.management tools

“…at some stage ‘entrepreneurship’ is not sufficient and the nature of the organization must change, together with the people who run it.” Eric Flamholtz “Growing Pains”

How well do you cope with the endless day to day problems in your business?  AND simultaneously keep an eye on it’s future direction? Both are critical.  However you will need the right tools to do both; the Tools of Professional Management.

In this case, I recommend that every entrepreneur use the following tools. My challenge to you is to review them. Then ask “How well is this being put to use in my organization?”  Commit to doing something about it if you are not satisfied with the answer.  In fact, that is the only way anything will change.

The Tools of Professional Management

Strategic Planning

This process is a critical resource for managing growth and development. It defines the company’s future direction and provides a focus for everyone’s efforts. At the very least, planning should include:

  1. Goals,
  2. Objectives, and
  3. Action steps to achieve goals.

Strategic planning helps employees start to understand the direction the company is taking.  Also their role in its development.

Organizational Structure

Structure defines how people perform productive work and help achieve the strategic plan.  Overall operating effectiveness and efficiency is impacted by the way people are organized in your business. This in turn impacts bottom line profitability. Is your structure planned or is it “ad hoc”?

Leadership Practices

This involves both day to day operations (operational leadership) AND the long term development of the business (strategic leadership). Ultimately, both are essential for long term sustainability and growth. The key outcomes of this tool are understanding and influencing other’s goal directed behaviors.

Management Development Systems

This is the process of building the present and potential performance capabilities of an organization’s managers. Increasing the effectiveness of managers can have immediate impacts on profitability. Specifically, development should focus at least on:

  1. Managerial skills,
  2. Attitudes, and
  3. Alignment of goals.

My recent work with a management team took their division from a trend of being in the red to the number one most profitable division in the company after 4 months.

Control Systems

These are the mechanisms designed to increase the likelihood that people behave in ways desired by an organization. The components should include:

  1. Objectives and goals from the strategic plan,
  2. Measurements,
  3. Appraisals and
  4. Rewards to reinforce performance.

Regularly scheduled meetings serve as a part of this system to monitor performance and provide feedback where appropriate. They also increase communication which is a vital part of the control system.


The first key for effective change is awareness. You must recognize that a new stage of your businesses’ life cycle has been reached.  And that the former mode of operation will no longer be effective. All things considered, with these tools your organization can be professionally managed.  This is true regardless of its size. Your future growth depends on it!


Do you want to see if the pains caused by ineffective or non-use of these tools exist in your organization? Click here to download the 10 most common problems.