Research(1) shows that structured management (formalising roles, agreeing targets, measuring results and basing decisions on numbers) results in better business performance.
The impact is about the same as R&D spending and far outweighs that of technology spending. Hardly surprising when one considers the predictable outcome of combining new technology investment with poor management.
Better management means better results (2) - and yet how much attention do UK business owners devote to improving their management skills? In my experience, this comes pretty low in the priorities of most business owners and yet holds the key to all the other issues that they spend time on (and probably lie awake worrying about).
Usually, major improvements in performance can be achieved with simple, quick and low-cost interventions. Clarifying what the business is trying to achieve. Setting out reporting lines. Implementing useful (outcome-based) job descriptions. Standardising processes. Implementing measurement. Implementing monthly business reviews.
Creating each of these management artefacts is an opportunity for two-way communication; an opportunty to explain, understand, challenge, improve and involve. The investment of time required is trivial in comparison to the benefit. In any case, what else should a leader be spending their time doing?
Seems obvious really.
If you'd like to learn how to improve your management skills take a look at these events.
1) What Drives Differences in Management Practices? Nicholas A. BloomErik BrynjolfssonLucia FosterRon JarminMegha PatnaikItay Saporta-EkstenJohn Van Reenen, American Economic Review May2019 Vol. 109 Issue 5 Pages 1648-1683
2) Management, Skills and Productivity, Emile Cammeraat, Lea Samek and Mariagrazia Squicciarini, OECD SCIENCE, TECHNOLOGY AND INDUSTRY POLICY PAPERS February 2021 No. 101
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