Most of what we call management consists of making it difficult for people to get their work done.
Peter F. Drucker
Because few of us have had bosses who were trained managers, and because few of us have received specialized training in management, we tend to think management is some kind of gut-feel thing. In fact, there is much that is known about management as it has been defined, studied, and systematically improved over the past century. Management is endlessly fascinating and, at the same time, it is not rocket science. For our mutual benefit, and so we have a shorthand way of understanding what we’re talking about when we say “management,” here it is on one page. Again, thanks and props to Mr. Drucker.
ROLE OF BUSINESS
To create a customer.
ROLE OF PROFIT
To serve as validation that customer needs are being met.
ROLE OF THE EXECUTIVE/LEADER
To know the Purpose, Vision, and Values of an organization and to constantly communicate them.
ROLE OF THE MANAGER
To make our work productive and to help workers achieve results.
There is a lot of study and discussion about how our memory works. Authors such as Malcolm Gladwell and Daniel Kahneman talk about the concept of “The availability heuristic.” Availability describes what’s happening when, “Something just ‘pops’ into our heads.” In the hustle-bustle of daily management, how we respond to (or lead) a situation is often determined by what pops into our heads. The results can be pretty random. Instead, I ask you to train your memory until the following model of how business works pops into your head. That will help you put things into perspective, help you lead for results, and solve situations in more effective ways. For every business situation you face it’s far better to rely on this model than to just wing it.
HOW BUSINESS “WORKS”
- There is a customer need.
- There is a better idea to satisfy the customer need.
- Values, Purpose, and Vision concentrate the effort of multiple people.
- An organization is formed to divide the work.
- Each job is described so its contribution is clear.
- People who share in the Values, Purpose, and Vision are hired.
- Employees use self-control and contribution to guide the work they do and how they do it.
- Customers are satisfied.
- The business earns revenue, and eventually profit, as validation of its success.
- The business shares their monetary and other success with employees.
- The business invests so that meeting customer needs can continue.