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Systemization Series: Core functions of business—management

March 26, 2015 -  By
DP

Photo: iStock.com/37520232

This post is part five of Dan Pestretto’s seven-part systemization series. Read on to part six, “Systemization Series: How to create (and use) an org. chart,” here

Creating the business you want requires a well-defined description of that future business.

You must be able to clearly see your future business in your mind’s eye. In this way, you can guide the business from where you are today to your vision of your business’s future. The leadership, or management, core function comprises the systems to do just that—to guide and manage the business.

Still, in my work with both big and small businesses this area often is the most deficient. Frequently, little if any thought is put into a clear and distinct understanding of the size and shape of the future business because few managers use any real systems to manage employees or business processes. Most of the effort and focus we see in business is in the other three key functions— sales, operations and administrative.

To that end, management is not the sexy side of any business, but guiding and managing systems creates the real difference in what businesses achieve.

Processes in the management quadrant revolve around strategy and collaboration between the owner(s), managers and key employees. They tend to fall into two or three categories.

1. Strategy processes

These are used to guide the business forward toward its goal. They are designed to facilitate communication regarding the present and formulate goals for your future, also know as your “strategic target.”

Now, to create these processes think: What are all of the methods you, your managers and your board use to track the progress toward the company’s vision? What systems are required to track the progress made on these goals? If you find yourself describing “how” you do something, you may be providing too much detail at this point. Remember, only name the systems in this stage, meaning “what” it is you do and not “how” you do it.

2. Management systems

These ensure process protocols and procedures are developed and implemented accurately and efficiently. They also provide the framework for monitoring process adherence, communicating expectations and provide methods for reporting.

In creating these processes, consider whether or not you have sales meetings or manager meetings. What guidelines do you have to be sure your meetings are effective and efficient? Remember, only name the systems in this stage, meaning “what” it is you do and not “how” you do it.

3. Board of directors processes

Also called corporate directives, if your company is a corporation, these help maintain the corporate shield.

In terms of creating these processes, familiarize yourself with your articles of incorporation. What systems are in place to ensure you are following these guidelines? Are there any other governing or advisory boards in play at your company? What are the processes required for these? As aforementioned, if you find yourself describing “how” you do something, you may be providing too much detail at this point. Only name the systems in this stage, meaning “what” it is you do and not “how” you do it.

Next week, we’ll discuss making your “Org Charts” an important part of how you manage your people, construct job descriptions or position agreements and make them pertinent beyond hiring and annual evaluations.

Stay tuned.

Photo: iStock.com/37520232

About the Author:

Dan Pestretto is an Amazon best-selling author, business leader and consultant working with designers, contractors and trade service providers, with his specialty being in horticultural trades. He helps business owners develop, fine-tune and implement their companies' systems and empowers them to increase annual revenues.

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