12 Rx for Effective Management
Here is a compilation of ideas two entrepreneurs learned on their way to retirement. “A” stands for Art and “G” stands for Gabriele (wife).
Rx 1 (A): Harvard MBA – If you can find a way, get one. Whatever the price, whatever the disruption in your life. It will be the best investment you ever made.
Rx 2 (G): The value of diversity – You learn from different cultures and from a variety of different perspectives. A diverse group is more productive than a homogenous group.
Rx 3 (A): You can’t manage what you don’t measure. You have to measure everything you can. Time is the most important resource you and your employees have. Timesheets are essential for everyone, including you. You must analyze them and fine-tune them. Is the time invested matching your priorities?
Rx 4 (G): What get’s rewarded, get’s repeated. It’s simple – if someone does something you like, tell them. The more you compliment, the more that task or job will be done the way you want.
Rx 5 (A): It costs 5x more to find and sell a new customer than increase sales to a current customer/client.
Rx 6 (G): Cut your losses as soon as you can. Whether it’s a bad project, a client you’re losing money on or a poorly performing employee, stop stalling and do what you know you have to do – terminate.
Rx 7 (A): Don’t talk price – talk added value. More people go out of business because they want to be the lowest price rather than the ones who sell value.
Rx 8 (G): The best way to predict the future…is to create it and you create your future by planning. You need a business plan and/or a strategic plan. At the very least you need a marketing plan. It’s hard to get there unless you know where you’re going.
Rx 9 (A): Options – things are rarely black or white. Particularly in the face of adversity – think about stepping stones, think about all your options.
Rx 10 (G): Think big – dream a little about what you can do with your business. Don’t be willing to settle for small. How big do you want to be? What role do you want to play?
Rx 11 (A): With all the current emphasis on team building and empowerment, in the final analysis, someone has to lead. Management is about things and process. People need leadership.
Rx 12 (G): Remember success is not forever unless you can keep reinventing yourself and/or your business – and failure isn’t fatal. There are always ways to recover and come back.
We hope you can keep some of these things in mind and use them to your advantage.