Each of these seven management practices consistently applied is how a business positions itself to generate predictable cash flow from higher profits.
Neglected or unskilled handling of the core seven areas of effective business management robs a business of cash reserves in the bank because profit generation is erratic. Often, this happens because the work of management is not being done adequately. A mismanaged business never has control over cash and is typically inefficient in its use of resources, resulting in profit losses.
Overview
Managing a business is a never-ending job and a continually evolving process. It requires the constant application of seven foundational management areas of competency. As a result, the work of management is never “finally” completed. This is why continuous follow-through is critical to your personal and business success. The consistent application of each of the following seven management practices positions your business to generate predictable cash flow from higher profits:
- Determine where you are: This is your starting point = Assessment
- Establish goals and objectives. These define what your desired destination looks like = Strategy
- Make a plan to attain your goals and objectives. This plan directs the course you’ll follow to reach your desired destination = Plan
- Allocate and organize your resources. This is how you position the business to succeed = Organize
- Make it ALL happen through leadership. You must direct these organized resources to achieve the goal = Lead
- Make sure it’s happening as planned and measure the results of your efforts concerning your goals = Control
- Recognize, express appreciation, and reward those responsible for contributing the most toward your progress = Reward
Neglected or unskilled handling of any of the above seven areas of effective business management reduces individual and organizational effectiveness. Often, this happens because the work of management is not being done adequately. As a result, a mismanaged business will lose control over cash and be inefficient in its use of resources, resulting in profit losses.
