Have good business management during an unstable economy
Have good business management during an unstable economy Even in periods of financial instability it is possible to maintain good management and with it overcome periods of crisis, although it seems unlikely, as we live in a short-term economy, where consumption prevails and there are no reserves for times of lack of resources. No more money, no more consumption!
We will talk more about this situation, which generates a cycle of chain losses, which paralyzes the entire economy, but which can be overcome.
Make your decisions based on solid information
A good set of operational processes, constantly adjusted and improved throughout the company’s development, allows management to make adjustments without the company suffering from continuity.
The organization will be able to react quickly to new scenarios, without the operation making major internal changes. Good business management is based on two pillars: operational processes and performance indicators.
These procedural adjustments must always be promoted proactively, this is the result of analyzes originating from a good set of performance indicators, capable of signaling changes in the scenario significantly in advance.
Performance indicators
When we talk about performance indicators, we always use the analogy of a dashboard (or cockpit). In this comparison, we will see a Beetle panel, which points to the two most important numbers for managers of this car:
Speed — because many Beetle owners were buying their first car and didn’t know how to deal with this variable;
The fuel — because the fueling intervals would be long and this fundamental item cannot be forgotten.
Which is very different from the cockpit of an airplane or the instrument panel of a ship, which must have been the first images that came to mind.
Performance indicators need to be directly linked to the company’s strategic actions, to signal changes that may affect this strategy. Operating conditions (how much we are producing or earning) will not show changes in strategic scenarios (what the direction of the market or the economy is going to be). Therefore, the selection of performance indicators must stick to what is essential and make it easier to read and make decisions: speed up, slow down or stop for fuel.
The Beetle’s speedometer is much larger than the fuel gauge, this is because speed requires constant attention, to allow for faster decision-making. So, too, should our performance indicators be.
Pay attention and periodically evaluate the results
More than analysis tools, it is necessary to have discipline in accountability. Therefore, a monthly operational performance analysis routine, accompanied by a quarterly evaluation of strategic performance, is the least that can be desired from good management.
If we don’t have to report to anyone, we settle down to conduct operations focused on day-to-day operations, without worrying about obtaining results. The first recommendation is, if you don’t have anyone to report to in your organization, create someone.
To be accountable, it is necessary to use a good set of indicators, used effectively, that represent the company’s operational and strategic performance. The Balanced ScoreCard (BSC) is generally used to construct objectives, actions and strategic indicators. It works very well and is simple to implement, even in very small companies. Agile methods such as Scrum can also be applied.
Avoid unnecessary fuss
Transparency is the keyword for managing teams, in order to avoid gossip or misunderstandings, especially in these times of crisis. In optics, transparency is the ability of a body to allow light to pass through it, which allows us to see beyond the body.
Contrary to what it may seem, transparency does not imply that everyone knows everything, but rather that everyone knows what will happen if the current path is followed. Clear and advance information about events relevant to the company and its employees avoids unnecessary and alarming comments about future events.
Communicating the company’s decisions and strategies well generates confidence in people and tends to guarantee more supporters for what will be implemented.
Assertive leadership
The leader’s attitude must serve as an example for his followers, people must see a model to be followed. For this to happen, the leader’s proposals must make sense to those he wants to motivate and, for this, he needs to present a purpose that is inspiring for everyone.
In this sense, the leader must share objectives that reflect the aspirations and dreams of everyone around him. Inspiring trust and being transparent with everyone.