2019年4月17日星期三

5 steps of business management: planning, process, organization, strategy and culture

Program management is often associated with the planned economy, and the direct result of this bias is the disorganization of management.


1. Plan management


Planned management is often associated with planned economy, and the direct result of this prejudice is to make management in a state of disorder. In their understanding of the plan itself, most people believe that the plan is a set of data and a guiding text of assessment indicators. No one has seriously considered that the plan itself is a part of management. Program management addresses the question of whether the relationship between goals and resources matches. Therefore, program management consists of three key elements: goals, resources, and a matching relationship between the two.


Goals are the basis of program management. Plan management is also known as goal management. The realization of goal management requires three conditions:



Strong support from the top;



The goal should be able to test;



Goals are identified by senior management.



Resources are the object of program management. Many people's understanding of plan management is mostly related to the goal, and they usually think that the goal is the object of plan management, but in fact, the object of plan management is resources, resources are the conditions for the realization of the goal, the only way to achieve the plan is to obtain resources.



Goal and resource matching is the result of program management. It can also be said that the matching relationship between the two is the standard to measure the quality of plan management. Plan management is achieved when the resources are available to support the goals; When resources fail to support the goal or exceed the goal, it is either a "pipe dream" or a waste of resources.



Therefore, we don't need to care about what kind of goals the enterprise determines and how big the goal the enterprise sets. We just need to care about whether there are resources to support the goal. When an enterprise enters the international market with a high profile, does it have international talents, international channels and products that meet international standards? Without these, empty has a cavity ambition is futile.


2.Process management

The key to improve enterprise efficiency is process. Implementing process management requires changing some habits of traditional management:


One is to break the habit of functional management;



Second, cultivate the habit of systematic thinking;



Third, the formation of performance-oriented corporate culture.



Break the habit of function. The functional departments of Chinese enterprises largely follow the "self-interest orientation" rather than the "service orientation" inherited from the ancient official system.


In the case of "self-interest orientation", the privileges of all functional departments swell, and everyone only pays attention to the degree of functional completion and vertical management control of departments. The functional behaviors between departments often lack complete and organic links, which leads to the decline of overall efficiency of enterprises. Accordingly, must break the habit of functional area partition.

Develop systematic thinking habits. Process-oriented focuses on the goal and time, that is: customer, market demand as the guidance, the behavior of the enterprise as a general process of the process set, the collection of management and control, emphasizing the whole process of coordination and target. Each work is a part of the process, is the node of the process, its completion must meet the time requirements of the whole process, time is one of the most important criteria in the whole process. Time as the basic coordinate determines that we need to think systematically, rather than just depending on our department or position.

Form a performance-oriented corporate culture. Forming a performance-oriented corporate culture is the guarantee of process management. The management should attach importance to changing employees' concepts, motivate each employee to participate in the process reengineering by letting employees understand the concepts, and attach importance to employees' Suggestions to complete the change of management mode. Without such cultural atmosphere, process management can only become a mere formality, which is the fundamental reason why many enterprises cannot succeed in introducing process reengineering.

3.Organization and management


Power and responsibility have always been two aspects of management that need to be balanced. To keep these two aspects in a balanced state is a problem that organizational management should solve. From the classical organization theory, we know that organizational structure design needs to follow four basic principles:


First, unified command. One can only have one direct superior. Second, the scope of management. The effective range of management is 5-6 people. Third, division of labor. Horizontal and vertical division of labor according to rights and responsibilities and specialization. Fourth, departmentalization.

The division of labor produced by the same professional staff together in a department, by a manager to lead and coordinate. The classical principles of organizational design simply seek to balance power and responsibility. Therefore, the realization of organizational management requires two conditions: specialization and decentralization.

Specialization. Specialization can solve many problems, including the sense of service, the possibility of sharing, and more importantly, it can eliminate people's worship of power. If everything is based on professionalism, respect for standards and science, people will no longer rely on power and position to deliver information and instructions.

The separation of powers. Many enterprises also have decentralization manuals and decentralization systems. However, the implementation of decentralization is often out of order, because it is impossible to correctly understand what decentralization is. Decentralization means that once power is distributed, it can no longer be recovered, while authorization can be recovered. Many people like to confuse the boundary between decentralization and authorization.


4.Strategic management



The core competitiveness of an enterprise includes three basic characteristics:



I. core competitiveness provides the potential to enter diversified markets;



Ii. Core competitiveness should make key contributions to the values valued by customers;



Iii. Core competitiveness should be the ability that is difficult for competitors to imitate.



Obviously, these three characteristics reflect that the most critical element of core competitiveness is to define the core competitiveness of an enterprise from the perspective of customer demand.


The ability to fail to meet customer needs and make key contributions to the values customers value most is not the core competitiveness. The core competitiveness should first be the ability to deeply understand and accurately grasp the market and customer needs. To this point, haier summed it up as follows: "zero distance with customers is a long distance with competitors".


The establishment and cultivation of core competitiveness is very important to establish the market leading position and competitive strength of enterprises. For this, the enterprise must stand on strategic height from long - term plan. The enterprise itself needs to examine the business, resources and capabilities it has, and observe the development trend of market demand and technological evolution. Through the use of the enterprise's innovative spirit and innovation ability, unique insight to identify the development direction of the enterprise's core competitiveness, and define the core competitiveness of the enterprise technology, these are the strategic management needs to answer the question.



Thus, simply put, strategic management is a unique management effort to achieve core competencies. In the process of the integration of the elements of the core competitiveness of enterprises, relevant mechanisms and environmental conditions should be supported.



Strategic management includes: organizational management mechanism conducive to learning and innovation, decentralized and flat network organization centering on team management, creation of dynamic innovation incentive mechanism, market-oriented and customer-oriented enterprise culture atmosphere. Finally, it depends on a cooperative environment that is both open and trusting.



Based on this, the core competitiveness of an enterprise is also a capability advantage based on enterprise resources, and it is also a heterogeneous strategic resource, such as technology, brand, corporate culture, marketing network, human resource management, information system, management mode, etc. Only by strengthening and highlighting these aspects and establishing the complementary knowledge and skill system, can enterprises obtain sustainable competitive advantages.



5.Cultural management



Forbes lists of America's richest people are often a celebration of heroism, because those who make it to the list are slowly accumulating and publicly measurable wealth. When it comes to China's rich list, except for some legends, most of them can't stand rational speculation and consideration.


As the Forbes list of China's richest people has fallen or encountered accidents, Chinese people have become wary of wealth, and people have noticed the difference between the rich and business leaders: wealth alone cannot become the pillar of society, and business leaders have finally become the focus of people's attention. Business leaders represent the direction of the national spirit, the root of a company's corporate culture, and the embodiment of the way of thinking and management of business leaders.

Corporate culture is not only the core soul of an enterprise, but also its essential characteristics. With the development of enterprises, the development of corporate culture usually goes through entrepreneur culture -- team culture -- corporate culture and finally forms competitive culture. Therefore, corporate culture management should go through the gradual transition of survival goal orientation, rule orientation, performance orientation, innovation orientation and vision orientation to ensure the gradual growth of enterprises.

With the increasingly fierce market competition and international competition, Chinese enterprises are promoting their corporate culture to the vision oriented competitive culture transformation, which has a long way to go.

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