Four Primary Management Practices

1 Strategy (devise and maintain a clearly stated, focused strategy)

Whatever your strategy, whether it is low prices or innovative products, it will work if it is sharply defined, clearly communicated, and well understood by employees, customers, partners and investors.

Build a strategy around simple, focussed, clear value propositions so that it has clarity and consistency and is deeply rooted in our understanding of your customers and a realistic appraisal of your own capacities.

Develop strategy from the outside in, based on what your customers, partners and investors have to say - and how they behave . not on your gut feeling or instinct.

Continually fine-tune your strategy based on changes in the marketplace - for example, a new technology, a social trend, a government regulation, or a competitor's breakaway product.

Clearly communicate your strategy within the organization and to customers and other external stakeholders.

Keep focused and be careful of how growth is pursued. It is generally best to grow your core business while expanding only into related markets; ancillary business can later become part of the core. Beware of the unfamiliar.

2 Execution (develop and maintain flawless operational execution)

As with strategy, it's not what you execute that matters, but how. No linkage or relationship was found between financial performance and tool/technique selection, such as outsourcing, supply chain management, etc. With any tool/technique, it is the disciplined attention to operations that counts.

You might not always delight your customers, but make sure you never disappoint them.

Deliver products/services that consistently meet, and exceed, customers' expectations/ needs/desires. Therefore, focus the organisation's energies and resources on making those processes as efficient as possible.

Put decision-making authority close to the front lines so employees can react quickly to changing market conditions.

Constantly strive to eliminate all forms of excess and waste; improve productivity at a rate that is roughly twice the industry average.

New technologies play an important, but not significant, role. They need to be judged on whether or not they lower costs and/or boost outputs significantly

3 Culture (develop and maintain a performance-oriented culture)

Building the right culture is important. Promoting a fun environment is not as important as promoting high-level performance and ethical behaviour by individuals/teams; it is important that all staff are accountable (not just managers) and not merely satisfied with out-performing competitors

Inspire all managers and employees to do their best

Empower employees and managers to make independent decisions and to find ways to improve operations - including their own.

Reward achievement with pay based on performance achieved, but keep raising the performance bar.

Pay psychological/non-financial rewards in addition to financial ones.

Create a challenging, satisfying work environment.

Establish and abide by clear organisation values.

4 Structure (build and maintain a fast, flexible, flat organisation)

The choice of which organizational structure defined by product, geography, customer, etc. is not as important as whether the structure reduces unnecessary bureaucracy (such as eliminating unnecessary layers of management, excess rules and regulations, outdated formalities, etc) and simplifies work, including processes, for all stakeholders (employers, suppliers, customers, etc).

Simplify. Make your organization easy to work in and work with.

Promote co-operation and the free, open exchange of information across the whole organisation; establish systems for the seamless sharing of knowledge.

Put your best people closest to the action, such as in customer contact.

Appreciate the importance of all staff members' contribution (not just management)

Keep revisiting/reviewing all core process/systems, etc.

 

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