This article continues the series of articles on business management, and introduces readers to the basic principles of applying a systematic approach to business management, as well as effective management techniques.
In fact, there are two global approaches to the creation and management of companies: the “master’s approach” and the systems approach.
The “master’s approach” is that the company’s shareholders are fully relying on the effective work of business experts (“masters”) to achieve global goals, which they either consider themselves as such.
With this approach, everything that happens in the company, is only due to the “masters” who often “wear several hats at the same time”, occupying the main leadership, and often executive positions. In this case, the line between those who produce products or services and those who manage business processes is very blurred.
“Masters” personally control the process of performing work. The managing director or president of the company plays the role of the “main engine” forcing the whole mechanism to work. Almost no task is solved in time, if it is not under the personal control of the “masters”. For the organization of daily activities in the company there are several “key figures” – managers.
The period of study of such leaders is very long since the system of work organization as such is absent. Before a manager is fully in control of his position, he must work on it for a very long time in order to go through most of the situations that arise and learn how to react to them correctly.
A simple example of an organization built on this approach is a small family restaurant. If its owners have been absent for some time, customers immediately notice that the kitchen has become worse, the service is not so friendly, and the room is not so clean. Clients accurately determine when an expert (“master”) is not in place. What does the “master’s approach” lead to? To the fact that managers spend more time working inside the process and not on the process. As a result, when expert managers leave the company, it is not able to function at the same level.
In addition, brilliant charismatic managers, who ignite everyone around with optimism, know everything and everyone about business, right away make the right decisions, relying solely on their intuition and luck, in the world of unity.
The found answers accumulated over many decades and systematized managerial experience allowed us to apply a different approach to business management, called the system approach.
The systems approach does not rely on experts. Managers direct their efforts to create a reliable company management process, a process that can be taught to others. The procedural business model, or, in other words, the totality of the company’s business processes, is designed so that it can be replicated when the business is consolidated, in the case of mergers and acquisitions of companies, and also through the franchise mechanism. With a systematic approach, any newly formed company, regardless of the scale of the business, receives a set of proven business processes for conducting successful commercial activities.
At Zoe Talent Solutions you will find a brief detail about system approach in business management.
Effective Business Management
Read on below infographic to know more about various aspects of effective business management (zoom in on the image or if blurred, click here for the full image).
Of course, if you go into business, you should learn how to manage it properly, to make it grow, make it last, and make it sustainable to give you lasting cash flow. Aside from going into businesses, there are other ways to achieve true wealth and financial freedom. Find out more in #10Steps to a Richer Life.