| Management is a BIG word and encompasses the | | | | want, and you take their order just the way you want |
| major oversight of all elements of business to ensure | | | | and the customer leaves satisfied and happy. Then |
| the profitable operation of an enterprise, the proper | | | | you take off the sales clerk hat and put on the store |
| accounting of income and expenses, and legal and | | | | manager hat where you dutifully record the sale and |
| financial compliance with local, state and federal | | | | update your inventory. At the end of the day, you go |
| authorities. While it is not possible to cover all the | | | | to the back office, put on the administrator hat and |
| management issues in this article we can set forth key | | | | review the day's activities and plan for tomorrow. How |
| management concepts to help you think about your | | | | long can this last? Wouldn't it be better to make |
| business. | | | | detailed notes, step by step instructions of how to |
| MANAGEMENT BY OBJECTIVES | | | | handle customers and have a type written procedures |
| Anytime you are starting a new business you will be | | | | manual? Then you could hire someone and train him or |
| inundated by tasks and projects requiring a high | | | | her using the manual you wrote. Now you don't have |
| degree of attention to detail. Every element of the | | | | to play the role of sales clerk anymore, you hired one! |
| business must be considered from inbound/outbound | | | | Now that your time is divided between being CEO and |
| communications, inbound/outbound systems supporting | | | | store manager, you could write a procedure manual |
| sales, production, order fulfillment and customer service. | | | | for the store manager. When it is finished, hire |
| One way to manage these tasks and projects is by | | | | someone to fill the job. Now your time will be spent |
| using a management technique known as | | | | being the CEO and guess what? Yep, you will write |
| Management by Objectives (MBO). Every business | | | | the procedure manual for that too. And for the vice |
| operation is unique with different levels of activity | | | | president, etc. Why? The goal of business is to get out |
| depending on the size and scope of the operation. | | | | of business! Let others run it so you are free! This is |
| Management by object is the science of keenly | | | | how franchises work! When you buy a franchise, you |
| understanding the needs of your business venture and | | | | are buying a system of systems documented and |
| being able to prioritize the most relevant projects and | | | | operated by standard operating procedures (SOP's). |
| tasks to complete. This is accomplished by a looking | | | | LETS TALK ABOUT CHAOS OR CONTROL |
| critically at your business based on your business plan | | | | Here's the bottom line, you will either manage your |
| and executing specific tasks to complete specific | | | | business from the ground up or it will manage you. |
| projects by specific deadlines for specific results. A | | | | Chaos destroys business. When a customer buys |
| good manager or leader gets results (.) | | | | from you, they do so because they like the "selling |
| The purpose of management is to take and maintain | | | | system" (that's why McDonald's is so famous, the |
| control of a business so there is steady progress | | | | selling system). If your business is chaos, the selling |
| towards creating a fully functional "operating system" | | | | system won't be the same every time and your |
| that is efficient and effective at selling and making | | | | customers won't come back. You have to manage |
| money. This is especially difficult for start up operations | | | | the details and the devil IS in the details, those random, |
| because of the sheer volume of activities that must | | | | chaotic, unplanned details. I cannot stress enough the |
| be performed, usually by one person, the entrepreneur. | | | | importance of MBO, systems and procedure manuals. |
| The goal of MBO is to organize projects and tasks | | | | THE GOAL OF BUSINESS |
| into specific categories, to understand how those | | | | Starting and owning a business is hard work and it is |
| categories interact and are dependent on each other. | | | | always going to be hard work. One of the keys to |
| In other words, a business is a system of systems | | | | success is to understanding the goal of business is to |
| each working together so that the sum of the parts | | | | work your way up and out of business. You want to |
| creates the whole. Your primary goal in business is to | | | | systematize everything, document everything, and hire |
| analyze the required business systems, organize them, | | | | people to do the grunt jobs so you can work on the |
| design them, implement them and fine-tune them over | | | | next project level above. In this way, you work your |
| time. This can only be accomplished by firmly | | | | way up and out of the business. What would you |
| understanding the working details of each of your | | | | rather do: work like a slave dog forever or be |
| projects and managing them by the order of the most | | | | economically free playing on a beach somewhere in |
| important objectives, thus, MBO. | | | | five or ten years? |
| CHAOS OR CONTROL | | | | What you do in the beginning of your business when it |
| Your business, at any stage of operation will be in one | | | | is young will determine what you will do later. If you |
| of two possible states: Chaos or control. For most | | | | start sloppy, manage sloppy and allow ongoing sloppy |
| start up operations, chaos is the natural order of things. | | | | operations, it may never be brought under control and |
| What separates success from failure is the ability to | | | | failure is most probably on your horizon. |
| gain control quickly and minimize chaos. One way to | | | | CONCLUSION |
| approach this in a methodical manner is to systematize | | | | You will get out your business what you put into it but |
| everything from the ground up. Everyone who starts a | | | | not necessarily in proportion. If your management style |
| business wears three hats and plays three roles: the | | | | is weak, if you do not pay attention to detail, if you |
| entrepreneur, the technician and the administrator. The | | | | slack and cut corners not only will you be cheating |
| entrepreneur is the dreamer, the technician is the doer | | | | yourself but you will end up working harder, longer |
| and the administrator is the manager. You think it, you | | | | without as much compensation and return on your |
| do it and you make sure it gets done right or it will fail | | | | investment. |
| or have to be redone, wasting time you do not have | | | | If you have not read the entire "Get Smart Before |
| to spare. | | | | You Start" articles, I suggest you do so now. You may |
| THE ART OF SYSTEMATIZATION | | | | also want to scope out my other articles because |
| Think systems, systematize everything. Imagine you | | | | many of them are interrelated with the Get Smart |
| own a retail store. You are your only employee. You | | | | series... |
| are the CEO, the store manager and the sales clerk. A | | | | To your success! |
| customer walks in, you greet them just the way you | | | | Copyright © 2006 James W. |