It is imperative that business managers prioritize efficiency during these tumultuous times. There are so many uncertainties and challenges weighing down on business management and the economy.
The world is currently dealing with a global pandemic and extraordinary unemployment levels. Efficiency is crucial to optimizing your business. When revenues are slumping, your business has no choice but to do more with less.
An effective business model begins and ends with good management skills. Read on for ten key tips for great business management. Learn how to handle your staff and manage key resources.
1. Business Management and Remote Working
Implementing telework solutions for your employees is an important piece of the puzzle. Validation of large-scale remote operations is one positive to come out of the coronavirus pandemic. Due to government restrictions, companies had no choice but to allow their workforce to perform their duties from home.
Many old school business managers had misperceptions about telework. They falsely assumed that workers would be sitting on their couch in pajamas drinking a cocktail.
Instead, it turns out that remote workers are more productive than those in the office. In fact, studies show that remote workers are 13% more productive than their office counterparts.
There are other benefits to remote working beyond productivity. Your company can reduce operating expenses with fewer people in the office. You can utilize a smaller office space and decrease utility bills.
In addition, employees are more likely to report high levels of job satisfaction. They are saving time by eliminating their daily work preparation routine and their commute to the office. Also, employees’ expenses are reduced as they save money on fuel and meals.
Satisfied workers are naturally more loyal and productive. The evidence is clear that promoting remote working leads to efficiency gains. This is good business management when employees are more productive.
2. Promote Diversity and Inclusion
Creating a diverse and inclusive workforce is another effective way to improve performance. After a long, hard look in the mirror, many companies realized they built their organization around groupthink.
In these cases, a majority of workers fit into the same profile. They think alike and try to resolve problems in a similar fashion. While it sounds great to have everyone on the same page, there are negative outcomes that occur as a result.
Homogenous organizations have a difficult time improving performance. Certain challenges and issues stymie the company as they repeatedly try the same failed solution. The end result is stalled revenues and a company that cannot grow any further.
Promoting diversity and inclusion in your organization can take it to the next level. Studies show that companies with a diverse leadership team average 19% more revenue.
People who come from different backgrounds tend to think differently. They draw on life experiences that prove beneficial to problem-solving which helps improve business management.
It is also important that you create an inclusive work environment. This means that employees are treated equally regardless of their race, religion, or sexual orientation.
Employees that feel safe and respected are more likely to produce positive results. They are also more likely to be satisfied in the job and demonstrate loyalty to the company. Ultimately, this all leads to productivity gains for your organization.
3. Invest in Training or Use a Business Management Consultant
It is crucial that you invest time and resources in training your employees. This includes new employees as well as refresher training for your existing employees. Without training, your employees are unprepared to perform their duties.
The vast majority of people do not want to feel ineffective in their position. This leaves them unsatisfied in the job and they become more likely to resign.
Instead, a well-trained employee is going to be more productive. They will share or pass down the skills they have acquired to other employees within your organization. As a manager, you will have to determine how to deliver the best training program.
For some businesses, on-the-job training is sufficient. However, others bring in business management consultant to develop a more formal program. A third-party will assess training needs, develop a curriculum, and host a training course for all employees.
4. Assess the Climate
From time to time, you want to check in on your employees. How is the overall mood of the workforce? Are they satisfied or dissatisfied working for your company?
Many organizations perform a routine climate survey where they ask these questions. This is just the first step in the process. The next step is to turn the survey into action items.
Do you notice any recurring themes in the survey? Are employees frequently pointing out the same problem? You should relay this information to your employees via a company-wide briefing.
Let them know the survey results and what your plans are to correct issues. Your efforts are certain to have a positive impact on employee retention. Employees value managers that listen to their feedback and take action to correct it.
5. Performance Incentives Improve Business Management
The old adage “money talks” still rings true today. While remote working and training are effective ways to improve productivity, money remains one of the best motivators.
Many smart organizations are turning to performance pay which is different than a typical business management salary. This is a break from traditional salary and bonus structures.
Instead, managers are tying financial incentives to well-defined performance parameters. At the start of the year, the manager meets with their employees to set tangible objectives for the year.
For instance, consider a sales manager meeting with one of his or her associates. They review last year’s sales data and determine the employee was responsible for $500,000 in revenue.
To incentivize the employee, the manager sets a higher commission rate for sales above and beyond $500,000. The manager and sales associate agree to a tiered structure for each additional $50,000 in sales. The commission rate increases by 10% for each $50,000 increment above $500,000.
This is just one example of performance pay. As the manager, you can tailor performance pay in a variety of different ways. The point is straightforward in that your employees can earn more money by exceeding their normal productivity.
6. Wellness Initiatives
Promoting employee wellness is another way to make your organization more efficient. Wellness places a focus on your employees’ physical and mental health. The concept behind wellness is that healthy employees are more productive and efficient.
It is difficult for your employees to be productive if they are taking too many sick days off. Studies show that employees who are physically fit are more motivated as well.
Your organization can promote wellness by providing gym memberships to your employees. Another proven business management strategy is to provide access to mental health services.
7. Business Management Software
Industry leaders are turning to business management software and automation for efficiency gains. Automating recurring tasks is an effective way to accomplish things faster.
Some companies are using machine learning while others are more focused on artificial intelligence (AI). Machine learning and AI do not take days off.
This can even help your business process management tasks. Certain actions like setting up meetings or marketing emails can be automated to save time. You can divert human resources to more important tasks by relying on automation.
8. Eliminate Distractions
There are so many distractions in today’s digital age to curtail productivity. Some employees are checking social media during work hours on their smartphone or watch. Others are caught texting or taking personal calls during the day.
With business management, you have to find a fair balance. You do not want to create an overbearing environment where employees cannot check their phones. At the same time, you do not want people browsing Facebook all day.
Many organizations address distractions by publishing policies. Here, you can lay out the expectations for the workday. For example, some companies prohibit cell phone usage during meetings or while customers are present.
It is up to business management to identify distractions that are holding back the workforce. Then, you can address them on a case-by-case basis.
9. Broadcast Weekly Business Management Goals
Communication is key to reaching your company’s productivity goals. How will your employees know what to strive to without a clearly defined goal? Each Monday, start off the week by announcing the desired goal for the week.
This will help motivate employees to get the job done. Prior to setting a weekly goal, make sure to check the payroll calendar to see who is or is not working that week. If you set unrealistic goals, then your business management salary may take a hit.
10. Bring in Reinforcements
Sometimes you need reinforcements to reach your business management productivity goals. You may need additional equipment or human resources to help get the job done.
Key Tips for Great Business Management
Running a business is hard work. Far too many small businesses fail in the first couple of years after opening.
You can buck that trend with strong communication and surveying your workforce. Taking steps like eliminating distractions and incentivizing performance goes a long way.
If you are looking for funding options to improve business management, contact us today to speak with a specialist.