Defining Management
May 13th, 2010
Copyright © 2010 Integrated Profitability TM
For small businesses, what’s a good definition of management? Or, put another way, what are the most important attributes of an owner who is the management of a small business?
● Knowing the business
This runs the gamut from what’s the product/service, how it’s produced & delivered, who’s the clientele, how is profit generated (one’s profit dynamics), and what is the market doing
● Vision
Knowing where and what the business is today; AND where it is going. As long as the business is successful, “where it is going” is never really reached. It gets bigger and better as the market continually changes, but it always is in the future. As soon as one milestone is reached, there should always be further ones on the horizon.
● Delegation
As John Donne said:
“No man is an island, entire of itself,…”
Likewise, no single person can run everything about a business—especially one that is growing. An essential characteristic of management is knowing WHAT to delegate and then to delegate that to the best people.
● Keeping track
A good manager delegates responsibilities to others. At the same time, that manager needs to keep track of everything that is going on—well, not everything since that would be way too much detail.
A reporting mechanism that continually feeds the most critical information on the health of the business, however, is needed. This means identifying and reporting “key indicators” that drive the success, or failure, of the business.
Like a spider, management must have a superbly sensitive web of information to know everything of importance that is going on. The earlier one knows of something, whether good or bad, the more time there is to act. The first and second characteristics, knowledge and vision, should be sufficient to allow such a reporting network to be created.
● Managing
Personally, I prefer the word “leading” but both are necessary to ensure that the wheels of the business are in fact working well. An integral part of management is ensuring that responsibility and accountability are embraced by everyone who works for, or with, the company.
What have I missed?
Bill
William A. Stong
Email: william.a.stong@gmail.com
SBF&P # 64
Telephone: 925-202-6244
Copyright © 2010 Integrated Profitability TM
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