23. August 2022 By Mike Deecke
The management principles
Principles vs. difficulties
What factors contribute to successful, effective management? Having a range of techniques, methods and tools is never enough to successfully run a business. Looking at past successes and recent difficulties shows us that it all comes down to a few indispensable principles. Recognising this, understanding it and taking the right course of action can have a significant, positive impact on both your department’s performance and that of your organisation.
Disregarding these principles, on the other hand, will lead to difficulties. In this blog post, you will learn what you need to bear in mind no matter what.
Principle 1: H2H instead of B2B or B2C
Management is about people. A manager’s main task is to enable people to work together. The benefits that customers receive as a result of this work are therefore provided by people. Customers are, of course, also people. This means that business transactions always take place between people.
The business world makes a distinction between B2B (business to business = pure business relationships) and B2C (business to customer = business with end customers) relationships. When it comes down to it, both are H2H (human to human = business between humans). After all, it’s about the benefit for the customer.
Principle 2: A clear corporate image
Every company needs to commit to common goals. Its corporate vision must convey an image of what it stands for. The goals derived from its vision have to be clearly defined, easy to understand and obligatory for its employees. Not only do managers need to develop these goals carefully, but they also need to pursue them themselves through the value they contribute.
Principle 3: Culture as a lever
Take a look at any company that has effective management, and you’ll find that the managers there all act in pretty much the same way – they have adapted to their environment and its cultural background. What they do corresponds to the way they do it. In other words, it’s management’s job to make use of the specific culture in the respective country.
Of course, it goes without saying that they also need to observe any generally applicable standards, as well as the rules of fair management. This is how successful managers are able to effectively integrate people into a common organisation without reinventing management in every country.
Principle 4: Further development
The organisation and the management must enable both the company as a whole and each individual employee to continuously learn and develop. This development must take place at every level – and the process is never finished.
That’s why you should always keep a close eye on knowledge management in your company. You should treat it as an enormously valuable resource.
Principle 5: Communication
The people who work in an organisation are as unique and different as the tasks and roles they perform. How they communicate contributes to the organisation’s ability to function. Every employee needs to think about their communication style and ensure that all their colleagues know what their goals are and what they need to do to achieve them.
An organisation’s corporate culture has a direct influence on the communication among its members. For that reason, the organisation should consciously choose a style that allows everyone to communicate as effectively as possible and reduces conflict to a minimum.
Principle 6: Key figures
Management has an equally wide range of tasks. The company’s position on the market, its ability to innovate, its productivity, the quality of its employees and its financials are very important. Although, or rather because, many of these factors can be measured and expressed in absolute numbers, it’s still necessary to learn how to assess them correctly.
Principle 7: The ultimate goal
It has never been a secret that having customers who are completely satisfied is the ultimate goal of any organisation. The revenue from sales to customers covers internal costs. Only satisfied customers are willing to pay. People often lose sight of this and are usually only concerned with themselves as a company or department. Customer satisfaction is the most important principle.
There are many successful companies that have fully understood the importance of management. They place great emphasis on observing these seven principles when making decisions. Aligning your actions with them can help you achieve tremendous amounts of success.
Take your time reading through the principles again and ask yourself: what concrete steps would lead to an even more success-oriented direction in the quality of management in your company? Are you using the principles in the right situations with the right members of the management team? And what else do you need to do to achieve even better results with the principles?
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