A key management concern is to continually improve performance and although there are numerous concepts, models, tools and techniques to help, it can be difficult to know where to start. If managers build skills in each of the areas below then a broad view of business performance will be gained, making it easier to focus on areas which can be improved. Business management can be divided into strategic and operational management.
Management Strategy
The business strategy can be described as a snapshot of resources allocated to achieving the business plan. One of the roles of management is to develop and deliver the strategy. The strategy is changed by building a business case. Learning how to change strategy by building a business case is an essential step to becoming a key influencer and agent of change.
Another strategic tool is the Boston Consulting Group matrix and learning how to evaluate possible investment opportunities as well as gaining a good understanding of the business marketplace and product offering is essential to becoming an excellent manager.
Operations Management
Operations management is concerned with the day to day operation of an organisation which is delivering a business strategy. It involves managing the performance of suppliers, products, departments, teams and individuals. Operational management may include the use of outsourcing, in house line management and projects to deliver objectives.
An understanding of the three Es of management, Effectiveness, Efficiency and Economy, and how they interact can help managers plan better objectives and improve performance. Changing the emphasis on any one inevitably affects the others. Managing performance means the ability to deal with people and skills such as Emotional Intelligence and the ability to manage poor performance are key.
Sales and Marketing
The sales and marketing functions are a vital part of every business - without sales there is no organisation - so it is essential that every manager develops an appreciation for how sales and marketing work within the organisation.
It is not necessary to have an in-depth understanding, but knowledge of the main products and services provided, as well as their relative importance and how they fit into the business strategy will help improve performance as objectives can be prioritised to match.
Finance
The finance department produce the numbers which allow business performance to be measured at strategic and operational level. A good understanding of how the budgeting process works within the business is essential.
Any manager who wants to improve performance will need an appreciation of many business concepts and techniques. The ones listed above will provide a good basis for building skills and experience.
Dawn Brewer - I have a portfolio career - as a writer, management consultant, instructor and coach - after twenty years in the corporate world. My ...
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