I really like the concept of vital factors or key result areas in business. To be really effective in business, management, or sales, you need to know what factors you’re being evaluated by. Then, and only then can you know how you’re performing and what you need to improve.
Brian Tracy identifies, but does not describe, the seven key result areas in management. He describes them as “similar to the vital functions of the body, such as those indicated by blood pressure, heart rate, respiratory rate, brain-wave activity etc. An absence of any one of these vital functions leads to the death of the organism. By the same token, your failure to perform in a critical result area of your work can lead to the end of your job as well.”
Too many business owners mistakenly assume that hiring or promoting the best employees will automatically make their work easier. The truth is, the way you manage your people and projects makes all the difference.
When you’re working with a group, however big or small, effective management is key. Coordinating resources in an organized way is an important element of your productivity and success.
The concept of management isn’t as daunting as it might sound.
There are just seven key results areas that you need to focus on:
1. Planning. Before you start, list everything you need to do. Not only will this save time and improve efficiency, but it’s also probably the most important driver of productivity and success. Every minute spent in planning—both short and long-term—saves as many as 10 minutes in implementation. Planning helps managers and business owners define their goals and create an action plan for optimal performance and results.
2. Organizing. As your business expands, tasks become more complex, and more people get involved. To ensure that everyone performs efficiently and effectively, list and analyze your processes with an objective eye, organize your team’s efforts, and eliminate clutter and redundancies.
3. Staffing. Recruitment is an essential initiative for any growing business. Any business owner or manager must approach the hiring process seriously and strategically. What do I mean by that? Don’t focus only on identifying great people—instead, target people who are well-suited for the job. Clearly identify your requirements, attract high-quality candidates, thoroughly assess them, and select only those with the experience and capability to carry out the job.
4. Delegating. This may seem like an easy task – but the challenge is determining which tasks to delegate. This is critical. You don’t want to assign a task to a person who isn’t qualified—but a possible job mismatch isn’t the only risk. Many business owners become exhausted and unhappy because they don’t know the right way to delegate their own tasks. Reduce stress by delegating your low-value tasks so you can focus on more important ones.
5. Supervising. Spend enough time with your staff to give them constructive feedback and positive direction. As a manager, nothing is more important to your employees than your time and guidance. Provide training and coaching so you can help your staff perform at a higher level.
6. Measuring. Make time to set standards and measure results. The only way to determine if your team is performing well is to measure and analyze. Record your sales and output on a regular basis. Evaluate your performance based on quantity and quality, and how your team contributes to the overall success of your business.
7. Reporting. Improve accountability by requiring team members to submit reports on their individual contributions and overall performance in certain measurable areas. This will provide a basis for analyzing results, motivating people to perform better, furthering efficiency, and productivity!
With your business rapidly growing, effective management becomes a critical factor in your success. Fortunately, management skills CAN be learned and perfected, with the help of management tools and strategies. Here at The Goldhill Group, we have the resources to help you become a better business owner and team manager. Request your FREE Profit Strategy Session, and learn from our expert coach. Click HERE to schedule your appointment.