Tuesday, October 18, 2022

Do you know when to make Programmed and Nonprogrammed decisions?


Deciding with speed or with reflection? We are used to making this differentiation when, in fact, according to the experts, the best decisions are always made by tuning logic to emotion, and intuition to experience. And in the business scenario, certain decisions need to be made in a programmed or nonprogrammed way.

But first, we need to quickly understand what a decision is: deciding is nothing more than choosing among alternatives in order to solve a problem or achieve a goal. Programmed and non-programmed decisions are types of decision-making that guide all of our daily lives.

At first, we can say that programmed decisions are routine decisions. In other words, they are decisions about matters that have already been analyzed before. In this way, there is already a "standard" answer. In short, one of the ways to gain efficiency in a company is to relate these "standard decisions" to certain routine problems.

Nonprogrammed decisions, on the other hand, are common when the problem is new, or infrequent. Also, when the manager must analyze the data at his disposal (often incomplete) in order to make a decision.

In this sense, consider the case of a director of an automobile manufacturer. At first, he discovers that a competitor will launch a car model in his market and sell it at a price lower than the one his company is charging.

So before deciding what to do, the director has to analyze all the important information, doesn't he?

So the factors he would take into consideration would probably be these:

  • Is the competitor financially strong?
  • Is the competitor's brand known?
  • Is their distribution channel comprehensive?

Therefore, he will then have to "think" the problem, that is, analyze the situation "in-depth". Thus, there is no way to have a "ready-made" decision for a new case.

This is the key to you deciding whether a decision is scheduled or not! And it is these decisions - and the ability to differentiate which ones to make - that will be part of a company's success and will define a good manager from a bad one.

Sunday, October 16, 2022

Goal without an action plan: when you want to build a house but don't have a project.


It is natural when we are starting a business to visualize our short/medium and long-term goals and to conjecture upon these goals. Usually, they are our guide and make our prospect where we want to take our business and the best way to guide our employees, especially those in management positions, to achieve these goals. 

There is a CLEAR difference between GOALS, TARGETS and ACTIONS:

Imagine a ladder. The last rung on this ladder is your GOAL. It is where you will get to after you have climbed all the steps. And each step is a GOAL.

And goals are nothing more than Specific, Temporary Movements of Sequential Actions, that is, you achieve your goal and 'go' to the next one!

But what about ACTIONS? AH, they are the necessary attitudes for you to complete your GOAL. They are the basis for you to achieve your goals! Don't forget: ACTION is the BASIS for achieving GOALS. In other words, THOSE WHO ACT HAVE POWER.

And to act in the right way and achieve all the necessary goals, an action plan is indispensable. It will be the guideline of the whole objective. It will provide you with possibilities to get the ideas off the paper, put them into practice, and monitor the performance, learning from the mistakes in the process and adjusting along the way. 

Something that helps a lot in this process is KPIs: Key Performance Indicators. These indicators measure whether the objectives have been achieved and how the company has grown through them. As chapter 5 of the book states, "Goals and plans provide a source of motivation and commitment. Planning can reduce uncertainty for employees and clarify what they should accomplish. The lack of a clear goal hampers motivation because people don't understand what they're working toward. 

It is perfectly possible to create a business and scale sales, but having a goal and a plan of action is essential, not to say vital, for ANY organization. 

Tuesday, October 11, 2022

Managerial ethics: every company needs them, but do they all have them?


Workplace ethics is something that should be intrinsic everywhere. And for a while, managers and business owners held it in high regard almost methodically. Over time, care has given way to manipulation in some companies to mask poor service. 

It is important to emphasize that, from the moment a company acts unethically with customers through its employees, there is the possibility of masking the problem for a while in an artificial way. Still, the bill always arrives in the end. And this comes through complaints and word of mouth - when poorly served people simply do not recommend the company/service to friends, family, and acquaintances. In most cases, there is the fact that management ends up hiring people who are not aligned with the company's purpose, and at other times, the quest for profit is so great that primary customer care is left aside. 

In the case of Uber, for example, the application came with a boom of customers through a proposal that aimed to make people's lives easier and, over time, it was noticed several unethical postures such as manipulating race requests and editing drivers' notes.

We know that ethics is a matter of choice and it's as simple as that. It is necessary to analyze if the loss of customers and the bad visibility in the market and competitors are worth the unethical attitudes. And, although the answer is obvious, many times the option for the "easier" path ends up being predominant, because providing a quality service takes work and not everyone is willing to do it. 

Some points that can help a company to build a good ethical plan or even develop one after going through difficult times are:

1- Determine the company's values. Generally, the professionals are based on the actions and attitudes of the company's leaders

2- Creating a code of conduct

3- Raise awareness of what ethics means

4 - Carry out training

5- Reaffirm the company's positioning.

6- Make evaluations and audits

It is not a simple path, but it is possible. The question is: are you willing?

Friday, October 7, 2022

Management in the globalized environment: is it possible?

We live in an extremely globalized world. Therefore, inevitably our work environment, to keep up with the external rhythm, needs to adapt to follow the flow and not be left behind in terms of knowledge and evolution. To think and create a routine for the company focused on globalization is to always be aware of the opportunities but also of the possible "threats" to the smooth running of the company, always trying to anticipate these factors that, for the most part, are beyond our control. 

For this it is very important to know what is being done and, based on external information, define the best way to continue to do it, considering all scenarios. In other words, first, it is necessary to know what is being done in the current market, where there are needs that are not being met or that can be met in a better way. After this analysis, it will be easier for the company to know what to do, how to do it, and most importantly, what not to do, in order to develop an innovative market that results in the desired profitability and employee well-being. 

We must also consider that in a globalized company, we will always be faced with cultural diversity in the workforce. This is because there will be people of different nationalities with different customs and habits, and this should not be seen as a threat but rather as a way to use these other cultures and backgrounds to take the business to higher levels. 

Especially for large companies with many years of experience, this globalized scenario can be a bit difficult to adapt to. But with effort, dedication, and alignment between management and employees, it is possible, and it ends up making the company a good place to work and invest in. 

Being a good manager and having good business practices: what is the magic formula?

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