Lesson 5: Management Tools

Leading As A Manager

In the current climate of complex and rapid organizational change, strong management and leadership are essential. While good management, as traditionally defined, remains crucial to daily operations, it is insufficient for advancing an organization towards its vision. Historical managerial education has emphasized goal-setting, planning, employee motivation, and coaching. While these practices are valuable, they do not equip managers with the skills needed to lead organizational change.

According to research, the results of the recently revealed 2013 survey show that the world’s top five management tools are:

• Strategic Planning
• Customer Relationship Management
• Employee Engagement Surveys
• Benchmarking
• Balanced Scorecard

It’s not unexpected to encounter strategic planning on the list of important business practices. Even in times of favorable economic conditions, ensuring that resources and effort are focused on the most critical aspects is crucial. In times of hardship, companies cannot afford to expend time and capital on non-essential activities that don’t contribute to their overall objectives. While strategic planning has improved in many organizations, execution has not. Research indicates that only 10% of well-formulated strategies are adequately executed. In my experience, this frequently derives from insufficient communication of the strategy, typified by unclear mission and vision statements.

Including the Balanced Scorecard as one of the top 5 tools is particularly beneficial if strategy execution poses a challenge. In fact, it ranks as the most commonly used tool in Europe, Middle East, and Africa. The Balanced Scorecard takes the outcome from strategic planning and transforms it into achievable objectives. It helps companies execute their strategy by (1) designing a concise one-page strategy map that outlines critical strategic objectives, (2) tracking strategy execution with appropriate and relevant Key Performance Indicators, and (3) ensuring that the correct action plans are in place to achieve strategic priorities. Some may argue that the Balanced Scorecard serves as a natural progression from strategic planning to ensure successful implementation. Especially in difficult economic landscapes, businesses must monitor and verify that essential activities are being accomplished appropriately.

When paired with the Balanced Scorecard, benchmarking becomes an invaluable tool. Key Performance Indicators can only furnish valuable insights when compared to established targets and benchmarks. Benchmarks can either be derived from intra-organizational comparisons of departments and business units or can be obtained through industry research or best-practice studies. This approach is particularly crucial in light of the current financial challenges faced by many companies, as organizations must ensure they remain competitive and at par with their rivals. Incorporating performance goals and targets based on benchmarking across departments and positions can give workers a competitive edge and enhance overall productivity.

Businesses today are increasingly adopting Customer Relationship Management (CRM) systems to boost customer loyalty, leverage cross-selling prospects, and improve customer profitability. Most companies are aware that retaining current customers is more cost-effective than acquiring new ones. Insights and data derived from CRM systems aid in identifying opportunities for up-selling and cross-selling. Many companies will implement CRM programs to gain insights into forecasted customer trends and customer lifetime value. Such information is incredibly useful and can be integrated into the customer perspective component of the Balanced Scorecard.

Employee Engagement Surveys have finally made it to the top 5 management tools list, and for good reason. Employees remain an organization’s most valuable assets, frequently coming with high costs. The ongoing war for top talent across the globe makes employee retention a crucial priority for all companies. Recruiting and training new talent can be just as expensive. As we know, engaged employees tend to be more loyal and productive, boosting productivity in a highly competitive global economy. The data gleaned from employee engagement surveys can provide valuable insights and feed into the people perspective aspect of the Balanced Scorecard, just as customer data does.

Coaching

Coaching is a valuable tool for improving skills, abilities, and performance while addressing issues before they escalate. Typically, coaching takes the form of a conversation between the coach and the coachee, allowing the coachee to arrive at their own answers. This approach increases engagement with solutions since individuals are more likely to embrace solutions arising from their own ideas. While some organizations still view coaching only as a corrective measure, most view it as a positive and proven approach to support others in their goals and ambitions.

Coaches in the workplace differ from counsellors, psychotherapists, trainers, and consultants, but may use similar skills and tools. Professional coaching is typically conducted by qualified experts working with clients to enhance their performance and potential. Coaches can be recruited by coachees or organizations, and clarity regarding the purpose and desired results of the coaching ensures best outcomes.

However, managers and organizational leaders can be just as effective as external coaches, without requiring formal coaching training. As long as they remain within their skillset and use a structured approach, they can add value by cultivating skills and capabilities.

Delegating

Delegating involves assigning tasks, responsibilities, and decision-making authority to others on a team, thereby allowing leaders to concentrate on higher-value activities. This focused approach distributes work based on team member skills, abilities, and talents, while engaging and developing them and promoting autonomy.

The Importance of Delegating

• Productivity Boost: Delegation allocates tasks to team members efficiently, enhancing productivity as individuals work in areas of expertise, ensuring high-quality results, and short turnarounds.
• Skill Development: Delegation enables skill growth and professional development, providing openings for team members to expand their skill set, gain exposure and accomplish personal career objectives.
• Team Empowerment: By delegating tasks, team members are given oversight and decision-making control, which in turn promotes a sense of ownership and engagement, leading to higher job satisfaction and boosting overall team morale.
• Time Management: Effective delegation allows leaders to manage their time efficiently by allocating tasks appropriately to skilled individuals, reducing distractions, focusing on high-level initiatives, critical decision-making, and leadership responsibilities.

Delegating tasks based on skills, abilities, and talents brings several benefits such as improved efficiency, better decision-making, and effective time management. When team members can concentrate on tasks that align with their strengths, they produce higher quality output and increase their productivity.

Guidelines for effective delegation include clearly defining tasks and expected results, matching skills and expertise to the task, and providing adequate support to ensure success.

However, the challenges of delegation include finding the right balance between trust and control, clear communication, and avoiding delegation overload that leads to burnout or reduced performance. In a 2013 survey led by Stanford University, over 35% of executives responded that they need to improve their delegation skills. Effective delegation is crucial for any organization.

Planning goal setting

Goals are long-term measurable outcomes that significantly impact business value and performance. They should be broad and focused on big moments or metrics. To determine what goals to set, ask three questions:

1. Will this initiative start something new?
2. Will this goal improve something existing?
3. Will this target reinvent something for the better?

The act of setting goals actually helps people to follow them through to fruition. Sure, you can say something out loud or have a discussion with your manager about what you want to achieve, but unless you actually put it down on paper, your goals are likely to fall through the cracks.

To create a team that operates cohesively and shares a clear vision of the future, goal setting must be a tool in your arsenal. Exceptional teams understand the importance of goal setting, which helps to achieve long-term success for both individuals and the collective.

Top-down goal setting is beneficial as it:

• Provides employees with shared objectives, allowing them to concentrate on what’s essential for the team and the company.
• Decreases unnecessary stress and distractions, enabling them to be more productive in less time.
• Clearly defines team members’ roles and responsibilities, increasing job satisfaction.
• Boosts confidence, morale, and overall employee engagement when objectives are accomplished.

Motivating employees

Motivation is the drive to achieve your goals or needs. It is influenced by several factors like desire, gain, loss, and personal expectations. For many people, there is usually something they would like to modify in their lives, but it can be difficult to muster the motivation necessary to begin. Understanding what motivates you can assist you in finding approaches to get motivated.

Motivation is vital because it:

• Gives you targets to strive for;
• Helps you tackle difficulties and find solutions;
• Enables you to break old practices;
• Helps you deal with challenges and opportunities.

To motivate and inspire your team, it’s crucial that they understand the direction you’re trying to take the business in. Ensure that your vision and ultimate business objectives are clear to your employees. This helps to encourage cooperation across the team and improves outcomes. It’s also important to regularly establish specific, measurable goals that align with your vision so you and your team can track progress and measure achievement. Fostering alignment within and between teams stimulates productivity and can provide your employees with a sense of value and motivation.

Journal Entry Evaluation Rubric