Business consultants are always eager to offer up advice about what business owners should do, and what they should avoid doing. The short and sweet of it is this: Business owners should always stay actively engaged in the day-to-day operations of their enterprise.
It’s less about management style and more about engagement. Business leadership spans the full spectrum including a laissez-faire approach through autocratic management styles. Depending on the nature of business operations, one may be more conducive to productivity than another, although this is not ironclad.
In management school, they teach that planning, organizing, leading, and controlling (POLC) are the core tenets of effective business management. In fact, the world’s foremost experts in management, the erstwhile Peter Drucker among them provided valuable insights into management practices which have stood the test of time.
To become the crème de la crème in an industry, or a sector requires hard work. This invariably necessitates detailed record keeping, and close analysis of the competition. Beyond data, business owners must venture into the great unknown. This is where risk aversion or risk-seeking behavior plays a big part in business strategy.
Nowadays, businesses operate in a dynamic global system. The Internet of things has paved the way for lightspeed communications, instant transactions processing, and allowed businesses to operate in an integrated global community at the click of a button. With so much opportunity and so much competition, it is possible to lose sight of the basics of business management.
In hindsight, everything is 20/20; that much is always true. One of the leading authorities in the modern-day management arena is Russel Ruffino. His company, Clients on Demand, became a star performer on Inc Magazine’s top 500 fastest-growing companies when it landed a #186 berth. Russell Ruffino recently offered valuable advice on what he did wrong with his company, in the hopes of helping fellow business owners and leaders not to repeat his mistakes.
Motivation and profitability: Cause and Effect
His biggest error was adopting a hands-off approach to daily business activity and allowing automation to rule the roost. The risks inherent in allowing a business to run in autopilot run deep. For starters, it immediately disengages the business owner from the day-to-day operations of the enterprise. This means that daily tasks, activities, and tactical decision-making are vanquished from a business owner’s daily activities.
This has an immediate impact on employee motivation levels, which translates into lower productivity and greater drag. Motivation is more than a psychological phenomenon which impacts employees emotionally. It has real effects on profitability, performance, and energy levels. A motivated employee is a goal-oriented employee which ultimately results in a profitable employee. The converse also holds true.
Human intervention, interaction, and engagement goes a long way towards motivating employees. Automation certainly has its part to play in business profitability but being present is infinitely more valuable. A business owner who is in tune with the day-to-day operations, activities, and discourse is naturally better positioned for success. It goes to the heart of problem-solving abilities, since it guarantees a high level of understanding of business operations.
Establishing a Business Presence, or Simply Being Present?
Establishing a business presence is an important part of positioning a business entity for success. It requires a business and all its assets to receive all the nurturing and growth-oriented investments needed to compete with the best of them. However, this is impossible without being present. Being there, rolling up your sleeves, and getting involved in your business is a conscious activity. It requires effort, commitment, and consistency. It’s important to start each day with as much vigor and determination as possible.
Yesterday’s mistakes are only irrelevant if they are not repeated today. Mistakes provide valuable learning opportunities for growth, enrichment, and development. Motivating staff to get things done is arguably the most difficult challenge for companies. The collective capabilities of a motivated group are infinitely greater than the sum of their individual components. To this effect, business professionals like Ruffino stress improved business interactions with all stakeholders. The mistakes of the past can serve as a blueprint for the future.