Business management and car: what the general?
have Company management much in common with driving. As process of management of the car is intuitively clear to all, on this example it is easy to understand logic of a business management.
driving Purpose: to transport a payload from point A in point B. The company management purpose - to transfer a financial condition of her beneficiaries from point A to point B. Driving is exercised of turns of a wheel that for the company corresponds to orders of the management; pressing of the accelerator pedal that corresponds to additional investments; and brakes that corresponds to insurance of risks. Besides the driver is obliged to follow traffic regulations that corresponds to performance of laws of the state, to consider laws of physics (for example, to reduce speed on turns) that corresponds to the accounting of laws of the market, has to watch closely actions of other participants of the movement that corresponds to monitoring of actions of competitors, suppliers, consumers.
It is necessary to fulfill requirements of traffic police and to be able to agree with her employees that corresponds to interaction with tax specialists and the other controlling organizations. It is necessary to have the valid rights, the registration certificate, the power of attorney that corresponds to an order in accounting reports of the company. It is also necessary to support the car in technical serviceability that corresponds to serviceability of work of technical resources of the company (transport, machines, shops, etc.) . It is also not necessary to forget about control of fuel reserves (free funds of the company) and oils (personnel resources).
Respectively, the solution of problems of the company is similar to the solution of problems of driving. If the car works regularly, just came around somewhere not there (far from the planned point B), so incorrectly “drove“, not there turned, not on those streets went. Perhaps, incorrectly laid a route.
It is necessary to learn the road, to reconstruct a route, to be developed and go in the necessary direction. Either the good knowledge of the road, or existence of the detailed map or GPS - the navigator allows to avoid this mistake. For company management it corresponds to the wrong administrative decisions which led to an adverse financial situation. The incorrect route corresponds incorrect business - to the plan, and the card and the navigator - business - to strategy and consultants.
If the car goes to the purpose, but too slowly, so the high-speed mode is incorrectly chosen that corresponds to insufficient investments. Or the driver presses on gas insufficiently, or excessively presses on a brake. I.e. or invests in production too little, or it is superfluous insures risks, holding down the movement of the company. However, the situation when the car gets stuck in a traffic jam that corresponds to the general adverse situation in this branch is possible or some the swagger - to major circumstances, or also bad navigation - is not present a stopper detour route.
At failures in work of the car, perhaps, it is necessary to change oil (to carry out personnel shifts) or an electrical wiring (channels of the movement of information) or to repair fuel system (the movement of monetary assets).