Successful businesses require business owners and entrepreneurs to bring together a multitude of actions that will ultimately lead to their desired outcomes. Effectively managing a business tends to hinge on 4 key cornerstones; planning, organizing, leading and controlling. These four functions make sense if you think about it. You’ve got to think about where you’re heading, consider how you’re going to get there, lead the way and determine the outcomes of the tasks that need to get done along the way. These actions, when done well, serve as the foundation for achieving goals and ensuring that business operations run smoothly. When blended together they help you form a road map, help in the execution along the way as well as determine what adjustments need to be made to reach your destination. Let’s explore each in slightly more detail.
Planning
“Failing to plan is planning to fail.” – Benjamin Franklin
There is a reason that this is the very first pillar that requires action. Everything starts with a good plan. Planning bridges the gap between your vision and your destination. It helps you refine what you want to achieve and then sets forth all the actionables that will get you there. In business terms it means setting objectives and then the specific actions that will achieve them. It also means adapting to opportunities or threats on the horizon and therefore also involves forecasting future conditions, taking into account the resources available, and creating strategies to meet organizational goals. Good planning can work wonders in minimizing the uncertainty that is often prevalent in the business world. The approach to planning will depend on the size of your business and the industry you’re in; however, the concept remains the same. In our experience at Studio 98 and Rave Retailer, we find that the majority of startups struggle with this crucial step. But not to worry, help is at hand! We excel at helping organizations set forth comprehensive plans that can meet their needs in the most efficient ways possible. We have 17 years of experience in this arena and know the struggles typical to most entrepreneurs. This can seem daunting at first but with the right aid and the correct approach the whole planning process can be seamless.
Imagine a small tech startup aiming to launch a new app. The founders recognize the need for a solid plan to secure funding, develop the product, and reach their target audience. They start by conducting market research to understand the competition and potential customer needs. Based on this research, they create a detailed business plan outlining the app’s features, development timeline, budget, and marketing strategy. This plan not only guides the team but also helps them attract investors, ensuring that their vision becomes a reality. Furthermore each step of the plan can be broken down into micro actions and specific deliverables to help ensure the team reaches their ultimate goal
Organizing
“In every success story, you will find someone who has made a courageous decision.” – Peter F. Drucker
Once you’ve got a plan together and collected the resources you’ll need it’s time to get organized. Organizing involves structuring the organization’s resources, which can come in the form of people, finances, and technology, to carry out the plan. This includes defining roles, responsibilities, and relationships within the organization, ensuring that resources are allocated efficiently. At studio 98 and Rave Retailer, we have a strong reputation for helping companies get organized. Wherever chaos exists, potential is diminished and whilst getting organized seems conceptually simple, it is not always so for businesses. The most crucial part of organizing is creating procedures and processes that follow good business practice and lead you towards your goals in the most efficient way possible. Often these processes are not optimized leading to frustration and diminished returns.
Let’s go back to our tech startup. After securing funding, the tech startup now faces the challenge of turning its plan into action. The founders decide to hire a team of developers, marketers, and customer support specialists. They create clear job descriptions and establish reporting lines to ensure everyone knows their responsibilities. The team is divided into subgroups, each focusing on specific aspects of the project—development, testing, and promotion. By organizing the team effectively, the startup ensures that every aspect of the app’s development is covered, preventing delays and miscommunication.
Leading
“Leadership is not about being in charge. It is about taking care of those in your charge.” – Simon Sinek
There is no such thing as a successful business without good leadership. Leading is the process of motivating and directing employees to achieve organizational goals. As the entrepreneur or business owner this will later become imperative to your role. Not only does good leadership look out for the needs of the company, steering the ship and keeping the vision in line, but also looking after the needs of the crew. Successfully navigating a leadership role involves key skills like effective communication, constant motivation, and a balanced leadership style that fosters a positive and productive work environment. Effective leadership inspires employees to work towards common goal and supports them in overcoming challenges. Whilst this sounds simple enough we often see companies struggle in this department. Usually this is not for lack of desire on the part of the leadership but simply a lack of the aforementioned skills and the knowledge to implement them effectively. This is acctually something that a lot of businesses struggle with and where we often help our clients as we take a holistic approach to their business.
It’s our tech guys again! As the app development progresses, the startup’s team faces setbacks—technical issues, missed deadlines, and a saturated market. The CEO steps up as a leader, rallying the team and reminding them of their shared vision. She listens to their concerns, offers solutions, and celebrates small victories to keep morale high. By leading with empathy and determination, she ensures that the team stays motivated and focused, ultimately helping the app reach its launch date successfully.
Controlling
“What gets measured gets managed.” – Peter F. Drucker
Finally when the plan is implemented, the resources organized, and the leadership is in sync we can finally get to implementing control measures. Whilst this may sound harsh, it simply means keeping the ship on course and not letting it veer off on a tangent. Controlling usually involves monitoring the organization’s performance to ensure that it is on track to meet its goals. This process includes setting performance standards, measuring actual performance, and taking corrective action when necessary. Effective control helps identify problems early and ensures that the organization remains aligned with its objectives. Creating KPI’s not only at a high level for the organization as a whole, but for each department and even each role is incredibly important to keep your business on track. The best results come from feedback and having something tangible and measurable to work with provides you with that. Setting KPIs not only helps us keep our goals in mind but also helps to keep everyone accountable to the action steps that will get us there. Overtime KPI’s will tell you where you are and where you are likely going so that you can adjust accordingly. Together with policies and procedures that clearly highlight expectations for each area of your company these will give you the peace of mind that things are constantly being kept on track
Back to our tech startup. After the app’s launch, the startup closely monitors its performance through user feedback, app store ratings, and sales data. They set performance benchmarks, such as reaching a certain number of downloads within the first month. However, when the app fails to meet these expectations, the team doesn’t panic. Instead, they analyze the data, identify issues with user experience, and implement necessary updates. By controlling the process and making timely adjustments, the startup improves the app’s performance and increases customer satisfaction.
Mastering the functions of Planning, Organizing, Leading, and Controlling And the amalgamation of them is essential for effective business management. Each function plays a crucial role in guiding a business towards success, ensuring that goals are met, resources are used efficiently, and the organization adapts to challenges. By understanding and applying these principles, businesses can create a solid foundation for long-term growth and success. The good news is that once the foundations are laid it becomes less and less intensive to maintain these functions, however, as the business landscape is always changing and necessitates businesses to adapt accordingly, this also means that planning, organizing, leading and controlling will often need to be revisited and adjusted to keep the organization on track. Revisiting these four proven fundamentals often throughout the year will ensure a solid foundation for achieving your business goals.
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