CCI Entrepreneurship Curriculum Module 7 Core Business Management

CCI Entrepreneurship Curriculum Module 7 - Core Business Management Skills

Core Business Management Skills v 7. 1 Leadership & Management v 7. 2 Business and performance management v 7. 3 Time Management v 7. 4 Introduction to business management tools and resources

What Talented Employees Want What do I get? 1. Do I know what is expected of me at work? 2. Do I have the materials and equipment I need to do my work right Source: First Break all the Rules, Buckingham & Coffman

Your Challenges and Needs v Individually consider your key challenges in leading & managing your Business – leadership, time management , delegation, organising, decision making…… v Discuss with your neighbour v Report back 4

What Talented Employees Want What do I give? 3. At work do I have the opportunity to do what I do best every day? 4. In the last 7 days have I received recognition or praise for doing good work? 5. Does my supervisor or someone at work seem to care about me? 6. Is there someone at work who encourages my development? Source: First Break all the Rules, Buckingham & Coffman

What Talented Employees Want Do I belong here? 7. At work do my opinions seem to count? 8. Does the mission / purpose of my company make me feel my job is important? 9. Are my co-workers committed to doing a quality job 10. Do I have a best friend at work? Source: First Break all the Rules, Buckingham & Coffman

What Talented Employees Want How can we all grow? 11. In the last 6 months has someone at work talked to me about my progress? 12. This last year, have I had opportunities at work to learn and grow Source: First Break all the Rules, Buckingham & Coffman

What Great Managers Do v Focus on questions 1 -6 v What would your employees score you on the first 6 questions? v Aim to get 5 out of 5 from employees on these 6 questions.

What Great Managers Do “People don’t change that much, don’t waste time trying to put in what was left out. Try to draw on what was left in. That is hard enough. ” Source: First break all the rules, Coffman and Buckingham

What Great Managers Do – 4 Keys v Select a person – Select for talent (not simply experience, intelligence or determination) v Set expectations – By defining the right outcomes (not steps) v Motivate the person – By focusing on strengths (not weaknesses) v Develop the person – By helping them find the right fit (not the next rung)

Roles Managers Play v Figurehead v Leader v Liaison v Monitor v Disseminator v Spokesperson 11 v Entrepreneur v Disturbance Handler v Resource Allocator v Negotiator

Management & Leadership Management Leadership v Plans, budgets, timetables v Organising and staffing v Controlling, problem solving v Producing results v Doing things right v Vision, direction, strategy v Aligning people, communicating v Motivating and inspiring v Producing change v Doing the right things

Role of leader: create the vision gain commitment motivate and inspire bring about change get discretionary performance. Role of the manager: achieve other’s vision maintain control set goals order and consistency get mandatory performance.

Managers and Leaders v Great Managers look inward – Turning individual talents into performance v Great leaders look Outward – Creating a new future

Leadership Style Continuum Use of authority by manager Area of freedom for staff Leader Directed Follower Directed Boss centred leadership Manager makes decisions Telling Manager sells decision Manager presents Idea & invites questions Selling Manager presents Manager defines Staff centred Leadership Problem gets Limit, Suggestions Asks Group to make decision Manager permits staff to function within defined limits Makes decision Participating (Tannenbaum & Schmidt) Delegating

Leadership Styles v Directive v Autocratic v Consultative v Participative v Facilitative v Democratic Transactional Transformational

Leadership Transactional Transformational v Position power v Control of resources v Top down decision making v Rewards/punishments v Male? v Personal power v Share power, information v Interactive, participative v Build self esteem, energise individuals v Visionary v Female? 17

Leadership v Traits – – – Intelligence Initiative and achievement drive Self-confidence Maturity People-centred v Behaviours – Task – People

A Leader shapes and shares a vision which gives point to the work of others 19

“Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘Who do we intend to be? ’ Not ‘What are we going to do? ’ but ‘Who do we intend to be? ’” —Max De Pree, Herman Miller

Ph. D. in Leadership - Short course v Make a short list of all things done to you that you abhorred. Don’t do them to others. Ever. v Make another list of things done to you that you loved. Do them to others. Always. ” — Dee Hock

Leadership Styles High Supportive Behaviour Supporting Coaching (Hersey, Blanchard) Delegating Directing High Low Directive Behaviour

Appropriate Styles Development Level Low competence High commitment Some competence Low commitment High competence Variable commitment High competence High commitment Appropriate style DIRECTING structure, control, supervise COACHING direct & support SUPPORTING praise, listen & facilitate DELEGATING turn over responsibility

Unit 2: Business And Performance Management

Unit 2 - Overview v What is business management and performance management? v Methods/models of planning and visualising a project v Praxis Task with the EFQM Excellence Model

Let’s Talk About Business! Please think about theses questions. Answer them and discuss your opinion openly in the group: 1. What is in your opinion business management? 1. What is in your opinion performance management?

If you can’t measure it, you can’t manage it!

Performance Management Is… 1 Managers evaluate employees Employees evaluate fellow employees “The management of employees, departments, and organizations to ensure that goals and objectives are being reached efficiently and effectively. Performance management involves defining what effective performance looks like, as developing the tools and procedures necessary to measure performance. ” see Investopedia. com 2017 http: //www. investopedia. com/terms/p/performance-management. asp Employees evaluate their managers Individual workers evaluate themselves

Performance Management Cycle 2

Performance Management Cycle 2 Objectives and indicators need to be SMART v Specify: clearly what is to be done, when it is to be done, who is to accomplish it and how much is to be accomplished. v Measurable: Ask questions such as: How much? How many? How will I know when it is accomplished? v Attainable: Assure there is reasonable path to achievement and feasible odds that you will get there. v Realistic: The objective needs should match the level of complexity with the employee's experience and capability. v Time-bound: Be clear about the time frame in which performance objectives are to be achieved.

Method: Performance Management Cycle 2 Phase 1: Plan e. g. Employee Performance v The employee’s job description reflects the work that the employee is currently doing? v Identify and review the links between the employee’s job description, work plan and the organisation’s goals, objectives and strategic plan v Develop a work plan = to evaluate performance

Method: Performance Management Cycle 2 Phase 1: Plan (cont‘d) e. g. Employee Performance v Identify 3 -5 areas to be key performance objectives for the year v Identify training objectives (skills, knowledge, and competencies) v Identify career development objectives long-term career planning v Employee and manager sign off a proposed work assessment plan v Collaborative effort involving managers and employees

Method: Performance Management Cycle 2 Phase 2: Monitor e. g. Employee Performance v An effective performance management system must be continuously monitored v No Monitoring (micro-manage) of day-to-day performance Focus their attention on results achieved During this phase, the employee and manager should meet regularly to: v Assess progress towards meeting performance objectives

Method: Performance Management Cycle 2 Phase 2: Monitor (cont‘d) e. g. Employee Performance v Identify barriers accomplishing performance objectives v Share feedback on progress relative to the goals v Identify any changes required to the work plan as a result of a shift in organization priorities v extra support to assist the employees objectives

Method: Performance Management Cycle 2 Phase 2: Monitor (cont‘d) e. g. Employee Performance v Continuous coaching v Providing feedback: v. Prepare v. State the facts v. Listen v. Agree on an action plan v. Follow up

Method: Performance Management Cycle 2 Phase 3: Review e. g. Employee Performance v The performance assessment or appraisal meeting is an opportunity to review v Self-assessment is a standard part of most performance appraisals using the performance plan and assessment form as a guide v Managers should review their performance management notes and documentation generated throughout the year v Only discussed issues should be part of the assessment documentation and meeting

Method: Performance Management Cycle 2 Phase 3: Review (cont‘d) e. g. Employee Performance v In the performance assessment meeting: v. Summarize the work accomplished during the previous year relative to the goals (key results, accomplishments, shortfalls) v. Document challenges encountered during the year identify areas for training/ development v Employee and supervisor should sign off on the form v Employee receives a copy of the assessment form v Avoiding bias or assessment errors

Method: Performance Management Cycle 2 Phase 3: Review (cont‘d) e. g. Employee Performance v Some common biases include: v Halo effect: tendency to form a generalized positive impression of an employee rating the employee highly v Horns effect: opposite of the halo effect with a general negative impression of an employee resulting in artificially low ratings v Central tendency: tendency to evaluate most employees as "average" when applying a rating scale. v Leniency bias : tendency to be more lenient than his or her peers v Same-as-me: tendency to rate employees who are perceived to be similar to the manager more favourably than employees who are dissimilar

The 5 Step MBO Process 3

The 5 Step MBO Process 3 v Managers are expected to apply a range of performance systems = help the effective functioning of the organization v An MBO system calls for each level to identify the goals for every responsible area v Goals are shared with individual units Shared targets guide individuals in fulfilling their role v The role of the management now is to monitor and evaluate performance focus on future rather than on past

The 5 Step MBO Process 3 v Important aspect of the MBO approach agreement between employees and managers regarding performance which is open to evaluation v Principle: Employees are involved with the goal = more likely to fulfill their responsibilities link between organizational goals and performance targets

Graphic Scale Rating 4

Graphic Scale Rating 4 v Graphic rating scale perhaps the most popular choice for performance evaluations v Type of evaluation lists asks the source to rate the individual on each attribute v Discrete scale is one that shows a number of different points v Ratings can include a scale of 1– 10; e. g. excellent, average, or poor; or meets, exceeds, or doesn’t meet expectations v Continuous scale shows a scale and the manager puts a mark on the continuum scale that best performance

Business Management Is… 4 Taking decisions Multidisciplinary “Managing a small business effectively is a sure path to growth and success. ” Goaloriented A Process A Science Brings life to organisation Multi-faceted see My. New. Company. com 2017 https: //www. mynewcompany. com/aboutus. htm Influenced/ influences environment

Total Quality Management – Video 5 Watch the Video TQM/ Total Quality Management Lecture/ Animation Video https: //www. youtube. com/watch? v=gw. Hngq 4 Bw 0 w

The European Foundation For Quality Management 6 1 2 3 4 5 6 7 8 9

The European Foundation For Quality Management 6 Watch the Video EFQM Introduction https: //www. youtube. com/watch? v=Ijfa. Qf_yog. U

Over to You! Please read the company profile of “Exceptional” and consider in your group, which facts of the company fit to the 9 criteria of the EFQM Excellence Model. For example: Consider what is the product/service and product process of the company?

Unit 3 - Time And Project Management

Time Management for CCI Entrepreneurs 7 Less stress “The process of organising time management and planning how to divide your time between specific activities. ” Get more done Less Friction see Mindtools. com 2017 https: //www. mindtools. com/pages/article/new. HTE_00. htm Less Problems Improve Reputation More time where it matters

Good Time Management 7 …helps people to organise their life and their work efficiently . . . helps when time is tight and pressure is high Good time management. . . lets you do more in the same time . . . helps you to decide when to say “no”

Bad Time Management 7 …damages effectiveness. …causes stress. Bad time management …has an unrealistic awareness of time. …is indicated by you always postponing appointments or tasks.

Tasks Of CCI Entrepreneurs 7 Networking Creating new products Planning and gathering information Controlling Addressing the costumers Examining alternative actions Motivating Producing creative ideas Offering services Communicating Dealing with financial issues Leading teams and groups Organising Taking responsibility for the employees

Need For Time Management 7 Need for: Problem: In CCI it is really challenging to do all theses tasks efficiently. Time Management which means Task Management

Priority Matrix High Importance High Urgency Low Importance Activities Crises Deadline driven projects Pressing Problems Activities: Planning Relationship building Training Activities Interruptions, some calls Some meetings Popular activities 1 3 4 2 Activities: Trivia Some Mail Time wasting colleagues The majority of time is spent in boxes 1, 3, and 4. Through the prioritising of tasks you can spend more time in box 2. Eisenhower’s Principle

80/20 Rule Of Time Management v Small-business owners waste a lot of their time on work which does not create productive results or results which don´t lead to a financial equivalent (example: running to get material or supplies which won´t be needed that much – office supplies). v The 20% Factor in Managing Your Time: v 80% of Our To-Do Lists Produce v 20% of Results

How To Deal With Time More Efficiently v In CCI creative processes are crucial. v It is important to plan 50 percent of your time for thoughts, activities and communication that produce your results.

How To Deal With Time More Efficiently v Check all your current communications, activities and tasks and record them in a schedule you carry with you for a week. v Find out which work focusses on productive results.

How To Deal With Time More Efficiently v Make sure that you can focus on your activities! v Block out distractions - Don´t use social media unless you use social media channels to generate business.

How To Deal With Time More Efficiently v 20 percent of your activities and thoughts will produce 80 percent of your results So you have to focus! v But plan interruption times. Schedule interruptions to be prepared for them.

How To Deal With Time More Efficiently v Don´t answer the phone just because it´s ringing. v Don´t answer emails just because they arrive. v Schedule time for this.

How To Deal With Time More Efficiently v Use appointment books. v Create appointments with yourself and keep all appointments. v Block high priority time.

Core Rules! v Creating a To-Do-List. v Setting personal goals. v Prioritize activities and tasks. v Manage distractions

Over to You! Create a first To-Do-List for your next week! Review and prioritize your activities and tasks. Write a number behind your tasks: 1 for very urgent, 2 for urgent, 3 for normal, 4 for not that urgent, 5 for no time pressure.

Unit 4 – Introduction to Business Management Tools and Resources

Unit 4 - Overview v Strategic Planning v Customer Relationship Management v Employee Engagement Surveys v Benchmarking v Balanced Scorecard v 5 Business resources you need to be successful

Top 5 Management Tools (1) Strategic Planning (2) Customer Relationship Management (3) Employee Engagement Surveys (4) Benchmarking (5) Balanced Scorecard

Strategic Management - Video Watch the video Overview of the Strategic Planning Process https: //youtu. be/s. U 3 FLxn. Dv_A

Customer Relationship Management v Customer Relationship Management (CRM) drives up customer loyalty and maximise cross-selling opportunities, customer profitability v Cheaper to keep existing customers than it is to acquire new ones v Data of CRM identify cross-selling and up-selling opportunities v Better understanding of customer life-time values and predictive customer trends

Employee Engagement Surveys v Most common way for managers to understand what their teams think v 92% of companies run employee engagement surveys v Traditional survey questions assess employees’ happiness and contentment v Three elements in the survey frame the improving employee performance: v. Understanding and connection to company goals v. A commitment to co-workers v. The right capabilities

Employee Engagement Surveys The Top 9 Employee Engagement Survey Questions Do you understand the strategic goals of the broader organization? Are you proud to be a member of your team? Do you have the appropriate amount of information to make correct decisions about your work? Do you know what you should do to help the company meet its goals and objectives? Does your team inspire you to do your best work? Do you have a good understanding of informal structures and processes at the organization? Can you see a clear link between your work and the company’s goals and objectives? Does your team help you to complete your work? When something unexpected comes up in your work, do you usually know who to ask for help?

Benchmarking v Process of comparing an organisation, operations, or processes against other organisations in a sector or broader marketplace v Benchmarking can be applied against any product, process, function or approach in business v Common focal points: measures of time, quality, cost and effectiveness and customer satisfaction

Benchmarking v The aim of benchmarking is to compare your own operations against those of your competitors. v Generates ideas for improving processes, approaches and technologies. v. Reduce costs v. Increase profits v. Strengthen customer loyalty and satisfaction v Benchmarking is an important component of continuous improvement and quality initiatives

Benchmarking Why Should Your Business Benchmark? v Process in the business can be strengthened. v Improving discrete areas of business and monitoring competitor's shifting strategies. v There a number of core drivers of benchmarking initiatives in a business. v The most common driver for benchmarking = internal perspective: v a process can be improved v collect data of performance at different points in time under different circumstances = identify gaps

Balanced Scorecard (BSC) v BSC is a strategic planning and management system v It helps to improve organisational performance by: vfocusing on strategy and results vfocusing on drivers key to future performance v It helps business owners to view the performance of their business from 4 perspectives.

Balanced Scorecard (BSC)

Balanced Scorecard (BSC) The 4 questions of the BSC v Financial: What must we do to create sustainable economic value? v Internal Business Process: To satisfy our stakeholders, what must our levels of productivity, efficiency and quality be? v Learning & Growth: How does our employee performance and management system support high performance? v Customer: What do our customers require from us and how are we doing according to those requirements?

Balanced Scorecard (BSC) Perspective Generic Measurements Financial Return of Capital Employed Economic value added Sales growth Cash flow Customer satisfaction Retention Acquisition Profitability market share Internal Business Process Innovation (customers‘ future needs) operations (quality, cycle time & costs) post sale service (warranty) Learning & Growth People (employee retention, training, skills, morale) Critical real time information

Business Resources 5 Business resources you need to succeed to start a business 1) Financial Resources v This is the most important resource in starting a business v Finance can be obtained from a variety of resources: loans, lines of credits, relatives, private investors, private and public sources

Business Resources 2) Human Resources v The success of a business depends on the talent and strength of its employees. v Hiring experienced employees ensures missions and goals will be reached. v Find employees through trusted referrals or executive recruitment firms

Business Resources 3) Educational Resources v Here you should aim to gain as much education as possible. v It will lead to you having a better understanding of competition and gaining an in-depth knowledge of your sector. v With increased knowledge, you will be able to make smarter decisions and direct the firm where it needs to go.

Business Resources 4) Physical Resources v You need to have the appropriate physical resources to survive v These include: workspace, telecommunication, adequate information system etc.

Business Resources 5) Emotional Resources v Helps you to maintain your sanity and stay motivated v For this, you need a person that inspires you, such as a friend, family member, mentor, professional group, etc.

References 1) Performance Management http: //www. investopedia. com/terms/p/performance-management. asp 2) Keeping the right people http: //hrcouncil. ca/hr-toolkit/keeping-people-performance-management. cfm 3) Communication Theory http: //communicationtheory. org/management-by-objectives-drucker/ 4) Graphic Rating Scale http: //open. lib. umn. edu/humanresourcemanagement/chapter/11 -2 appraisal-methods/ 5) TQM/ Total Quality Management Lecture/ Animation Video https: //www. youtube. com/watch? v=gw. Hngq 4 Bw 0 w 6) EFQM Introduction https: //www. youtube. com/watch? v=Ijfa. Qf_yog. U

References 7) What Is Time Management? https: //www. mindtools. com/pages/article/new. HTE_00. htm 8) How Good Is Your Time Management? https: //www. mindtools. com/pages/article/new. HTE_88. htm 9) How to Manage Time With 10 Tips That Work https: //www. entrepreneur. com/article/219553 10) Project management http: //searchcio. techtarget. com/definition/project-management 11) What is Project Management? https: //www. pmi. org/about/learn-about-pmi/what-is-projectmanagement 12) The Hub of the Wheel http: //www. ccaps. net/newsletter/10 -06/art_3 en. htm

References 13) Overview of the Strategic Planning Process https: //youtu. be/s. U 3 FLxn. Dv_A 14) The Top 5 Management Tools In The World https: //www. linkedin. com/pulse/20130729060735 -64875646 -shhh-the-top-5 management-tools-in-the-world 15) The 9 Questions that Should Be in Every Employee Engagement Survey https: //www. cebglobal. com/blogs/the-9 -questions-that-should-be-in-everyemployee-engagement-survey 16) Benchmarking Overview, Practices and Approaches in Business https: //www. thebalance. com/overview-and-examples-of-benchmarking-inbusiness-2275114 17) The Balanced Scorecard Approach https: //de. slideshare. net/timadams 2323/balanced-scorecard-presentation 1068670 18) 5 Business resources you nee to succeed to start a business http: //smallbusiness. chron. com/5 -resources-need-succeed-start-business 23. html

References 19) Goffee R. and Jones G. (2000) Why should anyone be led by you, Harvard Business Press – www. whyshouldanyonebeledbyyou. com 20) Buckingham M, Coffman C, (2001) First Break All The Rules: What the World’s Greatest Managers Do Differently, Simon & Schuster 21)https: //www. 12 manage. com/methods_blanchard_situational_leader ship. html 22) Covey S, (2004) The 7 Habits of Highly Effective People, Simon & Schuster