Category Archives: Management

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What is Our Business? Enabling to Create the Future

I wrote a prior entry regarding an experience I had with a fully enabled employee. In that interaction, the employee made a quick decision to win my business by gaining my trust and doing something memorable. As a result, I choose to buy from this retailer whenever I have control over buying from their sector.

As I’m reading through Drucker, I’ve realized how important focus and communication is to a business’ existence. Not just the typical HR or “training-esque” messages that have to be conveyed from top to bottom and back, but the real meat and potatoes topics that facilitate innovation, allow enabled employees to exist and define the hedges of all decision making. Heavy Stuff.

A part I had not considered is the ideal of micro-decisions or those decisions throughout a day, made at all levels of the org, that add up to a macro-decision. Each employee acting on behalf of their own goals and what they perceive the company goal’s to be creates the company’s future and direction. Knowing that, how do we as facilitators mold the outcome we wish to see and ensure that it becomes a future reality?

From Drucker’s vantage, the most important question to answer is:

What is our Business? [It] is almost always a difficult question and the right answer is usually anything but obvious.
– Peter Drucker, Management, Tasks, Responsibilities, Practices (1974)

So how do I go about creating that answer? Like most good processes, we start with a list of questions to get all ideas out on the table. Here are the questions that I will start with to determine what business I am in.

Who is the customer?

Drucker theorizes that there is no one customer but rather at least two per business. To dig into this a better way, ask:

  • Who are all the parties needed to close a sale of my good or service?
  • Does my end-customer rely on an interior customer?
  • Are there other stakeholders that create my customer?

Where is the customer?

  • Where do they congregate?
  • Who influences their buying based on location/proximity?
    • Culture
    • History

What does the customer buy?

  • If it’s a good, why buy it? what other categories describe it?
  • If it’s a service, why not do it themselves? what other categories compete with it?
  • Does the customer know what and why they buy it?
  • What does the product say about the customer and his/her world?

Hardest thing you’ll ever do

The biggest point that Drucker seems to make about this exercise, is that the majority of people will zoom by as if the question is rhetorical or worse, redundant. The reason this is so difficult (and thus considered moot) is that the person or team deciding the scope of the business have to consider all outlier points of view and competitors. For example, Cadillac, a now well-known brand once struggled to find foothold as a division of GMC. Until the Marketing team discerned that Cadillac is not just a car but a status symbol, the company couldn’t begin to grow. Until competitors of Cadillac, like mink coats and gold rings, were identified, market segmentation and sales would only continue to slip.

In that same line of thinking, how can I help identify not just the root (and easy) competition, but the areas outside the known locus that are also contributing to the either growth or detriment of my business?

Closing Shop

What questions do you ask as you define your business? How are you logically and emotionally drawing a line in the sand to state definitively, “this is my business and this is who I am.” It’s a large step to take, but obviously an important one, and one that can define my path in this business for many decisions to come.


Image Credit: “Heaven and Hell” – Jim Harmer

 

What's seen as the opposite of management

Four requirements to be a Great Manager

Despite all the connotations of management being “the man”, it’s served as one of the most powerful tools in the advancements of business and capitalism over the past 150 years. The downfalls of what management has been is (honestly) because managers are sometimes short-sighted, ungrateful or both.

In that vein, improving management is about being a better (and more aware) manager. What are the things that we need to know and be aware of to ensure that we’re creating the best outcomes for our employees and the business.

What is Management

At its core, management is a human science. One that is meant to empower people to become more effective as a group over just an individual. Even more, management is about encouraging the focus of strengths so as to mitigate weaknesses.

A beautiful synopsis of management, per Peter Drucker’s, The New Realities:

To be sure, the fundamental task of management remains the same: to make people capable of joint performance through common goals, common values, the right structure, and the training and the development they need to perform and respond to change.

Clearly, management is supposed to be focused on people and the facilitation to ensure they have what they need to execute.

In viewing Drucker’s summary of management, a few things pop out as “have-to-haves” so that management could be effective.

  1. A company must have clear goals and values
  2. A company must have a decided (and fluctuating) structure
  3. A company must have training and development opportunities
  4. A company must be able to innovate

Goals and Values

If a group of people will work toward a specific destination, it must be abundantely clear on where that destination is and (hopefully) the steps that will be taken to get there. In order to convey this message effectively, the vehicle of company vision, goals and values (VGV) must be clear enough, and big enough, to encompass the entirety of the people within it. Said another way, a common VGV must be clear, public and constantly repeated so that there is no confusion, at any level of the business, what direction people should move toward. Management’s primary objective is to ensure that people have what they need to move toward these VGVs.

Company Structure

Though this changes as the outside culture shifts, general structure has always been necessary to conduct work. Some parts of structure are administrative, others functional and others strategic; all work in tandem to create the right layout of teams, reporting and hierarchy.

Most important, the top-down and bottom-up cultures must be defined, even organically, to promote the best possible communication structure. This has to be in place so that the Vision, Goals and Values make their way to all workers.

Training and Development

So the old joke goes:

A CFO and CEO were discussing the rising costs of training for employees. CFO asks, “Why are we spending so much? What if we train them and they decide to leave?” To which the CEO replies, “What if we don’t train them and they decide to stay?”

Managers or someone should often keep a forward-facing eye toward what attributes and skills are needed to continually execute the VGVs of the company. In my experience, this list of developmental needs is organically created by the people doing the work who intuitively know when they are or aren’t able to complete work because of a dearth in training.

As expensive as it is, most skill-sets require some level of additional development so that the employee can continually become more effective and efficient. Sadly, I often hear of friends or family who pine for additional training but are turned down because it’s not in the budget. If the training fits the VGV, which the employee should understand, then becoming a better version is always in the budget.

Innovation: Management v. Entrepreneurship

One of the more common facets within the world v. “the man” arguments is that management is a stifle to the Entrepreneur. I’m sure that in some cases, especially generations ago, the Entrepreneur could be seen as threatening to a business upholding its VGV.

First, I think it’s important to clarify that Entrepreneur and Management are not mutually exclusive. The tide is changing wherein most understand that they are two sides to the same coin, but for those holdovers, you should know that they each play a unique role in growth of a business. I’m paraphrasing from Drucker here, but a business doesn’t stabilize or become more efficient without good management. At the same time, a stable business doesn’t grow with good Entrepreneurship, commonly called, “Intrepreneurship”, or an employee that innovates and disrupts current protocols.

When these two are combined, the outcome is powerful and creates a culture where best practices and stability are pursued but innovation and asking why are encouraged. Imagine how much can be accomplished when all levels see this as a part of the Vision!

So

A lot of information but nothing novel: management is necessary and when executed well is the lifeblood of stating, supporting and executing upon the VGVs of a company. So, how am I encouraging clear communication of VGVs? How do I create a stable structure but one that is open to innovation? How do I create an environment that is supportive of employees and their training?

What do you do to accomplish those things?