All too often, management tendencies create a negative impact on businesses. Business management is challenging and complex, and unfortunately many companies jeopardize valuable opportunities as they repeat the same preventable mistakes.
While poor managerial decisions are inevitable from time to time, issues of errors and omissions are prominent. The good news is that preventative measures can be taken to avoid common mistakes that could have otherwise resulted in a financially devastating scenario.
Ignoring Sales and Marketing
When things get busy, sometimes sales and marketing efforts get left behind. However, when things begin to slow down, the company may realize that it does not have additional revenue lines waiting to pick up slack.
It is recommended to maintain strong relationship-building efforts, regardless of prevailing business climate. Target audience should be frequently updated and educated on new products, services and industry developments.
Many managers have the urge to micromanage their employees as they may feel a deep sense of connection with the business and hold the assumption that others are not willing to complete tasks with the same level of care. This belief tends to inhibit the potential of the employee and which can ultimately negatively affect productivity, aptitude, engagement and progress. It is important that employees are allowed and encouraged to reach their full potential.
Failing to Understand the Financials
Lacking basic understanding of a profit and loss statement, balance sheet and cash flow analysis can be quite risky. Expenditure-related decisions enacted without a clear understanding of the financial consequences can be devastating. Monitoring sales and profits should be a priority, but understanding cash flow trends must be the top focus.
Lack of Accountability
Accountability is a difficult concept for many managers to understand and properly practice. Disputes come about when expectations and support have been poorly established. Prior to addressing performance issues, team members should be equipped with the tools and training required to successfully complete their assigned tasks. All goals should be clearly defined and attainable.
Failure to Delegate
Poor delegation generally stems from lack of trust in subordinates, fear of creating a perception of laziness and risk avoidance. Effective delegation benefits the employee, organization and manager by increasing employee morale, and therefore quality of work.
Displaying a Negative Attitude
It’s natural to be worried if your company is experiencing financial difficulty, but it is not good to allow these worries to put a damper on company culture, as this will only breed fear and apprehension.
Showing confidence will foster a team-oriented environment. Team dynamics should also encourage members to give suggestions for change.
Lack of Sufficient Planning
Overcoming constant hurdles in a small business often puts unnecessary stress on employees and management alike. Develop clear short- and long-term plans will help business flow in a positive direction and avoid many pitfalls.
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