Lessons to Learn in Business
Whether a seasoned business professional or a young entrepreneur, Shalom Lamm believes there are some factors in business that are essential to have, and to know. It sometimes takes years for these little tips to manifest through experience, but correct implementation takes just days to show results, and can have the organization’s efficiency grow exponentially. A few of these tips are outlined and explained below.
The Power of Outsourcing
Knowledge of business management is one of the few parts of ownership that are best learnt through experience. However, understanding business needs means recognizing when certain parts of business operation can be handled by persons trained and certified to do so outside of the organization. This is where third-party, or outsourcing, companies come in. The new trend in the business world, outsourcing companies are third-party entities that offer services that include managing internal functions of another business. These internal functions include, but are not limited to, recruitment, payroll, Human Resources, accounting and customer service.
Decentralization of Command
The structure of the organization has as much impact in how it is run as the business itself. Having the organization structured in a way that makes effective use of ‘trickle-down’ methods; this is the flow of information, instructions and protocols from the highest level to the lowest and is often the best way to go. This often requires use of managers, department heads, section chiefs and so on. It is very useful in the dissemination of information.
An organization is also best structured so that there is a clear hierarchy to manage issues that may arise such as complaints, queries, conflict resolution or resource problems. This way assigns responsibility of a certain aspect to one individual, so the rest may focus on their own tasks.
The Wealth of Information
Information is power. This simple rule has helped individuals such as Warren Buffet, Shalom Lamm and even space billionaire Elon Musk to stay ahead in the game. Controlling the flow of information, as well as staying abreast of anything new that is relevant to the market or the organization can help to make useful and effective changes according to the needs of the market.
It is also useful to remain informed of changes, concerns, queries or issues within the organization, that way any bumps or issues that have arrived can be smoothed quickly and efficiently, so operations may continue without a hitch. Lamm, renowned entrepreneur recommends that the earlier these information habits are formed, the sooner they become useful, and the better for the organization.
Connection with Employees
This goes without saying, but it will always be necessary to maintain good employee relations. This needs to be reflected both among staff, as well as in staff’s relationship with management. When this is done effectively, all things within the company are more streamlined, and therefore, much more effective in daily operations. Things like open-door policies and equal advancement opportunities are just a few of the measures that may be implemented to ensure that staff feels secure working for a company and carrying out responsibilities. Staff security and comfort will always be inexplicably linked to company performance.
Though these tips are non-exhaustive, they are nonetheless a good start in getting the right attitude for any business to start maximizing its earning potential. If the vision of the company is right, then this must be reflected in company values from every level of operation. These tips will help to create better management habits that can work from CEOs, down to company officers.