This Episode covers the two core components of business management: organization structure and people. About why it takes both art and science to manage a successful business. If you know and apply these concepts your business will be able to better handle changes in growth and in the economy. Plus, you’ll have an time tested approach to keep your employees productive.
- Includes the legal “type” of company, like LLC or C-Corp.
- The day-to-day work and tasks. That usually means how people work..
- the management and deployment of resources to accomplish the tasks. That usually means how deal with stuff like money, material, inventory, computers, etc..
- There is no “right” organization or business structure. Your company’s structure is a tool to reach your vision and goals.
- Organization structure is the “science” part.
- People is the second part of business management. It’s also the active part. People do things in your company: they build things, they talk to each other and customers, they mess things up, and they come up is brilliant ideas that you never would have thought of.
- The people part is an “art” part of business management.
Some tips on balancing the art and science of business management
- Your people need structure to blossom. Have clear roles and responsibilities for everyone, including yourself. Having good business processes helps reduce frustration. The art comes in determining how much flexibility and autonomy you allow the employees.
- People are not a piece of equipment to move around. Look at the individuals for their talent and skills, limitations, and motivations. Place people where they fit. The art comes in determining how much training and allowed career moves you allow.
- When delegating, have a hierarchy of decision making. Someone must have the authority to make the final decision in a certain area, that person who says “The buck stops here.” And you must tell everyone who that person is, who has that authority so they will follow. The art form is pre-determining what that final decision is in a certain area.
Keeping balance is tricky, like the balance between the hard-nose army captain giving explicit directions on what needs to be done and this is how is it going to be done, with the gentle, but firm sports coach looking at each player’s talents and skills to put them in a position that they and the business can win the championship.
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