Why is managing successfully important?
We think that successful management involves three important business areas: strategy, finance and people. It is important to be able to manage these three aspects to ensure the growth of businesses in an increasingly challenging operating environment. As technology advances and business models become more disruptive, it is important for these business aspects to keep up for companies to keep up. Your business strategies need to stay ahead of the new and innovative business models, your people need to cope with the advances in technologies to up productivity and efficiency, and finances need to be managed properly to advance the business.
What is successful management all about?
For successful management, you need to have passion for the business you are managing, and the core business skills to manage it well over the long term. Strategy, finance and people management equally contribute to the management success.
To align and integrate these three main aspects for successful management is ultimately to clearly define and communicate management goals. Develop solid communication strategies, provide effective training, and implement supportive structures to measure and evaluate the effectiveness of processes against the business goals set.
How to manage successfully?
With new technologies and algorithms, the ways companies can forecast financial trends, plan budgets and identify business drivers have advanced quickly. There have been huge changes in people management theories and thinking as well. The “tell them what to do and how to do it” school of people management is becoming a thing of the past. While there will always be a need to provide feedback, coach, develop and manage performance, there has been a shift from the traditional scientific management to a more collaborative approach. In fact, most organisations are putting a strong focus on employee engagement and effective leadership, with an emphasis on “facilitating” rather than “managing”.
There are some tried and tested frameworks/models for successful and effective management. Most of these tend to be industry specific, except for people management. We have identified different trends and frameworks for each management aspect.
Pitfalls to avoid
The pitfalls to each aspect of management to avoid are:
Strategic Management Pitfalls
- One pitfall is getting into solution mode without thinking through the complex issues that today’s organisations face. It is important to remember that many problems that businesses face require a slow fix rather than a quick one to avoid failure in the long run.
- Another pitfall of strategic planning is becoming too formal and structured in the approach that organisations neglect the creative and flexible aspects of problem solving. Out of the box thinking is important for businesses to succeed in today’s ever changing and competitive operating environment.
- On the other hand, too much faith put on intuition can also cost organisations. Afterall, strategy needs a well thought out and detailed plan for execution.
Financial Management Pitfalls
- Not reviewing or fully grasping essential financial reports. It is important to have a full understanding of all essential financial reports, so you know what is working and what is not.
- Only reviewing financial statements monthly, quarterly or annually. It is important to review all financial statements frequently to help implement strategy, analyse positive or negative changes, and forecast for the next month, quarter or fiscal year.
- Not knowing how your performance compares to others. Without competition knowledge and analysis, it is impossible to know where you stand in the market and if your strategies are working or failing.
People Management Pitfalls
- One biggest pitfall in people management is failing to communicate effectively. You need to give your team the chance to fully understand goals, expectations, deadlines, and other important aspects that make them efficient and successful. Provide feedback, training and be a good listener to the needs, complaints and roadblocks of the people you manage.
- Another common pitfall: not making time for your team. As a manager, you have your own workload, projects and deadlines, but your people must come first. Without you being available when they need you, they do not have the support or guidance they need to meet their own objectives.
- Failing to delegate is another common pitfall of people management. Managers and leaders often feel like no-one except themselves can do the key jobs correctly. It is important to train your people well so that they can be trusted to do key tasks and the work be delegated.
All three management areas are equally important to build success. No matter what management aspect is your focus, it is important to track, monitor, and analyse the area that you are responsible for so that you can see which practices are successful and which are not. The same goes for improving and refining your own management approach. Remember to hold yourself accountable and do not be afraid to change when methods are no longer effective.
Are you looking for ways to develop managers to better manage strategy, finance and people? FNS offers SIMDUSTRY Managing 3, a simulation that integrates the 3 crucial factors of management: strategy, finance and people. It allows managers to learn about strategy development, financial analysis and planning, and leading and developing people in an engaging manner via an interesting board game approach. For more information, please contact us at email@example.com