Management principles – You can’t Manage what you don’t Measure

Business Intelligence and Analytics

Business Intelligence and Analytics

 

Management and Measurement

You can’t manage what you don’t measure is an old management adage that has been used for many years and while most attribute it to Peter Drucker, some claim that the quote was first used by Dr. W. Edwards Deming, although it is a bone of contention whether or not the quote is used in the correct context.

Irrespective of who said it first, I have always agreed with the principle. Coming from a corporate background where this is one of the management principles often used, I was surprised to learn that there are those that strongly disagree with the statement. This group argues that there are many things being managed at work that aren’t measurable, from the confidence we instill in a new, young manager, to the quality of new hires.

The argument is made that quantity is easy to measure, i.e., how much salespeople sell, how many leads marketing creates, or how many phone calls telemarketing makes, but that quality can’t be measured, i.e., excellent customer service, good technical support, or what differentiates a good consultant from a great one.

What to measure

Many organizations use Key Performance Indicators (KPIs) at multiple levels to measure their success at reaching targets, and will then manage the factors influencing the KPI to get it to where they want it to be. A KPI is a value that is measured and shows how effective a company is in reaching key business goals.

Setting a KPI and measuring a specific value is however not always as straightforward as it might seem. To set a KPI, the underlying business objective needs to be properly understood. In one example, a department manager’s KPI included the volume of sales, measured in dollars. In an effort to improve sales, the manager decided to change the remuneration of her sales reps from a fixed salary to a small, basic salary plus commission on sales made. The idea behind this was to incentivize the work, which would lead to increased sales. In the early months after implementing the change, the sales made by account reps did indeed increase dramatically. The CFO then however discovered that the profit margin on those increased sales was substantially lower than the minimum the company expected. The sales reps were discounting the product to increase sales, resulting in a high commission, but the net effect was that the company made less profit.

It is critical that the company’s objectives are clearly understood by all parties and that a suitable metric is measured to check if the objective is being met.

Can quality be measured?

Those arguing that quality, such as excellent customer service, or good technical support can’t be measured, often express the view that the only way that a company can determine how good their service or support is, is by asking the customer. I agree with that statement, but when you do that, aren’t you measuring these aspects? If 50% of your customers feel that your service and support is good, that is a measure against which you can manage and improve those objectives.

The same can be done for any qualitative metric. It merely becomes a question of what is appropriate to measure, and how to obtain those metrics. Qualitative measures often have to be done indirectly, i.e., you need to measure indirect results rather than direct ones.

 The role of Business Intelligence

With the sheer volume of data available across the business, and with much of it residing in different systems, it becomes very difficult to extract the relevant metrics to measure and improve. This is where Business intelligence or BI comes in.

BI utilizes computer-based techniques to spot, extract, and analyze business data, including things like sales, marketing, and production in order to make substantial improvements. Business Intelligence uses data already collected in the business. It is able to utilize data from such diverse sources as website analytics, accounting systems, customer relationship management (CRM) and email management systems.

A Business Intelligence system can automatically use and analyze all the information from these applications in real-time. This enables companies to quickly see, manage and improve their performance. BI goes further than simply measuring performance so that it can be improved, but also helps identify weaknesses in the company.

When an organization grows to the point where huge volumes of data are involved, analytics are used to examine large and varied data sets to uncover correlations, hidden patterns, customer preferences and market trends; so, organizations can make more-informed business decisions.

Both BI and big data analytics can hugely benefit Organization & Planning within any business. If you have all this information, irrespective of how exactly it was obtained or measured, managing the direction you want to go becomes an informed decision that can be planned for, rather than a guessing game based on ‘gut feel.’

A crucial element that is required in today’s fast-moving world is an organization’s ability to respond rapidly to changes in both the external and internal environment. This is known as Business agility, and it is not possible to do if the business does not measure what is going on inside and around it, and then manages accordingly.

Related References

 

Business Communications

 

Business Communications

Business Communications

Business Communications

The word communication is derived from Latin word “Communis” (which intends to share). The essentialness of this word is typical or general.

Communication is the route toward exchanging examinations, messages, considerations, news, opinions, emotions and verbalization of things or information, as by talk, visuals, signs, forming, or lead. This exchange occurs between no less than two individuals. When one individual transmits or sends any information to another and he or she gets the information and ensured by input, is named as communication. Communication requires that the passing on parties share a scope of an openly shared trademark. The communication technique is done once the beneficiary has fathomed the message of the sender. It is the limit of mankind to pass on transversely finished obstructions and past limits that have presented the progress of humankind. It is the limit of developing quick and convincing communication around the world that has gotten the world and made “globalization” a reality. Communication had a principal part to play in ensuring that people having a place with a particular country or a culture or semantic social event collaborate with and relate to people having a place with various countries or culture or phonetic get-together. Communication adds hugeness to human life. It creates a relationship and develops love and appreciation. It enhances our knowledge into the universe and makes living advantageous.

Business is an association of exercises which are encouraged to lead the exchange and pass on the things to win benefit.

A business (for the most part called attempt or firm) is an association required in the exchanging of stock, associations, or both to consumers. When business related data’s are transmitted start with one individual then onto the accompanying individual, it is called business communication.

Such sorts of communication happen inside or remotely.

On the off chance that business arranged occasions, musings and feelings or exchanges are traded among the specialists, it is called business communication.

The term business communication is used for all messages that we send and get for an official reason for keeping up a business, managing an affiliation, driving the formal issues of a deliberate affiliation and so forth. Business communication is separated by custom as against individual and social communication.

The accomplishment of any business to a far reaching degree depends upon capable and effective communication. It occurs among business substances, in market and business focuses, inside affiliations and between the various social event of laborers, proprietors and delegates, buyers and sellers, expert associations and customers, bargains individuals and prospects and besides between people inside the affiliation and the press individuals. All such communication impacts business. Completed with the mind, such communication can propel business interests. Else, it will portray the relationship in poor light and may unfairly impact the business interest. Communication is the life blood of any affiliation and its standard explanation behind existing is to affect change to affect action. In any affiliation, the central issue is of keeping up reasonable communication process. The organization issue generally achieves poor communication. Real slip-ups are made because demands are misinterpreted. The basic issue in communication is that the significance which is truly grasped may not be what the other proposed to send. It must be comprehended that the speaker and the group of onlookers are two separate individuals having their own hindrances and number of things may happen to distort the message that goes between them. Right when people inside the affiliation talk with each other, it is inward communication. They do in that capacity to work as a gathering and comprehend the common targets. It could be honest to goodness or casual. Techniques for internal communication consolidate very close and created communication. Updates, reports, office orchestrate, round, fax, video conferencing, meeting et cetera are the instances of inside communication. Exactly when people in the affiliation talk with anyone outside the affiliation it is called external communication. These people may be clients or customers, dealers or wholesalers, media, government, general populace et cetera are the instances of external communication.

Tips and tricks for effective communication to consultants/ contractors or employees

Communication is something we do reflexively – like unwinding. We banter with our life accomplices, youngsters and partners without giving much thought to how we’re doing it. It might give off an impression of being basic, however passing on suitably truly takes a lot of slyness. Picking the right words, tuning in with our minds as opposed to just our ears, and passing on the coveted data are aptitudes that we, in general, need to manage. At home and in social settings, miscommunication can provoke conflicts. In the workplace, the repercussions can be fundamentally more bona fide. Poor unmotivated agents even claims can happen in light of communication breakdowns in the working environment. To upgrade communication inside your gathering and all through your entire association, you need to execute several basic yet basic changes to your corporate sanity and practice.

Use your word judiciously

Your delegates and customers are being flooded throughout the day, consistently by information, making it hard for them to hear you. Straightforwardness has never been all the more extraordinary or indispensable. Fruitful pioneers distil complex contemplations and frameworks into fundamental, basic terms that accomplices and customers can deal with and follow up on. In the event that you’re encountering trouble refining something to its essence, it may be that you don’t understand it. So get and pay extraordinary personality to specific dialect and business talk, which incorporate multifaceted nature. Say what you mean in as few words as would be judicious.

Find your own specific voice

Use lingo that is especially your own. Allow your qualities to come through in your correspondence. Consistently, heads will settle on the refined “corporate voice” as opposed to their own specific since they think the past is more influential; more appropriate. It is not really the case that correct accentuation and use of vernacular aren’t basic – strong pioneers know how to string a sentence together. Regardless, don’t concentrate on master verbalization; concentrate on being unmistakable and honest to goodness. People require certifiable. People respect certified. People take after bona fide. Make an effort not to veil your personality. Be legitimate, and people will respect you for it.

Be recognizable

Detectable quality is tied in with allowing your key accomplices to find your character and what you think about. It’s definitely not hard to seek shelter behind a PC and transmit messages to others without seeing or interfacing with them. Notwithstanding the way that e-correspondence fills a productive need, it is not a suitable option for versus and voice-to-voice correspondence.

Tune in with your eyes and furthermore your ears

Stop, look and tune in. Remember that fruitful correspondence is two-way. Incredible pioneers know how to posture extraordinary request, and a while later tune in with both their eyes and ears. It’s definitely not hard to be so revolved around getting your message out – or affecting others – that you don’t tune in to what you see and hear. Since you’re in a position of master, the stakes are considerably higher in light of the fact that you won’t by and large get prompt feedback. You need to locate some shrouded meaning. Tune in and hear what is returning at you. Scan for the nonverbal signs. Once in a while, a man’s non-verbal correspondence will tell all of you that you need to know.

Related References

 

 

What is TQM?

Acronyms, Abbreviations, Terms, And Definitions,totalquality, #totalquality, management, #management, quality, #quality, TQM, #TQM,

Acronyms, Abbreviations, Terms, And Definitions

 

What is TQM?

TQM means “Total Quality Management”.

What is Total Quality Management

Total Quality Management (TQM) is a management philosophy, which promotes total customer satisfaction through continuous improvement of products and processes, enabled by employee empowerment.

Leadership – The Management Imperative

Leadership And Management, The Management Imperative

Leadership And Management

 

The Management Imperative

Management’s imperative is to put useful data at the fingertips of its human capital on a timely basis and train them how to us such data.

Source

“The ROI of Human Capital: Measuring the Economic Value of Employee Performance” by Jac Fitz-enz, 2000, Page 6, ISBN 0-8144-0574-6

 

Related References

 

Leadership – Success Characteristics in Decisive Situations

Leadership And Management

Leadership And Management

Key Success Characteristics in Decisive Situations

For leaders and managers two key behaviors of success are:

  • Pay great attention to relevant details
  • Concentrate on skillful, timely, and accurate communications

Source

The Way of the Warrior: Business Tactics and Techniques from History’s Twelve Greatest Generals, St. Martin’s Griffin, 1998. ISBN 0-312-19535-4, James F. Dunnigan And Daniel Masterson

Related References

The Dynamics of Power – What is Power?

Power, What is Power

Power

First and foremost, power is personal.  Our perception of a situation has much to do with our ability to affect a situation.  Therefore, power is each person’s ability to influence a situation.   When a person has no ability to influence their situation (even, if as a result of an inaccurate personal belief), they have no power.

Definition of Power

Power is each person’s ability and willingness to influence a situation.

Related Reference

 

 

 

The Dynamics of Power – The Law of Power

Power, The Dynamics of Power, The Law of Power

Power

The Law

The fundamental law of power is that it is situational, multifaceted, dynamic, and perishable.

 

Power is Situational

Power is without a doubt situational, a person who is very politically powerful, but having no wilderness knowledge or skills, find themselves alone in the middle will have less ability to save themselves, than an experience woodsmen.

Power is Multifaceted

Power has many attributes (social influence, mental reference, innate ability, and situation), which aggregate to provide the total of your power at in given time and in any given situation

Power is Dynamic

As a person’s situation changes, their ability to influence the situation can be increased, decreased, and/or lost.  Also, facets of power are not static, but are morphed by change

Power is Perishable

A person can, through in action, lose the ability to influence a situation forever.

Related References