It is not uncommon to see a well-established business or a business that has experienced rapid growth missing out on increased profitability through a lack of formal management development.
Many of these businesses have either retained their management structure for years or appointed managers based on relationship or good performance rather than strategic benefit.
Modern business systems and improved communication tools have streamlined many of the daily business management tasks and now any business that fails to ‘jump on board’ is at risk of losing its ability to compete in the global marketplace.
Simply, through better management of such businesses’ studies have shown that increases of 15% to 25% in profitability can be achieved.
Other benefits include:
- increased productivity,
- improved employee and customer satisfaction,
- reduced stress for business leaders,
- less 'firefighting' , and
- better corporate sustainability.
Set Strategic Direction
Management development starts with a strategic plan. What are your growth goals? Where will the growth come from? What are the strategic challenges you face? What drives value for your customers? Your business management structure, roles and processes are then designed to deliver your strategy.
Communication and Consultation
The key to any successful management team is to maintain good communications between staff and stakeholders. If communication was removed from any business, the business would cease to exist.
It is needed for:
- exchanging information,
- exchanging options,
- making plans and proposals,
- reaching agreement,
- executing decisions,
- sending and fulfilling orders,
- conducting sales.
When effective communication and consultation ceases to exist it often leads to individual uncoordinated activity which can prove to be very costly if left to flourish.
All managers should be able to demonstrate a high level of both internal and external communication skills, always ensuring their timing and method of delivery are correct for the occasion.
Streamline Workflows
A lack of formal workflows is often at the heart of the challenges confronted by high growth businesses. Increasing volume and pressures expose weaknesses in existing processes and systems. Formalising workflows is like setting up a production line in your business.
Define Roles
Role definition creates accountability and boosts productivity. Most staff want to be clear about what is required of them. Role descriptions, performance measures and a clear organisational structure enable people to be successful.