Business Management has been at crossroads over the last two decades. Nine/Eleven, Globalization, New World Order (financial regulations, money laundering act, etc), 2008 Global Financial Crisis, ensuing global recession, meteoric rise of China and other emerging markets, subsequent slowing down of China, are all events that have tested the mettle of business management theories and practices to their limits. And in the process we have not only seen long held myths being shattered but a comeback of discarded recipes (as obsolete) to solve modern day management problems. Climbing down specifically to corporate management, whereas each manager learns his or her own leadership lessons, following would be my top seven tips to managers trying to turn around, especially the public sector enterprises:
Do not Rush: Every new manager arrives with a plan. You have to have one to get the job. In your initial interview or resolve you may have focused on doubling revenues, implementing advanced information technology, changing work practices, etc, but the most important is to simply talk to everyone first – customers, suppliers and, mainly, to your own team. Now this goes against the advice from those who say managers should act immediately, while people are expecting change. I feel that acting fast from day one is never the best way forward. It is not that your plan is not a good one or you need help to formulate it, but it is essential that you are aware of who agrees with you and who will resist. Unless the banks are at the door, you have time to listen, to refine, to build alliances and to identify those who were waiting for just what you intend to propose.
A good deputy helps you sleep at night: One morning, in London, on an important business trip, I woke up to an email from my general manager in Khurrianwala (Faisalabad). There was an embarrassing error in our work. Correcting it was going to cost a significant, but not a huge sum. So he had done it to ensure rectification before I walk into the scheduled meeting. He could have woken me to ask, but he didn’t need to, because he knew what my answer would have been. Remember, you want a deputy with different skills than yours; you want someone who will alert you to the problems and will point out your mistakes, where necessary. However, at the same time you also want someone who sees the business the way you do, because you and your deputy both need to be on the same page vis-à-vis the next tip.
Decide what your business stands for and tell everyone until you can no longer stand the sound of your own voice: Every business has an ethos: the way it does things or does things best. You need to decide what yours is, and you need to keep telling people, both inside and outside of your organization. Whether they believe you or not depends on how true your business plan is and how much sense it makes.
Hire people on probation: Firing staff is the worst thing a management has to do. One way to avoid it is to appoint the right people in the first place. The problem is that neither the references tell you much nor are the interviews any real guide to future performance. The answer is to hire recruits for no more than six months initially. Lay out what you expect: if they are not doing it, tell them, well before the end, on how to improve. If they still can’t do it, at the end of the probation period, you can tell them that things have not worked out and you think they would be happier working elsewhere. Still not nice, but at least they know their score in advance.
Trust your team like adults: Most people want to do a good job. They do not come to work to rip you off. So trust them, judge them by their results and do not hover over them. If you find yourself micromanaging, then either you have the wrong people or you are the wrong manager. Depending on the answer, you or those who appointed you need to decide what to do about it!
Tell people what they have just told you: There is not a more powerful management tool than showing people that you have actually listened to them. The best way to not only show that you have paid attention, but to also make them believe in their ability, is to repeat their views back to them in good faith. This way, even if you decide to undertake a different course of action, they would still have the satisfaction of getting a good hearing. The same applies to conducting meetings. Once you have laid out the subject, let people talk. If you enjoy talking yourself, find a way not to. Lee Lacocca admitted that he used to write “SU” on his notepad, which stood for “shut up”. After views have been expressed, summarise the main strands of opinion for everyone. It will help you decide and, once again, it will help rally your team around you, including those who disagree with your proposed solutions.
Make your numbers: Whatever your quantitative objectives are, whether set by you, or by a superior, or by the board, make sure you aim to achieve them, whether they pertain to revenues, profit margin, or meeting a budget. None of the above lessons are worth a thing if the business itself does not succeed!
