It is not today that it is no longer possible to think about the development of a business without talking about the success of management of a company. Faced with the constant changes and innovations in the market, both customers and the business environment itself have become increasingly demanding with regard to customer service of the products and services offered.
Bearing this in mind, it is extremely necessary for the person responsible for a given venture to apply a whole set of strategic actions to his business, since the success of managing a company is the key for it to operate in a solid way.
What is successful company management?
Excellent management works to organize the company's routine and manage all its processes and resources (financial and humans), as well as establishing strategic goals.
Following the teams and their activities, the manager is able to:
- identify the most productive execution models;
- minimize business risks and market vulnerability;
- organize the company's finances;
- optimize the work, making the necessary adjustments, ensuring the maximization of results in all spheres of the business.
It is in paying close attention to all the factors relating to the business that the concept of business management.
As it is a delicate and very important process that needs to focus on aspects such as organization, planning, strategy, development and much more, investment in this area is recommended, both through specialized professionals and in specific management tools.
Next, we will talk a little more about the main strategies and practices for the success of running a company.
9 steps to successful business management
According to data collected by SEBRAE, through the Causa Mortis study, negligence with business management processes is pointed out as one of the main factors that lead Brazilian companies to close.
This reality highlights the blatant importance of adopting strategic actions towards the success of managing a company (and, consequently, the company itself).
Indeed, we can say that such success is intrinsically related to the good understanding between team members and their proper roles within the organization and the strategic business scheme.
Below, we highlight some essential measures to unite and reinforce the potential of your team, both strategically and operationally.
1) Know your business
Decisions cannot be made based on guesswork. Therefore, it is necessary for a business owner to know every aspect of their organization in order to succeed in their endeavor.
But the very concept of success is somewhat subjective – its definition may vary according to the proposal and the particularities of each company. Hence, the importance of a knowledge within the organization itself.
That said, a good start to establishing your management strategies is to establish metrics that define your ideal of success. These metrics can be, for example:
- on the rise in sales;
- capturing new customers;
- brand positioning;
- or, simply, the increase in revenue.
It is also important to keep an eye on and true to the company's behavior and, from time to time, re-evaluate these metrics and objectives, without fear of updating them.
Other valuable actions in this sense include mapping the business; a detailed study of suppliers, competitors and the public; the elaboration of a business plan; and the close monitoring of goals and results.
2) Technology is your ally
In the 21st century, it is essential that businesses take advantage of the opportunities offered by the Internet and digital media. A company needs to have a complete website, profiles on the main social networks, constant publicity and virtual promotion – all with a view to direct communication with the customer and their loyalty.
Technology is also an important factor when it comes to optimizing productivity and team pacing. Today, the market has a wide variety of online management tools, known as ERP (Enterprise Resource Planning, or enterprise resource planning).
When choosing the ideal ERP for your business management model, it becomes possible to automate processes; plan actions; monitor the progress of work and the achievement of objectives.
These tools also greatly facilitate the control of cash and sales flow and the integration between the different sectors of the company, such as HR, marketing, financial and so on.
3) Separation between the strategic and the operational
Something in common among most companies already consolidated in the market is that, in their organizational structures, there is a separation between the strategic part and the operational part of the team.
4) Human capital
"Employees are a company's greatest asset". It is not without reason that this statement has become one of the great maxims among the business world. There is no enterprise that stands out without a cohesive, effective and well-integrated team.
Having said that, it should be noted that internal communication is essential in any context that involves teamwork and ever-changing market dynamics. For this to occur, investment in human capital is necessary.
Team members must be well trained – which can be guaranteed not only during hiring, but also on an ongoing basis, through courses, workshops, motivational campaigns and a multitude of actions to encourage the evolution of their performance.
Therefore, it is part of the management work to ensure the satisfaction of its employees and collaborators, maintaining constant and fluid communication between all instances of the team, integrating managers and leaders, even the staff.
There is no better way to ensure that everyone involved in the production process feels at peace to present ideas or take important steps to solve problems.
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5) Market analysis
Without knowing the market in which the company operates, it is impossible to conduct an efficient management. This knowledge is obtained, above all, by understanding the characteristics of competition and customers.
For this, it is vital to identify essential data, such as:
- which companies constitute the competition;
- which differentials each competitor presents;
- which promotions they use;
- how it engages with customers;
- what is the quality of your service;
- what your products and services are like;
- what resources and technologies they have;
- how customers react to competitors' actions.
Likewise, it is necessary to know the target audience: identifying their dreams, desires, challenges and ambitions is the first step in planning the ways in which your company can seek solutions that meet, in an ethical and transparent way, all these expectations, and , in this way, work on building a solid and lasting relationship with the client.
6) Clarity about your differentials
In order for the customer to understand the value proposition of your product or service well, clarity is needed when conveying the message. From the first contact, the customer needs to feel that you are there to make their lives easier and meet their needs.
All communication strategies should focus on clarifying to your customers the reasons why they should choose your product or service, and not your competitor's.
7) Results management
Satisfactory results are obtained when your company's indicators are constantly monitored. Be aware of the stipulated goals and the fulfillment of them, in the medium and long term. ERPs are powerful tools in this sense.
8) Satisfaction surveys
Satisfaction surveys are the most practical and objective way to analyze your audience's feedback. You can create different types of questionnaires, each one aimed at gathering a certain set of information.
If you don't want to submit your audience to huge questionnaires, there are software like NPS (Net Promoter Score), specifically for one-question satisfaction surveys.
Conducting this type of research allows you to classify your audience according to their level of satisfaction, which is decisive when developing an action plan focused on improving your results.
9) Financial planning
Although some companies have achieved results without exemplary financial planning, it is undeniable that the risks taken in such cases are, as a rule, much greater than necessary.
A good understanding of the financial situation of the business is indispensable, both for Small business as well as for organizations already established in the market, and, for that, it is necessary to have a schedule that considers a series of factors, such as cost projections, investments, working capital and so on.
Make sure you are aware of the relationship between fixed costs (those that are independent of production volume, such as rent) and variable costs (such as raw materials). It is also important to keep an eye on income, expenses, working capital and dates in order to establish cash flow.
At the end of each cycle, it is good to calculate your results and re-evaluate expenses. All of this, as well as other relevant information, must always be rigorously documented in a detailed schedule. This type of planning is a deep analysis of the company's financial health, essential for its strategic plan and for the long-term survival of the business.
All of these tips, of course, intertwine. A good manager should never neglect one for the other. For the machine to work perfectly, all gears must be impeccable. If you liked this article, be sure to check out the article we prepared on organizational process management!
