06 Mar Improve Your Management System
PROVIDE LEADERSHIP DIRECTION
Leadership shapes the character of an organization, for better or worse. As William Penn expressed it, “Governments like clocks go from the motion men gave them; and as governments are made by men, so by them they are ruined too. Therefore governments rather depend upon men, then men upon governments.”
Business organizations also go from the motion leaders give them and therefore depend upon leaders to give them the right motion and to keep them moving in the right direction.
STOP HUMAN DRIFT
All of human history proves that man’s basic nature is to drift in the wrong direction. The cause of man’s natural tendency to drift stems from the heart. It’s been written, “The heart is deceitful above all things…who can understand it?” (Jeremiah 17:9). America’s founding fathers recognized man’s propensity towards wrong-doing. Thomas Jefferson said, “In questions of power, then let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.”
The Constitution is indeed a noble attempt to influence and produce virtuous human behavior in order to preserve truth, freedom and liberty as one nation under God. Business organizations can effectively prevent human drift by implementing behavioral standards to create a safe and productive work environment that will ensure good success and prosperity.
ESTABLISH ACCOUNTABILITY STRUCTURE
The cause of most organizational problems is a lack of accountability. As organizations go about their daily activities, leaders should be equipped and capable of facilitating and enforcing workplace standards of accountability. To the trained eye, even a short tour through a business site can reveal a great deal about its accountability structure, which is also sometimes described as company culture.
Great leaders set clear expectations and facilitate success in a way that brings out the best in people. Leadership roles and responsibilities can be greatly simplified when people operate within an effective accountability structure. Accountability structures are an integral part of the overall management system.
An organization chart is made complete when accountability structure is added to it, but without doing so an organization chart is a rather useless productivity tool. Dr Juran, often called the ‘father’ of quality, created the Pareto principle. He helped managers separate the ‘vital few’ from the ‘useful many’ in their work activities. The vital few, from a customer perspective, should be the focus of every business leader and organization. Every member of the organization should also focus on their vital few as part of their individual accountability structure.
INSIST ON IMPROVING YOUR MANAGEMENT SYSTEM
Accountability structure is an inextricable component of an interdependent management system that prioritizes using the 80/20 Principle (Pareto law) in every aspect of the business in order to generate the most money with the least expenditure of assets and effort.
The 80/20 Principle is woefully underexploited in business. According to Richard Koch, 80/20 Principle extraordinaire, “The 80/20 Principle can help chief executives, line managers, functional specialists, and any knowledge worker, down to the lowest level or the newest trainee.”
A weak management system lacks absolutes. That can lead to shoddy workmanship, late deliveries, questionable quality, routine disruptions, thievery and all kinds of business issues.
For the purpose of helping business owners and managers take control of their business, our company created the 80/20L™ Management System using the 80/20 Principle. It is based on nearly 40 years of extensive trial-and-error and it provides the knowledge and know-how necessary to successfully operate in any business from start-up to succession.
This book is dedicated to its readers. It is designed to stir the heart, inspire the mind and help business leaders and their people achieve far greater levels of success and happiness in business and in life.
Josef Steinbdl said, “For a very long time, the Pareto law (80/20 Principle) has lumbered the economic scene like an erratic block on the landscape; an empirical law which nobody can explain.”
Reading this book and applying its truth will lead you to discover and explain this empirical law. A leader’s ultimate goal is to help people go to a higher level and reach their potential. It is my hope that this book will serve and support your business one week at a time.