Introduction
About 40 years ago Professor Peter Drucker was a leading management guru. He said that the mark of a good manager is how well the business functions when he’s not there, not how well it functions when he is there. They may not be Drucker’s exact words. But his message is just as important today.
The Unpalatable Truth
If you want to find out how well you’re managing your business, take a holiday. Turn off your cell phone. Shut down your laptop. Tell no one at the office where you’re going. Be utterly uncontactable by anyone in your business. If your business runs smoothly and effectively in your absence, you’re managing well. If it doesn’t, you’ve got work to do.
1. Clarify You Business Focus
What does your business represent to your staff? What does your business name represent to your prospects and customers? When a prospect or customer thinks about your business do they have a precise mental picture of what you can do for them?
2. Strive To Specialize
You cannot be all things to all people. The idea of the “one stop shop” is very appealing to some business owners. It’s much less appealing to consumers and clients. The broader the range of products and services you offer, the more specialist competitors you have. Is that what you want? If you don’t believe me, consider the sad fate of department stores over the last 50 years.
3. Define Your Target Market Precisely
Who is the ideal customer you want to reach? If you’re not absolutely certain, how can you direct your marketing in a professional manner? How can your staff know where to direct their best efforts if you aren’t sure whom you want as customers? Do you know, among your customers, who buys what? Take no notice of what everyone tells you. Keep the statistics. Analyse the actual records. Guesswork and opinions will cost you heaps.
4. Determine What Customers Can Expect
Traditionally, features and benefits are what we articulate to prospects and customers. Nothing wrong with that. But what can they expect? Try to articulate what customers can expect when they use your product or service. Of course, the expectations must be expressed in terms that are meaningful to customers. When you express them you can decide the most effective way to meet them. Keep asking yourself, “What can our customers expect, that’s important to them, when they use our products or services.”
5. Systematize All Routine Work
There aren’t too many completely incompetent people. But there are lots of really poor systems. A system is merely a word we use to describe “the way we do things around here”. And “a poor system will beat a good performer every time”. Most of our work is routine. That means it can be systematized. Unless it is, you’re condemning yourself to a life of fire-fighting, anxiety and close supervision of employees.
6. Train Staff To Operate Your Systems
You need trained staff. That’s a given. But no matter how well trained they are as specialists, they must also be trained to operate your systems to achieve the results you want. Involve your staff at every stage of the process. Set clear performance standards for all areas of your operations.
7. Trust Your People
If you’ve followed steps 1-6, there’s only one more thing. Trust your people to run your business in your absence. If you don’t, you won’t reap the benefits of all the hard work you’ve done.
Conclusion
Take a break. Forget your business. Enjoy a stress free time. And congratulate yourself that someone as famous as Professor Drucker would probably admire your efforts.
