Responding to Challenge #1:
Strategic Leadership & Management Effectiveness
Keep your Balance
It is easy for owner-managers to get pre-occupied by the daily demands for attention – chasing opportunities, resolving customer complaints, managing employee performance, satisfying business partners, governments and the bank. Stepping back to look at the big picture and assessing performance against the original strategic plan is easily neglected.
That remains the entrepreneur’s No.1 Challenge: balancing the need for strategic leadership with the demands for operational effectiveness.
Too busy fighting fires to work on fire prevention?
To succeed in building a long-term sustainable business, it is essential that owner-managers find the appropriate balance in applying time, effort and resources to both strategic leadership and operations management.
Two issues, three steps to success
My approach to managing that balance is to apply the same three steps to each issue.
Strategic Leadership
1. Assess performance
Continuously assess market conditions, customer feedback and the competitive landscape. Check that your intended strategic positioning, branding and corporate culture are in line with current customer and employee perceptions. Confirm that you are correctly matching your strategic and competitive advantage to market opportunities
2. Revise the plan
Review and revise, if necessary, your strategy, concept and business model. Update your Business Plan and marketing communications strategy.
3. Make improvements
Launch the new plan internally and provide strategic direction and support to the management team. Prepare new marketing communications and sales tools and take them to market.
Management Effectiveness
1. Assess performance
Regularly assess operating and financial performance by monitoring key indicators against your plan, industry averages and the best performers in your business.Survey employees and customers for satisfaction levels and feedback on areas for improvement. Maintain current and effective employee performance reviews for management and staff.
2. Revise the plan
Identify deficiencies and set new objectives for performance improvements. Update the Business Plan and internal performance objectives for management and staff.
3. Make improvements
Define and develop improvement projects and provide necessary management support and resources to achieve the objectives.
A simple process, but not easy. Achieving balance in managing business strategy and effective operations is still a challenge.
But worth continuous attention.
Your Uncle Ralph, Del Chatterson
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