What do you think of when you think of good management? Open communication? Happy employees? Other good stuff? Nobody is against good management, because in the abstract, it’s an objectively good thing.
It has “good” in the name – doesn’t get any simpler.
But until recently, there hasn’t been any real data to back up the fact that it’s good. Other seemingly objectively good things like investment in research and development, skilled employees, and high quality IT have plenty of research backing up their individual value to a standard company.
Good management, though, is usually discussed in terms of giants like Google and Facebook, which aren’t exactly typical firms.
The Harvard Business Review recently released the data they collected through a new study on the real world effects of management practices, and now we have legit proof that good management is good. In collaboration with the U.S. Census Bureau, the HBR collected vast quantities of info on a large number of small and large manufacturing firms across the nation. In total, 35,000 plants were surveyed on three key management metrics: monitoring, targets, and incentives.
The results were pretty clear: management matters.
Only 20 percent of the surveyed plants reported using 75 percent or more of the performance-focused techniques for management mentioned in the survey. These rare good management plants performed dramatically better than did the other 80 percent of plants. The good management plants that use monitoring and incentives-based techniques proved to be more productive, creative, and ultimately, profitable.
Each 10 percent increase in the management index of a plant correlated to a full 14 percent increase in productivity.
That increase was even found true for plants that weren’t already doing well saw performance gains. A higher management index was also found to be an indicator of business expansion, and a sign that the plant was less likely to go out of business.
The above average management techniques also appeared to explain 18 percent of the difference in performance between the top 10 percent of plants and the bottom 10 percent. In contrast, R&D only accounts for 17 percent, employee skills represent 11 percent, and IT spending accounts for 8 percent. AKA management matters most.
Keep an eye open
So what does a firm with good management look like? It starts with their geographical location. Companies in more pro-business states tend to have better management thanks to Right to Work laws. Competitive industries also tend to breed better management, because competition is just magic that way.
College also plays a factor, in a couple of ways.
Businesses with more degree-holding employees, and even the companies that are close to universities, seem to use better management techniques. Proximity to big, successful industry peers also improved practices, likely because smaller local businesses had the opportunity to learn from the big fish.
That doesn’t account for all the variation, so individual leaders may play a large role in the quality of the management. That means that, independent of all other factors, entrepreneurs and other leaders have the ability and autonomy to re-direct management practices toward the more productive methods.
Good management is THE predictor of business success.Click To TweetThere’s no excuse not to invest as many resources as you can into achieving it.
Cowrkr gives you accountability while you work solo
(ENTREPRENEUR NEWS) Being accountable for your own accountability is a tall order. Join Cowrkr and let someone else do it for you.
My boyfriend and I have always had a great appreciation for film and television, as well as the writing that goes into it. We always talk about different project ideas, but never get too far in execution with the busyness of real life.
Last night, I finally thought of a way that we can help each other bring our projects to completion, and that is simply by holding each other accountable. I suggest that each week we could have a new task that is due by 10 p.m. Sunday night.
We both have ideas for scripts, so the plan is to start off with having a plot synopsis and character list due the first week, having an outline due the second week, and so on. This will not only help keep us on track but will also help in terms of formatting ideas.
While I’m grateful that this little plan has come together, I know that most people aren’t working on similar projects to people they are close with. Therefore, they may need to look elsewhere for accountability.
Now freelancers and entrepreneurs have the opportunity to be matched with a fellow freelancer or entrepreneur to help hold each other accountable for their respective projects. Meet Cowrkr.
“This is an initiative to help makers keep themselves socially accountable by getting them to build publicly,” says cowrkr developers.
Users sign up and give some info regarding what project they’re working on and what they’re shipping. It works by connecting two makers at a time and cowrkr works to help each maker keep the other accountable until each project is completed.
Once a project has been completed, the makers then end their accountability relationship. When their next project comes along, they will then be assigned a different maker.
Cowrkr’s website does not give a ton of insight as to how the algorithms and matching systems work, but it is an intriguing idea for freelancers and entrepreneurs looking to take their individual projects to the next level.
The top 10 startup cities in America
(ENTREPRENEUR NEWS) If you’re thinking about launching a startup anytime soon you may want to check out this list on the top 10 cities for startups.
The digital revolution is in full swing, and some cities are setting themselves up to capitalize upon these innovations by supporting startups.
In order to “better understand the U.S. cities driving the digital revolution,” several groups have come together to rank which cities are making the most of the tech startup boom.
The U.S. Chamber of Commerce, 1776, the U.S. Chamber Technology Engagement Center, and FreeEnterprise.com have teamed up to publish a report called Innovation That Matters (ITM).
The report analyzes and ranks U.S. cities on such factors as startup capital, the connectivity of startups, startup culture, the availability of worker talent and specialization, and more. Data was taken from surveys of entrepreneurs and businesspeople, startups, and leaders in public and private sectors.
J.D. Harrison, senior director of strategic communications at the U.S. Chamber of Commerce says that the “digital revolution has the potential to make winners of some cities and leave others behind.”
The study aims to find out which cities “embrace this shift to a digital economy and actively support technology startups,” arguing that these cities “will be the best positioned to unleash the power of high-impact innovation and cultivate vibrant, thriving communities.”
The top ten ranking cities are as follows:
10) Portland, Oregon because every city needs a nickname, has been dubbed the Silicon Forest, referencing its leadership in green tech.
9) New York City, New York. The largest tech hub on the east coast.
8) Seattle, Washington. Home to Amazon.com and several other tech firms, with Microsoft’s headquarters in nearby Redmond.
7) Dallas, Texas. Dtown moved up significantly by increasing startup connectivity and tapping into a large, diverse workforce.
6) Atlanta, Georgia. The “most improved” city on the ITM list, moving up 15 places to number six due to a surge in financial, educational, and health tech industries.
5) Austin,Texas. Home of The American Genius, Austin has become a “haven for tech-savvy millennials seeking good-paying job opportunities.” Besides hosting many tech startups, Austin still has a relatively affordable cost of living.
4) San Diego, California. San Diego is full of cybersecurity, Big Data, robotics, and software startups.
3)Philadelphia, Pennsylvania. Also known as Philicon Alley, moved up from number eight by deregulating and becoming more business-friendly.
2) San Francisco Bay Area. The Bay also ranked number two last year. The seaside neighbor to the Silicon Valley has been doing a great job attracting seed funding these days.
1) Boston, Massachusetts. This is the second year in a row that Boston has topped this list, due to its large number of startups and robust entrepreneur population.
How does your city rank?
Customer surveys tell more than just satisfaction
(ENTREPRENEUR NEWS) While they can be annoying for the consumer and cost time for the company, customer feedback surveys are crucial to your business.
While Richard Dawson, Louie Anderson, and Steve Harvey may not be able to personally help you with customer service, what they have in common can. Surveys, and personalized follow-up attention in general, help clients and consumers know that they mean something to your business.
For the sake of this article (and the fast-paced, technological world we live in) I am going to be speaking about surveys. However, I want to share this anecdote first.
I used to work front desk at a salon and part of my job was to follow up with new guests about a week after their appointment.
Now, most of the time, my calls went to voicemail, which were never returned; but every once in awhile a human answered.
After going through the spiel of why I was calling, I could almost always sense a sound of surprise from the other line before the person answered my question. One conversation in particular left me realizing how important this seemingly useless task was.
I called an older woman and asked her about a recent appointment she had at the salon. She thanked me for calling and then went into detail about how great the appointment was and how much getting her hair done meant to her.
Before we hung up she said, “thank you again for calling. A salon has never done this before.” It then hit me like a ton of bricks just how significant something as small as a callback is.
If you have the time, definitely make those callbacks to clients as it could be very meaningful. However, it’s understandable that most of us may not have the time in our schedule for personalized phone calls.
So if that’s the case, don’t forget about surveys. I know most of them will either go to spam or go unanswered, but the mere fact that you’re sending it out shows clients and customers that you care about their business.
And, for those surveys that do receive responses, it can be extremely beneficial for your company as you can get insight into what works and what doesn’t. There’s really no disadvantage to this tactic, so remember to make time for that follow up with existing clients rather than just focusing on getting new ones.
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