Management Training Tips:
Business Management
- Management 101
By F. John Reh, About.com
What is business management? What do managers do? How do I
manage?
These are standard questions that most of us in the business
management profession have been asked more than once. And questions
we asked once in our careers too. Here, then, is a basic look at
business management, a primer, Management 101 from my perspective.
Art and Science
Business management is both art and science. It is the art of
making people more effective than they would have been without you.
The science is in how you do that. There are four basic pillars:
plan, organize, direct, and monitor.
Make Them More Effective
Four workers can make 6 units in an eight-hour shift without a
manager. If I hire you to manage them and they still make 6 units a
day, what is the benefit to my business of having hired you? On the
other hand, if they now make 8 units per day, you, the manager, have
value.
The same analogy applies to service, or retail, or teaching, or
any other kind of work. Can your group handle more customer calls
with you than without? Sell higher value merchandise? Impart
knowledge more effectively? etc. That is the value of management -
making a group of individual more effective.
Plan
Business management starts with planning. Good management starts
with good planning. And proper prior planning prevents… well, you
know the rest of that one.
Without a plan you will never succeed. If you happen to make it
to the goal, it will have been by luck or chance and is not
repeatable. You may make it as a flash-in-the-pan, an overnight
sensation, but you will never have the track record of
accomplishments of which success is made.
Figure out what your business management goal is (or listen when
your boss tells you). Then figure out the best way to get there.
What resources do you have? What can you get? Compare strengths and
weaknesses of individuals and other resources. Will putting four
workers on a task that takes 14 hours cost less than renting a
machine that can do the same task with one worker in 6 hours? If you
change the first shift from an 8 AM start to a 10 AM start, can they
handle the early evening rush so you don't have to hire an extra
person for the second shift?
Look at all the probable scenarios. Plan for them. Figure out the
worst possible scenario and plan for that too. Evaluate your
different plans and develop what, in your best judgment, will work
the best and what you will do if it doesn't.
TIP: One of the most often overlooked business management
planning tools is the most effective. Ask the people doing the work
for their input.
Organize
Now that you have a plan, you have to make it happen. Is
everything ready ahead of your group so the right stuff will get to
your group at the right time? Is your group prepared to do its part
of the plan? Is the downstream organization ready for what your
group will deliver and when it will arrive?
Are the workers trained? Are they motivated? Do they have the
equipment they need? Are there spare parts available for the
equipment? Has purchasing ordered the material? Is it the right
stuff? Will it get here on the appropriate schedule?
Do the legwork to make sure everything needed to execute the plan
is ready to go, or will be when it is needed. Check back to make
sure that everyone understands their role and the importance of
their role to the overall success.
Direct
Now flip the "ON" switch. Tell people what they need to do. I
like to think of this part like conducting an orchestra. Everyone in
the orchestra has the music in front of them. They know which
section is playing which piece and when. They know when to come in,
what to play, and when to stop again. The conductor cues each
section to make the music happen. That's your job here. You've given
all your musicians (workers) the sheet music (the plan). You have
the right number of musicians (workers) in each section
(department), and you've arranged the sections on stage so the music
will sound best (you have organized the work). Now you need only to
tap the podium lightly with your baton to get their attention and
give the downbeat.
Monitor
Now that you have everything moving, you have to keep an eye on
things. Make sure everything is going according to the plan. When it
isn't going according to plan, you need to step in and adjust the
plan, just as the orchestra conductor will adjust the tempo.
Problems will come up. Someone will get sick. A part won't be
delivered on time. A key customer will go bankrupt. That is why you
developed a contingency plan in the first place. You, as the
business manager, have to be always aware of what's going on so you
can make the adjustments required.
This is an iterative process. When something is out of sync, you
need to Plan a fix, Organize the resources to make it work, Direct
the people who will make it happen, and continue to Monitor the
effect of the change.
Is It Worth It
Managing people is not easy. However, it can be done
successfully. And it can be a very rewarding experience. Remember
that business management, like any other skill, is something that
you can improve at with study and practice.
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Subject: Business Management
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