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 KAZAKHSTAN International Business Magazine №1, 2005
 How to Efficiently Manage a Business
ARCHIVE
How to Efficiently Manage a Business
 
Mark DeEulio, Vanguard Management Systems, Inc. (USA)
 
Mark DeEulio has been involved in the business world all his life. As the son of a US entrepreneur, Mark grew up inside of several successful businesses and had first hand experience in the establishing and running of all phases of their operations. After mastering the construction trade in a few short years, Mark found his next challenge in the world of Communications and Management. Mark was a Communications instructor and an executive, training people from all walks of life the art and science of communication.
 
Later Mark became the senior consultant for the fastest growing and largest health care/dental consulting firm in the world. With revenues over $25 million, Mark led this firm as their top Management speaker and carved a niche in the industry that leaves him in demand still.
Today he is a leading speaker for several management training firms in the US as well as a sought after speaker for business conventions and meetings. 
 
He has spoken to well over 300,000 people all over the world, and is known as the top presenter of management technology today on many continents.
 
Communication and Effectiveness in Business
Supervising people may be the greatest challenge that any business owner or manager faces. There are so many different situations with employees that happen on a day to day basis, and there are so many human variables that a manager can become confused. This problem can cause a manager to become cynical about their own employees or worse yet become overly forceful with employees and attempt to drive performance with threats fear. This type of management will always produce limited performance and no matter how much control this type of manager seems to have, they will actually find the employees avoiding higher levels of performance due to spite.
 
It is 2005, a new millennium. A manager in today’s day and age must be an expert with communication and a real working knowledge of people. As any economy anywhere offers more people choices of work, those people will tolerate less and less the iron fist and harsh treatment of a manager. The truth is the manager must be the best communicator in the group as this is the person who is looked to for all the direction, planning and guidance from the people below. If this person creates an atmosphere that is anything less that clean clear communication, the messages are not heard. No different than if you are speaking to a friend on a mobile phone and the signal is not clear you will not want to speak with them very often. As the communication breaks down in a group, so does the efficiency and productivity of the whole group, and thus the business sickens and has financial problems.
 
In 23 years of dealing with businesses and managers, I have noticed that the businesses with income problems were also the same businesses that have managers who were poor at communication. Frequently these managers expected everyone to "figure everything out on their own" or the management would attempt to hire people who knew all about their industry. Although this seems like a good plan in theory, it is an avoidance of the real problem, poor communication.
 
I have found that the managers who are poor at communication also have the idea that their communication skills were in born and that they could not change these easily or in some cases at all. This is very far from the truth. I have found that the communications training available at a Hubbard College of Administration to be highly effective. I have literally sent thousands of people for this training and have instructed these courses myself and have seen the results. They are powerful because the training is not theoretical, but is a series of drills to literally develop the skills of communication. 
 
We could accurately say that if the business were a train, then the tracks that the train runs on is communication.
 
Now any executive will find once they establish good communication within their business, that they will get things immediately. The first will be more communication about problems in the employees below them. At first this may appear to be a bad thing, but this needs to be understood. If you create an environment where there is no fear about communicating the truth and there is a competent management, the employees will forward more communication not less. If they have been reluctant to mention problems because it was not safe, the manager who now has excellent communication skills will discover problems that they never knew they had. Discover is the key word. You are now uncovering the problems you have, which is a positive thing. Why? Because prior to this point these problems were not getting fixed. The second thing you will discover is that the employees will make a habit of using this new found communication channel to bring all the problems to you forever more. This will leave you wondering how you are going to manage because with many employees and a single manager, the problems can overwhelm.
 
Executive Tools
Most managers do not realize that there are exact executive tools that are to be used for exact situations. These tools have been in existence since 1965 when L. Ron Hubbard, American writer and engineer researched and codified the field of management and organization. This material and training is now available to anyone at a Hubbard College of Administration.
 
Without a technology that is precise, most managers see their business as a complex and confusing set of variables that seem to have no cause and no constants that can be isolated and controlled.
 
In the problem mentioned above where employees bring problems, the Hubbard Management Technology would instruct a manager to ask the employee to take some time to think about, (possibly research if necessary) and create a solution and present it to the management. This is a tool. Why? Two reasons. The first is the fact that this encourages the employee to take some responsibility and help the manager manage. Second, the business can expand without drowning the manger in problems and the need to make all the decisions. It only makes sense that the employee that is closest to the activity would have the most intimate knowledge of situations and therefore have the best ability to decide how to solve a problem. Too many managers have "trained" their employees to come to them with all problems and ask for solutions. Such managers never delegate really as all the decisions must go through them. These same managers are limiting the grow of their organization with this same style of management. 
 
Another management tool most managers are not aware of is how to manage by statistics. Without an objective management tool that keeps the management informed of what is happening, managers will resort to management by emotions, feelings, opinions, rumor, isolated incident, etc. None of these methods are scientific, accurate or effective. This is a brilliant part of the Hubbard Management System and is not to be confused with the simple action of reviewing statistics.
 
In the Hubbard System a person is trained to analyze the entire organization and determine what are the statistics that are meaningful in day to day and week to week management. Next the organization develops a statistical system that is fast and accurate for the management to see, use and analyze. Next the managers are trained how to detect the areas that is going to give problems as well as how to determine the strong points of the organization. This is what allows the executive who is trained in this system to create effective planning, far above the average manager.
 
In fact it has been my experience that mangers who do not know this management technology, are guessing what to do more than half the time as they do not have the real information as to what the organization is really doing.
 
I have personally witnessed the mistakes of executives who not knowing what to do to revert a down trend in their company, panic and decide to tighten the financial controls.
 
This is managing by emotion and as we all know, you would not want and airplane pilot in a crisis getting emotional while flying, the panicked executive is just as dangerous. He some times in big corporations has more lives at stake than the pilot!
 
This statistical system is also used at all organizational levels to bring accountability to specific jobs. By having employee keep statistics that measure production and performance, the employee is the first one to see how he is actually doing.
 
In this way he knows that either he is doing better or worse. The employee is required to turn these statistics in to his manager so the manager is well aware what the employee is doing. This system is not intended to "look over everyone shoulder" but to keep accountability in place.
 
There is a direct link between accountability and responsibility. Where people are not held accountable they can be found to be troublesome.
 
Organizational system
Still another brilliant discovery that is unique to only Hubbard Management Technology, is the 7 division organizational system. Around 1965, Mr. Hubbard was researching basic patterns of structure that would be universally true for all groups. After exhaustive research and study, Mr. Hubbard saw that all groups had a common denominator of 7 basic functions. The importance of this cannot be underestimated as when a group does not have all of these 7 divisions in full operation, they will have trouble and not grow.
 
One of the more important divisions is Quality Control and all of the functions in this division are oriented toward making the group's quality of service so superior, that the group would thrive.
 
Most groups when asked about their quality of service would like to believe that it is the best, but the actual truth is that most groups do not have an exact system to monitor their quality. When a group does not catch own mistakes and correct them, it will loose its customers and in most cases, not be aware that they caused the loss.
 
Another division that is fatal to not have organized is the communication division.
 
This is the division that ensures that data flow is fast inside and outside from the organization. It may seem unreal to most managers until it is spelled out, but the flow of services and income cannot go any faster that the flow of communication. With that said how many times have you concentrated on raising the income of your business, yet the speed of communication is actually the real target. Think about it the next time you are getting service yourself from a business. How fast do they handle communication and you will see what I mean.
 
All of these areas are important to know and none can be ignored.
 
So here is your first executive test–write down what you think are the universal seven basic divisions of an organization and see if you can guess them. Then go to your local Hubbard College of Administration to see if you got them right. And while you are there, get some executive testing and see what else you may not know.
 
There is an old saying, "What you don't know won't hurt you" but I am afraid that what you do not know is the thing hurts us all every time, especially in business.
     
"I think the old schools of management had their time in the sun. As I look over the challenges of today's small businessperson in the new global market place, there is no time or economy to use archaic methods or trial and error to run a business. Business planning and business people have to be effective, efficient and most of all quick to respond to both the needs of their organization and market.
 
Business owners and executives who do not have a full set of tools to manage with will not make it in today’s global arena.
 
Management technology is their answer.
 
I wouldn’t recommend skydiving without learning how to first pack your parachute, and I certainly would not recommend running a business without the proper tools and skills to determine its total success."
Mark DeEulio
 


Table of contents
Oil in the CIS: Economic and Sovereign Rating Implications  Special Report of Fitch Ratings Agency 
The Science of Selling  Harry Frisch, Michael Bang 
All People Are Different  Fatima Chapkhaeva 
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