Renowned business consultant and modern management guru Ram Charan illustrates how strategies for improving business performance management is a challenge that is becoming increasingly relevant to companies that want to achieve higher performance.
Creating a great strategy is easy; The difficult thing is putting it into practice.
Failures of leaders are rarely due to their lack of vision or intelligence. The problem is that they fail to execute. - Ram Charan Click To Tweet
Charan, along with Geoffrey Colvin, coauthors of an article that was published in 1999.
Here are five strategies for improving business performance management and getting projects done, suggested by Charan.
Improving Business Performance Management: According to Ram Charan
When it comes to improving business performance management, attention usually turns to Ram Charan.
But what exactly does he preach that makes so much sense to various business leaders?
Initially we can distinguish 3 pillars: Discipline, leadership and organizational culture.
- Discipline, to put into practice what was planned;
- Leadership, which consists not only of making people follow instructions, but also in knowing the company and the people very well.
- Organizational Culture, which must be aligned with what was planned and will be required of everyone.
In this context, we can highlight 5 basic rules for improving business performance management:
1- Plan with the future as well as externalities in mind
Having a macro, globalized vision will help a manager understand the trends and new technologies that can arise at any moment.
Looking outside the organization and even having a third-party look inside it is the right way to plan and design a business model, and more specifically, to fit new realities, ensuring performance is in tune with the competition and with other sectors of the market.
2- Determine what your priorities are
Those who have more than 5 goals, usually don’t actually have any.
This is because you want to do a lot of things at the same time and it can be difficult improving business performance in such a complex way.
Charan recommends choosing from 3 to 5 clear and objective prioritized goals and pursuing them with the certainty that they can be achieved.
This tip isn’t from Charan, it’s from a great general and American president, who created the famous Eisenhower Matrix.
This strategy for improving business performance management is based exactly on the choice of priorities, seconded by the old adage that:
What is important is rarely urgent and what is urgent is rarely important. - Dwight D. Eisenhower Click To Tweet
3- The right people in the right places, integrated with strategy and operations
It’s at this point that one understands how culture can be a determinant as a strategy for improving business performance.
It is very important to have a culture of collaboration and a reliance on organizational teamwork. This is done with people who have this type of profile, which is part of their DNA and is reflected in the way everyone looks for results; combined with an organization that allows it.
4- Monitor organizational performance periodically
This is one of the oldest rules of management, but it remains a part of Charan’s advice on improving business performance management.
5- Start executing and performing what was planned
At this point, it’s worth finishing with another quote from Ram Charan:The company that executes well will have the confidence, speed, and resources to move fast as new opportunities emerge. It will also have credibility as a partner, supplier, and investment of choice, compounding its advantage as it… Click To Tweet
That is: The larger the company, the more prepared it must be to face the challenge of competently executing its plans.
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