The 10 Golden Rules of Effective Management - gyaanadda

The 10 Golden Rules of Effective Management 

“Management is doing things right; leadership is doing the right things”
-Peter F. Drucker
Management is a thing of the past. It’s like the Sony Ericsson Walkman phone. How often do you see people using them?
Exactly
And do you see anyone trying to sell them?
I haven’t. Maybe you have.
It’s just not in trend anymore. It’s like management. The new trend is leadership.
Management is like doing what a BOSS does, but leadership is what a LEADER does. Now, do you want to be a big bad boss or LEADER? The word even has a nice ring to it. It’s powerful. Pronounce it cinematically: LEEE-DEEEH-R and hold out your fist on your side and bring it up slowly. See how that feels? Majestic and glorious.
That’s the kind of person you want to be. The one that people look up to. When they’re behind your back, they’ll say “He is a fun person. Not too serious all the time and not slacking. He has something inside of him, a kind of charisma that we like. I don’t think of him as my boss, but as my friend. Someone I can count on when I have hardships and someone whom I’ll help out as much as I can”
That’s what you should hear from your “employees”.
Or do you like to hear:
“You see that guy? He’s my boss. F*ck him. He’s lying on his chair in that glass office. Let me tell you something. The only time he thanked for what I did was after staying in the office for a whole day and even then he only said ‘Thank you. Now go get my coffee’. He never respects me and whenever I come a couple of minutes late at work he shouts, like a dog. That’s what he is”
Be a leader.
Be charismatic.
Be a devoted lover (to yourself, your business, and your employees). This doesn’t mean going and ….hmm…your female employees. But just like them. “Just a friend”
Well, that’s enough for the background. Let move on to the bullet, listicle type that you waiting too see for this kind of questions:
1. Employee before customer
1. Employee before customer
1. Employee before customer
Your most valuable assets aside from your investments in bitcoin or your wife’s jewellery are your employees.
Let’s look at some scenarios to better understand it:
-Worst case: If you have an online shop, the customer will purchase one product which you heavily advertised on Facebook and then leave (and forget your website).
+Best case: They become a returning customer to your shop. But the question is even if they return, and even if they bring 2 of their friends via affiliate marketing, what is the value of that customer? In other words, how much are you willing to pay to bring that customer to your website (customer acquisition)? How much are you willing to spend to entice them to return (retention costs)?
So, the question is: Is it even worthy to bring in customers? Of course, it is. You have to spend to bring some customers and make some dollars or euros or maybe yens if that is where your shop is located. But take this into consideration. YOU are not the one who spends that cost to bring the customers. That’s what your employees do for you.
They are the ones that spend that cost. Why? Because they put their time (which you are paying for it), their mind (which you are paying for it), and their heart. You are not paying for their heart. You can’t. You’re paying them because of the skills their hands have or their mind is capable of. But you cannot pay them (enough) to work with their heart unless in a weird case scenario they are so devoted to their job and have a very strong work ethic (which are two qualities that are very rare to find in employees).
Find a way into the heart of your employees. Because at the end of the day, the customer that costs you $100 to come to your shop and only spends $79.99 (tax incl.) on that item you put on sale and returns a later month, cannot be equally valued as employee, which most of the time, receives a fixed rate or a monthly salary of $1,000 but communicates with your customers, listens to their problems, helps them find the right product, and bring in new customers and they bring in new customers. Whether it is someone who works at your customer support, your call centre, or is even your developer (he’s useful too).
Jokes aside, developers are 100% critical to a company A, while in company B they’re only important for 45% in relation to increasing the production value, creating that website, redesigning that app, which will either in the short or long run contribute to bringing in that customer.
Employees are the reason you get customers in the first place.
In some business, like Barbershops, Hair salons…some people just go there because of their employees. They’ve spent much time with them to know them well, see how well they are, and started to like them. They trust the employees. I’ve seen ladies who as soon as the employee darted off, the never went back to that salon and decided to travel all the way to the other side of the town to just go to Barbara who talks well and cuts hair good. So, we can say that: Customers trust your employees. The product, the fruit, relies on the source, the tree.
Do you water the tree or the fruit?
Obviously the tree.
But even that has a limit. When trees grow to a point, depending on how well you raised them, treated them, they will grow roots and find their own water source, in your company. They’ll feed themselves. Now, I don’t mean corruption. When you’ve empowered your employee the right way, they will search for things to do, in an innovative way, to be more beneficial for the company, maybe get a promotion, impress you, or to just thank you. They want to return the kindness and gratitude you have shown them.
Ok, that was a lot. But I had to stress the importance of employees. They’re the driving force. Sometimes they will face blockages and that’s where the second point comes:
2. Take care of your employees and help foster their growth
Take care of your employees and help foster their growth
Take care of your employees and help foster their growth
Remember that tree metaphor?
You should water the tree until it reaches a point that it grows roots. That time you just keep the soil moist and enjoy its fruits.
That was botany 101 guys. Stay tuned for more.
But seriously, if anyone of you is a gardener or has experience with plants, know this that “Water newly planted trees immediately”.
Take care of newly employed employees.
If you are a Small to Medium-sized business, you could figure out a way to show them around yourself or in a large corporation you employ someone else to do that for you and someone else to do that for him or you do it or someone else to show him around. It will be a long chain but you get it. You can:
  • Show them around: Let them see the office, their coworkers, and the environment they’re going to work in. Let the trees adapt to the environment.
  • Facilitate social communication: Employees are the driving force, right? Like the motor in the car. But a motor doesn’t start by its own. It needs a spark. An explosion. DON’T TRY C4 IN THE OFFICE. Spread that spark. Help them initiate conversations with others. Maybe even assign a buddy-helping-to-get-to-know-here.
  • Draw your lines (deliberately): Raise your right index finger to a 37 degree angle to the front and raise your elbow a couple of cm and start blabbering, sorry, talking gracefully about how you treat your employees when they do something wrong, what the penalties are, and when you expect them to get fired. DO NOT DO THAT. Talk to them as a friend. Set your grounds but not too firm and not too sloppy. You’ll find the right touch. Remember kindergarten where you had to share crayons with others and some richer kids had better crayons and they would say stuff like “I’ll let you use my crayons but only if you carry my backpack for the rest of the year”. Remember? Maybe not. I never went there much so I just made that up to make an example. Share your crayons with them but don’t ask for much in return. You’re just paying the graphic designer $2,000 monthly and you expect them to design the website, redesign the app, configure its UX, setup posters for print, and create 10 different styles of powerpoint pitching decks to show potential investors, all in their first month of work. It’s ok and recommended to show them how it feels like working there, but hey there are humans like you and if you overwork them they will burn out
3. Make it automatic and workable without your presence
“Your business should be running even if you are not there”. I think read that in a Brian Tracy book.
Create your business in a way, reorganize it, or systemize it to run even if you are not there. To do this, you should let the trees branch out. I mean if a tree doesn’t branch out, it’s like cactus. It bites everything that touches it and no one ones to get close to it.
Let the trees branch. Like in the first we watered them to let them grow roots. Now we should allow them to grow branches. Let your employees do the work. Why the heck did you hire them then? If you are going to do the work if you are going to supervise if you are going to <another business-related word>…then why did you pay the money that you could have to spend on the honeymoon you never went to or buy the TV you want, on some random college dude who would do anything to just get enough money to pay his debts?
Use your employees potential. Trust them. Give them the key to the shop. Let them open it. But do not give them the key to the safe. Always have that ace card. Something you could show to state your presence firmly. That does not give them too much control and authority. Just the right amount to get things going.
4. Get rid of the extra stuff
Be a leader and take charge of the trees you’ve watched grow this tall!
“Prune damaged limbs at the right time”
There. Another tip for enthusiastic gardeners in the 21st century!
Prune damaged limbs at the right time. Know which part of the tree you should cut so it wouldn’t hurt itself anymore, neither the other trees nor you specifically.
-Some employees nag about higher paychecks or promotions
Stand back. Assess the employee. Check his background. Check his profile. Analyze the work he’s done for your business during the duration he’s been there. See if you can hire someone else with his potential (maybe at a higher price too). And only then, see if he’s a good fit to get a promotion or not. If he gave it to him. If not, tell him “I can’t give you promotions till the next 3 months. We’re heavily tied in. Can you wait or not?” If he says yes, assess him again after 3 months or if he said no or bothered you or talked behind your back and you never annoyed, no matter the skills or benefit he had to your business, fire him straight away.
Get rid of the extra stuff - declutter your business and your mind. If your mind is being bothered by a silly employee, let go of him. There are tons of other qualified people out there. If your mind is not free, you cannot make the important, goal-driven decisions in regard to the future of your business.
-Clean up your desk and ask your employees to do the same
Some claim they function better when everything is disorganized. Maybe there are some people out there. But you are most likely not one of them. Clean up your desk and stop being lazy. Think of the Instagram shots you see of people drinking a coffee with their MacBook on their desk and a blue pen tilted at an angle to the small brown diary they put on the right side. Do you function better at that type of a desk or the one where papers are scattered everywhere and you sometimes even lose yourself in the middle of that mayhem? Get up and clean it after you finished reading this.
-Cut down unnecessary costs
Do your employees really, really need matching outfits that are navy blue shirts with khaki pants? Does everyone need a hat with your company logo hacked on it? Does anyone need it? If it’s not necessarily targeted at your planned marketing campaigns and if you are not sponsoring a presidential candidate to get some vote, then why do you need them? Get rid of them. Better yet don’t even produce them. And even if you have a large factory and you have some unused old machines that you just pay for maintenance and have pretty much no use for them, get rid of them, sell them, burn them, but just get them out of your mind and your business. If you have a dropshipping website, you don’t need 3 developers working on the CSS of your website. Just updated your theme. Or hire a not too costly and definitely not very cheap developer. Find someone in between. If someone can get the job done at a price less than someone else AND you know there is almost no difference in their quality, then why pay the extra price? Do you want to show off?
5. Have short-term and long-term plans
A blind man is not one who sees but who fails to plan to see.
You have 2 eyes. You can predict or plan where to put your next foot but a blind man can’t. He has to have some support. But when you have eyes you shouldn’t act blind. And that famous asserts this: “If you don’t have a plan, you plan to fail”.
Forget career planning sessions that you missed back in college or high school; forget counselling sessions with your therapist to help you plan out your life; this is the real deal.
You are a businessman or woman. Act like one.
Have a plan:
-Set your market entering strategy
-Define SMART goals for your campaigns
-Realize milestones that you want to achieve in a defined period of time
-Establish a set of KPIs to meet in an X period of time. Measure your performance against them once in a while
-Plan, when you could possibly, have your IPO
-Create a Feasibility Studies to see if your business will be profitable or not
6. After the war on water, war on data is the next big thing
You should better be prepared for that war.
In the past, the chief head of the village that controlled the water stream was the most powerful. He could dictate anything and they had to obey. They were thirsty.
It’s still the same thing today. But more or less it’s like data.
People crave data. Data is everywhere. The 1s and 0s from the chips on your computer to the Advanced AI. Lines of code, that’s data; answers on Quora, that’s data; images on Instagram, that’s data; you're every single Google search, that’s data; your phone numbers saved to your Samsung account, that’s data.
Data is everywhere and we as humans want more of it. And the one who has more of it can dictate anything and we have to obey.
Consider Google for example.
Their recent quarrels with EU and their privacy laws.
Or was it Facebook? Or Microsoft? Or Apple? Or Huawei?
All these giants have an enormous amount of data, a gold mine they are digging up to get richer and richer every day. Your telephone calls, your friends, your relatives they all communicate some information *data* to you via social media, telephone, SMS, emails…
These giants can describe you much better than your Mom! Because they have tons of information *data* on you.
So, even though you are still far behind, but depending on the size of your business you can catch up.
Start small. Gather data on where your customers are coming from (inbound), what are they buying most, and where do they go after visiting your site/shop/office/business (outbound). Hire some expert on (big) data and ask them to make analyses. Draw regress lines. Gather assumptions and drive hypotheses that you could make quick decisions.
Amazon. I didn’t tell you about that.
Amazon has some warehouses in different places and some trucks moving to and from them.
When you choose a product, place it in your cart, click order, and the next couple of days it reaches your doorbell. That speed, does it happen when you place an order and Amazon gets that order and tells the logistics to transport that product X from that warehouse to your doorbell?
No.
Amazon detects whatever you are browsing. The ones you put and don’t put in your cart. It’s just not just you but everyone. Multiply that data whatever it is by 1000000 and see the amount of data they have.
They organize that information. Make analyses and they take actions before you can move your index finger to click order. They know that in a given geographic region with a certain population density, in a particular time, what they will most likely order.
So, let’s say it’s the Chinese New Year. And people living in China town are most likely to order some Chinese New Year related goods during that time. Amazon knows this. They transport the goods way before that time to the closest warehouse, even though no one in that area has ordered it yet. And when it’s time and someone orders, they could carry it a smaller distance, in a faster time, a lower cost, and get a customer satisfied.
That’s the power of data. The one who has more of it, the more powerful he becomes.
7. Become a good teacher than a good manager
Think of your employees as school kids and your business as a school (funny, the teacher owns the school). Teach the kids how things should go about.
Draw them the processes. Hand them the manuals or create one if you don’t have. If you don’t want to teach them all, teach the brightest of them all and have him/her take your place when you are not there. If it’s a website, they should know how to put up new listings or update blog posts; if it’s a bakery, they should know how to make bread (but not that special bread). Always keep something, no matter how small to yourself.
8. Put your business in a glass cubicle
Be open. Be the opposite of opaque. Be transparent. Let people in. Let them see. Let them see that there is nothing to see. That will ease their worries and make them calm.
People like working at places where they know the ins and outs, the place where they do not feel secluded.
Make them part of the team. Let them know their voice is important for you and their idea is valuable. Even if it is bs, but just listen to the suggestion the latest intern has. Maybe he will give some breakthrough in that problem you’re stuck in the last week. Give value to people and let them see inside.
If you don’t want to do that when you step outside. Go check on them.
Check your employees. See how they’re doing.
Check your customers. See how they’re doing.
If you got some spare time, check your family, they might just miss you. See how they’re doing.
9. Make a change or be the change
If your business doesn’t make a change in this world, if it doesn’t make a change in people, then you will be the change. The small change that people throw out and cannot remember to whom they gave it to.
Be memorable. Make an impact and tell people that “I’m here. This is our business and we are here to offer you a great service/product”.
Show that through your marketing persona, through your website design, through your product labels, through the tone of your employees…let people know that you are there. If you need to, even shout. Shout and get their attention. Pull them to your business.
You can only do this if you give them some value. Something they wanted but didn’t have till now. Or maybe they have it, but you give them something else too.
10. Learn to be coach
I was in a seminar back in 2018 and the speaker was a successful businessman, very rich, had dozens of companies, talked a good deal about business management and strategies…and he had just recently got out of prison. He was charged with money laundering and fraud.
One thing that he said amazed me a lot.
He mentioned that even leadership was out of trend; being a coach is the next big thing.
The boss rides the men; the leader drives in the front; the coach is side by side them.
Be a team player. Let your employees, your customers know that you are beside them. You are leading them; you are teaching them; you are also making mistakes and you make up for it. Show them you are human and not some cyborg who just wants money no matter what the cost.
Conclusion:
Business management is like horseback riding. There are bumps on your way but after a while, you get used to them and you start liking it. Read the points and try to apply them to your business.
Comment your ideas/experiences below and let me know what you think
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