Management & Business Success

10 Top Management Tips

“Good managers broaden their lens and look at the external landscape far beyond the boundaries of their own function to identify not just threats – but more importantly potential opportunities. They understand the competition, look ahead to the future and always identify alternative strategies for the company to move forward,” Jason Baker, GM, IBISWorld (Australia).

1. Understand and be prepared to implement the other nine rules.
2. Value leadership above management.
3. Inform and educate your staff about your business’ end goal, as well as the strategy beyond it, and the tactics required to implement it.
4. Finance your business soundly by targeting profitability of three to four times the long-term bond rate.
5. Embrace the KISS principle – Keep It Simple Stupid. Don’t try to be all things to all people.
6. Encourage your staff’s personal development.
7. Aim for total quality control.
8. Keep abreast of world best practice for your industry.
9. Become an organisation for which globalisation, transparency and e-business transactions are essential.
10. Become a ‘clever company’, every organisation must become information intensive.

As the leader of your business you must understand every aspect of the environment in which you operate eg your competition, prospects, clients and the general industry conditions. Only then can you set and revise the business goals, and provide your staff the clear direction and focus required for the success of your business.

While you have your own responsibilities as to your personal improvement in your role as a business manager, the following 10 Business Tips (from the same survey) relate to the commercial success of your team as a whole.

10 Top Business Tips
Below I’ve summarised IBISWorld’s findings. In a separate report to my clients, I have included a fuller text and have added comments where I felt I could add value, please feel free to ask for the full text of

1. Embrace Specialisation 
It doesn’t pay to spread yourself too thinly. A focus on a single industry is absolutely critical for businesses wanting to dominate in an increasingly global marketplace.

Gone are the days of dipping a finger into every pie. Companies will achieve much better growth by pursuing regional and global networks. Be an expert in one field, rather than a bit-player in many.

2. Choose a Position and Stick to It
Work to secure a safe industry share in your chosen area.

Four strategically-sound key positions were identified:
o Major: 25-75% of industry revenue
o Niche: 5% of industry, but more than 50% of a segment
o Ultra Niche: 1% of industry but “owning” a product category
o Exotic: 0.1% of industry but “owning” a product group

3. Value IP and R&D Above All
Intellectual property and research & development should be valued above all other assets.

Australian companies are particularly lagging behind their global competitors, spending only 0.56% of GDP on R&D, compared with the worlds highest, Finland, at 1.2%.

4. Outsourcing Non-core Activities
In order to free up resources to focus on IP and R&D, some successful businesses are now outsourcing all non-core activities which, in turn, can accelerate growth, expansion and business development.

5. Don’t Own Hard Assets
Selling and leasing back non-core hard assets such as land, buildings, equipment, debtors and stock is another practice of thriving corporations, providing them with flexibility. ” . . . owning hard assets is like carrying lead in the saddlebag,” according to Baker.

6. Networking Virtual Corporations
“It’s not what you know, but who.”

Best practice is moving towards virtual corporations that draw upon networks, franchising and strategic alliances to minimise staff numbers and costs, while maximising reach and revenue.

7. Plan outside-in, not inside-out
Understand the external business environment before developing your own structure, strategy and management.

8. Go Global
Pursue international markets, expand overseas and take advantage of the ‘global village’.

9. Develop a Unique Organisational Culture
You could call this one “Develop a corporate personality” because attracting and retaining good people is one of the key attributes of the top players, with equal opportunities, contractualism, and vision being key components.

10. Stand Out Leadership
No prizes if you picked this one. Senior management should lead an organisation before they manage it. It can be lonely at the top, but ultimate decision-making is not democratic. In fact, leadership is the opposite of management – its focus is external, rather than internal, according to Baker.

Don’t forget: Click if you’d like the full text of 10 Steps for Commercial Success – The Director’s Cut