MANAGE THE BUSINESS
WHY IT MATTERS
It doesn’t matter how good you are as a leader if you can’t lead the day-to-day operations of your business or organization and accomplish your overarching mandate. Leaders have to spend time being visionary, but they also have to be able to get into the nuts and bolts of moving the practical work of the organization forward on a daily basis. They have to be able to make the business side of their organization successful. Leaders who manage their business effectively get the results that are expected of them. Leaders who can’t manage their business will see every other leadership attribute they possess quickly become obsolete as they struggle to just keep the basic operations of the organization afloat.
WHAT IT LOOKS LIKE
Leaders who manage their business know it inside and out. They are the expert. They know how their business makes money. They know who their customers are and what they want. They know how to sell and market their goods. They know how to deliver their goods in the best way. They can which levers to pull to stay competitive.
Leaders that effectively manage their business are expert business planners. They don’t do anything without a plan. They have short and long-term plans for their business that explain in detail where they intend to go and how they intend to get there.
Leaders who manage their business understand how their various operations work together and the role that each plays. They know the value each component of their business delivers and how it interconnects to every other part of their business.
Leaders that manage the business understand they exist to deliver value to their stakeholders. They make their decisions based on what is best for the organization and not based on personal whims, individual preferences, or outside pressures.
Leaders that manage the business are conversant in and have some level of expertise in each area of their business. They know enough to give strategic direction. They understand product development, market research, technology, advertising and marketing, sales, human resources, accounting, finance, operations, etc.
Leaders that manage the business manage to an outlined budget. They keep a close tab on their finances. They know the current and future financial outlook for the organization and effectively manage their cash flow. They rely on financial data as a basis for making business decisions.
Leaders that manage the business pay attention to policies and regulations that come from government and regulatory agencies. They know who their competitors are and what they are doing. They know their industry and where the breakthroughs are happening.
Leaders that manage their business effectively are driven by efficiency. They provide systems and processes that give people a structure for what to do, when to do it, and how to do it. They get results because they organize themselves to get results.
BELIEFS
BEST PRACTICES
WORDS OF CAUTION
It doesn’t matter how good you are as a leader if you can’t lead the day-to-day operations of your business or organization and accomplish your overarching mandate. Leaders have to spend time being visionary, but they also have to be able to get into the nuts and bolts of moving the practical work of the organization forward on a daily basis. They have to be able to make the business side of their organization successful. Leaders who manage their business effectively get the results that are expected of them. Leaders who can’t manage their business will see every other leadership attribute they possess quickly become obsolete as they struggle to just keep the basic operations of the organization afloat.
WHAT IT LOOKS LIKE
Leaders who manage their business know it inside and out. They are the expert. They know how their business makes money. They know who their customers are and what they want. They know how to sell and market their goods. They know how to deliver their goods in the best way. They can which levers to pull to stay competitive.
Leaders that effectively manage their business are expert business planners. They don’t do anything without a plan. They have short and long-term plans for their business that explain in detail where they intend to go and how they intend to get there.
Leaders who manage their business understand how their various operations work together and the role that each plays. They know the value each component of their business delivers and how it interconnects to every other part of their business.
Leaders that manage the business understand they exist to deliver value to their stakeholders. They make their decisions based on what is best for the organization and not based on personal whims, individual preferences, or outside pressures.
Leaders that manage the business are conversant in and have some level of expertise in each area of their business. They know enough to give strategic direction. They understand product development, market research, technology, advertising and marketing, sales, human resources, accounting, finance, operations, etc.
Leaders that manage the business manage to an outlined budget. They keep a close tab on their finances. They know the current and future financial outlook for the organization and effectively manage their cash flow. They rely on financial data as a basis for making business decisions.
Leaders that manage the business pay attention to policies and regulations that come from government and regulatory agencies. They know who their competitors are and what they are doing. They know their industry and where the breakthroughs are happening.
Leaders that manage their business effectively are driven by efficiency. They provide systems and processes that give people a structure for what to do, when to do it, and how to do it. They get results because they organize themselves to get results.
BELIEFS
- You have to know what drives your business before you can ever know how to drive your business.
- You have to be the expert at knowing how your business makes money and delivers value.
- It doesn’t matter how good a leader is if they can’t manage the day-to-day operations of a business successfully.
- Businesses don’t manage themselves. They need a strong leader who is willing to get into the details of everyday management.
- A strong business leader can’t possibly be an expert in everything, but they must know something about everything.
- Managing the business means setting up systems and processes that allow others to drive the business in an organized way.
- Your job as the leader is to be able to clearly articulate where the business is going and know how to get it there.
- If you aren’t the one who knows the ins and outs of your business better than anyone else it is time to step and get more involved.
BEST PRACTICES
- Know the cost to operate your business.
- Manage the lifetime cycle of your customers.
- Implement technology effectively.
- Know your markets and how to tap into them.
- Create and follow a business plan.
- Design the processes that operate your business.
- Run a data-driven business.
- Know your competitors inside and out.
- Know who your customers are.
- Meet your financial goals and targets.
- Apply best practices to your work.
- Know the rules that govern your business.
- Know what makes your business work.
- Identify the value your business provides.
- Set, manage, and stick to your budgets.
- Differentiate yourself from your competition.
- Know how the business makes money.
- Track government and regulatory issues.
- Invest in new product development.
- Manage the day-to-day operations well.
- Optimize your use of resources.
- Understands your business economics.
- Do I know the particulars of my business better than anyone else, or do I think there is more I need to learn?
- Do I know exactly how my business makes money, or do I not understand the economics that drive my business?
- Do I have effective long and short-term plans for my business, or do I operate without an effective planning process?
- Do I know the different parts of my business and how they work together, or do I get confused with how things work?
- Do I have some level of expertise in every level of my business, or do I lack the knowledge to manage some parts effectively?
- Do I put in place processes to organize my business operations, or do I allow them to operate in a disorganized way
- Do I give people enough structure that they know what to do, when, and how, or do I fail to provide them clear direction?
- Do I manage the business in a way that gets consistent results, or do I fall short of what is expected of me?
WORDS OF CAUTION
- Don’t let your time managing the business keep you from other required leadership activities.
- Don’t manage the business in such detail that you actually micromanage others and do their jobs for them.
- Don’t be so comfortable with where business operations are today that you fail to plan for tomorrow.
- I am really good at the work I do.
- Knowing how to do my job comes easily to me.
- I am financially successful.
- I know what it costs for my business to make money.
- I create very accurate budgets.
- I am good at planning.