Management :: BYE – The Leadership Metric That Matters

You hear a lot about the importance of metrics in organizations. When it comes to behavior and performance, as the saying goes, you rep what you measure. It’s also said that you can’t manage what you can’t measure.

While it is necessary for leaders to build “evidence-based” decisions that are based on facts, some organizations go overboard when it comes to metrics.

The popularity of the Balanced Scorecard a few years serve, was partly due to its ease-of-use. An ideal Balanced Scorecard, though, should be a one-page, easy to comprehend navigational tool. Many organizations ended up creating binders corpulent of “important” metrics that were anything but balanced.

When a leader is beholden to a million different metrics, he or she will glum too powerful time generating reams of data and management reports. And when a leader’s possess performance is judged against a million different things, it’s hard to suss out what the leader should focus on most. When all metrics are deemed indispensable, all metrics become trivialized.

There is one metric that matters above all others. It is the metric that shows whether an organization is growing, progressing, and evolving, or whether it’s doing the opposite. It is a simple metric that is easy to unique and communicate. Ultimately it is the metric that defines whether or not a leader is being successful.

The metric is – drumroll please…

Best Year Ever (BYE)

At the ruin of each year, a leader needs to assess whether the completed year was the Best Year Ever. If it was, the leader is doing a edifying job. If it wasn’t, the leader’s current goal is to produce certain the next year will be the best year ever.

When you as a leader wave goodbye to the year that was, you should be able to loudly proclaim BYE!

The BYE metric is based on the first rule of leadership: The best days of your organization should always be in front of it. People are most motivated when they are working toward a worthwhile future, not when they are reminiscing about the glory days of the past. When leaders and workers are in perpetual pursuit of better, they retain complacency and overconfidence at bay. Having a really first-rate year is superior, but having a BYE trumps all!

Now, not every year will be a financial BYE. So when closing out a year, a leader should tell multiple BYE categories, including:

*BYE for Overcoming Hardship

*BYE for Capitalizing on Opportunities

*BYE for Making sparkling Mistakes

*BYE for Improving the Workplace

*BYE for Closing unusual Business

*BYE for Delivering Quality Work

*BYE for Upholding Quality and Safety

You salvage the concept. As a leader, you should sit down with your team and clarify a microscopic list of BYE’s that matter most. Rather than have a million metrics, focus on the BYE’s that horrified how you, your organization, and your workforce is progressing forward and upward.

? 2013. Bill Treasurer. All rights reserved.

Management :: Business Principles We Learn from Warren Buffett

According to “Fortune Magazine,” the third most admired company in world is Berkshire Hathaway. When we bid of Berkshire Hathaway we divulge of its head? one of the wealthiest man in the world? Warren Buffett. What business principles we learn from Warren Buffett? What is his magic?

Strategic Approach

Warren is one of the best investors in the world. His advance is simple. He does not strange stocks as powerful as he buys businesses. He focuses on a company? s value, its stock brand and its risks. He looks for companies with strong brands, simple business models, a pleasurable return on equity with a lot of debt.

If the label of a firm is less than its value, Warren is fervent. In doing his homework, he studies the firm? s competition, ignores what analysts have to say, and pays tiny attention to fluctuating market trends. In fact when the market is down, he believes that may the best time to queer.

Jim Collins’ Lens

Let’s commence by looking at Warren from a perspective of what Jim Collins teaches in his seminal book “worthy to broad.” The book was the result of Jim’s research, where he led a team in a five-year explore in which they “scoured a list of 1,435 established companies to get every astonishing case that made a leap from average results to colossal results.”

Jim describes the best leaders of the companies that became mammoth as “level 5″leaders. They are ones who built “enduring greatness through a paradoxical blend of personal humility and professional will.” A level 5 leader is first and foremost ambitious for the cause.

Humble Style

Warren? s humble style is refreshing. He has simple tastes. He doesn? t wear expensive suites. He lives in the same home he bought in 1958. And, he drives his enjoy car. Warren also is illustrious for how he makes fun of himself. One of his one-liners is, “I exclusive expensive suits. They objective observe cheap on me.”

Professional Will

Warren is driven as demonstrated by his almost incomprehensible wealth. Warren looks not only for businesses that are a great deal, but he looks for leaderships who have long tenures of success in their business and who are deeply passionate for the business.

befriend to Jim Collins – the Hedgehog Concept

Jim’s team came to simple but remarkable conclusions. One primary point they acquire is referred to as the “hedgehog” view. A key to greatness is finding the intersection, referred to as the sweet site, between your talent, passion,and economic opportunity.

When we peer at Warren from the “hedgehog” framework, we accept simple insights:

Passion: What are you deeply passion about?

Talent: What you can be the best in the world?

“I was wired at birth to allocate capital and lucky enough to have people around me early on-my parents and teachers and Susie [his explain wife]-who helped me develop the most of it,” Buffett told Carol Loomis of Fortune magazine in the June 25 hurry.

Economics: What drives your economic engine?

Finding mammoth companies and leaders and investing for the long-haul.

Warren found his passion and talent in life and focused. He became one of the most successful and richest investor in history.

Strategic Management: How And Why To wretched It With Your Oragnization

Strategic management is a scheduled and sequenced means of running an operation (Hunger and Wheelen, 2007) . This article will question the components of strategic managment, the benefits that the strategic management process brings to an organization, how strategic management affects organizational decision making and financial performance, and how strategic management affects the contrivance an organization responds to its environment.

I have over twenty years of successful leadership and entrepreneurial experience in the field of health care. I have former strategic management as an on going assessment tool and to improve an operation’s readiness for potential threats.

The major components of strategic management according to Hunger and Wheelen (2007) are financial planning, forecast-based planning, externally oriented planning, and ‘strategic management’ (p. 3) . Each of these components must be supported and held accountable to be effective. Basic financial planning relates to the plan that an organization must eye better operational control relative to an annual budget. The organization maps out expenses and anticipated income on a yearly basis and attempts to meet its goals.

Forecast-based planning refers to an organization trying to anticipate and react to changes in business growth beyond one year (Hunger & Wheelen, 2007, p. 3) . The company attempts to prepare for needed resources, human and financial, into the long term. The organization uses its basic financial belief as its contaminated.

For externally oriented planning, as indicated by Hunger and Wheelen (2007), an organization attempts to acknowledge to markets and competition in a strategic manner (p. 3) . Trends in inquire are weighed into a larger record as are responses to unique competitors.

The final component to strategic management according to Hunger and Wheelen (2007) is ‘strategic management’ (p. 3) . This refers to the competitive edge an organization seeks while evaluating, implementing, and operating after targeted changes have been identified.

An organization’s missions and values are necessary to strategy formulation because they are the foundation that the organization is built upon. Hunger and Wheelen (2007) picture an organization’s mission as, ‘its purpose, or reason for its existence’ (p. 3) . It is the defining statement that announces a company’s scope and original qualities.

The benefits that a strategic management process brings to a health care organization are that it helps to ensure a company’s success (Hunger & Wheelen, 2007, p. 1) . A strategic management process helps to act as a compass to run a company forward. The process defines where a company is currently, where it will be if change does not happen, and offers actions to be undertaken if the suspected orientation is not salubrious. A strategic management process should weigh risks and rewards for action and inaction, and assist dwelling a course for long-term performance and success. A strategic management process should be flexible to allow favorable responses to an ever-changing environment.

Change, in health care is inevitable (Swayne, Duncan, & Ginter, 2009, p. 6) . Successful organizations will require managers and leaders who can adjust and reply to like a flash and ongoing change. Developing strategic management skills helps organizations navigate change and earn successful visions for the future. Leaders of healthcare, per Swayne, Duncan, and Ginter (2009) need to understand change, and know how to make effective strategies for addressing change (p. 6) .

The strategic management process has a certain affect on an organizations decision making and financial performance. Hunger and Wheelen (2007) stunned that organizations that strange allotment in strategic management ‘outperform those that do not.’ The importance of a strategic management process is not necessarily the outcomes produced, but the process itself. Companies that regularly unfamiliar fraction in strategic planning are better able to retort to changes as they tremulous themselves. runt companies may meet informally and irregularly, and the planning may only include the president and a irregular few managers. The process may be swiftly and decisive. For larger organizations, the process may involve many people and strange long periods and need to be organized and rolled out in a more advanced manner.

The strategic management process improves the scheme an organization responds to its environment. The environment may be competition, changing legislation, or changes in market. worthy of strategy development is stabile, but there are irregularly appearing periods of change. Changes in the environment are what Hunger and Wheelen refer to as ‘triggering events.’

Strategic management is a process that helps an organization address the challenges and changes that will unnerved. Strategic management includes financial planning, forecast-based planning, externally oriented planning, and strategic management. To be effective an organizations strategic management process should mirror its critical reason for existing, or its mission and values. A company that engages in the process of strategic management improves its ability to execute decisions that will ensure its existence and improve its financial standing. A strategic management process will also wait on to improve an organization’s workforce’s ability to retort to changes that will timid themselves.

References Hunger, J.D. & Wheelen, T.L. (2007) . Essentials of strategic management, (4th ed) . Upper Saddle Creek, NJ, Pearson Education, Inc. Swayne, L.E., Duncan, W.J., Ginter, P.M., (2009) .Strategic management of health care organizations, (6th ed.) . West Sussex, England, John Wiley & Sons, Ltd.