Management – Performance Now

“The management boom is over; the time for management performance has come.”

                                                                       Peter F. Drucker; Management: Tasks, Responsibilities and Practices, 1985

Today’s management is all about performance and results. Management can be found in big corporation to government to non-governmental organization to military and self. Management is an organ that sits inside a body and cannot exist on its own.

Although much has been theorize on management, many institutions including self faced with inability to harness the results from management. To be an effective executive (or manager), it is important to have knowledge, be discipline and focus on action. Those are elements of management. Above all successful executive is determined by its ability to use management as vehicle to achieve its goals – via purpose and mission.

A great business must have clear and definitive idea on how the business should be run. The same goes with executives and managers. They need to crystallize what is their purpose and mission at work place. These later needs to be aligned with the company they work with. However, most executives come to workplace hoping to be told what their purpose and mission are. They thought the organization goals are their goals. While executive must make company goals their goals, it is unlikely they are solely responsible for the business goals of total company. Instead they need to have own plan what contribution they can make. It is with regret the reason why so many executives unable to perform, because they have no goals to work on at first place.  The reality disturbs me greatly. Often when asked what is your plan for the day, many executives have no clear ideas what to do. Some responded referring to work or job they are currently doing. But work and plan is different. Work is a subset of plan. Plan should also include other facets of the executive such as reading, networking, getting fit and so on.

Through management, purpose and mission will be broken down into work and processes. The central to this is customer. Without customer the business (or executive) has no reason to exist; at all. Management needs to ask four main questions. What is our business, who is our customer, what value is to the customer and what will our business be. The rest of the work and process revolves around these questions. It cuts across strategy, financial, talent, logistic, administration, marketing, innovation and so on. Only then the management become useful and productive. In other words, when management has answered all these questions, the rest of the departments must throw its weight to this goal.

The development of managers must take into consideration all these. Only then the manager will be able to acquire today’s skills for him to be effective tomorrow. “What brought you here won’t get you there.” , said Marshall Goldsmith. Effective managers must learn how to become execution specialist. Because only results count, not efforts. Manager development is the responsibility of the individual, though company and superior have an important part to play.

The aim of it is excellence. The development of a manager is to enable him or her develop abilities and strengths to the fullest extent so the goals can be attained. Ultimately the manager himself must be able to control his own performance by understanding his strengths and weaknesses. Many times when i interview executives and managers, they stunned by “what are your weaknesses” question.

Majority said no one has ever asked them, of course they grumbled and took some time to answer. People that answered “what is your strengths” on the other hand got the answer wrong. They usually say, “my strengths are i am a good communicator, honest, punctual and hardworking”. My reply is, “that’s my basic needs”. they startled by that respond. Organization really need to deal with this urgently, otherwise people come to work with all those qualities that are not strengths but basic needs.

Organization can use this as a good start to develop managers to become more effective, but more importantly becoming execution specialist. By getting more things done, organization will become productive and growth is imminent. Consequently it will be able to take more risk to go to new markets in search for business expansion beyond boundaries. New jobs can be created as well as customers and innovations. Ultimately through management the organization will have itself sustainable business strategy and all prepared for future succession.

p/s: Management is going to be the tool to boost organization productivity. We don’t talk about management as in cost cutting, downsizing, penalizing people and other negative connotations; but management is a good model to get more things done.

Brickbats please send to donkhairul@gmail.com

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How Marketing Department Lost It’s Gusto?

There’s little we hear today about Marketing Department (or Division) these days? Don’t we? What we hear about Marketing today is about launching events after events. The department role has become launching organizers. They are very good at dealing with event coordinators, medias and gifts companies. Is that what Marketing department supposed to do?

Well, at least that’s one of it, we called it marketing communication. Ideally, what is marketing? What is the main function of marketing department? How should we measure marketing success? Why marketing matters? Let me.

“What Is Marketing? “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved July 2013 by American Marketing Association – AMA)”

Source: https://www.ama.org/the-definition-of-marketing/

According to Peter Drucker, “The two basic functions of a business enterprise are Marketing & Innovation. All the rest are costs. Marketing & Innovation produce results. Marketing is the distinguishing, unique function of the business.”

Source: Peter Drucker, What Is A Business?

If the purpose of business is to create customer through innovation (Drucker), the purpose of marketing is to help the organization sees the satisfaction desired by the customers in terms of values and needs. This is where, in my opinion, the beginning of marketing department downfall, lately.

The marketing department as we know it, no longer help the organization sees the customers values and needs, neither, make effort to understand the customers values and needs. Yes, the customers are changing, fickleminded and indecisive. We know these customers behaviours for very long already, nothing new.

Marketing Activities

There are at least four main marketing activities. The 4Ps (Product, Price, Place and Promotion) . The marketing department through its marketing activities, need to drive the decisions in these areas.

In Product – marketing department through its customers research, it will generate new products (or services) ideas and solutions. They will also look at the existing products, are they making profit? Or they are just product line up that is making losses year after year? The marketing team should have enough data on this. Do they have this data? The marketing department can only see what is in the pipeline but can they create new? Does the marketing team knows USP – unique selling proposition of the products (and services)?

In Price – marketing department will help set the pricing policies looking at the varying customer segments in their midst. They will know how much margin or mark up or profit or volume they need to generate for the business to grow. Are they making the decisions today? Or is it done by the finance group? How does marketing team influence this decision?

In Place – marketing department look at the distribution channel of the products. In today’s business, there are online and offline distribution channels. Does the marketing department has the people to do online marketing? Do they know the customers experiences in these two areas are different? How does the marketing team use the data collected? How does the marketing team work with the offline retailers, distributors and wholesellers? Do they have these strategies? Or is currently these being done by customer experience department? Or big data unit that is reporting to IT department?

In Promotion – marketing department set the promotional strategies including sales team deployment. Setting sales strategies, incentives and ammunitions. Is the marketing department still doing this? Or has this been delegated to sales department? Ohh yeah, this is also where marketing runs events to promote and advertise the “solutions” valued and needed by the customers. They do it through communication with the medias and PR companies. In promotion, marketing department also continually asssessing the brand value as seen by the customers.

After looking at all above, it turns out the marketing function as it was, has been broken down to myriad other units that are more specifics, more objective and relatable to the customers worldview as needed by the organization. Because of that, the marketing department is it was, without breaking it into many other units, will become too big, too slow and bureaucratic. That’s how marketing lost it’s gusto.

Wither Marketing Budget?

As a result, marketing department budget now filled with events budget and it become less strategic. In my humble opinon, marketing department too, has to be blamed. The people inside marketing team already out of touch with the customers realities. They department relies too too too heavily from the agencies, vendors and suppliers to give them reams of reports about the customers.

Marketing department rarely goes down to the “market” to talk to the customers. They refused to listen to the customers feedbacks and listen to their stories. Marketing department people prefer to man events at big and posh hotels while drinking coffee and smoke cigars – to them, the hotel is the prestige defined as “great branding” and “credibility” by the customers.

Marketing department create products in their office. They look at the quantitative data without an iota believe that they need qualitative data too – customers insights and pain points stories. Marketing department people do not go down to meet the engineers at the manufacturing plant to see the product development themselves. All they ask for are photos to make brochures and marketing kits. That too, the marketing department ask the agencies to go and get them.

Direction-less Heads

The marketing department also busy attending high flying and international conferences in the name of “benchmarking”, “new strategies” and “power networking”. Funnily, the one that usually get to go to these kind of pampered and full board events are the bosses of marketing department and above.

They go and come back – then nothing happened. The bosses snap loads of pictures of the slides and whatsapp them to the team. Instructing the team to do this and that – ASAP. The next year, the same bosses go again and again and again. It became the viscisous cycle that everybody knew – except the bosses. That’s how marketing department lost it’s gusto. With all the happenings in the marketing deparment, the top management should follow the advise of David Packard (Hewlett Packard), “Marketing is too important to be left to the Marketing Department.”

The marketing department also detest any other department that take away their budget in the next financial year. Now the next upcoming department that, if not careful, will fall just like the marketing department, it is the IT department.

Brickbats please send to donkhairul@gmail.com