Managing By Exception

In accounting, there is something called 'exception reporting', which means highlighting things that dramatically differ from plans, budgets or historical activity (or 'where data is not normal or not within expected parameters').  This basically means that it is assumed that everthing is working OK, but something has caused these difference, so they must be investigated. 

Good managers do not need to know the detail of every action in their business, just those that effect it, so, once the ideal conditions are in place (which can, in itself, take time) applying this principle to people/operational management can be a way to focus on those who will not or does not, enabling you to find out why not!!   Managers should only intervene when employees fail to meet standards of perfomance.

It is important that managers use their time wisely.  By employing exception management, it allows the business to be developed and grown.  For a small business, it does mean placing trust in your employees (letting go is one of the hardest things any one who has started a business from scratch can do), but, if you can't trust them to do their job in the first place, why did you employ them?


 

 

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Paul Kelly

I created group One Day Challenge on Linkedin.: http://t.co/WdgySgUi

by Paul Kelly Saturday, 28 April 2012 18:52

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