Fads come and go all the time. Sometimes centralization is the way to go, then decentralization is all the rage. This year bottom up budgeting is the right thing to do, then next year it will be top down.
So, does this mean that building and running a business requires different practices year in, year out? If you were to believe a lot of commentary, then that would appear to be true. But thankfully it is not the case.
I recently did some analysis of case studies I have been involved with in a large number of organizations from different industries and my research highlighted some very interesting information I wanted to share with you.
So, what are the management practices that are critical to success?
The study demonstrated that the 4 critical management practices are:
- Creating and maintaining a clearly stated focused strategy
- Execute it flawlessly
- Create and maintain a performance oriented culture
- Build and maintain a fast, flexible and flat organization
What the research clearly demonstrated was that the companies who developed excellence in all these 4 management practices have all achieved a high level of consistent performance across all the key metrics
I intend writing more on each of these practices in future articles but I want to draw your attention to one word – “maintain”
There is no coincidence that the word “maintain” is in 3 of the 4 management practices.
It is a critical word for each of the management practices. I have seen far too many companies create a strategy, then either consciously change it a year or two down the road, or, even worse, have what is called strategy “creep” where it just veers off course and no one notices.
You must set your stall out and be resilient. If you chop and change then you will be among the “also rans”. Maintaining your strategy is tough, but you either have confidence in it or you don’t! And, if you don’t why should anyone else?
The same goes for maintaining the culture and your organizational structure. Be clear, be confident and don’t waiver!
The remaining management practice is flawless execution – it is where the rubber hits the road and where so many strategies come unstuck. But more of that in a later article.
So, where are you with living these 4 management practices? Leave your comments below to share your experiences with the community.
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