in pairs)
The nonprofit world has been experiencing
significant changes
■ Increasing privatization of government services
(education, health care, social services, the arts)

■ Increasing financial pressure on nonprofits

B
Increasing concerns about the efficacy of nonprofits

■ Increasing corporate social responsibility initiatives

and funds

■ Other trends?

Some of the management challenges

of the nonprofit enterprise
Defining and measuring success (economic
stability and growth is a subsidiary goal).

Raising funds - cannot sell the company ‘shares’

Attracting and motivating people given the often

limited resources and the nondistribution
constraint (no profit-based incentives)

Strategic Planning in Nonprofits

What is strategy?

Getting critical resource decisions

right - allocating time, talent, and
money to the activities that have
the greatest impact - is what
“strategy” is about.
Strategic Planning

The process of developing a

comprehensive document that sets
forth what and organization is working
to accomplish and how it intends to
succeed
The Strategic Plan
Connects the mission and the programs

Establishing performance measures that are

understandable to all

Encourages strategic thinking - the best

allocation of scarce resources

The strategic planning process is as valuable as

the end result
Four main components of strategic
planning
1. Strategic clarity
- Mission statement
- Intended Impact
- Theory of Change

Strategic priorities: What specific actions and activities

must take place to achieve the intended impact

3. Resource implications: To pursue the priorities, and the

plan to secure them

4. Performance measures: Establishing the quantitative and

qualitative milestones to measure progress
The University for Peace’s
Mission Statement:
‘To provide humanity with an international institution
of higher education for peace and with the aim of
promoting among all human beings the spirit of
understanding, tolerance and peaceful
coexistence, to stimulate cooperation among
peoples and to help lessen obstacles and threats
to world peace and progress, in keeping with the
noble aspirations proclaimed in the Charter of the
United Nations".

Which functions does this mission statement fulfill?

The Earth Charter Initiative

The mission of the Earth Charter Initiative

is, "To establish a sound ethical
foundation for the emerging global
society and to help build a sustainable
world based on respect for nature,
universal human rights, economic
justice and a culture of peace."
The mission is the centerpiece of
the nonprofit organization
■ It serves a boundary function

■ Serves to attract and motivate stakeholders

(donors, staff, and clients)

■ Should help in the process of evaluation

The challenge could be see to create a mission statement

that is specific enough to inspire, but sufficiently broad to
allow strategic redirection

A nonprofit’s theory of change:

Theory of Change: Explains how the

organization’s intended impact will actually
happen.

In other words, why will the organization’s

approach bring about the desired change.
To clarify a nonprofit’s theory of
change, ask:
1. What are the most important elements of our
programs?

2. What assumptions led us to choose these particular

program element?

3. Are there other ways to achieve the desired

outcomes? Why are we not taking that approach?

A nonprofit’s Intended Impact provides a

bridge between mission and programs

■ Intended Impact: Is a statement about

what the organization is trying to achieve
and will hold itself accountable for within a
period of time. It identifies both the
benefits the organization seeks and the
beneficiaries.
To clarify an organization’s intended
impact, ask:
1. Who are the beneficiaries?
2. What benefits do our programs
create?
3. What won’t we do?
2. Determining strategic priorities
is the next step
Looking at current programs
- How do they align with mission, intended
impact and theory of change?
- How much do they cost? (per outcome?)
- Do they play into the organization’s strengths?
- How do they compare with peers?
- Changes that should be made?
• Modify
• Add new ones
• Discontinue
3. Resource Implications - human
and infrastructure
What will it cost to implement?
■ What’s the gap?
Financial projections for new strategy
- Scenario planning

UPEACE Strategic Planning... star, constellation,

galaxy
4. Performance measures
Need to collect data - INDI CATORS

Program milestones
- Quantity
- Quality

■ Operational milestones
- Human resources
- Infrastructure

Financial milestones
- budget

In establishing performance measures, it is important to be

clear about the timing and ownership
Measuring success in nonprofit organization

1. What makes measuring success particularly difficult

in the nonprofit environment?

2. What was the problem with the ‘bucks and acres’

measurement system of the TNC?

3. What approach did the American Cancer Society

(ACS) adopt given its challenge?

4. Any questions/points you want to discuss on the

reading?
Lessons learned from ‘Measuring what
matters in Nonprofits’
■ Measuring mission depends on measurable
goals

■ Keep measures simple and easy to

communicate

Measures are marketable

Measures are only as good as the use to which

organizations put them
Returning to the milestones over time is
a sign that your organization is
continuing to think strategically
Managing in Tough Times
1. Act quickly, but not reflexively, and plan
contingencies.
2. Protect the core
3. Identify the people who matter most and
keep the group strong
4. Stay very close to your key funders
5. Shape up your organization
6. Involve your board
7. Communicate openly and often
How is your organization reacting the ‘financial crisis’?
 Strategic Issues in
Not-for-Profit Organizations

Dr.Vijaya Kumar

Not-for-Profit Organizations

Not-for-Profits:
- Account (on average) for 1 in every 20
jobs around the world
- 1990 - 1995 jobs grew by 23%
• Whole economy grew by 6.2%
- Employ < 25% of U.S. workforce
- Own about 15% of nation’s wealth
 Not-for-Profit Organizations

Not-for-Profits:
- Private nonprofit corporations
• Hospitals, private colleges, charities
- Public governmental agencies
• Prisons, welfare departments, universities

Not-for-Profit Organizations

Not-for-Profits Importance:
- Public or collective goods
• Paved roads, police protection, museums,
schools
- Preferred tax status
• 501(c) (3) U.S. Tax Code
 Aspects of Life Best Managed
by Not-For-Profit Organizations

Not-for-Profit Organizations

Key Differentiator:
- Source of revenue
• Profit-making firm
- Sale of goods and services to customers
• Not-for-profit firm (NFP)
- Dues, assessment, or donations from
membership of sponsoring agency
 Not-for-Profit Organizations

Strategic Decision Making:

- Pattern of influence
• Derives from source of revenue
- Key to understanding management of
NFP
• Who pays for the delivered services

Not-for-Profit Organizations

Strategic Management Concepts:

- Institutional advantage
• NFP performs its tasks more effectively
than other comparable organizations
 Not-for-Profit Organizations

Strategic Concepts for NFP:

-SWOT
- Mission statements
- Stakeholder analysis
- Corporate governance
- Portfolio analysis
• Strategic piggybacking

Not-for-Profit Organizations

Constraints on Strategic Management:

- Service is often Intangible
• Difficult to measure
- Client influence may be weak
• Client payments - small source of funds
- Strong employee commitments
• To professions
• To “causes”
 Not-for-Profit Organizations

Constraints on Strategic Management:

- Resource Contributors
• Intrusion on internal management
• Fund contributors and government
- Restraints on use of rewards
• Result from 1,3, and 4

Not-for-Profit Organizations

Constraints & Strategy Formulation:

- Goal conflicts
• Interfere with rational planning
- Integrated planning focus
• Shift from results to resources
- Ambiguous operating objectives
• Internal politics
• Goa! displacement
- Professionalization
• Simplifies detailed planning
• Adds rigidity
 Not-for-Profit Organizations

Complications to Implementation:
- Decentralization is complicated
• Defensive centralization
- Linking Pins
• External-internal integration
-Job enlargement and development
• Restrained by professionalism

Not-for-Profit Organizations

Complications to Evaluation and

Control:
- Rewards and penalties
• No relation to performance
- Inputs vs. outputs
• Heavily controlled
 Not-for-Profit Organizations

NFP Strategies
-Strategic Piggybacking:
• Development of a new activity for the NFP
that wou/d generate the funds needed to
make up the difference between revenues
and expenses.

Not-for-Profit Organizations

NFP Strategies
- Mergers
• Focus on reducing costs
-Strategic alliances
• Developing cooperative ties with other
organizations
Not-for-Profit Organizations
Something to Sell

Management Talent

Resources
Trustee Support

Entrepreneurial

Venture Capital
CONTEMPORARY ISSUES IN MANAGEMENT

Lecture Series 2013

by Package

C P Rijal, PhD
Associate professor
Faculty of Management Studies
Mid-Western University

Our link for the discussion today...

Nepal is in search of visionary institutional

leaders and managers, more in numbers,
for more sustainable transformation of
the country.
So, let's talk about a few powerful
managerial issues in Nepalese context.
Our national bureaucracy, defense,
politics, private and social sector -
everywhere is an immense need of
effective managers capable to
respond with the effects of
globalization. .
So many successful world class
managers are time again charged for
not being adequately accountable for
what they are supposed to be.

How often do you act by shouldering

the responsibility of your team
failure? Many people love 'passing the
failure' onto others.
Senior managers at BBC are time again blamed
for not working with responsiveness towards
the society for what they are expected to do.

In any business, just earning is not the end;

there starts your obligation to paying off to the
society for what it allowed you to be there at
that height; please be sincere of your
responsibility for the society.
 Don't just have career or academic goafs. Set goals to give you a
balanced, successful life, I use the word balanced before successful Balanced
means ensuring your health, relationships, mental peace are all in good order
There is no point of getting a promotion on the day of yout breakup. There is
no fun in driving a car if your back hurts. Shopping is not enjoyable if your
mind is full of tensions.

life is one of those races in nursery school where you have to run
with a marble in a spoon kept in your mouth. If the marble fails, there is no
point coming first. Same is with life where health and relationships are the
marble Your striving is only worth it if there is harmony in your life. Else, you
may achieve the success, but this spark, this feeling of being excited and alive,
will start to die.

One thing about nurturing the spark don’t take life seriously. Life is
not meant to be taken seriously, as we are really temporary here. We are like a
pre paid card with limited validity. If we are lucky, we may last another 50
years. And SO years is just 2,500 weekends. Do we really need to get so worked
up?

It’s ok, bunk a few classes, scoring low in couple of papers, goof up
a few interviews, take leave from work, Enjoy with your friends, fall in love,
little fights with your loved Ones . We are people, not programmed devices.

Don'/ be serious, be sincere

July 6, 2013 rij:alcpr(fttgmall com - Chetan Bhagat at Symbiosis

Mostly, the western management is blamed

for not being able to take a balanced
approach in managing workforce diversity.
4

What about the racial discrimination in the

UK? Isn't it true that the Nepalese managers
are at cross-roads to empower people with
equitable distribution of opportunities?
Even Steve Jobs, one of the world's ever
innovative entrepreneur managers, was
shacked from the position of CEO at
Apple, which he created vesting his
blood, toil, sweat and tears; He was
charged for not being innovative;
Responding to changing environment is
always a daunting task for all managers.
Senior management normally takes it
as a cost adding proposition to
improve quality and productivity; in
fact, it reduces the cost, if managed
effectively.
Despite having the largest businel;
networks throughout the country,
Nepal Bank Limited and Rastriya
Banijya Bank have been facing tough
time for their survival.
7

Corporate leadership is more than

managing; it is rather all about
stimulating innovation and change.

Enron, the world's one time largest

power generator, and a UK based historic
news agency collapsed for not being able
to improve their ethical behavior.

Momenta Garments headed by one ol

the former FNCCI presidents in Nepal
collapsed whilst doing an excellent
business. Why? What about Necon Air?
Do you know, why Rato Bangla School has been
helping to transform all primary schools of
Dailekh district? A

Whose ad theme is it - 'Bhatta Khayau

Sambidhan Deu*?

Surya Nepal has supported in developing all

school infrastructure in at least 10 VDCs around
its cigarette factory at Simara.

These are a few examples of institutional social

responsibilities...
Do you know, the patent rights of
most of our natural medicinal herbs
are already reserved by foreigners?
10

So, what's the problem? They have

won us in knowledge management for
which we will have to pay them very
big cost while using our natural
resources in the days to come.
You may be surprised to know that most
of our ministers and high rank officers in
public institutions do not know how to
work in computer-added working
environment. 0
Shortt 1

How can you be sure about their likely

contribution to come up with the
proposition to managing with the world
of ICTs, which is most essential today?
As a result of excessive work stress and
productivity focus of the top
management, there exists the highest
rate of corporate suicides in Japan. In US,
the workplace violations are sometimes
very much critical.

Besides improving performance, top

management today faces tough time to
help employees balance their work and
life conflicts.
Shortest speech by CEO of Coco Cola....

Imagine life as a game in which you are juggling some ftve balls in the
air They are Work. Family, Health. Friends and Spirit and you're keeping all
of these in the air

You will soon understand that work is a rubber ball If you drop it it will
bounce back But the other four Balis ■ Family, Health, Friends and Spirit -
are made of glass If you drop one of these, they will be irrevocably scuffed
marked, nicked damaged or even shattered They will never be the same You
must understand that and strive for it "

Work efficiently during office hours and leave on time. Give the required time to your
family, friends A hove proper rest
July 6. 2013 . * * i t [email protected] . . , 18
Value has a value only if its value is valued
All managers are bound to creal;
positive tensions for innovation to
happen, productivity to excel, and job
satisfaction to prevail. x
13

Unfortunately, our NOC employees are

put to be least bothered about
operational innovation; it is a constantly
loss making pubic entity that pays off
with the highest rate of employee bonus
every year!

Ncell has gone far ahead improving

customer services compared to Nepal
Telecom. f 14

How long can NTC enjoy its market

leadership this way?

Ncell claims itself today as the largest

happy family in the country...
It is heard that Janga Bahadur Rana used to
take the packaged lunch supplied by
Rambhandar; Chaudhary Group was formed
quite lately; So came in existence Khetan and
Panchakanya groups. Ranas disappeared from
the power, Rambhandar has been somehow
surviving, and the later ones are on top of
national corporate sector. z
15

Why such a disparity? May be because of

difference in their capability to adapt and
promote entrepreneurship...
Normally, the corporate managers
tend to take success as a permanent
proposition, as a result they fail to
survive in long run.
16

For example, lack of commitment and

vision to cope with temporariness
might have resulted the demise of
Hattichhap Chappal in Nepal despite
its very strong market holding.
Corporate managers are meant to be
responsible for managing with multiple
responsibilities to lead their institutions
more successfully. z "■ .
17

Anil Keshari Shah has not reached to

today's position by just focusing on only
banking; he acts with scores of
responsibilities, everyday to sustain
himself high up there!

At IBM, improving people skills is regarded as

one of the strongest corporate cultures. As a
result, a penny invested on employee training
and development today, goes on cashing in
many dollars till 30 years down the road.
18

Any cost incurred in employee training and

development may serve as a safer source of
sustainable returns forever. Unfortunately,
not all leaders realize this fact.
This is the age of working with
business partnership, virtual
organization systems and business
process outsourcing.
) 19

All corporate managers may not feel

comfortable working in networked
organizations. As a result, they fail in
their missions.
Despite his tremendous successful
career graph for more than two .
decades as a VC of Kathmandu v°J
University, Prof. Dr. Suresh Raj Sharma
was finally blamed for not developing
the generation next to lead the
institution in the similar way that he
visioned; Now, the institution is at a
cross-road.
Emerging work teams in quality work environment
1. Leadership team

2. Motivation or employee morale team

3. Safety and environmental team

4. Employee wellness team

5. Culture and communication team

Responding to changing expectations

of all stakeholders is a universal
22
challenge today.
Finally, dear graduates, if you are
really concerned to transform yourself
into more successful corporate
managers, start counting on these
twenty two tips that I have given you
by now.

Please follow the next slide for a quick

recap.
1, Responding to globalization 18. Improving people skills
2. Managing with accountability 19< Working in networked organizations
3. Action with responsiveness 20. Developing the generation next
4. Managing workforce diversity 21. Managing innovative work teams
5. Responding to changing environment 22. Responding to changing expectations
6. Improving quality and productivity
7. Stimulating innovation and change
8. Improving ethical behavior
9. Managing institutional social
responsibility To transform
10. Knowledge management yourself as an
11. Managing with the world of ICTs effective manager,
12. Helping employees balance work and inculcate your
life conflicts professional
VISION on these f
13. Creating positive tensions
14. Improving customer services elements
15. Promoting entrepreneurship
16. Coping with temporariness
17. Managing with multiple
responsibilities
Now, the question may arise in you... How
can I act with all this?

Yes, you can! Taking these issues more

sincerely is enough...you don't even need
to look beyond that...

It just requires you to act as a team!

A Case Study on

British Airways Culture

 INTRODUCTION
British Airways (BA) is the national flag carrier
airline of the United Kingdom, based in Waterside,
near its main hub at London Heathrow Airport.
British Airways is the largest airline in the UK based
on fleet size, international flights and international
destinations.
BA's UK passengers originating at non-London
airports must connect via London after British
Airways discontinued all direct overseas flights from
UK airports outside London following the sale of BA
connect to British regional carrier Flybe in 2007.
 BRIEF HISTO

• British Airways (BA) was created in 1974, when the British

Overseas Airways Corporation (BOAC) and British
European Airways Corporation (BEA) were combined
under the newly formed British Airways Board.
• Following two years of fierce competition with British
Caledonian, the second-largest airline in Britain at the time,
the Government changed its aviation policy in 1976 so the
two carriers no longer would compete on long-haul routes.
 CHANGING THE CULTURE AT BRITISH AIRWAYS (BA)
• Culture is highly important for an
organization today for setting
organization's direction and creating
tradition, value, and belief for its
employees to behave, and building
harmony within and beyond the , V

organization.
• Organizational culture plays a central
•A 4
role to company's change and
revitalization. When the
environmental changes take place (for
instance, the increase in competitive
competitors), an organization must
adapt its present culture in order to
survive in the industry.
 BA's Culture: Historical/Pre-Privatization Decision
Prior to privatization, BA’s culture was considered to be technically
biased, authoritarian, bureaucratic, and the relationship between
employees and management-level was impersonal. At that time,
management levels usually encouraged formality within organization
to keep themselves away from staff. This made the organization not
believe in participative management.
Besides, employees such as pilots and managers were recruited from
the Royal Air Force (RAF) which belongs to the government;
therefore, most employees felt they were arrogant which was against
the concept of customer-oriented approach. Importantly, the
organization tended to focus only on safety operations and lacked of
service and market orientation.
As a result, it resulted in run into crash and faced the financial
problem. It was because not only corporate culture itself but also the
competitors in the industry which enable to provide better service to
customer superior compared to BA.
 BA’s Culture: Prevai ling/Post-Privatization Decision
After privatization, BA replaced some of its main historical values and
beliefs by new corporate culture and mission. BA tried to introduce
new corporate and mission into the organization by launching many
new training programs and new appraisal system to stimulate new
changes in order to improve organization performance. New corporate
cultures include informality innovation, customer/commercially-
oriented, participative management, etc.
For example, BA tried to change corporate mission from, To be a safe
airline to 'To be a competitive airline in responding to the change
of the external environment. It is necessary for an organization to
adapt itself when external environment changes in order to survive;
hence, changes in culture and mission arc done for transforming an
organization to be the effective organization in the industry and for
improving organization performance in order to overcome with fierce
competitors.
Ups and Downs in British Airways

"Bloody Awful" Lacking fully Traditional British-ness

global vision Cabin Crew strike
* Time
1987 1990 1992 1995 1997 2000
 Education and Training
• Putting People First (PPI ): This program urged
participants to examine their interactions with other
people. Implied in the positive relationship message
was a strong emphasis on customer service.
Approximately 40,000 BA employees went through
the program.

• Managing People First (MPF): This program

stressed the importance of, among other topics,
culture, trust, leadership, vision, and feedback.
 INDUSTRIAL RELATIONS
The British Airways staff are represented by a number of
trade unions, pilots are represented by British Airline Pilots'
Association, cabin crew by British Airlines Stewards and
Stewardesses Association (a branch of Unite the Union),
other branches of Unite the Union represent other
employees.
During Bob Ayling's management, strike action by cabin
crew over a £1 billion cost-cutting drive to return BA to
profitability in 1997; this was the last time BA cabin crew
would strike until 2009; staff morale has reportedly been
unstable since that incident.
To increase interaction between management, employees,
and the unions, various conferences and workshops have
taken place, often with thousands in attendance.
 Conclusions
• British Airways is the world’s leading airline which has
a long history of organizational change.
• Because of internal and external pressure, BA was
forced to adapt with new corporate culture, value,
belief, and company mission in order to improve the
organization's performance.
• Organizational change gave a huge impact on
organization both individual and organizational levels
creating both positive and negative effects. The most
popular tool to handle and facilitate change and
resistance is HR policy.
• Finally, the other ways to help any organization to
facilitate change is to use the ‘Change Agent’ which it is
better to use external consultant than internal one.
 Learning Unit 5
Contemporary7 Issues in Management

Outcomes

Identify & discuss 5 major contemporary

issues for managers in SA
Possible impact of these issues on SA
organisations

=>£<2/ Introduction

Our lives influenced by decisions made by

businesses.
Interact with businesses everyday
- Businesses have a major responsibility towards it's
stakeholders.
H'/ Stakeholders

Customers

Employees Suppliers

Business

1
Government
1

Larger
Community
 ar tiolders vs. Stakeho ers

| Stakeholder Claims
Shareholders Dividends, capital growth of shares
Employees Job security, promotion, training and development, salaries
benefits, work environment
Customers Value for money, safe products, customer service
Suppliers To be paid promptly
Community Clean air, local investment
Government Tax
Other Trade unions, pressure groups

j E hics and social responsibility

• Ethics:
- Moral principles and values *
— Guide behaviour of individual or group &
- What is acceptable or unacceptable behaviour
• Social responsibility:
- Part of bigger community (system theory)
- Protect society's interests
- Decisions lead to wealth creation
 'Ethical behaviour

Example of required ethical behaviour:

- Honest, integrity, best of you ability
- Fair, courteous, sensitive, respect rights
- Accountable for actions and decisions
- Behave above reproach
- Comply to rules, procedures and regulations
‘ Ethical behaviour

Thaw in tfx «rv

- Use info the business in the manner which it was

intended
- Treat assets and property with respect. Do no waste
resources or time
- Share and declare info with possible conflict of
interest
- Refuse gifts as an attempt to influence you
- Challenge others' unethical behaviour and report it
 Ff HW M «
ft I*

ocial

fri«l*
t»C*l t»f
[/tti

—r® Hr*
• Interest group: A

— Indirectly influenced by management decisions.

- Example:
• ISS = Institute for Security Studies
• Research human security issues in Africa
• SAPS use information in ISS reports
• Thus, SAPS is an interest group of ISS
• ISS responsibility: Ensure correct info for interest
groups to use
 .Social responsibility

King 3 report on Corporate Governance:

- Sound management decisions in SA
- Company aware and respond to social issues
- Place high priority on ethical standards
- Non-discriminatory, non-exploitative and
responsible towards the environment and human
issues
- If guidelines followed, business will experience
increased productivity
 Globalisation

Compete in any market globally/world-wide

Examples:
- Coca cola; Globally to reach their goals
- SA company expand to Africa
- Relocation due to crime
- Unskilled labour, look abroad

'/Globalisation

Philosophy = World is becoming

homogeneous.
- World is the marketplace not just locally
eftfo cBs that drive globalisation
?arch for
v market

High
transport
costs in own
country

Extension of
the product
life cycle

ioal c
ducb
idu ct
cost
 ew Technology

More and more advanced

Work from home
E-mail and Skype
Challenges:
- Motivate when you don't see?
— Ensure delivery on time?

T OhTyology breakthroughs

Breakthroughs:
- Internet
- Electronic commerce
- Mobile computing

• Managers and employees more mobile

• Customers order and buy 24/7
 Mew world of work

• New world of work due to information

technology
• World is interconnected (systems and
networks)
• Increased access to info, org performance and
other activities
• Rise in technology Rise of new class worker
The INFORMATION worker!
 <Mew world of work

Information worker = Always on, always

connected
• Pressure to be 'always available7
- Cell phone
— Skype
- E-mail
- Other connections
7
<New world of work

• Manage -> Stress-related illnesses

Knowledge-based work favours:
- Strong non-routine cognitive skills
- Problem solving
- Communication
- Collaboration
• Training and education = life-long process
 Increase power
\ _Jand demand of Customers

• Customer can easily compare price, quality

and availability.
• Set criteria in terms of:
- Cost and quality - Convenience
- Speed of delivery - Innovation
- Safety when shopping - Customisation
- Range of products
- Availability and service
Increase power
emand of Customers

• Criteria has a direct influence on the business

- Satisfy needs of the customer!
• Traditional view = OUT!
- Interactive and creative websites
 Cheaper to Increase power
retain than find I /
customer! and demand of Customers

• CRM = Customer Relationship Management

- Methodologies and tools that helps business
- To manage relationships with their customers
• Includes:
- Identify and target profitable customers
- Generate sales leads
- Individualise relationships with customers
- Aware and act on future requirements
- Altering behaviour of consumers
 ther contemporary i
’management issues

• Education
Unemployment/job
Development/
creation
infrastructure
Crime
Land issue
Poverty
Brain drain
HIV/Aids
Build houses
Health in general
Other
Corruption