Introduction: In this article we open the topic of effectiveness. Effectiveness is related to process, capability and capacity to do or take action – risk aversion is keyas it can cripple a business from moving forward. An effective plan and approach leads to allowing leaders to take on tasks within a great risk framework in which they can feel comfortable to take action.
A winning business learns by continuous analysis of both the wins and the losses. Taking immediate and positive action to get back to plan is key to success. A continual process of improvement and measurement of your activities and results is essential. Improvements should be reviewed on a regular basis. The process of continuous improvement can be summarised as:
- Do something (acquire business, perform a business function etc.);
- Check the result of the activity (was it successful?);
- Plan the next activity with your learning’s from this result;
- Perform the adjusted business function; and
- Repeat the process over and over.
This improvement process can be applied to practical aspects of a team, people growth and organisational design. Our consultants help you steer your way to be on track and they will mentor and coach a way out of the fog of battle
I. Risk Management and Leadership is About Knowing when and how…
Despite the billions of dollars spent every year on strategy formulation, only about 10% of business strategies are carried through to successful implementation. This means that execution, not strategy, is the key management competency, and that a systematic approach to managing projects and programs is at the heart of any effective execution process.
The Business Worm – Business is a fickle friend. Just when you thought you knew what you were doing someone changes the rules – stay flexible.
- Develop an action plan and stick to it! Keep focus. Do not get distracted. Steer the course and watch for navigational hazards and deal with them … always get back on track.
- Concentrate on your voice control and volume to improve your professional impact. Set up a skype number or a voice mail. Call it and listen to what it is saying and how it sounds. Do telephone rehearsals with all your team. Make sure they sound professional on the phone.
- Be professional in your customers eyes at all times. As soon as you relax you lose the sale and respect.
- Work backwards. Start off with how much you want to earn and then work out how much activity that you will need.
- Maybe go out and get yourself a nice and expensive suite or dress … worse case you’ll feel better!
II. Management and Leadership is About EXECUTION
If you want to know where an organisation will be in two years, don’t listen to what they say, but look at what they are currently doing. It is the set of programs, projects and activities that they have currently invested the scarce resources of time, money, energy and attention in that are most revealing of their future direction.
There are six key activities that could be vital for effective program and project management:
- Ideation: clearly communicate purpose and intent
- Nature: Align strategy, culture and structure
- Vision: define clear goals and metrics
- Engagement: do the right projects at the right time
- Synthesis: harmonise individual projects with the overall portfolio
- Transition: make sure the fruits of projects become part of mainstream operations
Balancing a focus on execution with other key leadership tasks like articulating a compelling vision is a challenge for any CEO
III. Useful Financial Ratios
Gross Profit Margin (also known as Gross Margin)
It is the difference between the sales and the production costs excluding Overhead, payroll, taxation and investment payments. It can be defined as the Amount of contribution to the business enterprise after paying for direct-fixed and Direct – variable unit costs, required to cover overheads (fixed commitments) and Provide a buffer for unknown items. It expresses the relationship between gross Profit and sales revenue.
IV. The Quantum of Business
- Business is a variable and ever changing environment that challenges all players in its inevitable appearance of chaos. It wasn’t until the arrival of the new age of science that people started to become more philosophical about the world. It has now been reduced to simple parts which imply that business is a beast that operates in exactly the same way.
- The universe desires you have everything you want to have: Nature is friendly to your plans. Everything is naturally for you … we just don’t believe it; we don’t have faith or the vision to pick up the ball and run with it.
- It is essential that your purpose should harmonise with the purpose that is held by all the team
- The energy of the business is a balance and to drop one thing without knowing the dependencies is business suicide.
V. Bottom-Line Negotiation Strategy # 3
- NEVER under estimate your power in negotiations. When people underestimate their power, they fail to take risks.
- Ask probing questions that will position your straight forwardness.
- Make sure you know the strength of your power and be confident in your communication – do business not “um“, “Aaaargh…” or “but“.
Sales edge group can get you ready for any battle, our training and mentoring programs are second to none.
We can get you organisation into a frame of mind that will have your competitor’s running for the hills.