Management Focus: Part 1
This is the third in a series of articles on the fundamentals of operating your business. This one is on management fundamentals.
Continuing our small business course theme, here’s the next essay question: Explain how having an organization built on trust contributes to your success.
Alas, trust as a management fundamental is not as intuitive as it should be, so let me help you out with this one.
In a working environment where trust exists, the company’s goals and objectives are available to all managers and employees so they can understand their roles in reaching those milestones.
When you trust your staff with the company’s vision, you’re treating them like contributing partners instead of laborers; you’re allowing them to assume ownership of their part of the company’s future. In the absence of trust, employees may feel that you have a plan but they’re not part of it.
Trust promotes performance and retention. Employees who feel like stakeholders take initiative and are more resistant to other employment overtures, often even when more money is offered. And if you have an underperformer, it might be because you haven’t invested trust in that person.
Building an organization based on trust requires leaders – not drivers – who create and maintain trust as an organizational way of life.
Next essay question: Outline you plan to address the next threat or opportunity.
No, I’m not asking you to be clairvoyant. But I am expecting you to be prepared to manage change.
If you have a management structure that can deal with change, whether the next little bundle of excitement that drops on your desk is a threat or an opportunity, you’ll be able to respond and execute without creating a casualty list.
Final question: Describe your strategy to take advantage of outsourcing opportunities, both within your organization as well as with customers.
Outsourcing is the process of integrating a strategic vendor into your operation in order to increase capability and maximize efficiencies.
Here are two pieces of good news for small businesses in the 21st century:
- There are plenty of outsourcing services available to fit our special requirements and budgets.
- Our big business customers are ready to talk about strategic outsourcing partnerships.
All you have to do to maximize outsourcing opportunities is to ask yourself – and your customers – this simple question: “Must this task be done in-house?”
If your answer is no, find a way to outsource it. If your customer’s answer is “No,” that’s a “Yes” to you.
Starting a small business is like being a biological parent; it requires no special talent or training. But like a nurturing parent, you’ll find success in your business if you steadfastly focus on the fundamentals.
Write this on a rock… Practice these fundamentals, and success will come and play in your back yard.
Jim Blasingame
Small Business Expert and host of The Small Business Advocate Show
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