The following is a guest post from Zoe Talent Solutions.
Qualifying management and achieving better results are goals that are closer when the entrepreneur implements tried and tested methods. We are talking about business management techniques . Do you know which ones apply to your business?
Whatever the moment your company is, there is a specific management technique to qualify the performance and contribute to the achievement of your strategic planning. The manager must choose the one that most matches the defined objective. Learn the details of seven good options for your business. At Zoe talent solutions you will find best online management courses.
1. SWOT Analysis
When there is a need to define a competitive differential for the company or to propose actions that at the same time correct vulnerabilities and highlight potentialities , a very precise tool is SWOT Analysis , which in Portuguese is called FOFA, an acronym for Forces, Opportunities, Weaknesses and Threats.
Its application allows the manager to identify current positive and negative points and also to project a vision of the future, understanding what is a tendency. Basically, the conclusions of the analysis are obtained from four questions:
- Forces : What are the real strengths of the business?
- Weaknesses : What are the real weaknesses of the business?
- Opportunities : What are the opportunities for the business?
- Threats : What are the risks to the business?
2. Matrix BCG
Created by the American consultancy Boston Consulting Group, the BCG Matrix proposes to analyze the sales cycle of products and services, allowing to identify which generate better results with less effort.
When considering the growth rate and the participation of the product or service in the market, the method reaches four groups:
- Dairy cows : generate profit with time and money saving
- Stars : generate profit, but require large investments
- Question marks : do not generate great revenue, even with good investment
- Pineapples : they do not generate revenue, they only waste time and money.
By finding the appropriate rating for what it sells, the manager can monitor what happens to the product after the interrogation phase, which marks its launch. If you see a "pineapple", it probably deserves to be discontinued. If you become a "star", the goal is to reach a "dairy cow". As this movement is constant, the evaluation should be repeated periodically.
3. Balanced Scorecard
This management technique measures the company's performance , identifying the current alignment with its previously established strategic objectives. Its application can take place from the definition of indicators, which will analyze the results from four perspectives that are related:
- Learning and Growth: Team Skills Enhance Improvements and Innovations
- Internal Processes: When Qualified Are Reflected on Customer Satisfaction
- Customers: Satisfied customers contribute to better financial results
- Financial: a stable financial situation makes it possible to grow and invest.
The entrepreneur should compare the actions with the results obtained, identifying what was accomplished from what was planned. From there, you can draw a kind of strategic map for each area of the company, determining where to employ reinforcement of physical, financial and human resources to improve performance.
4. The 5 Porter Forces
Method proposed by the American thinker Michael Porter, is used to understand the competition and to outline a strategy to overcome it. It is based on five competitive forces:
- The rivalry with competitors : who are they and what are their competitive advantages
- The entry of new competitors : with what actions your company can discourage this movement
- The entry of new products : what goods or services can innovate as much or more than what it offers
- The bargaining power of suppliers : how to keep good partners without being dependent on them
- The power of customer negotiation : how to ensure that they do not migrate to the competition.
This analysis enables the manager to identify where the main threats to his business are and also where the best chances for adjustments that provide good results lie. It will provide subsidies for more aggressive actions, both in pricing policy and negotiation with suppliers and in creating presentation of new ideas.
Observe the competition, learn from it and propose a strategy to overcome it. This is the central idea of benchmarking , another of the techniques of business administration aimed at improving results and increasing competitiveness .
It is not about going to the market and finding the best practices to copy them, as this would not entail any differential for your business. The goal is to effectively compare what you have done in terms of products, services, methodologies and business tactics of what is done by rivals, absorbing good ideas and adapting them to your reality.
Benchmarking can be:
- Internal : looks inside the company itself, seeing what is done in an area that can be adapted to the other
- Competitive : the classic benchmarking comparison with the competition
- Functional : compares the work process, including with companies from other segments
- Cooperative : consists in the sharing of information between partner companies.
6. Business Model Canvas
Usually employed in the embryonic phase of a company, the Business Model Canvas (BMC) methodology can also be applied to evaluate and modify the business model .
It consists of a frame formed by nine blocks, which must be filled with stickers to bring ideas and allowing them to be moved. Because it is quite visual, it is expected to make it easier for the manager to plan the next steps.
The nine BMC blocks are:
- Value proposition : the competitive edge of your company
- Customer Segment : What your target audience and your needs
- Channels : by what means your customer will be served
- Relationship with customers : how this link will be built
- Revenue Sources : How Your Business Will Make Money
- Key Features : Creating Value for the Customer
- Main activities : what actions does the value proposition require for the business to function
- Key partners : which alliances should be established
- Cost structure : what costs and expenses are inherent to your business model.
7. Maslow's Pyramid
By closing our relationship with business management techniques, this tool helps you understand the timing of your employee and what he needs to work more motivated and focused on business goals.
The model, also called The Human Needs Theory , was developed by American psychologist Abraham Maslow. It starts from the idea that people have different needs, some more basic and priority than others. When you complete one, the motivation goes to the next.
From top to bottom (where the most pressing demands are), Maslow's Pyramid is divided into five phases :
- Personal Achievement
In order to apply the concept, the manager must carry out an in-depth analysis about his collaborator , aiming to position him in one of the areas of the pyramid. If he is not satisfied with his work day, this is a necessity that overcomes the desire for stability in employment, for example. It is important to remember that motivation is fundamental for an employee to be more productive.
Transform your business
This article has brought you seven management techniques that can be applied in your company. Obviously, many others exist, possibly also suited to your type of business. The tip we leave is to seek to learn more about these methodologies, to study their concepts and adequacy to their reality , because the results obtained can be really transformative.
"Every day is a new life to the wise man."
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