1. Jon R. Katz, Esq., MBA, JonRKatz@Gmail.com, http://JonRKatz.com, www.linkedin.com/in/JonRKatz
Common Areas for Business Improvement
Complacency is a poison, and it’s an addictive one at that. Unfortunately, complacency can take hold of
a business and leave managers rationalizing to avoid staying aggressive and vigilant in their positions.
Sure, this equates to a manager doubting oneself and the work s/he and their esteemed peers did in the
past, but one must acknowledge three truths: no one is perfect (this includes you), the marketplace
changes, and there is always room for improvement.
The key to good management is the ability to be self-critical enough to admit mistakes and to connect
emerging problems. That said, what follows are a number of focal points for every manager:
Look at your profit structure. Craft a team that bands together to achieve common profitability goals.
If someone in the organization is not receptive or is an obstruction, replace them.
Reexamine your business model. Ensure that you’re not selling to the wrong customers or selling the
wrong product or service. Occasionally, a company will focus on the least profitable part of the market
just because it is “easier”. This is unacceptable, and just one example of misguided modeling.
Seriously consider price increases. Usually, the greatest resistance to price increases is internal. If you
can reasonably justify an increase to customers, unless they’re considering leaving in the first place,
they’ll stay with you and pay the higher price.
Review costs. Often. This may mean changing suppliers, and it may take a moment of dissecting where
every dollar goes, but this is always a tremendous opportunity for savings.
Consider dismissals. “If you had to discharge someone in your organization today, who would it be?” If
you or other managers come up with a name quickly – especially if it’s the same person – the conclusion
is obvious.
Summarily, what follows are the 12 critical failures of management:
- Failure to recognize changing market conditions and to act on them
- Failure to resolve internal conflicts and resistance
- Arrogance
- Overspending during good times
- Failure to continually rationalize the organization
- Failure to act on substandard performance
- Inability to think “outside the box”
- Failure to delegate
- Failure to define market strategies
- Failure to demand implementation of marketing plans
- Failure to tie compensation to corporate performance
- Failure to plan for the cash needs of the business