4 BEST BUSINESS MANAGEMENT TECHNIQUES: TESTED AND APPROVED
Good management is a decisive factor for any company to achieve success.
But that’s not always an easy task, is it?
There are many techniques of business management that flood the corporate world and promise to assist the day to day life of managers and increase the productivity of management proceedings within companies.
With such a wealth of options, it’s hard to determine which one to deploy to your business.
In the long run a bad choice could damage your company.
That’s why we have listed 4 business management techniques deserving of your attention and that really work.
4 efficient business management techniques
Visual Management is one of the most important business management techniques when it comes to improving employee engagement in an organization.
As its name suggests, this is a methodology based on the transparency of information about a project or sector of a company.
That is, instead of a team just following orders from a manager all employees can have access to data regarding their activities and results.
What are the advantages?
Get to know the project as a whole:
With access to all required information, employees will have an extensive knowledge of their tasks.
They will be able to follow the development of all activities and thoroughly understand projects.
This will make it easier for them to plan, adapt to change and ensure greater integration.
By making better integrated team tasks and results the group alignment increases, making teamwork much more efficient.
In the end, without a group that’s connected and united no company can really prosper.
It’s always possible to develop a clearer understanding of the individual performance of the company and its employees.
It becomes much easier to identify the hits or potential failures and introduce changes or continue with whatever is working.
More committed employees:
With a better idea of what is happening within their projects, employees are able to have a greater sense of their own responsibility for activities performed.
They feel like they’re an essential part of a jointly built project.
This results in not just a more united team, but a workforce that’s more engaged by seeing the true impact of their efforts.
How to put it into practice?
To put into practice visual management, there are those who choose very basic tools such as the use of whiteboards or tables containing the information to be shared.
But by using bolder techniques, such as a business automation and management software, more efficient options are presented.
There are many methods that can be used to put this technique into practice, such as Kanban or the use of dashboards.
However, regardless of the chosen options there are some points necessary for the practical application of visual management:
- Establish the indicators: Choose which indicators will be considered most important and will be monitored by the entire team.
- Share calendars: Share tasks with the entire team and arrange them into: pending, running, and finished. Everyone will know the most urgent tasks promoting more efficient performance.
- Train employees: The team should receive the necessary guidance for the deployment of the new method.
- Empowering leaders: Recognizing and empowering leaders will be an essential step for the team to operate most efficiently.
- Appoint an employee to update data: For data transparency you need to collect up-to-date and accurate information. Name someone to be responsible for this role.
2- Management of organizational results
Founded in 1950 by Peter Drucker, the “father of modern management,” a business technique that deserves attention.
The model preaches that all employees of an organization should have the results as the main focus of their efforts.
It creates a business environment whereby everyone is geared towards pursuing set goals and not just focused on the process.
What are the advantages?
- Clear objectives: results together in a well-defined way results in a much greater focus. Achieving such goals thereby becomes much easier.
- Better integrated team: With everyone acting on the same common goals, integration and communication between employees improves.
- Engagement: When people feel that they are responsible for the progress of a project, they feel they “own their own business.” Result? Greater commitment, motivation and engagement in activities.
- Increased Productivity: Engaged, team-working professionals with well-defined shared goals can only result in increased productivity and business.
3- Management of KPIs
Key Performance Indicators or KPIs, help to support one of the best-known and most used business management techniques.
Through joining KPI management you will be choosing metrics that monitor and represent the level of performance of your business.
It will be through using KPIs that company results are evaluated.
Through observing whether they are in agreement with established goals, the necessity to take corrective measures should be evaluated.
What is a good KPI?
Before you can establish which metrics to use to measure your business performance, keep in mind that a good indicator should:
- Reflect company goals;
- Be used by managers as a source to assist in decision making and business administration;
- Be based on measurable and reliable data;
- Be easy to calculate and understand;
- Be defined by very clear rules.
From this you can choose from a very wide range of KPIs.
Some of the most common indicators in companies are:
- Productivity (eg, hourly / employee productivity);
- Quality (eg, quantity of defects);
- Capacity (eg, the amount a machine packages products per day);
- Strategic (eg, how the company is in terms of its goals).
How to apply these business management techniques?
To implement KPI management you need to follow these steps:
- Strategic planning: KPIs need to be aligned with your strategic planning;
- Goals: Define which goals will be set. Ask yourself: what do you want to achieve?
- Establish indicators: Only after evaluating the previous items, establish which indicators will be considered;
- Follow-up: It is essential to constantly monitor these KPIs and monitor whether the results obtained are as expected;
- Necessary changes: According to the data obtained by the monitoring, it will be possible to establish if there will be a need for corrections of deviations;
- It is always possible to improve: are the results good? Great! But it is noteworthy that, even if the indicators point to positive data, it is always possible to improve the processes. Therefore, constant attention in the management of KPIs looking for chances of improvement.
It’s worth noting the idea, “the more the merrier” does not fit here.
When designating the KPIs you will track in your company, limit yourself to not too many.
Experts point out a maximum of 5 KPIs per case.
4- Corporate Performance Management (CPM)
As its name suggests, corporate performance management will help with the fundamental activity within company: monitoring and comparing case results.
But the definition of CPM has a purpose that goes beyond that:
It is a set of tools, methodologies and practices that make it possible to manage your business performance in a more integrated and systematic way.
What are the advantages?
- Deep Data: By providing deep data, companies will have a more realistic perspective on the progress of its procedures. Managers can pass on to employees all the guidelines most appropriate .
- Increased efficiency: With well-defined guidelines that are consistent with company strategy, employees become more efficient and more aware of their responsibilities.
- Budget Planning: By also gathering important information about the company’s financial factors, CPM assists with budget planning, facilitating cost and risk reduction.
- Performance evaluation: By highlighting company performance data, it is possible to identify problems and the necessity for corrective measures, hereby seeking continuous improvement.
In addition, by integrating CPM software with other management tools such as ERP, for example, you can gain even more insight into your performance and better integrate and inform your team.
Search for business management techniques software
These 4 business management techniques are important for companies of all sizes and sectors.
And all of them must have software that automates their respective processes, bringing better results and productivity.
But if you want to know another, read this blog post “Balanced Scorecard: Best Practices”