Friday, May 9, 2008
Thursday, May 1, 2008
What what is the Problem
Years ago an individual came into my office seeking a management position within my company. During our inventerview I asked him about his background and things he had done in the past. As he was young, his resume was short. He had however, started a food stand at a local mall.
I was impressed by his courage. I asked him how it went, what had happened? His answer was a reasonable answer but uncovered a common misunderstanding about the role of management. For all intents and purposes the interview was over. He did not understand his role as manager of his own company, how could he understand his role as manager of part of my company.
He explained that the main problem in opening his food stand was that he was undercapitalized and therefore it struggled and eventually he had to close it. Being undercapitalized can handicap any business, and businesses do fail for the lack of capital. But being undercapitalized was not the problem, it was only the scapegoat. The problem that his small food stand had was lack of management. It was managements responsiblity to know how much capital would be required to successfully run the food stand. Blaming the problem on being undercapitalized indicated to me that he did not understand how to be a manager.
So many people tell me that they want to go into management, because they like people or that they are good with people. I want to throw up. What they see is that managers don't do any work, but they just talk to people. That managements role is to manage people. Managements role is to manage everything.
If there is a problem, you can be certain that it is a managment problem.
Are there not enough customers? Its managements problem. Their marketing plan is insufficient, or they are in too small a market. Perhaps they have hired incompetent sales people.
Are profits low or costs too high? This is a management problem. What is management doing to control costs or raise prices or increase value to the customer so that prices can be raised? Who has management hired to solve these problems.
It is said that a fish rots from the head down. In every case, regardless of how small or insignificant any business that is struggling with low profits, high employee turnover, declining sales, the problem is always the same: Its a management problem. The answer is always the same also. MANAGEMENT, GET IN THERE AND FIX THE PROBLEM.
I was impressed by his courage. I asked him how it went, what had happened? His answer was a reasonable answer but uncovered a common misunderstanding about the role of management. For all intents and purposes the interview was over. He did not understand his role as manager of his own company, how could he understand his role as manager of part of my company.
He explained that the main problem in opening his food stand was that he was undercapitalized and therefore it struggled and eventually he had to close it. Being undercapitalized can handicap any business, and businesses do fail for the lack of capital. But being undercapitalized was not the problem, it was only the scapegoat. The problem that his small food stand had was lack of management. It was managements responsiblity to know how much capital would be required to successfully run the food stand. Blaming the problem on being undercapitalized indicated to me that he did not understand how to be a manager.
So many people tell me that they want to go into management, because they like people or that they are good with people. I want to throw up. What they see is that managers don't do any work, but they just talk to people. That managements role is to manage people. Managements role is to manage everything.
If there is a problem, you can be certain that it is a managment problem.
Are there not enough customers? Its managements problem. Their marketing plan is insufficient, or they are in too small a market. Perhaps they have hired incompetent sales people.
Are profits low or costs too high? This is a management problem. What is management doing to control costs or raise prices or increase value to the customer so that prices can be raised? Who has management hired to solve these problems.
It is said that a fish rots from the head down. In every case, regardless of how small or insignificant any business that is struggling with low profits, high employee turnover, declining sales, the problem is always the same: Its a management problem. The answer is always the same also. MANAGEMENT, GET IN THERE AND FIX THE PROBLEM.
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