With this post, we intend to tell some of our common thoughts about good business and human resources management. Here are our recommendations:
It is necessary to know the motivation of the impulse you want to give your company
Do we do it for culture or necessity? An example, today, all US companies are internationalized or thinking about it. To do this, you have to ask yourself: Do I internationalize by culture or necessity? I answered that question myself and I have it clear: I internationalized years ago by culture because it was part of my philosophy of life and business (a global business concept). If I had 9 hours a day to work, I would spend 8 hours thinking and defining strategy. But the international expansion I am doing now is out of necessity. The US market does not give to live or fulfil my expectations, although I will not abandon it to continue with my roots and support my environment.
A strategy for efficient management is necessary
Abraham Lincoln said something like if he had 9 hours a day to work, he would spend 8 hours thinking and defining strategy. If one has a strategy, a well-defined plan arrives. A ship lost in the sea that sees the light of the lighthouse comes. The lighthouse is the goal and light is the strategy that leads to it. If you don’t have that strategy, you may spend a lot of energy and resources to get there, because you don’t know the way.
The strategy also means resignation
When a company plans its strategy not only has to define what it wants to be in the future but also what it does not want to be. Therefore the strategy also implies resignation. Come on, that the one that covers a lot, little squeezes, we must concentrate resources.
An expansion strategy (or any other) must be in the budget
If not, it does not exist or will not be done correctly. We must provide human and economic resources to carry out internationalization. It takes time and money. A Performance Management System is useful to control the budget.
Use preventive strategies
Two of the improvements that should be applied to your business:
- The abandonment theory: if we weren’t doing this activity, would we do it? Or do we continue by inertia? We must ask ourselves these questions for activities that we have been doing for some time.
- It is necessary to study what happens outside the company and especially observe non-customers. From them, we can learn how to grow and capture new market and what our defects are.
There are clear warning signs that the defined strategy must be reviewed
One of the strategies is obvious when there are significant losses. The other is when there are very fast growths. Beware of them! You have to analyze them carefully. Non-profit organizations are experts in management. Many times, they stimulate employees with resources other than conventional pay.
Let’s learn from non-profit organizations
They teach us a lot about how to manage personnel efficiently and how to define a strategy. For example, in the US, this group of companies represents the largest employer in the country. Cases like the Red Cross are remarkable. And they manage many times without paying employees, stimulating them in other ways. They have a lot of merits and they teach us a lot:
- They have a clearly defined mission
- A careful logistics
- Continuous Learning and Teaching
- An administration by objectives and self-control
- High demands and corresponding responsibilities
- Ability to account for performance and results
And now, we encourage readers to comment or add a recommendation. Each experience is different, and surely you have a lot to contribute.