The reason the system is portrayed by 5 interlocking cog wheels is because the system is all connected. One part cannot function without all the other parts being in place. If one wheel stops moving, meaning one part of the system is not in place or activated, then  the whole system stops working, stops running smoothly! The system is lubricated and becomes a well oiled machine when a supportive and empowering leadership and management methodology is implemented.  For more about our principles on management go to our blog or click here.

 

People and Positions - The Right People in the Right Positions. Your staff are one your most valuable assets not found on your balance sheet. They are far more valuable if they are the right people for the job!  They must have the CPR level that meets your needs. CPR Level stands for Connection Level (People that connect with your unique values) Passion Level (People that are passionate about that job) Resource Level (People that have the resources of experience and expertise to perform at a high level for that job.)

 

The Right People - These are employees who align with your unique values and have not only the credentials to do the job, but they also understand who you are as a company; meaning, they are passionate about working there and they have the knowledge and experience to perform in their role.

 

The Right Position - People that not only share your values, are passionate and have the capabilities to do the work but they also are wired and gifted to function in that Position. For example, it is one thing to have experience as a manager, to understand what it takes to operate as a successful manager, but if a person is just not wired to lead and manage they will never truly excel at managing.

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Vision and Values - Vision gives direction and values give purpose. Where are you going in the next 8 years, 3 years or in the next year? What makes your company unique? What do you value?

 

Your Unique Vision speaks to how you see yourself AND to where you're going. It is the unique you, how you are set apart from your competition, it is your niche! Without understanding your niche you can never truly reach your full potential. 

 

Your Vision sees where you want to go and where you are already going. To reach your full potential you have to set goals, specific goals. When you set goals, long term and short term, you have something to shoot for, now you can plan your strategy around how to reach those goals. Having goals also brings to light the hindrances to reach those goals. This is a good thing, you need to know what stands in your way. Setting goals also helps establish the metrics you need to reach those goals, ultimately providing clear metrics for each department and employee.

 

Your Unique Values convey why you do what you do? Every company needs to understand what they truly value. What do they want their culture to be like? Do you value honesty? Hard work? Creativity? Enthusiasm? By understanding what your unique values as a company you can use that benchmark to hire, fire, review and reward your staff appropriately. They also tell your customers who you are.

 

Process and Procedures - Every company needs to understand and document their Unique Process for every department (Sales/Marketing, Operations, Finance and Admin), and the Underlying Procedures that drive those processes. This is the only way to get your company running smoothly. These Unique Processes and Underlying Procedures make up who you are as a company and give clarity to every employee's responsibilities for their position.

 

Unique Processes are those high level actions that you want to make happen to reach your goals. For example a Unique Selling Process that my previous company had was to always deliver quality products that met or exceeded the given specification, delivered on time every time. 

 

Underlying Procedures are the steps that need to happen in order to fulfill each process. In the example above, in order to complete that process we had to test the product before it was shipped. We had to ensure we had appropriate stocking levels of both raw materials and finished goods. We had to be in close contact with our customers so we could better predict when they needed product, etc.

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Data and Direction - Data provides you with key metrics (not found in financials) on a daily or weekly basis so you can be proactive in fixing things rather than reactive after the financials come out. For example the percentage of leads that are converted to sales, cash flow metrics and operations metrics like on-time shipments. This key data tells you if you are headed in the right direction toward your goals, toward your Unique Vision! These data points are linked to the metrics that were established by Your Unique Vision goals and the Unique Processes and Procedures required to hit those target goals.

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Communicate and Correct - Communication through effective meetings means those meeting solve problems. It’s key to have weekly, quarterly and annual meetings in each department of the company. There is evidence that shows that "companies with a highly engaged employee population turned in significantly better financial performance (a 5.75 percent difference in operating margins and a 3.44 percent difference in net profit margins) than did low-engagement workplaces.” (From Manager Redefined written by Thomas O. Davenport, Stephen D. Harding and Towers Watson)

 

Communication includes conducting regular meetings on the same day and at the same time each week. They need to start on time, end on time with a standardized printed agenda. Consistent engagement with employees, providing quality and empowering feedback is proven to be more profitable compared to companies who do not communicate purposefully.

 

Correction happens when those meetings solve problems, so time spent is not just discussing current progress but is accomplishing something by solving current issues.