I believe that the primary difference between a successful business and their less successful competitors is based on the quality of their managers and the way the business is led. I make this assertion based on over 30 years in the workforce in a range of industries, working in a wide range of roles. I have also observed the rise and fall of business through the media, academic endeavour and by just being there.
Over the years I have tempered my surprise by people I know who fail to recognise the importance of studying management techniques, either in a formal setting or through self-study. Because of this understanding, I always promote the value of learning and trust that my interest may just influence someone to gain knowledge that they will value throughout a working life.
I believe that the one person who has produced the most complete work on the topic of management is Peter Drucker (1909-2005). Drucker wrote many books and in some he focused on five key things managers must do well to be successful:
All five are key to business success, but in this piece I will focus on just two based on how we manage at Rockend.
Develop plans for the organisation
All businesses, large or small, need to plan for the year ahead and set realistic targets for their business. A key part of the planning process is to identify the key performance indicators you will use to measure success and what that will mean to your business.
Rockend uses the Balanced Scorecard Model to plan and set goals. I recommend this approach if you want to develop a clear and easy way to communicate the view of where the business is heading and most importantly, how you will measure success along the way.
The four traditional focus areas of a Balanced Scorecard are:
We start the formal planning cycle in April when business leaders first meet to discuss their ideas for the new financial year. Over a series of formal meetings we draft a plan for each part of the business (Sales, Product Development, Client Services, Finance and People Development). All plans follow the simple one page structure of the Balanced Scorecard to address the four focus areas.
We craft the individual team plans to ensure that they meet the goals established by the CEO. At Rockend we box the goals into financial year quarters (Q1, Q2, Q3, Q4) to establish a target complete date for each action.
Rockend leaders share their plans within their team and across the company in June/ July. In August we organise a Company Day where all employees meet to formally receive our new plan, talk about the stretch opportunities and to have some fun.
Develop oneself and others in the business
With over 150 staff and contractors, our business has the scale required to professionally develop training programs for individuals and teams. We do this to increase their core skill set and to build skills required to be a better manager/leader in the business.
The starting point for learning in the company is our Building Blocks program which was introduced in 2009 for all employees, running over six days. The goal of Building Blocks is to give everyone an insight into themselves, to build skills for working in teams and to provide them with a good understanding of how our business operates. Key elements of the program cover:
Employees who lead or supervise teams participate in additional structured programs to build personal skills and to gain a deeper understanding of management and what managers in complex organisations need to understand.
In addition to the team learning opportunities, every employee can nominate further study that they wish to undertake. This can range from industry specific programs to TAFE and University learning. Mentoring both internally and through external specialists is also available as part of our overall commitment to the development of our people.
In this short piece I have outlined some key beliefs that I have about management and the key to business success – good planning and the people. The overall planning process I have briefly outlined here is simple to follow, but it does need some discipline to ensure the goals are measured as the year progresses. I believe that a simple one year plan is a must do for every business, so if you are going to do it, do it right! Developing people on the other hand is far more complex than a business plan, but when you get it right the returns will please even the most critical Board or Investor!
BIO
Prior to joining Rockend, John Goddard held engineering, consulting and sales leadership positions in companies including BOC, Coopers & Lybrand, Hewlett- Packard and Telstra. During his time as CEO of Rockend from 2004-2012, John led the company through a period of significant change to become the clear market leader in property and strata management software solutions. As the current General Manager of Marketing & Sales at Rockend, John continues to focus on the importance of life-long learning and encouraging all Rockend staff and their clients to take control of their personal development, both through work and personal learning.