RM Online - A rerun: Mom and Pop's crash course in the basics of modern management

Last month I put this question to everyone: "Are you a manager?" and answered for you: "Yes. Everybody is a manager of something - manager of himself/herself, if nothing else. We need to drive management to lower and lower levels, so everyone takes ownership of that part of management within his or her responsibility."

We've had requests for our June 1998 editorial on the basics of modern business management, but back copies of that issue are long gone, so here are the broad strokes once again for all of you managers out there, whether you have the title "manager" or not. That editorial talked about the problems Mom and Pop were experiencing as their once-profitable, one-store operation grew to three stores and expanded beyond their direct, hands-on control. Things were coming apart: there were glitches in servicing, delivery, customer relations, personnel management, inventory, yard operations, communications and accountability. All three stores were losing rentals. The business was coming unglued. The editorial was titled "The consequences of success are driving Mom and Pop nuts."

It explained that Mom and Pop hadn't developed their management structure or refined their concept of management to keep up with the needs of a larger business. What worked 20 years ago wasn't working any more. It was high time for a crash course in the basics of management:

Span of control. Mom, Pop: narrow the span of control; have only managers reporting to you - then you can go to any manager and ask about anything under his/her control. Make reporting relationships clear.

Communication. Create a culture of communication. Nobody wants chaos, but chaos is what you get unless everyone communicates immediately and thoroughly with the appropriate people, so information flows continually through the whole organization.

Responsibility, accountability and authority. If you give people the responsibility for something and make them accountable for the results, you have to give them the authority to do it. There will be few dissatisfied customers or lost rentals if the person closest to the point of action has the authority to deal with the problem then and there. The counterperson who can deal with a situation instead of waiting until the boss gets back will save customers. The manager who can take charge without fear of being second-guessed later will strengthen the structure and build business. Accountability and authority ultimately build profits.

Training and employee development. Nobody can take on responsibility without the knowledge necessary to do the job well, and few can do anything really well without knowing the big picture - the why, not just the how: What are we really trying to do here? What problems are we trying to overcome? What's standing in our way? What opportunities are we trying to seize? How can I help?

"Ownership." When people start thinking like that, and when they know management encourages them to do so, they start "buying in" to the problems and opportunities and taking personal ownership of their part of the big picture. You can't put a price on the value of that.