1. Master the Basics
Before you are ready to manage a business, you need to learn the basic management skills. Such things as objective setting, financial planning, communication, leadership and developing people are essential skills of the modern manager.
2. Learn to Manage Time
Time is a scarce commodity. Successful managers learn how to use time wisely using basic time management techniques such as maintaining a ‘to do’ list, understanding the different categories of time and effective delegation. Peter Drucker said, ‘There is nothing quite so useless as doing with great efficiency what should not be done at all.’ See my Top Ten Tips on Time Management for more information.
3. Anticipate the Future
The world does not stand still. Good managers keep themselves up to date with current trends in their markets, identify new trends and adapt their business strategies accordingly.
4. Make Better Decisions – Faster
Not only do decisions need to be made in a timely manner, they also need to be the ‘right’ decisions. Making better decisions requires the ability to identify which are the important decisions and then ensuring that you gather the appropriate information on which to base them. Having determined the right solution, decisions have to be converted into appropriate action and tested for effectiveness.
5. Surround Yourself with the Best People
Whether you are employing people or using business advisers such as accountants, solicitors, coaches and consultants, you need to be sure that you engage the best available. The additional cost of using the best is nothing to the cost of using the wrong people. American President Ronald Reagan said, ‘Surround yourself with the best people you can find, delegate authority, and don’t interfere.’
6. Know Your Competitors
Keep a firm eye on your key competitors. Assess their strengths and weaknesses in comparison to your own and maintain a competitive advantage at all times. Choose your battlefields by playing to your strengths and exploiting their weaknesses.
7. Speed Up Product Development
Modern business is not just about having the best product, but also about staying ahead of your competitors. Competitive advantage can be won through faster product development. Being first to market can be rewarded by enjoying larger market share and the ability to charge higher prices. Spending too much time perfecting your product can cost you opportunities. American statistician John Tuckey said, ‘Far better an approximate answer to the right question than the exact answer to the wrong question.’
8. Identify Your Niche and Dominate It.
Only by fully understanding the needs of your customer can you be sure to develop winning products and services. The better you define ‘your perfect customer’ the better you can understand their needs and pains. By selecting the appropriate niche, you can define a stronger marketing message which truly resonates with your prospective customers. Decide on your niche by concentrating on groups you have a real affinity for and can contact easily and cost effectively.
9. Retain Satisfied Customers
It costs five times as much to sell to new customers than to sell to existing customers, so keeping customers happy is an essential element in growing your sales. Establish service standards and measure your performance regularly against them. Remember, it is better to under promise and over deliver, so set your customer expectations and exceed them. That way you can turn customers into true evangelists for your business.
10. Keep an Accurate Score
Having been trained as an accountant, I couldn’t complete this list without mentioning financial reporting. The right information delivered to managers in an accurate and timely manner provides the ability to stay on top of the business. Developing effective management information systems can help you maintain competitive advantage. Understand your numbers and pay attention to them.
Reading List:
High Speed Management – John W Jones, Jossey-Bass 1993
‘Simply a Great Manager’ – Michael Hoyle and Peter Newman, Marshall Cavendish 2008
Filed under: General Management, Vision Builder
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