Friday, April 15, 2011

3 Steps To Better Management For Any Business

There are a lot of different ways to step back and see the whole business better. This three-step process I like to use improves your business by combining the high concept (Step One) with the specifics you need (Steps Two and Three) to make it happen.

 

Step 1: Get your bearings

 

We could call that long-term strategy, but I like "get your bearings" because that's a good expression for understanding where you are and where you want to go.

 

Take a step away from the business and view it as a whole, looking at how it works its strengths and works around its weaknesses, how it's focused on certain target markets, and what it does best. How is your business different from all others? What would your customers say about you?

 

Strategy is focus. In the real world of entrepreneurship and small business, it's about understanding what you're not doing, and who isn't in your target market.

Strategy is about long-term goals. Have you ever defined success for yourself, with your business? Too often we forget that success is as unique to you as your business is. At the extremes, some businesses are always about the multi-million-dollar exit, while others are about working at home and making a living while still having time to coach the kids' soccer team. Understand that for yourself.

 

Step 2: Set concrete dates and numbers you can track

 

Step One needs specifics to make it real. You took a step back to look at the whole business strategy, so now you take a step forward to break it down into specifics you can track—like dates and numbers. It's not just you and me.

 

Like dates. Set start dates and end dates in advance. It increases your chance of having it happen. Set a date as a deadline and it's instantly much more likely to happen than if you just leave it mushy. Promising yourself or others that work will be done by May 15 is better than just saying "soon" or "as soon as possible." That works even when it's just you, and even more so when it's a promise to a team of other people. And tracking them becomes simple.

 

That's just as true with numbers. Specifics gives it more weight. You can do that with the obvious business numbers such as sales, costs and expenses. But don't stop there. Your business is full of other numbers: leads, calls, presentations, trips, units built, minutes per call—the list goes on forever. If it's just you, you give yourself concrete specific numbers so you can track progress. And if it's a team you manage, you get a double bonus: first, there's the peer pressure of number commitments to a group; and second, there's the increased management potential of having specific numbers to talk about between you and the group members you manage. Feedback is often hard, and the numbers, the goals met or not met, can make feedback way easier.

 

And list your assumptions. That will help later when you need to figure out what to change.

 

Step 3: Track, follow up and revise.

 

With the numbers you need a one-two punch: first, you set the numbers, for yourself alone or interactively with others; and then second, you track the numbers, highlight the differences between what was planned and what actually happened, and follow up on the management implications.

 

The secret to this third step is to schedule reviews in advance and be consistent. Just setting numbers is good, but a regular review schedule is needed so you and everybody else involved knows numbers will be tracked.

 

Tracking plan versus actual gives you a huge head start in making the changes you'll need to keep steering the business toward its long-term goals. "What's different?" you'll ask. Then, "Why is it different?" Then, "What should we change to improve the business as a result." That's instant management, steering the business.

 

Thanks to OpenForum

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